Media outlets detail Biden administration's frenzied weekend to try to keep banking crisis at bay
(Newser) -
The collapse on Friday of Silicon Valley Bank , which was bookended by the shuttering of two other financial institutions, led to wider fears among Biden administration officials: the possibility of a "contagion" that could lead to a domino effect of failure among America's banks, as one White House...
President says he has asked Putin help
(Newser) -
With Sri Lanka facing a severe economic crisis , the country's leaders have apparently decided they can't afford to shun Russia. President Gotabaya Rajapaksa said Wednesday that he had asked Vladimir Putin for help in a "very productive" phone call, reports Reuters . The country has almost exhausted its...
It's a symptom of a serious economic malady in the small island nation
(Newser) -
In what may come as a relief to some children, Sri Lanka has cancelled annual exams due to an acute shortage of printing paper. Although paper prices are on the rise worldwide, that’s not the real problem. According to the Guardian, the country faces "a debilitating economic crisis...
Financial meltdown is among the worst since the mid-1800s, World Bank warns
(Newser) -
The pandemic has brought tough times to many countries. In Lebanon, it has only deepened one of the worst financial and economic crises ever seen. The World Bank warned last month that the Lebanon crisis could rank among the worst ten—and possibly the worst three—worldwide since the 1850s,...
The Frankfurt-based bank began cutting 18K jobs on Monday
(Newser) -
Germany's Deutsche Bank on Monday began cutting 18,000 jobs, marking the end of a long, failed attempt to compete with the planet's investment banking giants. The bank plan unveiled Sunday aims to take Deutsche Bank "back to our roots" by refocusing on traditional strengths like serving...
It's been 10 years since the collapse of Lehman and the start of the financial crisis
(Newser) -
Saturday marks 10 years since the largest bankruptcy in American history, or what CNN calls "the most terrifying moment for business and the US economy since the Great Depression." It might feel like ancient history given today's surging economy. But the scars of Lehman Brothers’ bankruptcy filing...
Time to pay the piper for the crash
(Newser) -
The Justice Department announced a $5 billion settlement with Goldman Sachs over the sale of mortgage-backed securities leading up to the 2008 financial crisis, reports the AP . The deal announced Monday resolves state and federal probes into the sale of shoddy mortgages before the housing bubble and economic meltdown; Reuters...
'It would have been my preference to have more investigations of individual actions'
(Newser) -
Former Federal Reserve Chairman Ben Bernanke says some Wall Street executives should have gone to jail for their roles in the financial crisis that gripped the country in 2008 and triggered the Great Recession. Billions of dollars in fines have been levied against major banks and brokerage firms in the...
Their Greek-issued debit, credit cards were declined due to country's debt crisis
(Newser) -
Newlyweds Valasia Limnioti and Konstantinos Patronis' long-planned "dream trip" to the US ended in New York City, where their three-week honeymoon quickly turned into a nightmare: Their Greek-issued credit and debit cards were suddenly declined and they were left penniless. The couple's US adventure started after their June...
'The magnitude of falsity, conservatively measured, is enormous'
(Newser) -
If you had to name two banks guilty of selling lousy mortgage packages during the financial meltdown of 2008, it's doubtful you'd tick off the names Nomura Holdings of Japan and the Royal Bank of Scotland. But as Reuters reports, a federal judge yesterday declared that both lied...
Justice Dept. deal would cost bank $16B-$17B for foreclosure mess
(Newser) -
Bank of America is headed toward the biggest settlement to arise from the 2008 financial crash, a deal with the Justice Department reportedly worth $16 billion to $17 billion over its role in the sale of mortgage-backed securities, a source directly familiar with the matter tells the AP . The tentative...
Survey says American teens aren't great at complex or basic financial tasks
(Newser) -
There’s nothing wrong with encouraging our nation’s teens to get jobs. But it turns out we’d better make sure we also teach them how to decipher their pay stubs and figure out how much money they lose to Uncle Sam—because most American teens appear to be...
Execs inflated share price before financial collapse
(Newser) -
Iceland has done something highly unusual with some of the bank chiefs blamed for the country's 2008 financial collapse: put them on trial and sent them to prison. Four former Kaupthing Bank bosses have been sentenced to between three and five years for market abuses relating to a deal...
Company officially strikes $13B settlement
(Newser) -
Quick, somebody #AskJPM how it feels to pay the largest civil settlement in history . JPMorgan Chase & Co. has reached a record $13 billion deal with federal and state authorities, resolving claims over the bank's sales of mortgage-backed securities that collapsed during the US housing crisis. It is the...
US has 23 times the debt
(Newser) -
If you think we saw a global financial disaster with the collapse of Lehman five years ago, just wait and see what happens if the US government defaults on its debt, warn financial experts. Lehman was $517 billion in debt—the US owes $12 trillion. The unprecedented event would cripple...
The SEC's special division wasn't in favor
(Newser) -
When SEC chief Mary Schapiro heard that her eight-member Lehman Brothers team had decided not to file charges for the bank's role in the financial crisis, she held a tense, private meeting with New York branch chief George Canellos. "I don't get it. Why is there no...
Justice Department calls claim 'preposterous'
(Newser) -
Standard & Poor's is claiming that the Justice Department's massive lawsuit against it is simply "retaliation" for the rating agency's 2011 decision to downgrade the US credit rating . In a court filing yesterday, S&P argued that the downgrade was "free speech" and that hence...
Commission passes on prosecuting major hedge fund
(Newser) -
You might want to stop holding your breath waiting for the SEC to bring the hammer down on more financial crisis ne'er do wells, because the commission appears to be winding down crisis-related investigations. That's what the Wall Street Journal has concluded after getting word from sources that...
Ex-UK drugs adviser David Nutt claims it made bankers 'overconfident'
(Newser) -
Forget all those complicated economic explanations. The real reason for the financial crisis was simple: Bankers were doing too much coke, says a professor and former UK government drugs adviser. The drug made bankers "overconfident," prompting them to take "more risks," says David Nutt. Cocaine fueled...
Fallout from Libor scandal could push legal tab even higher
(Newser) -
Big banks are paying dearly for their recent bad behavior: to the tune of $100 billion and counting, reports the Wall Street Journal . The top four US banks alone have paid $61.3 billion in financial crisis- and mortgage-related settlements over the past three years, and analysts don't expect...
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