Ft.com
Some European financial institutions should have taken bigger losses on their Greek government bond holdings in recent results announcements, according to the body that sets their accounting rules. In a private letter sent to the European Securities and Markets Authority, the European Union’s market regulator, the International Accounting Standards Board criticised the inconsistent way in which banks and insurers have been writing down the value of their Greek sovereign debt. “This is a matter of great concern to us,” Hans Hoogervorst, IASB chairman, said in the letter, which was seen by the Financial Times.http://www.ft.com/intl/cms/s/0/9582fb8c-cfe9-11e0-a1de-00144feabdc0.html#axzz1WOELnKbv

Silvio Berlusconi, Italy’s prime Minister, met Umberto Bossi, leader of the Northern League and his closest ally, on Monday in a bid to resolve differences within the ruling coalition over amendments to the government’s austerity plan. The meeting, held in Mr Berlusconi’s private residence in Arcore, just outside of Milan, was intended to convey a message of coherence to the coalition after days of feuding over proposed amendments to the package.  The €45.5bn austerity package, drawn up at the insistence of the European Central Bank, is currently being examined by the Senate, where any amendments must be presented by the end of the day on Monday. http://www.ft.com/intl/cms/s/0/0d751a02-d22a-11e0-9137-00144feab49a.html#axzz1WOELnKbv

Nordea, the largest bank in the Nordic region by market value, is to reduce its workforce by nearly 6 per cent in an attempt to protect profit amid a slowing economy and tougher regulatory environment. The Stockholm-based lender said it would cut about 2,000 of its 34,000 workers by the end of next year, joining a growing number of banks that have announced aggressive cost-saving measures as the economic outlook deteriorates. More than 60,000 jobs have been cut by European banks in recent weeks, including UBS, ABN Amro, HSBC, Barclays and Credit Suisse. http://www.ft.com/intl/cms/s/0/f99542ec-d269-11e0-9137-00144feab49a.html#axzz1WOELnKbv

Irish residential mortgages in arrears or restructured due to financial distress rose 10 per cent in the second quarter from the previous three months, heaping pressure on the government to come up with a solution for struggling homeowners.  More than one in 10 Irish home loans are not being fully repaid and the situation is deteriorating as the rate of unemployment remains stubbornly high and house prices continue to fall, marking a three-and-half year decline. http://www.ft.com/intl/cms/s/0/8c3a1412-d263-11e0-9137-00144feab49a.html#axzz1WOELnKbv

Algeria’s foreign ministry confirmed on Monday that Safia Gaddafi, wife of the embattled Libyan leader Muammer Gaddafi, had arrived on Algerian territory along with other family members.  The presence of members of the Gaddafi family in Algeria could prove an embarassment to the authorities there, not least as domestic public opinion has long been uneasy about the government’s ambiguous stance towards the conflict in Libya. http://www.ft.com/intl/cms/s/0/d6f9b5be-d283-11e0-a409-00144feab49a.html#axzz1WOELnKbv

Continue reading →

QE 3 or not, the US Economy and the Budget hasn’t changed much. This great graphics from earlier this year, is worth studying every now and then. Sovereign Debt is out of control. Courtesy Elefint Design.