- Moody’s warns nations to cut spending or risk AAA ratings
- EU ministers discuss standby plans for Greece
- 6 key points of the financial regulation legislation
- EU Finance Ministers Fail to Reach Deal on Hedge-Fund Rules
- Toyota: Analysis Doesn’t Match Calif Prius Incident
Moody’s warns nations to cut spending or risk AAA ratings – Washington Post
The United States and other top world economies need to make potentially painful government spending cuts or risk losing the high-grade credit ratings that have kept borrowing affordable, the Moody’s rating agency said Monday.
Outlining the dilemma faced by policymakers in the United States, Great Britain, Germany and France, Moody’s said that debt levels in the four large credit-worthy economies had reached the point at which they are at risk of being downgraded — a step that would drive up interest rates, increase borrowing costs and mark a turn in perceptions about the world economy…..
EU ministers discuss standby plans for Greece – Reuters
EU finance ministers on Tuesday discussed standby plans drawn up by countries using the euro to provide Greece with financial help if it becomes the first state in 11 years of monetary union to seek such aid.
Finance ministers from the 16-country euro zone announced late on Monday they had agreed the “technical modalities” that would permit aid to be rapidly rolled out but gave no figures and few details of a plan likely to involve bilateral loans….
6 key points of the financial regulation legislation – Washington Post
Dodd’s second draft of financial reform legislation tracks closer to the bill that passed the House in December, eliminating several of the bold reforms he proposed last fall. But Republicans remain opposed, despite Dodd’s decision to incorporate their ideas on some issues.
1 A Consumer Financial Protection Bureau, housed inside the Federal Reserve, would write and enforce rules protecting borrowers from abuse by lenders.
WHAT IT MEANS: The location of the agency is a nod to Republicans and conservative Democrats who oppose the creation of a free-standing consumer agency, but everything else about this proposal is designed to please liberals, giving the consumer agency sweeping powers and imposing few checks on that authority…..
EU Finance Ministers Fail to Reach Deal on Hedge-Fund Rules – Wall Street Journal
European Union finance ministers Tuesday failed to reach an agreement on new rules for hedge funds and private-equity firms, EU officials said.
The bloc has been debating legislation for these so-called alternative-investment funds since last spring. But there are deep divisions between some states. The U.K., home to the bloc’s largest financial center in London, opposes strict regulations it fears would push investors to other jurisdictions. France and Germany, by contrast, favor firmer rules for these funds, which they say are risky and cause financial-market volatility…..
Toyota: Analysis Doesn’t Match Calif Prius Incident – Wall Street Journal
Toyota Motor Corp. (TM, 7203.TO) said there are “strong indications” that a dramatic incident on a California highway involving a Prius last week was inconsistent with the findings of the auto maker’s preliminary analysis.
The Japanese auto maker said its engineers completed an investigation of the 2008 Prius driven by James Sikes that was subject to an emergency call a week ago, when the driver reported the vehicle was traveling at a high rate of speed and couldn’t be stopped.
For its part, Toyota said the accelerator pedal in Sikes’ car was tested and found to be working normally. It said the front brakes showed “severe wear and damage from overheating,” with the rear and parking brakes in good condition…..
Tags: Autos, EU, Financial Regulation, Greece, Hedge funds, Politics, recalls, Sovereign debt, Toyota
