Tag Archives: crisis

How misadventures of Bank of Baroda dragged it into South Africa’s political crisis

The Bank of Baroda headquarters is pictured in Mumbai.(Reuters File) In June 2017, an anodyne footnote to the Bank of Baroda’s (BoB) quarterly results mentioned a fine levied by the South African Reserve Bank (SARB), headquartered in Pretoria. The sum — Rs 5.45 crore — was insignificant for an institution the size of BoB. No further details were given; the ... Read More »

North Korea nuclear crisis: Putin calls sanctions useless

Russian President Vladimir Putin has said pursuing further sanctions against North Korea is “useless”, saying “they’d rather eat grass than give up their nuclear programme”. The US said on Monday it would table a new UN resolution on tougher sanctions in the wake of the latest test of a nuclear bomb by the North on Sunday. Mr Putin also said ... Read More »

How ‘Consumer Relief’ After Mortgage Crisis Can Enrich Big Banks

A home in Henderson, Nev., that was foreclosed. Some deals by big banks to provide mortgage relief for borrowers have a built-in profit incentive. CreditMax Whittaker for The New York Times In every multibillion dollar settlement with a big bank that peddled faulty mortgage securities, a major provision has been a requirement that the bank provide “consumer relief.” In the ... Read More »

Italian banking crisis: UniCredit to raise €13bn

Italy’s largest bank, UniCredit, plans to shed thousands of jobs and raise €13bn in the country’s biggest share issue in a bid to shore up its reserves and boost profits by the end of the decade. The bank said 14,000 posts, or 11% of the workforce, would disappear across its businesses in Europe and 1,000 bank branches in Italy would ... Read More »

Fed’s Yellen says ‘high-pressure’ policy may be only way back from crisis

The Federal Reserve may need to run a “high-pressure economy” to reverse damage from the 2008-2009 crisis that depressed output, sidelined workers, and risks becoming a permanent scar, Fed Chair Janet Yellen said on Friday in a broad review of where the recovery may still fall short. Though not addressing interest rates or immediate policy concerns directly, Yellen laid out ... Read More »

China’s credit binge increases risk of banking crisis, says watchdog

China’s huge credit binge has increased the risk of a banking crisis in the world’s second biggest economy in the next three years, according to global financial watchdog. An early warning of financial overheating – the gap between credit and GDP – hit 30.1 in China in the first quarter of this year, a report from the Bank for International ... Read More »

Business Secretary attends steel crisis talks in Brussels

The Business Secretary is to join ministers from around the world at a meeting to discuss a global glut of steel that has pushed British production to the brink of collapse.  Sajid Javid will hold talks in Brussels with counterparts from China and India and 27 other nations to “seek solutions to the overcapacity crisis”. Tata Steel, the Indian-owned conglomerate, ... Read More »

US banks not prepared for another financial crisis, say federal regulators

Some of the US’s biggest banks still lack a proper plan for bankruptcy, in the event of another major financial crisis, US regulators said on Wednesday. In the wake of the great recession banks were required to come up with “living wills” to prove they had a credible plan for bankruptcy that would not require another bailout from the taxpayers. ... Read More »

Affordable housing crisis has engulfed all cities in southern England, says Lloyds

Bank study finds no city in the south with homes under 7.5 times average local income with average UK city house price now at 6.6 times average local pay House prices in Winchester, Hampshire, have risen faster than anywhere else in the UK over the past decade. Photograph: Martin Godwin for the Guardian There is no longer a city in ... Read More »

Mervyn King: new financial crisis is ‘certain’ without reform of banks

The former Bank of England governor says in his new book that imbalances in the global economy makes a crash inevitable Mervyn King: ‘Failure to tackle the disequilibrium in the world economy makes it likely that a crisis will come sooner rather than later.’ Photograph: Philip Toscano/PA Another financial crisis is “certain” and will come sooner rather than later, the ... Read More »