MORNING BRIEFS

*the question is when is the Fed going to bailout the credit card losses
Banks rush to rescue of credit card trusts
By Saskia Scholtes and Francesco Guerrera in New York

Record credit card losses are pushing big US banks to come to the rescue of off-balance sheet vehicles they use to transform hundreds of billions of dollars in consumer loans into securities sold to investors. The support provided by Citigroup, Bank of America, JPMorgan Chase and American Express underscores how the deteriorating health of the US consumer is opening new fronts in the financial crisis.

Losses on US credit cards as measured by Moody’s Credit Card Index rose beyond 10 per cent of total loans outstanding in May, a new high in the 20-year history of the index and the sixth consecutive monthly record. Most credit card loans are placed into pools – structured as trusts – that are used to back bonds sold to investors. Banks rely on such “securitisations” to fund their huge levels of credit card lending while keeping most of the risk off their books. ft.com

*guess Europe doesn't want full disclosure on how bad their banks are
ECB pours €442 billion into money markets
The European Central Bank injected €442 billion in one-year funds into money markets to spur lending and stabilize the economy. The move drove some borrowing costs between banks to new lows. "Maybe now money will finally move into longer-term maturities," one trader said. Reuters (25 Jun.)

*hedge funds weren't responsible for financial crisis (banks were) but they have been seen as evil twins nonetheless
Survey: Hedge fund managers fear "onerous government regulation"
The greatest worry of hedge funds managers is "onerous government regulation," according to a survey commissioned by consulting firm RSM McGladrey. At the same time, while 38% of respondents said they are worried about too much regulation, 37% said they favor some additional regulation of the industry. "Do I think there should be more regulation than there was a year ago? Yes. Do I fear it's going to be too much? Yes," said one fund manager. The Washington Post (25 Jun.)

*but I can do something, STOP buying Chinese
U.S. powerless to fight China's rising trade barriers
China recently stepped up measures to block foreign companies from selling there and also rolled out policies to boost exports -- and there is little the U.S. can do about it. Many of the protectionist measures criticized by the U.S. are perfectly legal under the rules of the World Trade Organization. BusinessWeek (24 Jun.)

*read yesterday that in an attempt to save cash RYANAIR will not allow bags to be checked
Ireland’s banks may lose US$49-billion, IMF says
Ireland’s banks face losses of as much as 35-billion euros (US$49-billion) through next year as the economy shrinks at an “unprecedented” pace, the International Monetary Fund said. financialpost.com