Posts from Friday Jul 13 2012

The Weekender

This week on FT Alphaville,

- The ECB’s zero deposit rate still loomed over markets from the week before. Scary. Read more

Student Loan In-securities

As the topic of student loans has been gaining momentum this election year, it might be worth taking a moment to examine some not-so-rosy points about the whole business.

First some background. In the world of US student loans, Uncle Sam reigns supreme. A recent research note by Credit Suisse noted that since the abolition of the Federal Family Education Loan Program (FFELP) in 2010, the government has become owner of an estimated 88% of total outstanding student debt. Read more

Libor, a New York Fed doc dump

Click pic for the full list of documents. Some are official reports on Libor, while others  - such as the excerpt below – are the NY Fed talking to Barclays traders…

FR: Hmm. Read more

The pictorial Funding for Lending

 Read more

The Bank gets proactive…

Has the Bank of England been reading Chris Giles?

With the press looking to work up a decent Fed angle to the Libor furore, Britain’s central bank has just gone ahead and published correspondence between Sir Mervyn King and Tim Geithner, then president of the NY Fed, along with Paul Tucker’s related correspondence with the BBA. Read more

‘CIO Risk Management was ineffective in dealing with Synthetic Credit Portfolio’

It’s JPM’s CIO Task Force update and it’s a fun read. Click through the pic for the full document and then get on to ML:

US Markets Live transcript 13 Jul 2012

Live markets commentary from FT.com 

US Markets Live, Jamie beaches the Whale special edition

An earnings Q&A which the entire finance world will be tuned into, $4.4bn of dollars in losses, a Q1 restatement — and a chance to watch Jamie Dimon get grilled yet again.

A clarion call for a special edition of Markets Live, we think… Read more

JPMorgan Whale loss $4.4bn, *restates* Q1

*JPM $4.4B PRETAX LOSS FROM CIO TRADING LOSS

*JPMORGAN 2Q EPS EX-DVA $1.09, EX ALL GAINS 67C, EST. 76C Read more

China doubles down on imbalance

Here’s a quick round-up of the data out of China on Friday:

- Q2 GDP growth was in line forecasts: Reuters‘ poll had 7.6 per cent while Bloomberg‘s had 7.7 per cent. Read more

Markets Live transcript 13 Jul 2012

Live markets commentary from FT.com 

Nama and El Nama

How far will Spain’s bad bank be like Ireland’s?

There’s a superficially similar structure. Read more

The (early) Lunch Wrap

Good morning New York…

FT ALPHAVILLE Read more

“We need to get to the bottom of this scandal and I’m therefore setting up my own inquiry into this dreadful mess”.

So says John Mann, the fiery MP for Bassetlaw who’s been hurling the invective at Barclays and Bob Diamond of late.

He’s now fuming that he and fellow member of the awkward squad Andrea Leadsom have reportedly been left off the grand British parliamentary Banking Enquiry being led by treasury select committee head Andrew Tyrie. Read more

Concessional in Spain

Lend at low rates, for a long term.

It’s one way Spain’s official creditors could believably renounce seniority in the bailout. Concessional loans would make it easier for Spain to refinance its debt stock as a whole, improving bondholder recovery, while recapitalising its banks. ArguablyRead more

Further reading

Elsewhere on Friday,

- Is China doing worse than headline GDP growth suggestsRead more

The 6am Cut London

China’s GDP growth fell to 7.6% in Q2, its slowest rate since early 2009. The number was in line with analysts’ expectations, however loan data for June was better than expected. (Financial Times) Further complicating the picture was an increase in fixed-asset investment growth, while electricity output growth fell sharply. (Bloomberg)

Asian shares rose on the Chinese loan data, breaking a six-day losing streak. Hong Kong’s Hang Seng index and China’s Shanghai Composite index each advanced 0.6%. (Financial TimesRead more

Moody’s cuts Italy two notches

Moody’s left Italian sovereign debt two notches above junk on Friday, after downgrading it from A3 to Baa2.

The rating agency cited “signs of an eroding non-domestic investor base” for Italy’s bonds. Read more