Should be a very slow day. All the big guy have already left town and the market closes at 1PM.
CapitaMalls makes strong debut as Asian markets advance
CapitaMalls Asia raised 2.8 billion Singaporean dollars, making it the largest initial public offering in the country since 1993. Singapore's Straits Times Index, South Korea's Kospi Composite and New Zealand's NZX 50 gained 0.3%. Australia's S&P/ASX 200 and Hong Kong's Hang Seng Index rose 0.8%. Japan's Nikkei 225 climbed 0.4%, Taiwan's Taiex added 0.5% and China's Shanghai Composite jumped 2.1%. The Wall Street Journal (25 Nov.)
*they have gotten all of my money in more ways than one and are using it to make billions speculating in bonds and stocks and paying themselves huge bonus'. Nothing has changed at all.
U.S. bank lending posts biggest decline in 25 years
Banks in the U.S. cut back the amount of money loaned to customers by $210.4 billion in the third quarter, the Federal Deposit Insurance Corp. said. The 2.8% reduction marks the sharpest drop since at least 1984. The biggest banks, which received billions of dollars in taxpayer bailouts, accounted for a disproportionately large part of the drop. "We need to see banks making more loans to their business customers," said Sheila Bair, the FDIC's chairwoman. The Washington Post (25 Nov.)
IMF obtains $600 billion credit line for loans during crises
The International Monetary Fund will be ready to respond with loans during future financial crises because of a $600 billion line of credit that is coming from as many as 13 countries, which are supporting the IMF's New Arrangements to Borrow program. Emerging nations, including Brazil, Russia, China and India, are among the contributors. The money comes on top of as much as $500 billion pledged by the Group of 20 nations. Bloomberg (25 Nov.)
After lending spree, China's banks gear up to raise capital
BNP Paribas estimated that China's 11 biggest listed banks will need to raise $43 billion or more to meet regulatory requirements after a period of unprecedented lending. Regulators in China have warned that they will sanction banks that do not meet capital-adequacy requirements, prompting several banks to prepare plans for fundraising. Regulators are "definitely aware of potential asset-quality issues and ... pushing for higher capital-adequacy requirements to offset deterioration in asset quality," said BNP Paribas analyst Dorris Chen. Financial Times (tiered subscription model) (24 Nov.)
Citi mortgage chief says more principal forgiveness needed
Sanjiv Das, president and CEO of CitiMortgage, a division of Citigroup, said more principal forgiveness was necessary to help homeowners as unemployment continues to increase. In the third quarter, Citigroup helped 130,000 borrowers avoid potential foreclosure. Citigroup issues quarterly reports on its efforts to help homeowners. The Wall Street Journal (11/24)
Fed officials say rate cuts might be fueling speculation
Minutes of the Nov. 3 and 4 meeting of the Federal Open Market Committee show that Federal Reserve officials are concerned that keeping interest rates low might be fueling "excessive risk-taking" or an "unanchoring of inflation expectations." Central bankers also noted that further depreciation of the dollar might "put significant upward pressure on inflation," which "would bear close watching." Bloomberg (11/25)
Treasury has not recalculated stimulus-bond costs
Build America Bonds, which were created under the American Recovery and Reinvestment Act, have driven private and public investment, according to the Treasury Department. But Alan Krueger, the Treasury's assistant secretary for economic policy, said the costs of the bonds for taxpayers had not been recalculated since initial projections. "It's not an easy thing to calculate," he said. "There's a lot of parts that are relevant to it." The Bond Buyer (free content) (11/25)