The New York Times reports, in another milestone in the banking industry’s recovery from the financial crisis, the Federal Reserve will release the results of its latest stress tests, this week, which are expected to show broadly improved balance sheets at most institutions. For the financial sector, including traditional banks and Wall Street firms, that were at the heart of the panic during the crisis, the recovery has been slow but steady, with some banks recovering much faster than others. The examination is not merely an intellectual exercise. If institutions fall short, they could be required to raise billions in new capital, depressing their shares. Under the tests, Federal Reserve specialists are trying to predict how capital levels at the 19 largest banks, would withstand an economic downturn even more severe, than the one that followed the Lehman collapse.
Bloomberg reports, Euro-area finance ministers seeking to step past the largest sovereign debt restructuring in history, will attempt to gain a foothold this week as they grapple with implementing the latest Greek bailout. Ministers from the 17 nations that share the euro, will gather in Brussels today to sign off on the 130 billion-euro for Greece’s second bailout package, after bondholders agreed last week to take a loss on the country’s debt. They’ll also focus on Spain’s budget-cutting efforts and Portugal’s aid program, underscoring their desire to prevent contagion. The debt swap seeks to wipe more than 100 billion euros off Greece’s books, and contain an economic collapse in the country, as European overseers work to hold Greek leaders to their commitments. The difficulties the government in Athens will confront in meeting creditors’ demands, have prompted speculation of still further assistance.
Reuters reports, Spain, the euro zone’s fourth biggest economy, was quick to impose austerity measures to protect itself from the euro debt crisis. It planned to cut its budget shortfall to 6 percent of its GDP in 2011, but reported an 8.5 percent shortfall instead. In 2012, it was to cut the deficit to 4.4 percent, according to a path agreed with EU finance ministers. But with unemployment at 23 percent and rising, Spain’s new government announced earlier this month that it would aim only for a cut to 5.8 percent, while still maintaining a 2013 goal of 3.0 percent
The New York Times reports, in another milestone in the banking industry’s recovery from the financial crisis, the Federal Reserve will release the results of its latest stress tests, this week, which are expected to show broadly improved balance sheets at most institutions. For the financial sector, including traditional banks and Wall Street firms, that were at the heart of the panic during the crisis, the recovery has been slow but steady, with some banks recovering much faster than others. The examination is not merely an intellectual exercise. If institutions fall short, they could be required to raise billions in new capital, depressing their shares. Under the tests, Federal Reserve specialists are trying to predict how capital levels at the 19 largest banks, would withstand an economic downturn even more severe, than the one that followed the Lehman collapse.
Bloomberg reports, Euro-area finance ministers seeking to step past the largest sovereign debt restructuring in history, will attempt to gain a foothold this week as they grapple with implementing the latest Greek bailout. Ministers from the 17 nations that share the euro, will gather in Brussels today to sign off on the 130 billion-euro for Greece’s second bailout package, after bondholders agreed last week to take a loss on the country’s debt. They’ll also focus on Spain’s budget-cutting efforts and Portugal’s aid program, underscoring their desire to prevent contagion. The debt swap seeks to wipe more than 100 billion euros off Greece’s books, and contain an economic collapse in the country, as European overseers work to hold Greek leaders to their commitments. The difficulties the government in Athens will confront in meeting creditors’ demands, have prompted speculation of still further assistance.
Reuters reports, Spain, the euro zone’s fourth biggest economy, was quick to impose austerity measures to protect itself from the euro debt crisis. It planned to cut its budget shortfall to 6 percent of its GDP in 2011, but reported an 8.5 percent shortfall instead. In 2012, it was to cut the deficit to 4.4 percent, according to a path agreed with EU finance ministers. But with unemployment at 23 percent and rising, Spain’s new government announced earlier this month that it would aim only for a cut to 5.8 percent, while still maintaining a 2013 goal of 3.0 percent