Gfma : News on the global financial markets
13/12/2011 GFMA- Other News
Spanish and Italian borrowing costs rise
after EU summit
The Wall Street Journal (12 Dec.)
France could overcome losing triple-A
rating, Sarkozy says
The Wall Street Journal/Dow Jones Newswires (12 Dec.)
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Many factors contributed to RBS failure, FSA
says
The UK Financial Services Authority released its report into the
collapse of Royal Bank of Scotland Group. The regulator blames bad
decisions by the bank and insufficient regulations and
requirements. The FSA also says supervision of RBS was flawed, but
the agency notes that RBS' failure prompted better regulation. "We
have probably moved into something more like the predominant model
in the world whereas previously we were a strong outlier on the
light side," said FSA Chairman Adair Turner. The Guardian (London)(12 Dec.), MarketWatch(12 Dec.), Reuters(12 Dec.), Bloomberg(12 Dec.), The Wall Street Journal(13 Dec.)
Analysis: Questions remain about quantitative
easing
The Bank of England and the Federal Reserve began purchasing
government bonds almost three years ago, and yet questions remain
about how such quantitative easing works. The Bank for
International Settlements suggested that QE might be subject to
diminishing returns in lowering yields. However, QE's usefulness as
a policy tool might beat concerns about its effects. The Wall Street Journal(13 Dec.)
- Other News
ECB reduced purchases of government bonds
before summit
Reuters (12 Dec.)
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Chinese banks' lending could lead to issues, source
says
Chinese banks continue to maximise lending, which could result in
more nonperforming loans, a source said. "It would be very hard for
the central bank to rein in banks' strong desire to lend," the
source said. "Banks should take responsibility for possible
nonperforming loans instead of seeking help from the government."
China Daily (Beijing)(13 Dec.)
Chinese regulator accuses company of market
manipulation
The China Securities Regulatory Commission pledged to crack down on
illegal trading. As part of that effort, the regulator accused
investment company Guangdong Zhonghengxin of manipulating the stock
market by orchestrating "pump-and-dump" schemes. CNBC/Financial Times(12 Dec.)