national-global

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A Goldman Specialty: Today was a morning of scattered financial coverage: the only story to be covered by more than one outlet is a Securities and Exchange Commission filing revealing that Goldman Sachs will launch a specialty finance company. The vehicle will use Goldman and investor money to purchase the high-risk debt of unrated midsized US companies, but don't call that prop trading – it's a business development corporation! And under the...

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Reopened: Cypriot banks reopened this morning, after being closed for nearly two weeks due to the country's financial crisis, but there are limits to what customers can do at their branches. Per the Post, cash withdrawals will be limited to 300 euros ($383) per person a day, transactions with other countries will be capped at 5,000 euros and those travelling won't be able to take more than 1,000 euros (as well as...

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Good Euros and Bad Euros: The accomplished fact of losses for large depositors to resolve Cyprus' insolvent banks rippled through markets, newspapers and the commentariat. German Chancellor Angela Merkel's hard line against the offshore banking haven prevailed, but fresh worries that depositors in other countries with weak banks might flee reinvigorated doubts about the viability of the euro. An interview in the FT with Eurogroup President Jeroen Dijsselbloem was a focal point....

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Fearing a Minsky Moment: The more stable financial markets appear, the more unstable they're becoming. Until a crisis — or Minsky moment — hits, that is, when everyone rushes for the exit simultaneously. Such a moment appears to be on the minds of banking regulators these days. They warned on Thursday about the dangers lurking in the booming market for loans to struggling companies. The controls and quality checks applied by lenders...

Receiving Wide Coverage ... Freddie vs. Banks Over Libor: Freddie Mac is suing more than a dozen banks and the British Bankers Association, alleging it incurred substantial losses as a result of Libor-rigging. The alleged losses are related to swaps transactions and mortgage securities the GSE had linked to Libor. The suit claims the BBA participated in the rigging "to protect revenue it generated from selling Libor licenses and to appease the banks that were on...