GFMA: News on the global financial markets

IMF offers aid to solid countries facing risks from debt crisis
The International Monetary Fund updated its lending tools and rolled out a six-month liquidity line to help nations with strong policies that might face risks related to Europe's sovereign-debt crisis. The IMF wants to ensure liquidity is available to countries that haven't already been dragged into the crisis. Reuters(22 Nov.)

Germany rejects calls to do more to counter market turmoil
Bond yields in Spain, Italy and France increased as progress toward resolving the sovereign-debt crisis stalled. Investors, officials and other interested parties called on Germany to do more, but the European powerhouse indicated resistance to taking additional steps. "We don't have any new bazooka to pull out of the bag," said Michael Meister, finance spokesman for the Christian Democratic bloc. "We see no alternative to the policy we are following." Bloomberg(22 Nov.)

France's credit rating doesn't merit downgrade, Juncker says
Jean-Claude Juncker, chairman of the euro-zone finance ministers, said France's AAA credit rating should not be cut. "I don't believe that the rating of France should be downgraded. I can see no short- or medium-term reasons for doing so," Juncker said, responding to a Moody's warning.  

Regulatory Roundup

UK regulator says banks' attempts to alter rules could backfire
Robert Jenkins, a member of the UK Financial Policy Committee, warned that bankers' efforts to rein in regulations could prompt an even tougher crackdown. Financial Times(tiered subscription model)(22 Nov.), The Wall Street Journal(22 Nov.)

Commentary: Financial-transaction tax is unthinkable in UK
Financial services account for a significant portion of gross domestic product in the UK, making a tax on financial transactions unthinkable, columnist David Cottle writes. "Now, with growth slowing, debt reduction proving even harder than it looked and unemployment rising, it is absurd to even suggest it," Cottle writes. The Wall Street Journal/The Source blog(22 Nov.)