UK banks hit by credit fears

[Sapiens]

http://business.guardian.co.uk/marke...rc=rss&feed=24

.30pm

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UK banks hit by credit fears


Phillip Inman
Friday November 2, 2007
Guardian Unlimited


The City was swept by rumours today that another British bank was in trouble after Northern Rock indicated it was not the only bank borrowing from the Bank of England's rescue fund.

Boys and girls there is no way to stop this credit contraction, the American people will default on their mortgages.

[Andreuccio]

Re: UK banks hit by credit fears

http://business.guardian.co.uk/marke...rc=rss&feed=24



Boys and girls there is no way to stop this credit contraction, the American people will default on their mortgages.

All of them?

Will I?

[GRG55]

Re: UK banks hit by credit fears

http://business.guardian.co.uk/marke...rc=rss&feed=24



Boys and girls there is no way to stop this credit contraction, the American people will default on their mortgages.

Gawd bless America...

[Sapiens]

Report: Citigroup CEO to resign

http://money.cnn.com/2007/11/02/news...ting/index.htm

Report: Citigroup CEO to resign
Charles Prince, CEO of the world's largest bank, plans to resign Sunday, according to the Wall Street Journal.
November 2 2007: 9:40 PM EDT


NEW YORK (CNNMoney.com) -- Charles Prince, Citigroup Inc.'s CEO, plans to resign on Sunday, according to sources cited in a Wall Street Journal report.

Gentlemen,

You must open your eyes and see past all the illusionary muck! Take heed, there is much, much more to come.

[Sapiens]

Citigroup, Merrill bonds suggest lower ratings-Moody's

http://www.reuters.com/article/funds...54633420071102

Citigroup, Merrill bonds suggest lower ratings-Moody's
NEW YORK, Nov 2 (Reuters) - The risk of owning credit and bonds of Citigroup Inc (C.N: Quote, Profile, Research) and Merrill Lynch (MER.N: Quote, Profile, Research) weakened on Friday, matching its weakest levels in at least a year and Merrill credit default swaps are now trading like junk, Moody's Investors Service said.

Wow!

[c1ue]

Re: UK banks hit by credit fears

Boys and girls there is no way to stop this credit contraction, the American people will default on their mortgages.

What about the British, Spanish, and other bubble-licious real estate markets?

[Mega]

Re: UK banks hit by credit fears

This Lefty makes his point:-
http://observer.guardian.co.uk/comme...204935,00.html
Mega

[GRG55]

Re: UK banks hit by credit fears

This Lefty makes his point:-
http://observer.guardian.co.uk/comme...204935,00.html
Mega

This is my British-born mother-in-law's view also...the answer to every problem is to nationalize it. I am surprised this author didn't finish his article with a clarion call to re-open all of Arthur Scargill's beloved coal pits.

Why didn't they let Northern Rock declare bankrupcy and auction the "assets" (it's portfolio of mortgage securities)? That would have set an independent market price for the assets and forced the transparency that is now so lacking, creating much of the roadblock for interbank lending.

Could it be that Gordon Brown (famous for NOT being a Conservative) was on the verge of calling an election? Could it be that politics once again overrode the sound judgement of a Central Banker (perhaps the only one of the lot with sound judgement)?

[jk]

Re: UK banks hit by credit fears

This is my British-born mother-in-law's view also...the answer to every problem is to nationalize it. I am surprised this author didn't finish his article with a clarion call to re-open all of Arthur Scargill's beloved coal pits.

i think the observer piece is correct, however, in its criticism of free-market fundamentalism. i see a lot of our current problems as the legacy of greenspan's abdication of regulatory authority for the fed, and the abolition of restraints like glass-steagel put in place the last time there was crisis on a similar scale. i foresee the return of similar regulatory restraints. securitization is the phenomenon underlying the current credit market problems.

Why didn't they let Northern Rock declare bankrupcy and auction the "assets" (it's portfolio of mortgage securities)? That would have set an independent market price for the assets and forced the transparency that is now so lacking, creating much of the roadblock for interbank lending.

Could it be that Gordon Brown (famous for NOT being a Conservative) was on the verge of calling an election? Could it be that politics once again overrode the sound judgement of a Central Banker (perhaps the only one of the lot with sound judgement)?

i don't know enough about british politics, but here, at least, the financiers are important contributors to both parties. and, beyond that, i think "independent market pric[ing]" scares everyone silly.

[GRG55]

Re: UK banks hit by credit fears

i think the observer piece is correct, however, in its criticism of free-market fundamentalism. i see a lot of our current problems as the legacy of greenspan's abdication of regulatory authority for the fed, and the abolition of restraints like glass-steagel put in place the last time there was crisis on a similar scale. i foresee the return of similar regulatory restraints. securitization is the phenomenon underlying the current credit market problems.



i don't know enough about british politics, but here, at least, the financiers are important contributors to both parties. and, beyond that, i think "independent market pric[ing]" scares everyone silly.

Fair point jk. Clear, enforcable and enforced regulation must be present.