Monetary System

Royal Bank of Canada joins the list of financial institutions sued by clients over the large losses associated with the credit crisis.The Globe & Mail reports:Royal Bank of Canada has been hit with a proposed class action lawsuit in New…

This is a story I caught over at Michael Panzner's site this morning. Apparently Paramax, a hedge fund, entered into a swap arrangement with UBS based on the value of a subprime CDO back in February 2007. Under the terms of the swap, the…

The Times reports today that Bradford and Bingley was rescued from the verge of collapse by private equity investors. This follows their report at the weekend on the dismissal of the Chief Executive and the profit warning they have issued.…

Below are only the latest writedown stories from the web as of June 2nd. If you are linking in from DailyKos and looking for the full timeline of writedown news and the credit crisis, visit my credit crisis timeline, the most comprehensive…

The President of the Boston Fed, Eric Rosengren, has in effect said that small and regional banks are at risk in the next wave of writedowns for U.S. financial institutions. He sites construction loan exposure in particular as a place to…

This in from the Times today: Bradford & Bingley is in big trouble. They are trying to do a rights issue and issue a profit warning at the same time. Can anyone tell me how one gets shareholders to pony up another 88p to buy a stock…

I am wary of regional banks for good reason. KeyCorp came out with a disastrous earnings report yesterday and was promptly whacked by the market. The regionals have way to much exposure to commercial real estate (CRE) and construction…

The US regional banks are certainly the next set of financial institutions in the US that are going to get hit by the credit crisis. While these banks did not have significant exposure to the CDOs and RMBSs and other types of derivative…

2008 05 19 Crédit Agricole boosts risk controls after writedowns hit €3.3bn2008 05 19 Subprime Losses Top $379 Billion on Balance-Sheet Marks: Table2008 05 19 Banks Keep $35 Billion Markdown Off Income Statements2008 05 19 AIG to raise…

Surprise, surprise. Consider this a holiday surprise as many are out in the U.S. for Memorial Day and in the UK for the Bank Holiday. Multiple sources were reporting that UBS warned in its 985-page capital raising prospectus late on Friday…