European plan tries to convince Germany to do more
2012-06-26 18:07:30 UTC
BRUSSELS (AP) — Top European officials have called on countries that use the euro to surrender more control over their national budgets, a move apparently aimed at easing Germany's fears of sharing debt burdens with struggling governments like Spain or Italy.
The plan is meant to be a grand vi...
Moody's cuts debt ratings of 28 Spanish banks
2012-06-26 06:16:04 UTC
Spain's battered banks have taken another hit, this time in the form of a sweeping downgrade by Moody's.
The rating agency said that it is cutting its views on the debt issued by 28 Spanish banks, including international heavyweights Banco Santander and Banco Bilbao Vizcaya Argentaria.
Spain asks for bank rescue
2012-06-26 05:44:12 UTC
MADRID (AP) — Spain has made a formal request for a loan to help clean up its troubled banking sector, the Economy Ministry said Monday.
However, the country has yet to specify how much of the €100 billion ($125.39 billion) loan package offered by the 17 countries that use the euro it will ask...
Greece faces more woes: Finance minister resigns
2012-06-25 20:41:03 UTC
ATHENS, Greece (AP) — The banker who was chosen to be Greece's next finance minister resigned for health reasons Monday three days after he was rushed to the hospital, while the country's prime minister was confined to his home, recovering from serious eye surgery.
Greece's debt woes took a ba...
Royal Bank of Scotland protests downgrade
2012-06-24 10:10:10 UTC
LONDON (AP) — Royal Bank of Scotland, one of four big British banks to be downgraded by Moody's Investors Service, complained Friday that the rating is "backward-looking."
Part-nationalized RBS was downgraded Thursday along with HSBC, Barclays and Lloyds Banking Group as well as other banks li...
Bank downgrades could hurt loans, credit cards
2012-06-23 18:15:18 UTC
NEW YORK (AP) — When a major bank's credit rating is cut, it deals a psychological blow — to customers, the public and financial markets.
So Thursday's downgrading of 15 of the world's largest banks is almost sure to cause wide concern. Most deposits are perfectly safe, but the downgrades coul...
Negotiators closing in on student loan deal
2012-06-23 18:09:27 UTC
WASHINGTON (AP) — Congressional bargainers appeared to be closing in on a compromise that would head off a July 1 doubling of interest rates on federal loans to 7.4 million college students and end an election-year battle between President Barack Obama and Congress.
Senate aides from both part...
Greek outlines issues it wants renegotiated
2012-06-23 18:03:21 UTC
ATHENS, Greece (AP) — Greece's new coalition government said Saturday it will seek to repeal some taxes, halt layoffs and extend by two years the deadlines for tough austerity measures imposed under its international bailout agreement.
The policy statement issued by the three-party coalition c...
EU countries divided on financial transaction tax
2012-06-22 16:32:45 UTC
LUXEMBOURG (AP) — A plan for European Union countries to tax financial transactions and use the proceeds to fund future bank bailouts ran aground on Friday, with just nine out of 27 countries ready to support it, raising the prospect the tax will be implemented in the end only by a subset of EU c...
European leaders push for $163 bln in measures
2012-06-22 16:02:19 UTC
ROME (AP) — The leaders of France, Germany, Italy and Spain have agreed to push for a €130 billion ($163 billion) growth package at a key European Union summit next week.
Italian Premier Mario Monti told a news conference after the four-way summit that the leaders recognize that steps taken so...
Europe's relief from Greek vote likely fleeting
2012-06-18 19:33:38 UTC
ATHENS, Greece (AP) — Greece's election result has eased fears of imminent financial disaster for Europe, but the continent's leaders are still searching for a way to contain a debt crisis that threatens the global economy.
A narrow victory for the New Democracy party in Greece means that the ...
European leaders discuss continent's debt crisis
2012-06-15 18:31:29 UTC
LONDON (AP) — British Prime Minister David Cameron's office says European leaders have held a video conference on the continent's worsening debt crisis.
Cameron's office said Friday that German Chancellor Angela Merkel, French President Francois Hollande, Italian Prime Minister Mario Monti, Sp...
UK government to announce bank reforms
2012-06-14 08:10:27 UTC
LONDON (AP) — The British government is announcing its proposals for banking reform to prevent the repeat of the crisis which forced taxpayers to bail out two major banks.
The Treasury has confirmed that the government will legislate to isolate retail banking from problems which may arise from...
Spain bond yields soar after latest downgrade
2012-06-14 08:07:04 UTC
MADRID (AP) — The yield on Spanish 10-year bonds shot up to a record 6.86 percent after a credit ratings agency downgraded the country's debt rating to just one notch above junk status.
The interest rate demanded by investors rose 15 basis points after trading started Wednesday.
Merkel firmly behind euro, but will she act?
2012-06-14 07:10:45 UTC
BERLIN (AP) — Germany's Chancellor Angela Merkel has insisted repeatedly that "if the euro fails, Europe fails."
Now the crisis in the 17 countries that use the euro is coming back to the boil, with Spain admitting it needs help to rescue its banks and voters in Greece deciding whether to back...
Spain bank rescue glee morphs into markets rout
2012-06-12 05:52:28 UTC
MADRID (AP) — Euphoria over a lifeline of up to €100 billion ($125 billion) to rescue Spain's hurting banks morphed into a financial markets rout in a matter of hours Monday, as investors digested the still-undefined plan and became concerned the country may be unable to repay the new loans.
Investors see Spain rescue as only 'temporary fix'
2012-06-11 19:34:48 UTC
NEW YORK (AP) — Investors aren't sold on a rescue of Spanish banks.
Stocks fell on Wall Street, an early rally faded on European stock exchanges, and borrowing costs for Spain crept higher on the bond market Monday — all expressions of doubt about the latest fix for a debt crisis in Europe.
Europe bailout of Spain could cost $125 billion
2012-06-10 02:45:51 UTC
MADRID (AP) — Spain became the fourth and largest country Saturday to ask Europe to rescue its failing banks, a bailout of up to €100 billion ($125 billion) that leaders hoped would stabilize a financial crisis that threatens to break apart the 17-country eurozone.
The rescue offer follows gro...
Fed proposes stricter capital rules for banks
2012-06-07 20:20:49 UTC
WASHINGTON (AP) — The Federal Reserve wants U.S. banks to set aside more money to cushion against unexpected losses, a key step in preventing another financial crisis.
The Fed on Thursday proposed rules requiring the nation's largest banks hold at least 6 percent of their assets in capital res...
US consumer cut back on credit card use in April
2012-06-07 20:22:06 UTC
WASHINGTON (AP) — Americans cut back sharply on their credit card purchases in April, a sign that some may be worried about the slowdown in hiring.
The Federal Reserve said Thursday that consumers increased borrowing by $6.5 billion in April, just half of the March gain.
The gain was driven...
Merkel urges gradual political union in Europe
2012-06-07 19:44:11 UTC
BERLIN (AP) — German Chancellor Angela Merkel has called for Europe to take a gradual path towards political union, frustrating the appeals of many of her colleagues for quick, bold moves to fight the continent's raging financial crisis.
After a meeting with British Prime Minister David Camero...
ECB holds off to force politicians' hand in crisis
2012-06-05 18:55:55 UTC
FRANKFURT, Germany (AP) — The European Central Bank has a powerful weapon that just might push political leaders into solving the continent's financial crisis once and for all: withholding further help.
The ECB isn't likely to take any new steps when it meets Wednesday, analysts say, even as a...
For US employers, 'hiring is a function of demand'
2012-06-01 17:42:40 UTC
WASHINGTON (AP) — The U.S. economy suddenly looks a lot weaker.
Only 69,000 jobs were added in May, the fewest in a year, and the unemployment rate rose from 8.1 percent to 8.2 percent.
The dismal jobs data will heighten fears that the economy is sputtering. It also puts President Barack Ob...
Euro setup is unsustainable, ECB chief warns
2012-05-31 21:03:56 UTC
FRANKFURT, Germany (AP) — The setup of the 17-country euro currency union is unsustainable, the head of the European Central Bank has told EU leaders, warning they must quickly come up with a broad vision for the future to get the bloc through the current financial crisis.
Mario Draghi said Th...
EU calls for 'banking union' to ease crisis
2012-05-30 17:20:43 UTC
BRUSSELS (AP) — The European Union's executive office on Wednesday said the 17-country eurozone needs a "banking union" that can centrally oversee and — if needed — bail out the sector, which has become a weak link in the continent's financial system.
Fears that the cost of bank rescues could ...