Wednesday, March 18, 2009

Forex Trade Signal Alerts - An Important Tool to Your Success | SigmaForex


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Thursday, March 12, 2009

European banks gird for loan losses

European banks shored up their stockpile of capital on Monday amid concerns about a rising flood of bad loans from the spreading economic storm.
Banks around the region already have taken billions of euros in writedowns on their investments in complex structured credit products, but the financial crisis is increasingly spreading to the real economy, creating a double-whammy for earnings as companies cut borrowing and struggle to repay business loans.
Lloyds Banking Group said Britain's requirement for banks to hold enough capital to withstand a "severe" downturn was key to its decision to insure 260 billion pounds of risky assets with the UK government.
The deal, announced on Saturday, will limit losses if the economy keeps deteriorating, but it will give Britain a stake of up to 77 percent in Lloyds, and sent Lloyds shares skidding 14 percent before the stock reversed losses.
In Switzerland, the game of musical chairs in top boardrooms continued as Credit Suisse Chairman Walter Kielholz moved from Switzerland's No.2 bank to take the same role at troubled reinsurer Swiss Re, a step criticized by some investors as a failure to break with the past.
Credit Suisse Vice-Chairman Hals-Ulrich Doerig will move up to lead the bank's supervisory board.

Swedish financial group Swedbank scrapped plans for a dividend for 2008 due to a worsening economic environment, particularly in the Baltic states and Ukraine, where sharp recessions are likely to lead to a big increase in loan losses.
Swedbank Chairman Carl Eric Stalberg said the bank was very well capitalised and markets initially cheered the move to bolster the capital base, though worries about the outlook in eastern Europe weighed.
"Things have got so bad in the Baltics that they have got to do this, and that is negative," said Henrik Schmidt, analyst at Keefe Bruyette & Woods.
Swedbank made a six-fold increase in loan loss provisions in the fourth quarter mainly due to contracting Baltic economies.
Investors have also been worried about eastern Europe business at other lenders, such as Italy's UniCredit and Germany's Commerzbank. Commerzbank said on Monday that it was pumping 4 billion euros (3.64 billion pounds) into recently acquired Dresdner Bank to shore up its regulatory capital.
Another big player in emerging markets, HSBC, was also under pressure on Monday, losing as much as 11 percent as short sellers dumped the stock in anticipation of buying it back after the bank completes its $17.7 billion (12.7 billion pound) rights issue.
"With HSBC there are worries about credit quality ... There is not a whole lot that is bright news out there anywhere today," said Bernard McAlinden, strategist at NCB Stockbrokers.
"There are doubts everywhere that policy response cannot actually stabilise the global economy."

Not even a more optimistic outlook by the chief executive of Germany's biggest bank, Deutsche Bank, was able to give a boost to the European banking sector, as the DJ Stoxx sector index fell 2.1 percent.
Deutsche's Josef Ackermann said the positive business trend his bank had seen in January continued last month.
"By the end of January, we had revenues of 2.8 billion euros. February largely confirmed this development," Ackermann told German business daily Handelsblatt.
Shares in Belgium-based Fortis gained 21 percent after the Belgian government and BNP Paribas revised the terms of the financial group's break-up.
The European Union is set to back the International Monetary Fund's (IMF) call for a doubling of its funds as a growing number of countries turn to it for help, ahead of the Group of 20 (G20) summit.
The IMF acknowledged last week that its warnings before the crisis were insufficient.
CAPITAL HEADACHE
Lenders and their national governments are still fretting about how best to tackle the capital problems at the heart of the financial crisis, which are sapping confidence and keeping banks from lending, compounding the slump.
Financial officials are trying to hammer out a common approach.
Top executives of leading U.S., Japanese and European banks will meet in London this month to discuss regulation and other issues key to the future of the financial system, two industry sources said.
The British government will host the meeting on March 24, after a gathering of the G20 finance ministers in London this weekend and ahead of a summit of G20 leaders there on April 2, according to the sources, who declined to be identified because the meeting had not been made public.
The meeting agenda was expected to include capital adequacy guidelines and other regulatory issues, the sources said.
The crisis is continuing to keep regulators busy.
Iceland's financial watchdog said on Monday it had taken over investment bank Straumur Burdaras, the last major Icelandic bank left standing after the country's financial collapse in October.


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Source: Obama official on leave after FBI raids

Source: Obama technology official on leave after FBI raids his old DC office, arrests 2

WASHINGTON (AP) -- An aide to President Barack Obama is on leave from his White House job after the FBI raided his old District of Columbia government office Thursday, arresting a city employee and a technology consultant on corruption charges, a White House official said.
The charges were lodged against the two men at a federal court hearing as the FBI finished searching the city's technology office, which was led until recently by Obama's new computer chief, Vivek Kundra.
Kundra is on leave from his White House job until further details of the case become known, according to a White House official speaking on condition of anonymity because the official did not want to publicly discuss personnel matters.
At the court hearing, Yusuf Acar, the acting chief security officer in the city's technology office, was ordered held without bond pending a hearing Tuesday. Prosecutors said $70,000 in cash was found during a search of Acar's Washington home and that he posed a serious flight risk.
Technology consultant Sushil Bansal of Dunn Loring, Va., was released but was ordered not to conduct overseas transactions or leave the Washington metropolitan area. Bansal is due back in court on April 21, and prosecutors said they were hopeful that a plea agreement could be reached in his case.
Acar worked under Kundra, Obama's pick to coordinate federal computer systems. Obama spokesman Robert Gibbs would not say whether the White House knew the investigation was under way when it named Kundra last week, but called the case "a serious matter."
Mafara Hobson, a spokeswoman for Washington Mayor Adrian Fenty, said she was "very confident" Kundra is not a target of the investigation.
Bansal's lawyer, David Lamb declined to comment. It was not immediately clear who would represent Acar in the case.

Acar, a 40-year-old native of Turkey, had a $127,468-a-year position purchasing the city's computer equipment and lining up contract workers for numerous city agencies, according to court documents.

Authorities say Acar and Bansal, along with others, defrauded the government through a variety of schemes, including billing the city for items that were never delivered and "ghost" contract employees who did not work. The scheme involved Acar approving falsified bills and splitting the money with vendors including Bansal, who submitted them, court documents alleged.
Bansal, a native of India who turns 42 next week, is a former city employee and the founder and chief executive of Advanced Integrated Technologies Corp. The company has offices in Washington and India and did more than $13 million in business with the District of Columbia government in the past five years, according to court documents.
One contract involved providing computer support for the city's Department of Motor Vehicles. The company also was given a contract to upgrade the city's human resources computer records and sold virus detection software to the city.
In August Bansal was named entrepreneur of the year by the Association of Indians in America.
An FBI affidavit supporting the arrest warrants indicates that several other businesses and individuals were involved in the alleged schemes, but the other people are identified only by their initials.
The FBI worked with another employee in the city's technology office, who was in on the scheme and secretly recorded conversations with Acar and Bansal as part of the investigation.

In 2007, federal investigators uncovered a massive embezzlement scheme in the city's tax office.
Men and women dressed in suits and wearing latex gloves could be seen entering and leaving the glass-enclosed lobby of the Office of the Chief Technology Officer on Thursday afternoon.
Even as the raid was taking place, Kundra was giving a speech at FOSE, an annual government technology expo. Kundra said part of his focus is to change the way the government buys technologies from vendors.
Associated Press writers Philip Elliott, Donna Borak, Brian Westley and Brett Zongker contributed to this report.

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