US stocks’ week of reckoning arrives

NEW YORK: The wait is almost over. After a two-month rally in the stock market, some investors are about to see if they get what they wished for: more Republicans in Congress and lots of cheap money.

The US stock market has priced in the Republicans gaining ground in Tuesday’s midterm elections, an outcome widely seen as more business-friendly, as well as the Federal Reserve pumping billions into the economy through Treasury debt purchases. The Fed’s statement on Wednesday afternoon at the end of its two-day policy meeting is widely anticipated for details of the central bank’s economic stimulus plan.
Jobs will be a touchstone, with the high US unemployment rate figuring into the campaign rhetoric of Democrats and Republicans alike in the midterm elections.

US stocks pull back

NEW YORK: Stocks fell on Wednesday after concerns grew about Greece’s debt crisis.

The Dow Jones industrials remained just below 11,000 for the third consecutive day. The Dow hasn’t crossed that level in 18 months.

No major economic reports were due out Wednesday, but investors were awaiting the results due in the early afternoon from an auction of 10-year Treasury notes. European markets were lower on concerns about Greece.

US fourth quarter growth revised down to 5.6pc

WASHINGTON: The US economy grew at a slower pace than expected in the final quarter of 2009 as consumer and business spending slackened amid a fragile recovery from recession, the government said Friday.

The world’s largest economy grew by 5.6 per cent in the October-December period, the Commerce Department said, revising downward an earlier estimate of 5.9 per cent growth in gross domestic product, a key economic benchmark.

41 banks fail in America this year

WASHINGTON: Four small banks across the United States were seized by regulators, ticking up the year bank failure tally to 41.

The continued parade of bank collapses comes as the Federal Deposit Insurance Corp is pulling back on loss-share agreements designed to lure bidders into taking on the assets of troubled banks.

US shed 85,000 jobs in December, dampening optimism

Saturday, January 09, 2010
WASHINGTON: The US economy lost 85,000 jobs in December while the unemployment rate held at 10.0 per cent, the government said on Friday in a report dashing hopes of a turnaround in the ailing labour market.

The Labour Department report on non-farm payrolls was a disappointment to those hoping for growth in jobs, which is critical to recovery from recession. The figure was far worse than the consensus expectation for no change in overall employment levels, and came amid a wide array of predictions ranging from steep losses to modest gains.

US business loan defaults rise again

Tuesday, January 05, 2010
CHICAGO: Severe delinquencies by small and medium-sized US businesses on the loans, leases and lines of credit to finance capital equipment rose again in November as lenders remained reluctant to extend fresh financing, PayNet Inc reported on Monday.

Wall St likely to end 2009 with a flourish

Sunday, December 27, 2009
NEW YORK: Wall Street is likely to make a strong showing in the final week of 2009 as the bulls gear up to toast the first annual advance for US stocks in two years on hopes of more economic stability in 2010. The US stock market’s resiliency since the March bottom has put investors in the mood to celebrate.

US banks with political ties got bailouts

Wednesday, December 23, 2009
NEW YORK: US banks that spent more money on lobbying were more likely to get government bailout money, according to a study released on Monday.

Banks whose executives served on Federal Reserve boards were more likely to receive government bailout funds from the Troubled Asset Relief Program, according to the study from Ran Duchin and Denis Sosyura, professors at the University of Michigan’s Ross School of Business.

US bank failures reach 133

Sunday, December 13, 2009
LOS ANGELES: US regulators closed Republic Federal Bank, NA, Solutions Bank and Valley Capital Bank on Friday, bringing the total number of bank failures so far this year to 133, the Federal Deposit Insurance Corp said.

Community and regional banks have been failing at the highest annual level since 1992, as the industry grapples with souring loans tied to mortgages and commercial real estate loans made during the credit boom. Failures are expected to peak next year, government officials have said. The banking industry’s recovery generally lags the economy. Republic Federal Bank, the 13th FDIC-insured institution to fail in Florida this year, had assets of about $433 million and total deposits of about $352.7 million.

US extends bailout authority to Oct 2010

Thursday, December 10, 2009
WASHINGTON: US Treasury Secretary Timothy Geithner on Wednesday extended the authority of a 700-billion-dollar financial bailout to October 2010 even as he noted the programme would cost less than expected.

Geithner said in a letter to congressional leaders that although the economic situation was stabilizing, it was prudent to continue the programme known as the Troubled Asset Relief Programme. Geithner said the extension “is necessary to assist American families and stabilize financial markets” and “maintain the capacity to respond to unforeseen threats.” “While we are extending the 700-billion-dollar programme, we do not expect to deploy more than 550 billion dollars,” he said in the letter to House of Representatives Speaker Nancy Pelosi and Senate majority leader Harry Reid.

130 US banks go bust this year

Sunday, December 06, 2009
WASHINGTON: Regulators seized six more US banks on Friday, bringing the tally of failures to 130 this year as the bank industry continues to suffer under the weight of deteriorating loans.

Small banks are expected to continue to fail at an elevated pace through next year. The Federal Deposit Insurance Corp, which protects bank accounts, has said the banking industry’s recovery will lag behind the general economy.