- Moody’s Warning Weighs on Futures
- Goldman Sachs Demands Derivatives Collateral It Won’t Dish Out
- Sen. Dodd to introduce plan to overhaul financial regulatory system
- AIG Said to Cut Bonuses by $21 Million to Meet Feinberg Mandate
- UBS Sees Turnaround in 2010
- Tests fail to duplicate acceleration problem in Prius
Moody’s Warning Weighs on Futures – Wall Street Journal
….Moody’s said the U.K., the U.S., France and Germany face “an increasingly delicate balancing act” as they consider spending cuts to reduce government debt. Moody’s repeated that there was no immediate risk of a downgrade of the big AAA-rated countries, although the slight risk they could fail to get their finances under control, and thus be downgraded, has increased.
“Moody’s comments certainly haven’t helped, and there have also been concerns overnight about China tightening its monetary policy. There’s some concern that that will take some of the momentum out of the recovery,” said David Jones at IG Index in London…
Goldman Sachs Demands Derivatives Collateral It Won’t Dish Out – Bloomberg
Goldman Sachs Group Inc. and JPMorgan Chase & Co., two of the biggest traders of over-the- counter derivatives, are exploiting their growing clout in that market to secure cheap funding in addition to billions in revenue from the business.
Both New York-based banks are demanding unequal arrangements with hedge-fund firms, forcing them to post more cash collateral to offset risks on trades while putting up less on their own wagers. At the end of December this imbalance furnished Goldman Sachs with $110 billion, according to a filing. That’s money it can reinvest in higher-yielding assets…..
Sen. Dodd to introduce plan to overhaul financial regulatory system – Washington Post
Senate banking Chairman Sen. Christopher J. Dodd will try to strike a delicate balance Monday as he introduces a new measure to overhaul the nation’s financial regulatory system, including provisions aimed at shoring up support among fellow Democrats but also incorporating compromises he reached with Republicans.
“It’s a bit of a high-wire act,” Dodd (Conn.) said in an interview Sunday.
AIG Said to Cut Bonuses by $21 Million to Meet Feinberg Mandate – Bloomberg
American International Group Inc., the bailed-out insurer, cut retention bonuses to be delivered to former employees today by about $21 million to meet a target imposed by U.S. paymaster Kenneth Feinberg, said a person briefed on the company’s plans.
AIG will give a total of $46 million to about 70 recipients, a reduction of about one-third from what the New York-based firm originally promised, said the person, who declined to be identified because the payments were private. Some of the former workers from the company’s Financial Products unit are getting smaller bonuses because they took new jobs last year after departing AIG, said the person…..
UBS Sees Turnaround in 2010 – Wall Street Journal
UBS AG’s top management Monday said it was confident of turning around its business to achieve its medium-term profit target as the Swiss bank’s business revamp was boosted by a solid start to 2010.
But the Swiss bank, which was among the hardest hit during the financial crisis, cautioned that pending legal action and regulatory changes could hit future earnings…..
Tests fail to duplicate acceleration problem in Prius – Washington Post
Investigators from Toyota and the government have been unable to duplicate the runaway acceleration in a 2008 Prius that a Southern California man said took him on a 30-mile wild ride last week, according to a draft memo from a congressional panel.
The tests on the Prius — belonging to San Diego resident James Sikes, 61 — were conducted in California on Wednesday and Thursday by officials from Toyota and the National Highway Traffic Safety Administration. Also observing the test was a staffer from the House Oversight and Government Reform Committee, which has been investigating Toyota recall problems and heard testimony from top-ranking company officials in recent weeks…..
Tags: AAA, AIG, CDS, Financial Overhaul, Goldman Sachs, Hedge funds, JP Morgan, Moody's, Politics, rating agencies, Sovereign debt, UBS
