FURTHER FURTHER READING
- Has China's debt crisis moment arrived?
- Is a currency crisis bad for you at the ZLB?
- A chance to end the carried-interest loophole.
- The Millennials' failure to launch.
- Another doom-predicting billionaire for you to ignore.
- The dark side of fat profit margins.
FT EVENING ROUND-UP
US taskforce probes 9 banks on mortgage securities: "At least nine banks face investigations by the US Department of Justice into their sales of mortgage-backed securities as part of an effort by the taskforce that reached the $13bn pact with JPMorgan Chase, people familiar with the matter say." (Financial Times)
US jury rules against Bank of America in mortgage trial: "Bank of America defrauded two government-backed mortgage companies by selling them defective home loans, a jury found on Wednesday, delivering the US government a resounding courtroom victory on a financial crisis case. After deliberating only a few hours, the jury found BofA's Countrywide Financial unit, liable of civil fraud for defrauding Fannie Mae and Freddie Mac." (Financial Times)
Draghi's blunt warning on bank stress test: "Mario Draghi warned on Wednesday night that some European banks needed to fail a series of European Central Bank health checks to prove the credibility of its year-long review of the region's biggest banks. The blunt comments by the ECB president raised pressure on EU leaders to earmark public money that could in extreme cases be used to recapitalise struggling lenders." (Financial Times)
Scramble for Spanish 'bad loans': "Foreign investors are scrambling to buy Spanish banks' bad loans in the latest sign that the health of the eurozone economy is improving. Sareb, Spain's so-called "bad bank," has attracted 30 offers for a €300m portfolio of non-performing residential mortgages, according to people with knowledge of the matter. The portfolio, dubbed Abacus, is the first bundle of loans Sareb is selling since being established earlier this year by the government to dispose of €50bn of toxic banking assets." (Financial Times)
