ECB will find it hard to avoid pain on Greek debt

January 11, 2012

The central bank’s refusal to participate in the Greek debt restructuring becomes harder to sustain as Athens threatens to become more coercive. And any attempt to spare the ECB losses will make it look as if it enjoys implicit seniority, pushing sovereign yields even higher.

The case for Washington bailing out some states

January 10, 2011

The newly-installed governors of Illinois, California, New York and Connecticut face huge budget gaps that are worrying financial markets.

Euro zone daren’t flunk Lisbon’s solidarity test

April 12, 2013

After taking a chainsaw to the Cypriot economy, euro zone officials must decide whether to give Ireland and Portugal more time to repay their bailout loans. An extension won’t cost much or save either country, and may be inevitable. Playing hardball would be self-defeating.

GM readies its bailout defense

November 16, 2009

There's little downside to accelerating the repayment of the loans. The much feared implosion of the auto industry following the bankruptcies of GM and Chrysler failed to materialize, leaving GM in a better position than it had estimated. And repaying the loans earlier certainly helps GM. The interest rate on government debt is an expensive 7 percent a year, executives noted on a conference call.

When it rains, it doesn’t pour in CMBS

November 9, 2009

Sometimes droughts end with little fanfare, especially when bumper crops have sprung up without the rain. Today, Developers Diversified Realty brought its much anticipated $400 million commercial real estate bond deal to the market, the first rain drop to fall in this parched market since last year.

Can banks really afford to return capital?

October 22, 2009

Just 12 months after the financial system had to be bailed out by taxpayers, some banks are hinting that they may be over-capitalised. This should be seen for what it is: an attempt to avoid essential measures to prevent another catastrophe.

BofA and the succession obsession

October 5, 2009

Wall Street loves to speculate about who may be the chief executive in waiting at some large company. That obsession with succession is evident in the wake of Ken Lewis' decision to step downas chief executive of Bank of America by year-end.

Car trouble

October 2, 2009

The banks may have been the most visible beneficiaries of government bailouts, but they are not the only ones. The automotive industry has also had its begging bowl out. But entrepreneurs should not be offered the opportunity for private gain at the taxpayers' expense.