ECB keeps interest rate at 1 pct AP (July 02, 2009) LUXEMBOURG (AP) - The European Central Bank left its benchmark interest rate unchanged at 1 percent as it waits to see whether a massive infusion of credit into the banking system will help the euro zone's struggling economy.
Judge revokes bond for Texas financier Stanford AP (July 01, 2009) HOUSTON (AP) - Texas financier R. Allen Stanford could spend up to the next year in jail awaiting his trial on charges he allegedly swindled investors out of $7 billion.
Pending home sales up 4th straight month in May AP (July 01, 2009) WASHINGTON (AP) - A private group says pending home sales rose in May for the fourth straight month, fresh evidence that the housing sector may be recovering.
Japan's Shinsei and Aozora Banks agree to merge AP (July 01, 2009) TOKYO (AP) - Japan's Shinsei Bank Ltd. and Aozora Bank Ltd. - two money-losing midsize lenders with major U.S. stakeholders - have agreed to merge, the companies said Wednesday.
Citigroup sells NikkoCiti Trust to Nomura Trust AP (July 01, 2009) TOKYO (AP) - Nomura Trust and Banking Co. is acquiring NikkoCiti Trust and Banking Corp. from Citigroup Inc. for 19 billion yen ($196 million) as the U.S. financial group scales back its Japan business.
Business confidence in Japan improves slightly AP (July 01, 2009) TOKYO (AP) - Japanese companies remained deeply pessimistic even as a central bank survey showed their confidence improving from record lows, suggesting the world's second-largest economy is crawling rather than sprinting out of recession.
Morgan Stanley, Mitsubishi UFJ to form finance JV AP (July 01, 2009) TOKYO (AP) - Mitsubishi UFJ, Japan's largest bank, and Morgan Stanley said Wednesday they will form a joint venture to pursue corporate financing business in the U.S., Canada and Latin America.
SEC considers rules on pay disclosure, TARP firms AP (July 01, 2009) WASHINGTON (AP) - The Securities and Exchange Commission is debating proposed rules that would require firms that have received government bailouts to let shareholders vote on executive pay.
Economist: Midwest economy shows improvement AP (July 01, 2009) OMAHA, Neb. (AP) - A survey of business leaders in nine Midwestern and Plains states suggests that the region's economy continues to show signs of improvement, but job losses persist.
Freddie Mac receives additional $6.1B from gov't AP (July 01, 2009) NEW YORK (AP) - Battered mortgage giant Freddie Mac received $6.1 billion in new funds from the Treasury Department to help offset its mounting liabilities, according to a regulatory filing submitted Wednesday.
Small crowd gathers for AIG annual meeting AP (June 30, 2009) NEW YORK (AP) - Shareholders are getting a chance to voice their opinions on American International Group Inc.'s future at the embattled insurer's annual meeting.
Taiwan opens door for Chinese investment AP (June 30, 2009) TAIPEI, Taiwan (AP) - Taiwan has opened up key parts of its manufacturing and service sectors to Chinese investment as another barrier falls between the once bitter foes.
Protesters demand mortgage help from loan firms AP (June 30, 2009) PHILADELPHIA (AP) - Protests are planned in more than a dozen cities across the country to demand that a group of mortgage companies who benefited from federal bailout money participate in a government program designed to prevent foreclosures.
SEC wants financier's assets frozen before trial AP (June 30, 2009) LOS ANGELES (AP) - The Securities and Exchange Commission is seeking to permanently freeze the assets of a California financier accused of bilking investors until his fraud trial is over.
Obama: consumer agency to enforce financial rules AP (June 30, 2009) WASHINGTON (AP) - President Barack Obama says his new Consumer Financial Protection Agency will protect Americans from unscrupulous practices and make financial products easier to understand.
Home prices post 18.1 percent annual drop in April AP (June 30, 2009) NEW YORK (AP) - There is a clear trend home prices declines are moderating - another sign the beleaguered housing market is stabilizing, according to data released Tuesday.
World stocks awaiting economic recovery clues AP (June 30, 2009) LONDON (AP) - European stock markets fell modestly Tuesday ahead of an expected subdued open on Wall Street as investors awaited key data later this week for more clues about the speed of any potential recovery.
Attorneys await decision on Stanford's bond AP (June 30, 2009) HOUSTON (AP) - Attorneys for Texas financier R. Allen Stanford are hoping a federal judge will side with them and allow their client to be free on bond while he awaits trial on charges he swindled investors out of $7 billion.
AP Source: 10 others to be charged in Madoff probe AP (June 30, 2009) NEW YORK (AP) - Authorities are pursuing charges against 10 more people in the Bernard Madoff financial scandal after the mastermind of one of the biggest financial frauds in history was sentenced to spend the rest of his days behind bars, The Associated Press has learned.
Agency slaps Citibank Japan with sales suspension AP (June 26, 2009) TOKYO (AP) - Authorities ordered Citibank's Japan unit to suspend all sales operations at its retail banking arm for one month after it failed to improve anti-money laundering measures that target crime syndicates and other shadowy groups.
Rising commodity prices boost European markets AP (June 26, 2009) LONDON (AP) - Rising commodity prices pushed European markets higher on Friday, but gains were trimmed ahead of an expected weak opening on Wall Street.
May incomes surge, but savings outpace spending AP (June 26, 2009) WASHINGTON (AP) - Households pushed their savings rate to the highest level in more than 15 years in May as a big boost in incomes from the government's stimulus program was devoted more to bolstering nest eggs than increased spending.
Geithner: administration pushing financial reform AP (June 26, 2009) WASHINGTON (AP) - Treasury Secretary Timothy Geithner said Thursday the administration will send legislative language to Congress in the next few days to create a consumer financial products agency, one of the key parts of its overhaul plan.
Accounting board's lobbyists stress independence AP (June 26, 2009) WASHINGTON (AP) - The rule-setting board for corporate accounting has a rocky history of bumping up against lawmakers often acting at the behest of powerful business interests. It has been criticized by some as spineless in the face of pressure from Congress.
BofA raises more than the $33.9B required by gov't AP (June 25, 2009) CHARLOTTE, N.C. (AP) - Bank of America says it has now bolstered its capital position by more than the $33.9 billion required by the government.
Economy dips at slightly lower pace in 1Q AP (June 25, 2009) WASHINGTON (AP) - The economy tumbled at a 5.5 percent pace in the first quarter, but appears to be doing better now, even though heavy layoffs persist.
Bernanke says he didn't pressure Bank of America AP (June 25, 2009) WASHINGTON (AP) - Federal Reserve Chairman Ben Bernanke told Congress Thursday he didn't pressure Bank of America into acquiring Merrill Lynch in a deal that ultimately cost taxpayers $20 billion.
AIG moves to spin off 2 units, reduce gov't debt AP (June 25, 2009) NEW YORK (AP) - American International Group Inc. said Thursday it will reduce outstanding federal loans by $25 billion by giving the government a preferred stake in two units that will be spun off from the insurance giant.
Indicted billionaire Stanford taken to courthouse AP (June 25, 2009) HOUSTON (AP) - Billionaire R. Allen Stanford arrived at a federal courthouse Thursday wearing handcuffs and leg chains as he faces charges of fraud and conspiracy related to allegations that he swindled investors out of $7 billion in an elaborate Ponzi scheme.
Global recession nearing bottom, OECD says AP (June 24, 2009) PARIS (AP) - The deepest global recession in over 60 years is close to bottoming out, but recovery will be weak unless governments do more to remove uncertainty over banks' balance sheets, the Organization for Economic Cooperation and Development (OECD) said Wednesday.
World markets steady ahead of key Fed statement AP (June 24, 2009) LONDON (AP) - World stock markets rose modestly Wednesday as investors looked for direction from the U.S. Federal Reserve's policy statement due later in the day.
Asia stocks rebound before Fed; Europe up slightly AP (June 24, 2009) HONG KONG (AP) - Asian stock markets rebounded moderately Wednesday as investors awaited the outcome of the U.S. Federal Reserve meeting later in the day. European markets were slightly higher.
Fed mulls tweaks to economic revival programs AP (June 24, 2009) WASHINGTON (AP) - With signs the economy is improving but still fragile, Federal Reserve policymakers are considering whether some programs intended to drive down rates on mortgages and other consumer debt should be slowed down.
Frank endorses consumer-protection agency AP (June 24, 2009) WASHINGTON (AP) - House Financial Services Chairman Barney Frank said Wednesday he supports the creation of a new government agency that would protect consumers from subprime mortgages and other high-risk financial products.
Citi boosting salaries to offset lower bonuses AP (June 24, 2009) NEW YORK (AP) - Citigroup Inc. is increasing base salaries for many of its employees - reportedly by as much as 50 percent for some workers - as it restructures its compensation program amid new restrictions on bonus payments.
Madoff lawyer seeks 12-year sentence for client AP (June 23, 2009) NEW YORK (AP) - Bernard Madoff's lawyer has told a judge scheduled to sentence the disgraced financier next week that 12 years in prison will be sufficient punishment for the man who swindled tens of billions of investor's dollars in one of history's biggest frauds.
AP source: Indicted billionaire headed to Texas AP (June 23, 2009) WASHINGTON (AP) - Billionaire R. Allen Stanford was expected back in Texas on Tuesday to face federal charges he ran a $7 billion swindle with his international banking empire.
CEO outlook index up from record low, still weak AP (June 23, 2009) NEW YORK (AP) - An index measuring the expectations of 95 CEOs from among the nation's largest companies showed an improved outlook from last quarter's record low, but many still expect declines in sales, jobs and capital spending.
German businesses expect improvement, survey shows AP (June 22, 2009) BERLIN (AP) - Business confidence in Germany, Europe's largest economy, dropped to a new all-time low in June but expectations for the future continued to improve, a closely watched survey showed Monday.
Dollar gains after World Bank cuts growth forecast AP (June 22, 2009) NEW YORK (AP) - The dollar strengthened Monday ahead of the Federal Reserve's meeting later this week as the World Bank downgraded its assessment of the global economy, ramping up interest in the "safe" greenback.
World Bank cuts 2009 global growth forecast AP (June 22, 2009) BEIJING (AP) - The World Bank has cut its 2009 global growth forecast, saying the world economy will shrink by 2.9 percent and warning that a drop in investment in developing countries will increase poverty.
AP Interview: Iacocca urges fast loan repayments AP (June 22, 2009) DETROIT (AP) - Former Chrysler CEO Lee Iacocca has some advice for the people who are running his old company, and those who will lead the new General Motors: Get the government out of your business as soon as possible.
'Vanilla' home loans could benefit borrowers AP (June 22, 2009) WASHINGTON (AP) - If President Barack Obama gets his way, consumers who take out mortgages would automatically get a "plain vanilla" loan - such as a traditional 30-year fixed-rate mortgage - unless they opted for a riskier variety.
JPMorgan to record $1.1 billion charge in 2Q AP (June 19, 2009) NEW YORK (AP) - JPMorgan Chase & Co. said Friday it expects to record a $1.1 billion charge against its second-quarter earnings from its early repayment of $25 billion in taxpayer money the bank received under a federal bailout program.
Regulators close 2 small Southern banks AP (June 19, 2009) NEW YORK (AP) - Regulators on Friday shut down a small bank in Wilmington, N.C. and another small bank in Fayetteville, Ga., pushing this year's tally of failed banks up to 39.
House targets Fed in Bank of America investigation AP (June 19, 2009) WASHINGTON (AP) - A House panel has subpoenaed documents that lawmakers say could shed new light on Federal Reserve Chairman Ben Bernanke's role in Bank of America's acquisition of Merrill Lynch.
MasterCard names Citi Asia Pacific exec COO AP (June 19, 2009) NEW YORK (AP) - MasterCard says its new president and chief operating officer will be Ajay Banga, the former CEO of Citigroup's Asia Pacific division, beginning Aug. 31.
Standard & Poor's cuts ratings on 22 banks AP (June 17, 2009) NEW YORK (AP) - Credit ratings agency Standard & Poor's on Wednesday cut ratings and revised outlooks on 22 banks amid concern about further weakening in the financial sector.
Obama to detail overhaul of finance regulations AP (June 17, 2009) WASHINGTON (AP) - President Barack Obama will unveil his proposal to overhaul regulations covering major financial institutions.
Bernanke says community firms must stay viable AP (June 17, 2009) WASHINGTON (AP) - Federal Reserve Chairman Ben Bernanke on Wednesday urged financial institutions that specialize in community development and banking to the poor to take steps to ensure they emerge from the financial crisis stronger.
Beijing orders 'Buy China' for stimulus projects AP (June 17, 2009) BEIJING (AP) - China has imposed a requirement for its stimulus projects to use domestically made goods - a move that could strain ties with trading partners after Beijing criticized Washington's "Buy American" stimulus provisions.
10 large US banks to repay $68B in TARP funds AP (June 17, 2009) WASHINGTON (AP) - Ten large U.S. banks are planning to repay the government about $68 billion in bailout money Wednesday, a pair of industry officials say.
E-Trade plans stock offer, debt exchange AP (June 17, 2009) NEW YORK (AP) - Struggling online brokerage and bank E-Trade Financial Corp. is raising capital and exchanging debt as it tries to climb out from under mounting loan losses tied to souring mortgage investments.
Current account trade deficit drops to $101.5B AP (June 17, 2009) WASHINGTON (AP) - The deficit in the broadest measure of trade plunged sharply in the first three months of the year as the country's deep recession depressed imports of oil and other goods.
Romer, Boehner, debate new financial regulations AP (June 17, 2009) WASHINGTON (AP) - White House adviser Christina Romer said Wednesday the Obama administration's proposal to overhaul the financial regulatory system should be accepted by Congress because "the status quo is not an option."
Russia, China seek greater international clout AP (June 16, 2009) YEKATERINBURG, Russia (AP) - China and Russia sought greater international clout at a summit Tuesday, with China promising $10 billion in loans to Central Asian countries and Russia challenging the U.S. dollar's dominance as a global reserve currency.
A new role as 'risk regulator' could reshape Fed AP (June 16, 2009) WASHINGTON (AP) - The Obama administration's plan to revamp regulation and prevent any more crashes like those that felled AIG and Lehman Brothers includes a bold new idea: Empower the Federal Reserve to oversee the biggest financial players whose failure could threaten other institutions and the economy.
Foreign demand for US financial assets falls AP (June 15, 2009) WASHINGTON (AP) - Foreign demand for long-term U.S. financial assets fell in April as both China and Japan trimmed their holdings of Treasury securities.
World stocks down as dollar rise hits commodities AP (June 15, 2009) LONDON (AP) - World stock markets fell Monday as some investors worried that the three-month rally in share prices may not be justified by economic indicators and as the dollar was boosted by comments this weekend from Russia's finance minister.
Barclays shares down after sale of investment unit AP (June 12, 2009) LONDON (AP) - Shares in Barclays PLC fell in London Friday following the announcement that it had sold its Global Investment unit to U.S. fund manager BlackRock Inc. for $13.5 billion.
Volcker says US growth possible this year AP (June 12, 2009) BEIJING (AP) - Global financial markets are starting to heal and the U.S. economy could begin to grow again this year, but a strong recovery is unlikely, said President Barack Obama's top adviser Paul Volcker.
Hartford Financial to offer $750M in shares AP (June 12, 2009) HARTFORD, Conn. (AP) - Insurer Hartford Financial Services Group Inc. said Friday it will offer shares of stock for sales proceeds of up to $750 million.
Foreclosures fall 6 percent in May from April AP (June 11, 2009) WASHINGTON (AP) - The number of U.S. households on the verge of losing their homes dipped in May from April, and the annual increase was the smallest in three years.
CEO says gov't pressured bank to buy Merrill Lynch AP (June 11, 2009) WASHINGTON (AP) - Bank of America Chief Executive Officer Kenneth Lewis says his bank decided to buy Merrill Lynch partly because it was pressured to do so by the Federal Reserve.
Japan's 1Q GDP revision confirms steep recession AP (June 11, 2009) TOKYO (AP) - Japan's economy shrank at a 14.2 percent annual pace in the first quarter - better than first thought, but still the worst quarterly contraction ever for the world's second-largest economy.
China's May trade plunges but investment up AP (June 11, 2009) BEIJING (AP) - China's investment surged in May as the government poured money into its economic stimulus, helping to offset an unexpectedly sharp drop in trade, and economists said the world's third-largest economy was improving.
House chairman questions Bank of America bailout AP (June 11, 2009) WASHINGTON (AP) - The top Democrat on a House investigative committee says internal e-mails by Federal Reserve employees raise serious questions about $20 billion in government aid provided to Bank of America to buy Merrill Lynch.
Bailout overseer: Bank repayments sign of progress AP (June 10, 2009) WASHINGTON (AP) - The head of a congressional panel overseeing the federal financial system bailout fund says Washington initially underestimated how much banks in America were struggling to stay afloat.
Citigroup completes agreement with US government AP (June 10, 2009) NEW YORK (AP) - Citigroup says it finalized exchange offers with the U.S. government under which the latter will exchange up to $25 billion of Citi preferred securities for interim securities and warrants.
Citigroup launches public exchange offers AP (June 10, 2009) NEW YORK (AP) - Citigroup Inc. on Wednesday launched a series of public exchange offers that will effectively give the government a 34 percent stake in the troubled bank.
Administration to issue new Wall Street pay curbs AP (June 10, 2009) WASHINGTON (AP) - An up and coming Wall Street executive might want to hold off on buying that condo in Aspen. The Obama administration is ready to issue broad new guidelines that would rein in pay at financial institutions.
Kiva to feed cash-starved US small businesses AP (June 10, 2009) SAN FRANCISCO (AP) - Kiva.org has spent the past 3 1/2 years raising money on the Internet to finance destitute entrepreneurs in 44 impoverished countries. Now in a sign of the economy's spreading despair, the online "microlender" is reaching out to low-income entrepreneurs in the United States.
Dollar slides despite bad news out of Europe AP (June 09, 2009) NEW YORK (AP) - The dollar took a tumble early Tuesday, despite some bad news out of Europe, as the government said 10 of the country's biggest banks would be allowed to repay bailout funds.
House panel divided on new financial rules AP (June 09, 2009) WASHINGTON (AP) - Debate on new oversight for complex financial instruments moved to the House on Tuesday as lawmakers struggle to determine how tight the government reins on a massive global market should be.
10 big banks get OK to repay $68B in bailout money AP (June 09, 2009) WASHINGTON (AP) - Ten of the nation's largest banks were given the green light Tuesday to repay $68 billion in government bailout money, freeing them from restrictions on executive compensation that they say are making it hard to keep their top-perfor
Meltdown 101: Cash to Mexico and the US economy AP (June 09, 2009) EL PASO, Texas (AP) - With the economy struggling through the longest recession since the Great Depression, the steady flow of dollars that immigrants send back to Mexico has also taken a serious hit.
Massachusetts settles with mortgage lender AP (June 09, 2009) BOSTON (AP) - A bankrupt California-based subprime mortgage lender has agreed to pay $10 million to settle allegations of unfair practices that contributed to the current spike in Massachusetts home foreclosures.
Obama's new stimulus plan same as the old AP (June 09, 2009) WASHINGTON (AP) - President Barack Obama is promising some exciting coming attractions for his stimulus plan. But it turns out they're just summer reruns.
Obama hails bank repayments of $68B to Treasury AP (June 09, 2009) WASHINGTON (AP) - President Barack Obama is complimenting banks that are reimbursing taxpayers to the tune of $68 billion in federal bailout assistance.
Judge consolidates Madoff bankruptcy cases AP (June 09, 2009) NEW YORK (AP) - A federal judge has consolidated two bankruptcy cases involving Bernard Madoff's business and personal assets.
Investigators warn bank stress tests not enough AP (June 09, 2009) WASHINGTON (AP) - A government test of whether 19 major banks could survive a further downturn in the economy may have relied on too rosy a scenario and should be repeated, independent investigators say.
NY AG targets mortgage modification firms AP (June 09, 2009) GARDEN CITY, N.Y. (AP) - New York's attorney general says consumers do not have to pay upfront fees to companies that promise help in staving off home foreclosures.