China may switch to currency basket for forex rate: A top Chinese central bank official suggested switching away from the U.S. dollar as a benchmark for the yuan's foreign-exchange rate, switching instead to a basket of currencies, according to remarks published Thursday. Seven banks fail EU 'stress tests': Seven out of 91 European banks have failed so-called "stress tests" designed to assess their ability to survive a future financial crisis, the committee of European Banking Supervisors (CEBS) has said. UK: Economy set for triple whammy, admits Bank chief: The British economy faces a triple whammy of higher inflation, lower growth and rising unemployment, according to one of the Bank of England's most senior policy makers. Living standards over the next few years will rise only "minimally". Feinberg: Unfair to Ask Firms to Return Payouts: U.S. "pay czar" Kenneth Feinberg on Friday declined to request 17 financial firms that doled out $1.6 billion in "ill advised" executive compensation to return the excessive payouts, saying to do so would be unfair to the companies and could trigger private lawsuits and additional Congressional investigation. 20% of Americans hit by major economic loss: A new study released Wednesday estimates that 20% of Americans suffered a significant economic loss last year - the highest level in the past 25 years. TARP watchdogs reiterate criticisms of mortgage modification efforts: The government's three TARP watchdogs testified before the Senate Finance Committee Wednesday and continued to criticize the government's much-maligned mortgage modification program. Obama Signs Bill Extending Jobless Benefits: Move Restores Checks to 2.5 Million People, Ends Hard-Fought Political Battle with Republicans Ann Curry Focuses On 'Hidden America': The Impoverished (PHOTOS)
Saturday, 24 July 2010
By Mike Whitney
Financial system instability is no accident. It's Central Bank policy. As financial institutions discover they can no longer count on organic growth in the real economy to increase profits, (because consumers are too strapped to spend freely) they will rely more heavily on dodgy accounting, bogus ratings, opaque debt-instruments, high-frequency trading and lax lending standards. Continue
By ERIC DASH
With the financial system on the verge of collapse in late 2008, a group of troubled banks doled out more than $2 billion in bonuses and other payments to their highest earners. Now, the federal authority on banker pay says that nearly 80 percent of that sum was unmerited. Continue
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