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Jun 21, 2012

GATA | THE GATA DISPATCH: Turk, von Greyerz tell King World News about rising fear in markets

Turk, von Greyerz tell King World News about rising fear in markets

10:17a HKT Friday, June 22, 2012

Dear Friend of GATA and Gold:
Growing fear and possible panic throughout the world financial system are the subjects of King World News' latest interviews with GoldMoney founder and GATA consultant James Turk --

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/6/21_Tu...
-- and gold fund manager Egon von Greyerz:
 http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/6/21_Gr...
As gold investors, Turk and von Greyerz themselves don't seem terribly frightened.

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Moody's Bank Ratings 2012: Ratings of 15 banks with global capital markets operations downgraded as part of wider review of bank ratings

Moody’s Bank Ratings 2012

This page provides a centralized source for Moody’s research and ratings lists related to our global banking initiatives in 2012. 


Highlights
21 June 2012
Ratings of 15 banks with global capital markets operations downgraded as part of wider review of bank ratingsWe have downgraded the ratings of 15 banks and securities firms with global capital markets operations. The rating review, initiated on 15 February, has now been concluded. All the banks affected by these rating actions have significant exposure to the volatility and risks inherent in the capital markets business, which have led many to fail or avoid it only through the receipt of support from a third party. As part of our review of European banks, also announced on 15 February, we have to date also taken actions on banks in Germany, Austria, Spain, Italy, Portugal, Sweden, Norway, Denmark, Finland, France and the Benelux countries...Global Investment Banks Press Release l Global Investment Banks Special Comment l Global Investment Bank Ratings List Excel 
Lloyds TSB Bank plc downgraded; outlook negativeWe have downgraded Lloyds TSB Bank plc’s senior debt and deposit ratings and lowered its standalone credit assessment. These actions reflect the bank’s sensitivity to the increasingly challenging operating environment in the UK and in Europe more widely and still-high reliance on wholesale funding, which renders the bank vulnerable to changes in investor sentiment toward European banks... Lloyds Press Release l UK Bank Ratings List Excel

Moody's Press Release | Rating Actions: Moody's Takes Action on $515 Million of US Alt-A RMBS issued by Banc of America

 
Rating Action:

Moody's Takes Action on $515 Million of US Alt-A RMBS issued by Banc of America

Global Credit Research - 21 Jun 2012

New York, June 21, 2012 -- Moody's Investors Service has downgraded the ratings of 41 tranches, upgraded the ratings of 15 tranches, and confirmed the ratings of 27 tranches from 10 RMBS transactions, backed by Alt-A loans, issued by Banc of America.

RATINGS RATIONALE

The actions are a result of the recent performance review of Alt-A pools originated before 2005 and reflect Moody's updated loss expectations on these pools.

The methodologies used in these ratings were "Moody's Approach to Rating US Residential Mortgage-Backed Securities" published in December 2008, and "Pre-2005 US RMBS Surveillance Methodology" published in January 2012.
The methodology used in rating Interest-Only Securities was "Moody's Approach to Rating Structured Finance Interest-Only Securities" published in February 2012. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.

Today's rating action constitute of a number of upgrades as well as downgrades. The upgrades are due to significant improvement in collateral performance, and/ or rapid build-up in credit enhancement due to high prepayments.

The downgrades are a result of deteriorating performance and/or structural features resulting in higher expected losses for certain bonds than previously anticipated. For example in shifting interest structures, back-ended liquidations could expose the senior bond holders to tail-end losses. The subordinate bonds in the majority of these deals are currently receiving 100% of their principal payments, and thereby depleting the dollar enhancement available to the senior bonds. In our current approach, we capture this risk by running each individual pool through a variety of loss and prepayment scenarios in the Structured Finance Workstation® (SFW), the cash flow model developed by Moody's Wall Street Analytics. This individual pool level analysis incorporates performance variances across the different pools and the structural nuances of the transaction

Moody's adjusts the methodologies noted above for 1) Moody's current view on loan modifications 2) small pool volatility.

To continue reading click here:  http://www.moodys.com/research/Moodys-Takes-Action-on-515-Million-of-US-Alt-A--PR_248774

NYT Global Update: France and Germany Face Delicate Talks Over Economy

Global Update




TOP NEWS

France and Germany Face Delicate Talks Over Economy

By STEVEN ERLANGER
President François Hollande of France is portrayed as ready to do battle with the German chancellor, Angela Merkel, but the relationship is much more nuanced.

Spain Tallies the High Cost of Riding Out Bank Crisis

By RAPHAEL MINDER and STEPHEN CASTLE
Up to €62 billion will be needed for banks, according to audits, and Madrid plans to formally request bailout funds in "the next few days.''

C.I.A. Said to Aid in Steering Arms to Syrian Opposition

By ERIC SCHMITT
A small number of American officers are operating secretly in southern Turkey, helping decide which Syrian rebel fighters across the border will receive arms.
World

Video: Air-Conditioners Cause Global Worry

As air-conditioners sprout across the world, scientists are becoming increasingly alarmed about the impact of the gases on which they run. Elizabeth Rosenthal reports.
Opinion

Op-Ed Contributor

Greek Crises, Greek Resilience

By ARISTOTLE TZIAMPIRIS
From a historical perspective, our current troubles are neither unprecedented, nor even close to being the worst.
WORLD

Syrian Pilot Granted Asylum in Jordan

By NEIL MacFARQUHAR and ALAN COWELL
The pilot of a warplane who had been reported missing by Syrian Air Force authorities Thursday made an emergency landing in Jordan, and asked for political asylum, officials said.

Militant Gets 20 Years in Prison for Bali Bombing

By SARA SCHONHARDT
The Indonesian militant, Umar Patek, was convicted for his role in the 2002 Bali nightclub bombings, which killed 202 people, mostly foreigners.

Pakistan Court Orders Arrest of Presidential Ally

By DECLAN WALSH
The arrest warrant effectively blocked a bid by a close ally of President Asif Ali Zardari to be the next prime minister.
BUSINESS

Europe Weighs Options for Easing Pain for Weak Nations

By JAMES KANTER
Euro zone finance ministers met in Luxembourg on Thursday to examine ways to ease financial pressure on Spain and other troubled members of the bloc.
TECHNOLOGY

EBay Plans Data Center That Will Run on Alternative Energy Fuel Cells

By JAMES GLANZ
The center would make eBay the first major tech company to use alternative power as a primary source for such facilities.
Bits Blog

Twitter's Site Suffers Some Downtime

By SOMINI SENGUPTA
Just weeks after unveiling its new logo - a bird in flight - Twitter briefly crashed to earth on Thursday. Its site was unavailable for roughly an hour.
Media Decoder Blog

Hearings on Universal-EMI Deal

By BEN SISARIO
Supporters of the deal are expected to testify on Thursday that the Internet has weakened the record companies, thus making another step toward consolidation less than worrisome.
SPORTS

A Man on a Mission to Change Italy's Spirit

By ROB HUGHES
Cesare Prandelli, the national team's coach, is determined to change his players' style, from negativity to as close to the Beautiful Game as Italy is capable of performing.

In Comeback, Raikkonen Wants Nothing but Victory

By BRAD SPURGEON
Former world champion Kimi Raikkonen has returned to Formula One after leaving at the end of 2009 and he finds himself with a Lotus car that just might win races.

A Grand Prix Scenario Starring an Ensemble Cast of Victors

By BRAD SPURGEON
In more than 60 years of Formula One racing, never has a season started like this one has, with seven different winners in the first seven races.
U.S. NEWS

Documents Tell Zimmerman's Side in Martin Shooting

By LIZETTE ALVAREZ and TIMOTHY WILLIAMS
The defense team for George Zimmerman, the suspect in the Trayvon Martin killing, has released documents and audio and video interviews with Mr. Zimmerman.

Those Already Ill Have High Stake in Health Ruling

By SABRINA TAVERNISE
If its major provisions take effect, the Affordable Care Act would prohibit insurance companies from turning people away or charging them more because they are sick.

Senate Passes Farm Bill, but Tougher Road Seen in House

By RON NIXON
The bill would cost nearly $1 trillion over 10 years, and pay for dozens of programs for farmers and food assistance for low-income families.
OPINION
Op-Ed Columnist

In Iran, They Want Fun, Fun, Fun

By NICHOLAS D. KRISTOF
Young Iranians are tuning out. Of those encountered on a visit, many seemed less interested in religious fanaticism than in sex, drugs and rock 'n' roll.
Op-Ed Contributors

Europe Needs a Federal Reserve

By AARON TORNELL and FRANK WESTERMANN
The European Central Bank should gain the power to shut down insolvent banks, limit skyrocketing central bank credit, and make it clear to the euro zone that help from Frankfurt cannot go on forever.
Latitude

The Possum Ate My Cable

By FRANCISCO TORO
Another major power outage in Venezuela, another wild government response. Mismanagement and underinvestment didn't cause the grid's latest failure. A possum did.

FGC BOLSA - FGC FINANCIAL MARKETS | Fernando Guzmán Cavero Statement About His Blog's New Address

DEAR READERS.

IN RESPONSE TO SOME E-MAILS RECEIVED WITH REGARDS TO THE NEW ADDRESS THAT APPEARS WHEN SEARCHING MY BLOG, i WOULD LIKE TO MAKE THE FOLLOWING STATEMENT:

FGC BOLSA - FGC FINANCIAL MARKETS WITH A PREVIOUS WEBSITE ADDRESS THAT WAS SHOWN IN THE TOOLBAR AS WWW.FGCBOLSA.BLOGSPOT.COM, AND NOW CHANGES TO WWW.FGCBOLSA-FGCFINANCIALMARKETS.INFO, ARE BOTH THE SAME AND RESPOND TO A FEATURE BLOGGER FACILITATES TO THEIR USERS AND IS A LEGITIMATE AND SUPERVISED REDIRECTION TOOL.


ALL THE BEST,
FERNANDO GUZMÁN CAVERO




Stocks and Markets in the News | After Hours: Ryder slumps, Medtronic up in after-hours trade

By Carla Mozee, MarketWatch 

LOS ANGELES (MarketWatch) — Shares of Ryder System Inc. dropped late Thursday after the truck-rental and logistics company cut earnings forecasts, and shares of Medtronic Inc. edged higher following a dividend hike by the medical-device maker. 

Ryder shares R -3.91%  fell 9.5% to $36.90 in light volume as Ryder said its revised second-quarter and 2012 earnings forecasts stem in part from a slowdown in commercial vehicle rentals and efforts to downsize its fleet of cars and trucks. Ryder also said it expects “a slower demand environment to continue through 2012.” 


Stocks hit after Goldman call, data Global growth worries slammed stocks, driving major benchmarks to their second-biggest losses of the year. Michael Santoli has details on The News Hub. (Photo: Scott Eells/Bloomberg) 

Ryder projected second-quarter earnings of 90 cents to 95 cents a share, down from its previous forecast of $1.07 to $1.12 a share. Its 2012 forecast for earnings now stands at a range between $3.65 to $3.85 a share. 

It had previously expected $4.02 to $4.12 a share. Analysts polled by FactSet Research had been expecting second-quarter earnings of $1.10 a share and $4.09 for the full year. 

Medtronic’s MDT -1.56%  stock picked up 0.4% at $37.95 in light volume. The company, whose products include minimally invasive devices used in coronary and spinal surgeries, raised its quarterly dividend 7% to 26 cents a share, payable July 27 to shareholders of record as of July 6. 


Reuters
Traders work on floor of the New York Stock Exchange.
Ahead of late trading, U.S. stocks tumbled, marking their second worst session of the year following economic reports that underscored worries about slowing global growth. Read more in Market Snapshot. 
 
The Dow Jones Industrial Average DJIA -1.96%  fell 251 points, or 2%, to 12,573.57. The Nasdaq Composite COMP -2.44%  lost 2.4% to 2,859. The S&P 500 Index SPX -2.23%  lost 2.2% at 1,325.51. Goldman Sachs advised clients to short the S&P 500. See more in Financial Stocks. 
 
Carla Mozee is a reporter for MarketWatch, based in Los Angeles.

DealBooK | DealB%K Afternoon Business: Big Banks Brace for Credit Rating Downgrades



Thursday, June 21, 2012


TOP STORY
Big Banks Brace for Credit Rating Downgrades Moody's Investors Service has begun notifying some big banks that their credit ratings may be cut as early as this afternoon.

The long-awaited announcement would end months of anticipation about the ratings cuts, after Moody's said in February that it would assess the credit of 17 global financial companies for potential downgrades.

Shares in the nation's biggest banks began falling more sharply in early afternoon trading on Thursday, as investors anticipated the potential downgrades.
  • DEALBOOK »
  • DEALBOOK HIGHLIGHTS
    Novel Maneuvers in Battle for Quest Software The bidding war that has emerged for Quest Software highlights a board's quandary when the chief executive makes a play for the company: whose rights should triumph, those of the majority shareholder or all shareholders?
    Washington Law Firm Finds Niche in Sports and Entertainment Both Ann Curry, the co-host of the "Today" show, and Jeremy Lin, the New York Knicks point guard, have hired the Washington law firm Williams & Connolly this week to represent them in their respective contractual negotiations.
    Washington Mutual's Former Chief Takes Issue With Book's Portrayal Kerry K. Killinger, the bank's chief executive until his ouster in 2008, is taking issue with a new book about Washington Mutual.
    Cabot to Buy Norit for $1.1 Billion The Boston-based chemicals company agreed to buy Norit, a Dutch manufacturer of activated carbon that is used in chemical reactions, for $1.1 billion.
    • DEALBOOK »
    •  
      BUZZ TRACKER
      Commerce Secretary Resigns John E. Bryson resigned as President Obama's commerce secretary on Thursday, The New York Times reports, after having previously suffered a seizure and then being involved in back-to-back car accidents.
      Pearl Jam's Former Finance Chief Charged With Theft The former chief financial officer of Pearl Jam's management company was charged with 33 counts of theft on Thursday, and is accused of stealing nearly $400,000 from the rock band.
      LOOKING AHEAD
      No economic indicators are scheduled to be released on Friday, but new home sales are set to be announced on Monday.
     

NYT Afternoon Business News: Spain Tallies the High Cost of Riding Out Bank Crisis





BUSINESS

Spain Tallies the High Cost of Riding Out Bank Crisis

By RAPHAEL MINDER and STEPHEN CASTLE
Up to €62 billion will be needed for banks, according to audits, and Madrid plans to formally request bailout funds in "the next few days.''

Europe Weighs Options for Easing Pain for Weak Nations

By JAMES KANTER
Euro zone finance ministers met in Luxembourg on Thursday to examine ways to ease financial pressure on Spain and other troubled members of the bloc.

France and Germany Face Delicate Talks Over Economy

By STEVEN ERLANGER
President François Hollande of France is portrayed as ready to do battle with the German chancellor, Angela Merkel, but the relationship is much more nuanced.
DealBook

Big Banks Brace for Credit Rating Downgrades

By SUSANNE CRAIG, PETER EAVIS and MICHAEL J. DE LA MERCED
Moody's Investors Service has begun notifying some big banks that their credit ratings may be cut as early as this afternoon.

Stocks Post Sharp Losses

By CHRISTINE HAUSER
On Wall Street, stocks added to losses after commodities prices fell and new data heightened concerns about a softening global economy.

CBS NEWS | Political Hotsheet Top Stories: Holder's contempt vote deepens partisan divide

http://www.cnet.com/i/nl/s/e886_email-header.jpg

CBS POLITICAL HOTSHEET TOP STORIES    



   
White House spokesman Jay Carney said the White House's executive privilege was not a cover-up
Read full story
Holder's contempt vote deepens partisan divide

Biden teams up with Lin, Manning, Torre against dating violence President, Vice President and sports stars direct "1is2Many" violence against women message to young men

Romney, Scott camps deny muzzling good econ news Representatives say no one from Romneyworld asked Florida governor to change message about Florida's improving unemployment rate

Student loan fight drags on as young people struggle Young people burdened by student debt weigh down the economy while Washington bickers over interest rates

John Bryson quits post as Commerce secretary Tells President Obama in letter that nation "would be better served" with new Commerce Secretary

Stocks and Markets in the News | Wall Sttreet at Close: U.S. stocks end second-worst session of the year

U.S. Markets

U.S. stocks end second-worst session of the year NEW YORK (MarketWatch) -- U.S. stocks fell sharply Thursday, with equities taking their second-hardest hit of the year after U.S. economic data largely disappointed, increasing worry about a global slowdown. Other economic reports had euro-area manufacturing slowing and a gauge of Chinese output also contracting. "We're entering summer, in politics this used to be called the 'silly season,' but I don't think there is a lot of focus on economic fundamentals right now. Some of the economic data is a little on the weak side, but to me the most important thing is the U.S. economy is not very vulnerable to recession right now," said David Kelly, chief market strategist at J.P. Morgan Funds. The Dow Jones Industrial Average fell 250.82 points, or 2%, to 12,573.57. The S&P 500 lost 30.18 points, or 2.2%, to 1,325.51. The Nasdaq Composite retreated 71.36 points, or 2.4%, to 2,859.09.


Treasurys gain on weak data, Spain worries Treasury prices rise after disappointing economic data from the U.S. and China raise concerns about global growth and worries continue to surround Spain’s banking system. 

BIV Today Business News: Fraser Valley industrial sales rebound to near pre-recession levels



Real Estate and Development

 

Fraser Valley industrial sales rebound to near pre-recession levels

Brokers sold $261 million worth of industrial land in the Fraser Valley in 2011. That is the highest amount since they achieved an all-time record of $284.2 million 2007.

Economy and Finance

 

BMO “strongly supports” new mortgage tightening

BMO Bank of Montreal (TSX:BMO) is strongly endorsing Finance Minister Jim Flaherty’s plan to further tighten mortgages.

Bad news in Europe drags confidence back down: TNS

Bad economic news from Europe appears to be dampening Canadians’ consumer confidence, according a TNS survey released this morning.

Hospitality and Tourism

Helijet launches novel downtown tourist attraction

Richmond-based Helijet International (TSX:HJI) is launching helicopter tours of Vancouver departing from its downtown harbour heliport starting June 15.

Technology

 

Roadhouse Interactive acquires The Embassy Interactive

Vancouver-based online and social game developer Roadhouse Interactive Ltd. has acquired local game developer The Embassy Interactive, Roadhouse announced this morning.

Retail and Manufacturing

   
   

Magazine store closure is sign of the times

Entrepreneur Kent McKenzie plans to close his 13-year-old Does Your Mother Know? magazine store June 24 in what is another example of how online media consumption is killing longtime brick-and-mortar businesses.

Money Show Investors Daily Alert: 7 Ways to Get a Bit More Aggressive

Investors Daily Alert

The Daily Guru

No-Nonsense Investing

Jim Jubak on MoneyShow.com

Today's Top Pros' Top Picks

Today's Gurus' Views & Strategies
Bed Bath & Behind the Curve, Igor Greenwald
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Today's Charts in Play

MoneyShow.com Exclusive Interviews
Start Spreading the News, Joan Lappin CFA

Ideas from Around the World

Today's Featured Videos & Exclusive Interviews

The economist | Business This week: Highlights of news coverage from June 16th - 22nd 2012

The Economisthttp://image.alerts.economist.com/lib/fe8d1570706d05747c/m/1/business-this-week.jpg


» The supposedly cathartic Greek election did little to ease market anxiety over the euro zone. The yield on Spanish government ten-year bonds rose above 7%, before falling back on reports that European rescue funds might be used to buy the bonds of struggling countries. LCH.Clearnet, Europe's biggest clearing house, increased the deposit it collects from clients who use Spanish and Italian government debt as collateral. See article»

Let's twist again
» The Federal Reserve extended until January its programme of buying longer-term bonds in exchange for short- or medium-term bonds already in its portfolio. Nicknamed "Operation Twist" (because it "twists" the slope of the yield curve on bonds) the programme is intended to help America's economy by lowering long-term interest rates. See article»
» The minutes of a meeting of the Bank of England's monetary-policy committee confirmed that most of its members believe further stimulus will soon be warranted. This would be in addition to the "funding for lending" scheme announced by George Osborne, the chancellor, which is designed to support an estimated £80 billion ($125 billion) in new bank loans by cutting banks' funding costs. See article»
» Denmark followed Switzerland into the bittersweet status of a haven economy, enjoying negative yields on government bonds but facing pressure from an appreciating currency. Investors bought a two-year bond with an average yield of minus 0.08%, attracted by the Nordic country's low budget deficit and close links to Germany.
» Turkey's credit rating was upgraded to a notch below investment grade by Moody's because of the country's improving public finances.
» China's securities regulator issued draft rules that would lower the barriers to foreign investors, such as reducing the minimum amount that fund managers must have in assets under management from $5 billion to $500m. It also proposed freeing up access to China's bond markets, another step towards the government's goal of turning the yuan into a global currency.

The shareholders' spring
Click Here! » The British government outlined proposals to give investors a stronger say on executive pay. The measures would give shareholders a binding vote on a company's pay policy once every three years. The company would have to adhere to this, or seek approval for any change. This year's annual shareholder meetings in Britain and America have been notable for the high number of investor revolts over executive pay.
» Shareholders of the London Metal Exchange, the world's largest metals market, looked likely to accept a £1.4 billion ($2.2 billion) bid from Hong Kong Exchanges & Clearing after the board recommended the offer. See article»
» Oil prices continued to tumble. Brent crude reached an 18-month low and was trading below $93 a barrel; West Texas Intermediate was under $82. Lower energy prices were a factor behind the fall in Britain's inflation rate in May to 2.8%, the lowest it has been since November 2009.
» Walgreens, America's biggest drugstore chain, offered to take a 45% stake in Alliance Boots, which owns Boots chemist shops, a familiar presence on Britain's high streets. The deal is worth $6.7 billion, and gives Walgreens the option of buying the remaining shares in Boots by late 2015. The combined company will be the world's biggest buyer of prescription drugs. See article»
» Microsoft unveiled its Surface computer tablet, the first such product from the software company. The Surface is slim and light and will run on Windows 8, a version of the operating system that will be launched shortly. A novel feature is a detachable magnetic cover that doubles as a keyboard. Techies wondered how well it would compete against the iPad and Android tablets, which have thousands more apps available. See article»
» A jury found Rajat Gupta guilty on charges related to insider trading. Mr Gupta, an ex-boss of McKinsey, was convicted of passing tips about Goldman Sachs when he sat on its board to Raj Rajaratnam, who was convicted last year for profiting from insider information. Mr Gupta was found not guilty of leaking secrets about a deal involving Procter & Gamble when he was a board member there. He will be sentenced in October. See article»

Out for more than a century
» Allen Stanford, a Texan banker who was convicted in March of a $7 billion fraud conducted through his offshore companies, was sentenced to 110 years in prison. (Bernie Madoff was sentenced in 2009 to 150 years for the biggest fraud in history.) Mr Stanford used his riches to sponsor his own cricket tournament in the West Indies.