News
ECB flags concerns over new capital rules
New capital rules may incentivise banks to dump risky assets on central bank
Minister takes heat off BoJ, calls for Diet to do more against deflation
Senior vice minister Hideo Hiraoka says government must employ fiscal and industrial policy to quell deflation; comments add to growing body of support for Bank of Japan’s policy stance
Romania to review calls to ban coin featuring anti-Semite
National Bank of Romania to reconsider circulation of coin portraying religious leader who called for exile of Jews from country; move follows protests from Jewish community
Freddie Mac reports $6 billion loss in second quarter
Federal Home Loan Mortgage Corporation shows a $6 billion loss as strenuous conditions persist in US housing market; agency asks for extra $1.8 billion in Treasury assistance
Basel III watered down by politics and not fit for purpose, says CLSA risk chief
The most recent draft of the Basel III proposals has been watered down by politics, according to an Asian risk officer
FDIC’s general counsel resigns
Federal Deposit Insurance Corporation general counsel Michael Bradfield becomes second high profile figure to leave this week
Fannie Mae posts lowest loss since conservatorship
Fannie Mae reports a $1.2 billion loss, the lowest quarterly loss since its conservatorship
New Zealand mulls lightening banks’ reporting load
Reserve Bank of New Zealand seeks to remove doubling in reporting requirements and bring standards for Kiwi banks in line with international practice; mooted changes expected to reduce compliance cost
Top US economic adviser Christina Romer quits
Chair of US President’s Council of Economic Advisers Christina Romer resigns, citing family reasons; thought to be interested in Janet Yellen’s post at San Francisco Fed
Europe has turned a corner: Trichet
European Central Bank president Jean-Claude Trichet says economy back on track; slower growth expected despite positive figures in second quarter
New Turkish notes spark spike in printing costs
Central Bank of Turkey’s Annual Report shows improved lira notes caused banknote manufacture costs to leap by more than half; governor Durmuş Yılmaz praises inflation targeting framework
Greece passes first hurdle of bailout programme
European-IMF review of Greek economic programme says country is on track to receive second tranche of funds
CIC denies interest in UK football club: reports
Chinese sovereign wealth fund refutes suggestions that it is funding a bid to buy Liverpool Football Club
RBI drastically cuts deputy governor Chakrabarty’s role
Reserve Bank of India removes five of deputy governor Kamalesh Chakrabarty’s nine portfolios; move linked to Chakrabarty’s out-of-turn comments on monetary policy
Pakistan set to appoint new governor in coming weeks
State Bank of Pakistan says new governor must be in place by beginning of September, but no frontrunners yet
Singapore slaps biggest bank with extra capital requirements after technical glitch
Monetary Authority of Singapore censures DBS and imposes additional capital requirements after technical failure caused bank’s services to shut down in July; fault pinned on poor risk oversight
Bair’s senior adviser leaves FDIC
Senior adviser to markets Joseph Jiampietro departs FDIC after less than 18 months
NY Fed to start second set of reverse repo tests
New York Federal Reserve will conduct further tests of reverse repurchase operations tool in preparation for eventual exit from monetary support; tests will involve agency MBS, unlike previous trial
Bank Indonesia plans rupiah redenomination: reports
Bank Indonesia acting governor Darmin Nasution says redenomination of the currency should be inflation neutral
South Africa in fresh attempt to curb rand volatility
Ruling African National Congress will consider short-term capital inflows tax to curb rand volatility, currency’s strength; party questions merits of Sarb’s hard-won inflation targeting regime
PBoC announces plans to deregulate gold market
People’s Bank of China says it will provide more commercial banks with access to global gold markets to address growing demand
Bank’s macro model takes a bruising
Former Bank of England economist says model misjudges trade-off between growth and inflation
Northern Rock’s bad bank posts first profit
Northern Rock Asset Management shows $267m profit for first half of year as split with so-called “good bank” lowers costs of funding; FSA slaps RBS with $9m fine for screening failures
China now world’s second-largest economy, says PBoC’s Yi
People’s Bank of China vice governor Yi Gang says China has overtaken Japan