Financial Crisis

Germany approves bank reform to protect taxpayers

Berlin: Germany has approved new measures to rein in high-risk financial business of banks and to decouple them from retail banking as part of a comprehensive reform to prevent a repeat of the financial crisis five years ago and to minimise the costs for taxpayers if banks were to be bailed out in the future.

The Bundestag, the lower house of parliament, on Friday voted with the majority of the ruling conservative-liberal coalition a legislation, which will require banks with assets exceeding 100 billion euros (130 billion USD), or 20 per cent of their balance sheet, to separate their risky trading activities from the traditional client banking and to put them in independent subsidiaries until 2016.

The new rues, which are scheduled to come into force in early 2015, will bar direct lending and provision of guarantees to hedge funds and private equity funds by retail banks through the use of clients' capital deposits.

Banks will have to finance highly speculative businesses with their own resources and to transfer high frequency trading as well as lending to hedge funds and other holding companies to the proposed subsidiaries, the legislation said....more    

Stimulus packages lead to fiscal deficit and inflation: FM

Washington: Finance Minister P Chidambaram on Friday said the three stimulus packages India had provided to the economy in the wake of the global financial crisis post 2008-09 lead to a higher fiscal deficit, inflation and slowdown in growth. He said the government is going to take more steps on the supply side to bring down the inflation and ensure 7 per cent growth rate in 2014. The three stimulus...  

Cyprus details heavy losses for major bank customers

Major depositors in Cyprus's biggest bank will lose around 60 per cent of savings over 100,000 euros, its central bank confirmed on Saturday, sharpening the terms of a bailout that has shaken European banks but saved the island from bankruptcy. ...  

Cyprus girds for run on banks after sealing bailout

The president of Cyprus assured his people a bailout deal he struck with the European Union was in their best interests and would end anxiety, but he also announced "very temporary" capital controls to stem a run on the island's banks. ...  

Cyprus faces last ditch chance to save economy

Cypriot President Nicos Anastasiades embarked on last-minute crisis talks with international lenders on Sunday in an attempt to save the Mediterranean island from financial meltdown. ...  

Cyprus bailout bid goes down to the wire

Cyprus's bid to avert financial collapse will go down to the wire after the island said it would hold a crucial sitting of parliament only after finance ministers of the 17-nation euro zone meet on Sunday. Cyprus faces a Monday deadline to clinch a 10 billion euro bailout from the European Union or the European Central Bank sauys it will cut off emergency funding to the country's stricken banks, spelling...  

Cyprus closes in on EU bailout, U-turn on levy

Cyprus is expected to make a dramatic U-turn on Saturday to avert the imminent threat of financial meltdown, having signalled it is willing to tax big savers in its stricken banks to clinch a bailout from the European Union. The island's partners in the 17-nation euro zone scheduled a meeting for Sunday in Brussels, in a strong sign they believe a solution is near. ...  

RBI expresses concerns over Cyprus banks facing meltdown

Reserve Bank Governor D Subbarao on Friday expressed concerns over Cyprus banks facing meltdown, saying it has implications on the banking sector everywhere. The Cyprus banks' is "such a big issue" as the island nation is inter-connected with the world and what happens there has implications on the banking sector everywhere, he said. ...  

Cyprus options narrow as no deal on Russia funding

Talks in Moscow on a possible funding lifeline from Russia to Cyprus ended without result, further cutting the island's options for raising the billions of euros it needs to find by Monday to avert a financial meltdown. ...  

Kingfisher Airlines employees to decide future action

acing acute financial crisis due to non-payment of salaries for the past 10 months, employees of Kingfisher Airlines are meeting here on Wednesday to protest their "total neglect and ignorance" by the company as well as the government and to decide their future course of action. ...  

The aspirations of a billion people of India will ensure prosperity: Mukesh Ambani

In an exclusive interview to CNN, Reliance Industries Limited Chairman Mukesh Ambani said that he was bullish on India and that he was more than thrilled with the India growth story. ...  

Dell closer to buyout as price talks narrow: Source

Dell Inc moved closer to a nearly $24 billion buyout deal, with price negotiations narrowing to $13.50 to $13.75 a share in what would be the biggest leveraged buyout since the financial crisis. ...  

Centre responsible for West Bengal debts: Mamata

In a shrill attack on the Centre, Chief Minister Mamata Banerjee on December 27 accused it of an "unholy nexus" with the erstwhile Left Front government of West Bengal, leaving the state in a "disastrous" financial situation with a debt burden of Rs 2 lakh crore, and warned that patience was running out. ...  

Will probably not contest elections, says Italy PM Monti

Italian caretaker Prime Minister Mario Monti indicated in a newspaper interview published on Sunday that he would probably not stand in a February election but would try to convince the winner to complete the reforms his government has begun. Monti, who is expected to end weeks of speculation about his political future told La Repubblica daily he would use it to present a list of reforms that the next government...  

Kingfisher staff protests outside Mumbai airport

Mumbai: Nearly 70 staffers of the beleaguered Kingfisher Airlines began protesting outside the Mumbai airport on Monday morning demanding payment of salaries. Their protest march will end at Kingfisher House which is adjacent to the airport. The protesting staff members said that the management had communicated with them so far over measures being taken to address their grievances. The airline has temporarily locked down its operations and grounded its fleet...  

Spain, Greece announce harsh budget cuts

Madrid: Spain and Greece outlined plans on Thursday to cut spending and raise taxes to convince international lenders and financial markets they are on the right track to cut their deficits. The measures outlined on Thursday highlight how Europe's struggling countries are battling public anger and flat-lining economies to push for more austerity, all with the aim of securing much-needed aid. Throughout the three-year financial crisis in the 17 countries...  

Citigroup settles shareholder lawsuit for $ 590 mn

New York: Citigroup Inc agreed to pay $590 million to settle a shareholder lawsuit accusing it of hiding tens of billions of dollars of toxic mortgage assets, one of the largest settlements stemming from the global financial crisis. The agreement resolves claims that shareholders ended up with massive losses after the bank failed to take timely writedowns on collateralized debt obligations, many backed by subprime mortgages, and engaged in self-dealing...  

Rising gold prices hamper jewellery sales: Report

Mumbai: The beginning of festivals has hardly been encouraging for the jewellery business, as retailers blame the lack of demand on rising gold prices, which is ruling over Rs 30,000 per 10 grams. "Even as the festival season has begun the demand for jewellery is hardly there. The sudden spurt in prices to over Rs 30,000 is the main deterrent against the demand," Bombay Bullion Association president Prithviraj Kothari told...  

Sensex closes in green ahead of F&O expiry

Mumbai: The 50-share NSE Nifty remained in a consolidation phase for the second consecutive session on Wednesday, especially ahead of F&O expiry on Thursday. European markets too were marginally higher amid volatility as investors seem cautious ahead of major event - European Union summit scheduled for June 28-29 in Brussels. The BSE benchmark gained as much as 123 points intraday, before closing at 16,967.76, up 61.18 points over previous value....  

India frustrations send some foreign firms packing

New Delhi/Mumbai: Frustrated by a lack of opportunities in India, Germany's Fraport, the world's No 2 airport operator, is shutting its development office in the country, the latest in a growing list of companies exiting Asia's third-largest economy. Regulatory uncertainty and policy gridlock have battered foreign corporate sentiment towards India, adding to a dramatic slowdown in economic growth and exacerbating a widening current account deficit that has knocked the rupee...