News
Spain sets up €50 billion rescue fund
Madrid on Tuesday said it would establish a rescue fund to buy high-quality assets from its banking industry, hampered by a downturn in the country's housing market and the global turmoil.
Riksbank pumps Skr5 billion into Icelandic bank
The Riksbank on Wednesday agreed to prop up Kaupthing, Iceland's largest lender, with a Skr5 billion ($700m) loan, on fears the bank's liquidity problems threatened the stability of the Swedish financial system.
HKMA cuts discount rate by full percentage point
The Hong Kong Monetary Authority (HKMA) on Wednesday cut the rate at which it lends to banks through its discount window by 100 basis points.
IMF wants global action, warns of risk of meltdown
The International Monetary Fund (IMF) has urged policymakers around the world to step up efforts to tackle the rapid deterioration of the global financial system.
Fed to accept commercial paper for funds
The Federal Reserve on Tuesday adopted a new strategy to placate financial market tensions, saying that it would swap funds for unsecured commercial paper direct from the issuer.
Central banks pledge more dollars
Central banks around the world unveiled a fresh round of dollar auctions on Tuesday, aimed at tiding the banking system over the year-end period when money-market tensions tend to heighten.
Iceland nationalises second-largest bank
The crisis in the Icelandic financial system deepened on Tuesday as the authorities took control of Landsbanki, the country's second-largest lender, and pegged the ailing krona to the euro.
Australia slashes rates by 100 basis points
The Reserve Bank of Australia shocked markets on Tuesday, opting to cut its key rate by a full percentage point to 6%, the steepest margin since 1992.
Global stock markets plunge on banking fears
The Dow Jones average of shares listed in New York sank below 10,000 for the first time since 2004 as equities markets around the world plunged on signs that troubles in the global banking system had further intensified over the weekend.
Iceland suspends bank shares, offers guarantee
Iceland has halted trading on stocks in its beleaguered banks and guaranteed all customer deposits in a bid to stop a raft of selling on signs the country's banking system is near to collapse.
Ex-Fed's Volcker demands regulatory overhaul
Paul Volcker, a former chairman of the Federal Reserve, has urged regulators to enhance supervision on both a national and international level in the aftermath of the global turmoil.
Fed to offer further funds, pay interest
The Federal Reserve on Monday announced further measures to shore up ailing money markets, pledging to inject $600 billion in longer-term funds.
Denmark, Germany step up deposit guarantees
The Danish and German authorities have become the latest countries to raise their deposit guarantees to prop up their battered banking sectors.
Old Lady bows to markets, expands collateral pool
The paralysis in money markets has forced the Bank of England to accept poorer quality collateral, underlining the extent to which interbank conditions have worsened in recent weeks.
Ireland's Hurley justifies 100% guarantee
John Hurley, the governor of the Central Bank and Financial Services Authority of Ireland, has defended Dublin's pledge to guarantee all deposits in its six biggest lenders.
Banks push for global bailout
Banks have urged officials from around the world to cooperate on a global response to the financial crisis.
Zimbabwe halts e-transfers, inflation at 531 bn%
The Reserve Bank of Zimbabwe on Friday halted electronic transfers as the currency plunged to a fresh low. News of the stoppage follows a new estimate puts Zimbabwean annual inflation at 531 billion percent.
Wells Fargo bids for Wachovia
Wells Fargo, a US bank, looks set to snag Wachovia from Citigroup, the world's biggest lender, after offering $15.1 billion for the troubled bank. The move could see the Federal Deposit Insurance Corporation (FDIC), which manages the US's deposit…
House passes bailout plan
The House of Representatives, the lower house of the US Congress, has backed a revised version of the Treasury's $700 billion plan to tackle the financial crisis.
Trichet comments raise prospect of December cut
The European Central Bank (ECB) kept rates on hold again on Thursday, but more-dovish-than expected comments from Jean-Claude Trichet, the central bank's president, signalled the Governing Council could cut before the end of 2008.
EU economists demand systemic response
A group of Europe's most prominent economists on Thursday urged Brussels to re-capitalise the continent's battered banking sector or risk the crisis spiralling out of control.
Senate endorses Treasury plan
A large majority of US senators on Wednesday backed the Treasury's $700 billion plan to tackle the financial crisis.
Call for mutual model to protect UK deposits
Senior City of London figures have called for the UK to set up a deposit protection scheme run by the banks, independently of any financial regulator.
Bank appoints Magic Circle partner as legal chief
Graham Nicholson, a partner at Freshfields Bruckhaus Deringer, one of the City of London's most prestigious law firms, will become the Bank of England's chief legal adviser at the start of next year.