Dec 27, 2012 12:52 UTC

Weibo should tap the financial network in 2013

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By John Foley

The author is a Reuters Breakingviews columnist. The opinions expressed are his own

Weibo is changing Chinese society, but can it change investors’ minds? The rambunctious social media site, where over 400 million of the country’s web users post, follow, share and criticise, could be worth multiples of what the market currently suggests. A partial spin off in 2013 could be a good way to unlock Weibo’s charms.

Dec 26, 2012 17:50 UTC

US housing doesn’t need another government bailout

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By Agnes T. Crane

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

America’s housing market doesn’t need another government bailout. But the White House is mulling plans to rescue homeowners trapped by underwater mortgages and above-market mortgage rates by allowing them to refinance into cheaper government-backed loans. Luckily, its latest musings look like a pipe dream.

COMMENT

The FED is currently giving banks 50 million per month, supposedly to help the banks buy back underwater or bad loans, and make it easier for working Americans to borrow. It is apparant this is not working, banks are refusing to lend to anyone without sterling credit. The FED should be buying back the bad and underwater loans directly from the homeowners, thereby repaying the banks and stimulating the economy simultaneously.

Posted by Gallogarden | Report as abusive
Dec 24, 2012 17:15 UTC
Guest Contributor

A merger arb writes to Santa

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By Donder und Blitzen

The authors are guest columnists for Reuters Breakingviews. The opinions expressed are their own.

After another thin and bumpy year for betting on M&A, one desperate European merger arbitrageur wrote to Santa. Breakingviews obtained a copy:

Dec 21, 2012 19:21 UTC

GE’s $4 bln swoop on Italian supplier is shrewd

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By Quentin Webb

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

General Electric’s swoop on a key supplier should stack up. The U.S. conglomerate is paying a reasonable-looking $4.3 billion for Avio, the Italian aerospace components maker. GE gets savings and more exposure to a civil-aviation market growing at full throttle. The seller, British buyout shop Cinven, gets a satisfactory exit after a bumpy ride.

Dec 21, 2012 19:14 UTC

Washington may finally take up mortgage reform

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By Daniel Indiviglio

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

America’s lawmakers may finally take reforming housing finance seriously in 2013. Assuming Congress settles the deficit debate, sorting out the government’s role in funding home loans should be its next stop. And a number of obstacles are dissolving.

COMMENT

? Besides the Consumer Financial Protection Bureau action hoped for in January ,the author has given no evidence that ‘things are changing’ and we will have this kind of mortgage reform.
How many congressman support this? There are no quotes of anyone with insight about who would sponsor or support this reform.

Posted by peterfairley | Report as abusive
Dec 21, 2012 12:02 UTC

Diamond Bob will bounce back in 2013

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By George Hay

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

Few executives had a worse 2012 than Bob Diamond. The ex-Barclays chief executive started the year running one of the few UK banks without a big government stake, and spearheading a drive to make banks better citizens. He ends it having been forced out following a perfect storm of shareholder revolts, regulatory ire and, most notoriously, Libor.

Dec 20, 2012 20:42 UTC

Fed’s foreign bank crackdown is price of stability

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By Agnes T. Crane and Daniel Indiviglio

The authors are Reuters Breakingviews columnists. The opinions expressed are their own.

The Federal Reserve’s unilateral crackdown on foreign banks is necessary. The regulator’s requirement that overseas lenders properly capitalize their U.S. arms is a prudent way to protect the local and global financial system. The Fed’s approach could prompt other regulators to follow suit. But the fear that fragmentation could stifle global banking looks overblown.

Dec 20, 2012 16:53 UTC

UBS points to next banking worry: client risk

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By Dominic Elliott

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

UBS’s Libor shame points to a new concern for financial firms – relationship risk.

Dec 19, 2012 22:15 UTC

Sulzbergers will make headlines in New York Times

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By Agnes T. Crane

The author is a Reuters Breakingviews columnist. The views expressed are her own.

Expect the Ochs-Sulzbergers to make headlines in their own New York Times in 2013. The family that controls the U.S. paper of record has loyally seen it through some dark days. With the Gray Lady now on sturdier financial ground, they have a better chance to find a safe custodian at a decent price – maybe someone like billionaire New York Mayor Michael Bloomberg. The window of opportunity could close quickly.

Dec 19, 2012 14:33 UTC

Jumbo fine isn’t the end of UBS reputation woes

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By Dominic Elliott

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

The $1.5 billion settlement UBS has agreed to pay for rigging the London Interbank Offered Rate is unlikely to end the Swiss bank’s reputational or financial woes. The litany of compliance errors it made over a five-year period paves the way for litigation from other market participants. And clients may also balk at using the bank for Libor business in future, putting UBS’s new strategy for a reduced investment bank under pressure.