Swiss move signals end of the phoney war September 6, 2011 YESTERDAY morning, the Swiss National Bank (SNB) took the bold move to put in place currency controls in the form of a minimum exchange rate between the euro and the Swiss franc at SFr1.20. The SNB said that it will protect the franc “with the utmost determination.” The SNB has also indicated that it is [...]
China’s service sector slows in August September 5, 2011 China’s fledgling services sector grew at the lowest pace on record in August, a private survey has shown, as new orders ebbed and measures to rein in the property sector started to pinch. The slowdown in the services sector, which accounts for less than 45 per cent of gross domestic product, reinforces signs that China [...]
How Washington created sub-prime September 4, 2011 AMERICANS love lawsuits. It’s the way they do business. But the news that the authorities supervising the US housing agencies are suing 17 banks over the sub-prime crisis was unintentionally hilarious. To see why, recall that the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corp (Freddie Mac) – government sponsored [...]
Banks face $200bn US subprime suit September 4, 2011 LENDERS were dealt a heavy blow on Friday as a US federal agency filed 17 lawsuits against banks for allegedly mis-selling securities based on mortgages in the run-up to the financial crisis. Shares in Bank of America, the worst-hit, tumbled more than eight per cent on the news. The Federal Housing Finance Agency, which oversees [...]
If life gives you rotten lemons … sue the banks September 4, 2011 ROLL up for the latest round of the sub-prime blame game! In an almost farcical turn of events, the world’s biggest buyers of dodgy mortgages and mortgage securities – government-sponsored Fannie Mae and Freddie Mac – are now suing banks for selling them the “old lemons”, as Goldman allegedly called the stuff in private. In [...]
Aldermore to offer 100pc mortgages September 4, 2011 PRIVATE equity-backed Aldermore is set to be the first national lender to offer 100 per cent mortgages since the onset of the financial crisis. The mortgages, which were discarded for being too risky, will rely on certain stipulations, such as being partially guaranteed by a parent. Aldermore, which is owned by AnaCap, will offer the [...]
Bank lawsuit looms large over the equity markets September 4, 2011 THIS morning’s direction for the markets will be dominated by the news which came out late on Friday evening that a US regulator is suing 17 financial institutions for mis-selling billions of dollars’ worth of mortgage bonds, which ultimately proved toxic when the US housing market collapsed. The targets included not only major US banks [...]
Northern Rock owner to credit check clients August 31, 2011 THE administrator of failed lenders Northern Rock and Bradford & Bingley is monitoring its 750,000 mortgage-holding customers for signs of financial stress and will offer advice to any it feels may be struggling, it emerged yesterday. UK Asset Resolution checked customers’ creditworthiness to identify those that may need to cut spending to continue paying their [...]
London’s rent continues to edge upward August 31, 2011 STRONG demand and weak supply continues to hike up London rents, with many young people struggling to get a step onto the property ladder. “Rental growth in London and the south has outperformed the rest of the country, though all regions have seen a pickup in rents,” the Royal Institution of Chartered Surveyors (RICS) said [...]
British mortgage sales decline across the board August 31, 2011 MORTGAGE sales in the year to April sank to their lowest rate since the Financial Services Authority (FSA) began gathering the figures in 2005, it emerged yesterday. “Overall, mortgage sales declined by seven per cent from 2009-10 to 2010-11,” the FSA said. The decline was across the board, with sales of mortgages to first-time buyers, [...]