News
NY Fed attacks article on AIG debacle
New York Fed general counsel Thomas Baxter takes issue with New York Times article which says Fed ignored advice from advisers on AIG counterparty CDS issue
Hikes in Asia as region shrugs off euro sovereign debt concerns
South Korea and Malaysia raise rates on inflation fears, Australia signals intent to continue tightening; elsewhere Riksbank tightens
Monetary aggregates remain about price, not financial, stability: ECB’s Stark
ECB Executive Board member Jürgen Stark says critics-cum-champions of monetary analysis are wrong once more about the true purpose
Four former governors join Central Banking’s advisory board
Joseph Yam, Y.V. Reddy, Don Brash and Ludek Niedermayer join Central Banking Publications editorial advisory board
Europe hikes capital rules, slashes banker bonuses
Legislation adopted by European Parliament requires banks hold up to four times more capital to protect against trading risk; half of bankers’ bonuses to be paid in contingent capital
Trichet on World Cup: I don't mind who wins
Jean-Claude Trichet refuses to declare favourite as two eurozone members vie to scoop soccer's top prize
Temasek Holdings’ portfolio hits record high
Singaporean sovereign wealth fund Temasek Holdings says portfolio has hit record of $135 billion; fund chief credits increased exposure to Asian emerging markets
Cebs unveils details of EU stress tests
Committee of European Banking Supervisors names 91 banks that will be subject to stress tests; vague on methodology
ECB bond purchase effect wearing off, warns IMF
Fund cautions that stability risks are on the rise again as effect of European Central Bank’s foray into bond markets loses bite; southern eurozone to face refinancing contest with US, UK and Japan
Ireland’s bad bank forced to slash profit forecast
Ireland’s National Asset Management Agency says €4.8 billion profit estimate was based on exaggerated figures from banks; chairman Frank Daly “disappointed and disturbed” by banks’ distortion
Differing sovereign debt haircuts to be included in EU stress tests: reports
Reports quote German banking officials as saying that extreme scenarios will apply steep haircuts to PIIGS sovereign debt, but none to bunds or French paper
Azerbaijan to move to DSGE model
National Bank of Azerbaijan will switch to consolidated DSGE framework by year-end; deputy research director says model valued for overall coherence and ability to factor in irrational behaviour
Ukraine President in bid to strengthen central bank independence
Ukraine’s President Viktor Yanukovych submits draft bill to enhance central bank’s independence; measures lengthen governor’s term, increase number of deputies and prohibit party membership
ECB attacks Bucharest over central bank pay cuts
European Central Bank criticises Romania’s decision to impose wage cuts on central bankers after its government failed to consult Frankfurt
Founding MPC member leaves UK fiscal watchdog after three months
Office of Budget Responsibility head Sir Alan Budd steps down after barely three months on the job
Bangkok names new central bank governor
Thailand’s cabinet selects former Securities and Exchange Commission chief Prasarn Trairatvorakul to take over as central bank head; markets, analysts welcome announcement
Microfinance not a silver bullet for Africa: Nigeria, Ghana governors
Nigerian governor Sanusi Lamido Sanusi and Ghanaian chief Kwesi Bekoe Amissah-Arthur say credit issuance is constrained by factors other than just access; requires deeper change
Protests at Icelandic central bank on car loan rules
Several hundred demonstrators congregate around central bank in peaceful protest against delinking of car loans from foreign currency exchange rates; rule change could see up to 10% of Icelanders hit with higher repayments
Governors gloomy on outlook for pan-African currency
South African, Nigerian and Ghanaian central bank governors say path to regional and continent-wide single currency littered with obstacles; single currency will not correct underlying problems
Greek debt crisis sparks widening of almost all global CDS spreads
Cost of protecting against a Greek default up 190% in three months to mid-June as CDS spreads widened for 93% of sovereign debt on back of sovereign debt crisis in Europe
NIESR director to succeed Kate Barker on MPC
Martin Weale set to join Bank of England’s Monetary Policy Committee in time for August meeting
IMF resumes financial aid to Ukraine
Fund approves new application for loans after funding was cut off in dispute over its burgeoning fiscal deficit
ECB handled Greek crisis well: CentralBanking.com readers
CentralBanking.com poll shows more than 40% approval rating for European Central Bank’s handling of the Greek debt crisis
Foreign holdings of US Treasuries rise as supply for agency securities runs dry
Fed data show official-sector holdings of US agency securities fell after 12 straight weeks of gains