Spreading European Fiscal Crisis Hurts Banks: Credit Markets

Signs the global economic recovery is faltering and Europe’s fiscal crisis is spreading added to investor concern that banks will have difficulty in clawing back the $2.4 trillion they’re owed by that region’s most indebted nations. The cost of insuring against a default on financial-company bonds surged, with the Markit iTraxx Financial Index of credit- default swaps linked to the senior debt... [Read more]

Foreclosure Glut: Is ‘Shadow Inventory’ Really a Threat?

Every once in a while, the term “shadow inventory” makes it into the business headlines. Invariably, stories warn of a looming flood of foreclosures that will drag the housing market down as soon as homeowners begin to feel optimistic again. But what is shadow inventory — and is it really such a big threat? Different experts have different definitions. Some only include homes that... [Read more]

TARP’s tiniest failures add up

It might seem that the banking sector’s bailout saga is nearing its close, leaving room to focus on other catastrophes like the European debt crisis or the Gulf oil spill, but some small banks across the country that benefited from TARP are still struggling to stay afloat, and many more will likely fail. And while the Treasury Department and the Obama Administration have justifiably lauded TARP... [Read more]

Markets tumble after Fitch cuts Spain’s ratings

Fitch Ratings cut Spain’s credit ratings to AA+ from AAA on Friday, saying its economic recovery would be more muted than the government forecast, pushing world equities and the euro lower. The downgrade follows a cut by another agency Standard and Poor’s last month and heaps more pressure on the government, battling to reassure markets its fiscal, political and social woes will not end... [Read more]

Bankruptcy Talk Spreads Among Calif. Muni Officials

Two years after Vallejo, Calif., filed for bankruptcy protection, officials in nearby Antioch are also tossing around the ‘B’ word. Antioch’s leaders earlier this month said bankruptcy could be an option for the cash-strapped city of roughly 100,000 on the eastern fringe of the San Francisco Bay area. Antioch’s fiscal woes are standard issue for local governments in California:... [Read more]

EU Style Crisis Could Hit US in a Decade: Josh Bolten

As European politicians fight to contain the debt crisis, the United States could see a similar situation within the next decade, Josh Bolten, former Office of Management & Budget [OMB] director told CNBC on Friday. “What’s going in Europe is a preview of what the United States could be if we don’t get our own fiscal house in order relatively soon,” he said. “We need to get a hold of... [Read more]

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