Yesterday, the G-20 also discussed upsizing their IMF contributions. According to UK Chancellor, Mr Osborne, no amounts were mentioned, but there was broad consensus, including from BRICS, to boost the IMF’s funds amid the ongoing crisis. Any positive announcement along these lines will also provide some (temporary) relief to risk sentiment. However, UK PM Mr Cameron says the IMF cannot directly invest in the Euro rescue fund, so the exact nature of an IMF intervention, if any, remains to be confirmed.

8. Fiscal stimulus is undesirable because it hinders long-term recovery; not only by increasing the fiscal deficit, but because it is likely to widen the trade deficit and push up sterling. It also risks encouraging nominal wage rises and discouraging the required fall in service profit margins.

The Bank of England’s new supervisory arm should be given broad discretion to force banks to restructure or cut back their borrowing without having to point to specific rules, according to Sir Mervyn King, Bank governor.
Sir Mervyn told a joint parliamentary committee that the government plan to break up the Financial Services Authority and give a new subsidiary of the Bank responsibility for prudential regulation would only work if the UK changed its approach to supervising banks and insurers.

The proposed Prudential Regulatory Authority should “be able to say to a bank that your leverage has gone from 20 to 1 to 40 to 1. This hasn’t broken any rules but it is highly risky and we want you to change it,” Sir Meryvn said. “We want to be able to say that your degree of opacity is contrary to financial stability….The regulator has to be free to make judgements.”

NPDC is aiming to operate all the blocks, with Atlantic acting as its service contractor, said sources, leaving the shortlisted suitors to join them under joint operating agreements.

Conoil was seeking operatorship of Block 30, the most sought- after asset, while other blocks were targeted by the Nekonde consortium, Niger Delta E&P — a company founded by Aret Adams, a former executive of the Nigerian National Petroleum Corporation (NNPC) — and Starcrest, associated with Nigerian oil mogul Emeka Offor.

“I feel great sadness for what has transpired at MF Global and the impact it has had on the firm’s clients, employees and many others.

“I intend to continue to assist the company and its board in their efforts to respond to regulatory inquiries and issues related to the disposition of the firm’s assets.” Corzine said.