Saturday, February 09, 2002

Citigroup Hedged Bets Against Enron "The bank, a major lender to Enron, decided to protect itself in the unlikely event that its borrower faltered." ... [more] 10:20:17 AM    comment  []

Enronitis "The accounting profession can no longer be trusted to regulate itself. Congress must consider wresting away from the industry the authority to establish standards and discipline their own. Investors need more protection, even if it is from their own euphoria." [NYT Editorial] 10:14:50 AM    comment  []

"The Bank of Japan left monetary policy unchanged today, a decision that puts additional pressure on the government to bolster the nation's weakening financial system and answer mounting criticism from abroad." "The central bank's monetary policy board, in an unusually brief meeting lasting less than six hours over two days, said only that it would pump more money into the markets 'should there be a risk of financial market instability.'" "But rising long-term bond prices, a collapsing stock market and a weakening yen are pushing the banking industry here into crisis. Ahead of the end of the fiscal year on March 31, banks are dumping bonds to offset losses on stocks." "There are growing signs that the rest of the developed world is losing patience with Japan's halting pace in coming to grips with the crisis." ... [more] 10:09:59 AM    comment  []

Lifting Clouds Lighten G7 Economic Mood "`The impression is that we are at the turning point of the economy,'' said the source, who asked not to be identified." "The optimism centers on improving economic data from the United States and Canada, as well as hopes of a second-half recovery in Germany, which has been a drag on European growth." "But ministers admit there is still concern about Japan's seemingly never- ending recession and about turmoil in Argentina after a debt default and a painful devaluation there." "`There is a consensus among the G7 that the global economy is improving, led by the United States, compared with when the G7 previously met last October' ..." "`But going forward there are reasons to remain cautious.''" [more] 9:50:11 AM    comment  []