Post by unlawflcombatnt on Aug 30, 2007 3:42:18 GMT -6
from Yahoo News:
Subprime inflicts new damage, banks seek cash
By David McMahon and Mike Peacock
8/29/07
"New evidence of damage wrought by the U.S. mortgage sector surfaced in the United States and Europe on Wednesday while banks demanded a record amount of cash at a euro zone money market auction.
Rating agencies Moody's Investors Service and Standard & Poor's said on Wednesday that banks may suffer double-digit declines in revenue and pretax profits as they write off securities and loans that investors don't want to buy.
Cheyne Finance Plc, a structured investment vehicle (SIV) managed by British hedge fund Cheyne Capital Management, said it was seeking to restructure after being forced to start selling assets to pay down debt.
Merrill Lynch, meanwhile, downgraded Bear Stearns (BSC.N) Citigroup Inc (C.N) and Lehman Brothers Holdings (LEH.N) to "neutral" from "buy" and lowered estimates for the banks' earnings, due to credit and mortgage market troubles.
"The only thing that is certain is that more uncertainties in the direction of asset prices and volatility are on their way," Bank Julius Baer said in a report....
CENTRAL BANK OPS (Bail-Outs)
Euro zone banks bid for a record amount of money at the ECB's regular long-term funding operation on Wednesday, reflecting ongoing tightness in the interbank lending market.
Central banks have poured funds into money markets to tackle a liquidity crisis, stemming from the subprime saga, which has made many banks clam up on normal interbank lending.
The European Central Bank lent out 50 billion euros for 91 days, but with banks bidding for a total of 119.75 billion euros, strong demand pushed up the cost.
Later in the day the Federal Reserve added $5.25 billion in temporary reserves to the banking system through overnight repurchase agreements...."
________
Just to make sure this point wasn't missed, the Fed made another liquidity injection of $5.25 billion on Wednesday, 8/29/07.
Subprime inflicts new damage, banks seek cash
By David McMahon and Mike Peacock
8/29/07
"New evidence of damage wrought by the U.S. mortgage sector surfaced in the United States and Europe on Wednesday while banks demanded a record amount of cash at a euro zone money market auction.
Rating agencies Moody's Investors Service and Standard & Poor's said on Wednesday that banks may suffer double-digit declines in revenue and pretax profits as they write off securities and loans that investors don't want to buy.
Cheyne Finance Plc, a structured investment vehicle (SIV) managed by British hedge fund Cheyne Capital Management, said it was seeking to restructure after being forced to start selling assets to pay down debt.
Merrill Lynch, meanwhile, downgraded Bear Stearns (BSC.N) Citigroup Inc (C.N) and Lehman Brothers Holdings (LEH.N) to "neutral" from "buy" and lowered estimates for the banks' earnings, due to credit and mortgage market troubles.
"The only thing that is certain is that more uncertainties in the direction of asset prices and volatility are on their way," Bank Julius Baer said in a report....
CENTRAL BANK OPS (Bail-Outs)
Euro zone banks bid for a record amount of money at the ECB's regular long-term funding operation on Wednesday, reflecting ongoing tightness in the interbank lending market.
Central banks have poured funds into money markets to tackle a liquidity crisis, stemming from the subprime saga, which has made many banks clam up on normal interbank lending.
The European Central Bank lent out 50 billion euros for 91 days, but with banks bidding for a total of 119.75 billion euros, strong demand pushed up the cost.
Later in the day the Federal Reserve added $5.25 billion in temporary reserves to the banking system through overnight repurchase agreements...."
________
Just to make sure this point wasn't missed, the Fed made another liquidity injection of $5.25 billion on Wednesday, 8/29/07.