Buy as bankers move from denial to depression
The credit crunch is not over because it takes time for individuals, or organisations, to move on. But move on they will, writes John Kay
Subprime fall-out
Resources
The rising defaults on subprime mortgages in the US have triggered a global crisis for the money markets. Hedge funds and banks across the world have found themselves exposed
Thain warns retail banks on subprime
Merrill Lynch’s chief executive says the pain from the subprime crisis - which has largely worked its way through the investment banking world - is now just beginning for retail lenders
Bankers’ survey highlights liquidity shortage
Fears over increased defaults
Related content and features
Comment and Analysis
Why Britain’s economy will change
Martin Wolf discusses the Bank of England’s response to the credit crisis and the state of the UK economy
A passing storm? Is the worst over?
A belief is growing on Wall Street that the credit market turmoil could finally be abating. Yet new losses could develop as the economy deteriorates
The financial crises of capitalism
The beginning of wisdom is to recognise that booms and busts have been a feature of capitalism from the start, writes Samuel Brittan
Ethical finance standards must be restored
Ethics is not only acting correctly; it is also not trying to avoid regulation even if one thinks one can get away with it, writes Evelyn de Rothschild
How the state can stabilise the housing market
This proposal would give owners who remain committed to their homes the means to ride out the crisis, writes Sheila Bair
Markets
The monoline clock is ticking
FGIC has already lost its top-notch ratings, while Ambac and MBIA, the biggest bond insurers, are likely to have another week or so to come up with a firm plan. Who will hold their nerve longest in the monoline poker game?
Fortress plunges after US asset sales
Shares in Macquarie Fortress Notes dropped 56 per cent after the investor in high-yield products was forced to sell some US debt investments at a loss after breaching bank covenants
Buffett bond plan puts heat on banks
Leading banks were under renewed pressure to fast-track plans to shore up struggling bond insurers after Warren Buffett revealed he had offered to take over the high-quality portions of the insurers’ portfolios
AIG’s derivative woes hit confidence
Confidence in the credit markets suffered a fresh blow after AIG, the insurance group, disclosed problems with valuing its derivatives portfolio
Banking
Seven habits finance regulators must acquire
Unless we are comfortable with a crisis every five years or so, financial regulation must be radically reconsidered. Tighter rules are desirable in the longer-run interests of the banking industry itself let alone the public’s. What should such regulation look like, asks Martin Wolf
The binge culture of banking must be changed
Some blame the politicians, others the central bank officials (for creating asset bubbles). Abigail Hofman blames the corrosive culture of investment banking
KfW head quits over IKB crisis
The crisis at IKB, the German bank crippled by its subprime investments, claimed one of its biggest casualties when the chief executive of the bank’s largest financial backer resigned
Muni-bond market gridlock
The crisis in some short-term municipal debt, known as auction rate securities, a $330bn market, has led to some whacky outcomes
Subprime litigation
Banks and pension funds have lost hundreds of billions of dollars in the subprime blow-up, yet surprisingly few institutional investors have made their way to the courthouse
Decision time for IKB rescue
IKB shareholders are due to meet on Wednesday to decide whether to approve a government-backed bail-out or allow the German bank to fail
Spanish banks’ reliance on ECB surges
The European Central Bank has effectively funded new lending in Spain by replacing wholesale capital markets, which have been strangled by the global credit crunch
