FOMC statement: Federal Reserve, European Central Bank, Bank of Japan, Bank of Canada, Bank of England, and Swiss National Bank

Fed extends USD swaps with major central banks
By Sakari Suoninen Frankfurt | Tue Dec 21, 2010 10:58am EST Frankfurt (Reuters) - The world's major Central Banks said on Tuesday they would extend emergency supplies of U.S. dollar funding to money markets, in a sign that authorities remain concerned about financial instability as governments grapple with Debt problems. The European Central Bank, the Bank of Japan, Bank of Canada, the Bank of England and the Swiss National Bank extended their U.S. dollar Liquidity providing operations with t...

Extended Fed Currency Swaps Not Sign of Fresh Concern
By Michael S. Derby The Federal Reserve ’s extension of it currency swap arrangements with other major Central Bank reflects continued unease around the state of European Financial Markets. That said, the decision to maintain the swap lines with the Bank of Canada , Bank of England , the European Central Bank , the Bank of Japan and Swiss National Bank , should be viewed more as a protective action on the part of American officials. It is not, most Economists reckon, a sign that some new ...

US Fed extends dollar lifeline for central banks
The US Federal Reserve on Tuesday extended until August an emergency tool for other Central Banks to access US dollars, amid market jitters and high demand for the safe haven greenback. The deal, which had been due to expire in January, allows the Central Banks of Britain, Japan, Canada and Switzerland, as well as the European Central Bank, to exchange local currency for US dollars. The swap agreements were sealed in May, but as a Debt crisis and slow Economic Recovery continues to roil markets ...

Fed extends program to ease Europe debt crisis...
The Fed is Lending dollars to other Central Banks in exchange for their currencies. The Central Banks can lend those dollars out to banks in their home countries to ease financial turmoil. The Fed's "swap" program was set up in May as fears rose that Greece's Debt crisis could engulf other European countries. European Banks need dollars to lend to companies across the continent. European companies that have operations in the U.S. pay their employees in dollars and buy raw materials with the U.S....

Fed throws euro banks a lifeline
Fed throws euro banks a lifeline Posted by Colin Barr December 21, 2010 4:19 pm For an outfit whose policies supposedly are plunging the world into unspeakable conflict, the Federal Reserve is doing an awful lot to avoid another meltdown. The Fed said Tuesday it would extend The Dollar swap lines it provides to Central Banks in Europe, Japan and Canada in a bid to avoid a cash crunch like the ones seen to such devastating effect in 2008. Your dollars, our problem? The swap lines, under which...

EURO GOVT-Bund yields at record lows, peripherals lag
Fri Aug 20, 2010 9:02am EDT * Bund yields at record lows as U.S. growth fears rise * ECB Weber's Liquidity comments boost Bunds, Euribor * U.S. Treasuries favoured over Bunds * Peripheral euro Debt spreads seen wider By George Matlock London, Aug 20 (Reuters) - Longer-dated German Government Bond yields marked record lows on Friday, chasing buoyant U.S. Treasury prices after an ECB rate-setter's comments on extending funding to banks fuelled concerns about the pace of the global recovery. Aft...

Fed extends program to ease Europe debt crisis
The Federal Reserve extended a program set up earlier this year to ease strains from the European Debt crisis. The program, which was set to expire in January, will now run through Aug. 1, the Fed announced on Tuesday. The Fed is Lending dollars to other Central Banks in exchange for their currencies. The Central Banks can lend those dollars out to banks in their home countries to ease financial turmoil. The Fed's "swap" program was set up in May as fears rose that Greece's Debt crisis could eng...

ECB's Trichet: Ireland must stick to bailout plan
PARIS | Mon Dec 20, 2010 3:50am EST PARIS (Reuters) - European Central Bank head Jean-Claude Trichet said on Monday euro zone countries must do more individually and collectively to combat the bloc's Debt crisis, and Ireland must stick "rigorously" to its Bailout plan. In a position paper published on its website, the ECB earlier expressed "serious concerns" that Ireland's rescue package could affect the institution's Liquidity operations in the euro zone. Asked if he was concerned about the ...

ECB's Trichet: Ireland must stick to bailout plan
PARIS | Mon Dec 20, 2010 3:50am EST PARIS (Reuters) - European Central Bank head Jean-Claude Trichet said on Monday euro zone countries must do more individually and collectively to combat the bloc's Debt crisis, and Ireland must stick "rigorously" to its Bailout plan. In a position paper published on its website, the ECB earlier expressed "serious concerns" that Ireland's rescue package could affect the institution's Liquidity operations in the euro zone. Asked if he was concerned about the ...

Bank Of Japan Holds Pat; Slightly Cuts Output View
TOKYO -- The Bank of Japan held pat on Monetary Policy as widely expected Tuesday and maintained its overall assessment of The Economy, saying it's showing signs of a moderate recovery. But it tweaked down its view on output, saying it's recently declined slightly. The BOJ's vote to keep Interest Rates unchanged in a range of zero to 0.1% was unanimous. The Central Bank said in a statement it will steadily purchase various assets and provide longer-term funds through its 35 Trillion yen ($418 bi...

Fed extends dollar lifeline for central banks
The Federal Reserve Building in Washington, DC. The US Federal Reserve on T... The US Federal Reserve on Tuesday extended until August an emergency tool for other Central Banks to access dollars, amid market jitters and high demand for the safe haven greenback. The deal, which had been due to expire in January, allows the Central Banks of Britain, Japan, Canada and Switzerland, as well as the European Central Bank, to exchange local currency for dollars. The swap agreements were sealed in May,...

Fed Extends Currency Swap Lines Over Eurobank Dollar Funding Concerns
The party line is everything is fine in bank land….even Eurobank land. But some recent developments suggest otherwise. The business news on Europe has pretty much daily updates on the unfolding and linked Sovereign Debt/ bank solvency crisis. The officialdom insists this looming problem can be resolved but most observers think it can’t be in the absence of a fiscal union, which is a political bridge too Far Right now. In a not-widely-noticed replay of pre-crisis conditions, the co...

The Federal Reserve: Aging Magician of the Welfare State
December Currency deposits__ supply_          growth rate        increase__              2005                       728.9              3,233.3 ...

EUR/CHF Continues To Make Historic Lows On Euro Zone Tensions
The euro is slightly firmer today vs. The Dollar today, but continues to make new historic lows vs. Swiss franc just below 1.25, suggesting that euro zone tensions remain strong. EM currencies continue to firm, suggesting a bit of decoupling from the euro zone crisis. However, trading ranges are fairly narrow as we head into the holiday weekend. The ECB said will lend out EUR149.5 bln in 3-month loans, and that 270 banks bid for the money. Banks need to repay EUR96.9 bln in maturing 12-month l...

Fed Increases its Treasury Security Purchase Limit to 70%
When the Federal Reserve decided to execute a new course of Monetary Policy in November, it had a problem. It wanted to buy more longer-term Treasury securities, but it was already nearing its concentration limit for the amount of each specific Treasury Security it could hold. But since the rule was self-imposed, it lifted the limit, effectively doubling the amount it can purchase of any given Treasury Security issue. This is a pretty big change. The Central Bank had temporarily relaxed its 35 ...

Fed throws euro banks a lifeline
For an outfit whose policies supposedly are plunging the world into unspeakable conflict, the Federal Reserve is doing an awful lot to avoid another meltdown. The Fed said Tuesday it would extend The Dollar swap lines it provides to Central Banks in Europe, Japan and Canada in a bid to avoid a cash crunch like the ones seen to such devastating effect in 2008. Your dollars, our problem? The swap lines, under which the Fed provides foreign central Bankers with essentially unlimited stocks of doll...

Federal Reserve Forces Official Bank of Jesus To Cancel Christmas
A small-town bank in Oklahoma is under siege by governmental secularizing forces this Holiday Season, as the Federal Reserve is very jealous of their impressive Jesus-themed bank and wants to ruin it for everyone. According to a local teevee news station website, the Fed comes ’round every four years with a list of Regulations to make sure banks are not just stealing their customers’ money or whatever, one of which prohibits discriminatory preference for the religion of some customer...

Bank of Japan keeps rates on hold
Japan has kept its key Interest Rate at between zero and 0.1% as policymakers continue to try to bolster the country's fragile Economic Recovery. Japan has been suffering from a strong yen, weak exports and almost two years of falling prices. Last month, the government passed a $61bn (£39bn) stimulus package, the latest in a series of measures designed to boost The Economy by creating jobs. The Bank of Japan also said it would consider taking further steps to aid the recovery. The bank...

ECB concerned by Irish bank bailout law
Frankfurt/DUBLIN | Mon Dec 20, 2010 7:34am EST Frankfurt/DUBLIN (Reuters) - The European Central Bank has expressed "serious concerns" that a new law in Ireland could force the Central Bank to take losses on the collateral it accepts in exchange for loans to commercial banks. Ireland parliament approved on Wednesday Legislation which will give the government extensive powers to restructure the banking sector, including the power to impose losses on subordinated bondholders and transfer deposi...

China may try new ways to manage bank credit
Beijing | Tue Dec 21, 2010 8:58am EST Beijing (Reuters) - China's Central Bank is considering changing a key component of its Monetary Policy management by altering the way it manages bank credit, three sources close to the matter told Reuters on Tuesday. Under the proposed changes, the People's Bank of China (PBOC) may judge how much a bank can lend by looking at its capital adequacy ratio, Liquidity conditions and provisions for bad loans. That means the PBOC may set different deposit reser...

ECB concerned by Irish bank bailout law
Frankfurt/DUBLIN | Mon Dec 20, 2010 7:34am EST Frankfurt/DUBLIN (Reuters) - The European Central Bank has expressed "serious concerns" that a new law in Ireland could force the Central Bank to take losses on the collateral it accepts in exchange for loans to commercial banks. Ireland parliament approved on Wednesday Legislation which will give the government extensive powers to restructure the banking sector, including the power to impose losses on subordinated bondholders and transfer deposi...

Hungary's Central Bank Raises Interest Rates Again
LONDON -- Hungary's Central Bank on Monday increased the base rate by 25 basis points to 5.75%, effective from Tuesday. In contrast, most analysts expected no change to Interest Rates. In November, the Central Bank had raised rates by 25 basis points to 5.50%. The decision "will only add to rising tensions between the Central Bank and the government," said Neil Shearing, senior Emerging Market Economist at Capital Economics, in a note. "The bank justified last month's move on the grounds that th...

Ignorance Is Bliss: The Matty Edition...
People occasionally email me asking why I continue to rag on Matthew Yglesias. It's hard to answer that question in a civil tone, simply because the "why" should be blindingly obvious to anyone with the I.Q. of a potted plant. Here's a perfect example of what I mean: When it comes to wages, the basic story of recent decades is redolent of Scrooge. Real average hourly earnings (excluding fringe benefits) now stand roughly at 1974 levels. Yes, that’s right, no real increase...

Fed throws euro banks a lifeline
For an outfit whose policies supposedly are plunging the world into unspeakable conflict, the Federal Reserve is doing an awful lot to avoid another meltdown. The Fed said Tuesday it would extend The Dollar swap lines it provides to Central Banks in Europe, Japan and Canada in a bid to avoid a cash crunch like the ones seen to such devastating effect in 2008. Your dollars, our problem? The swap lines, under which the Fed provides foreign central Bankers with essentially unlimited stocks of doll...

Congressman Paul Says Fed Transparency Is His Goal
WASHINGTON (Reuters) - Republican Congressman Ron Paul, the new head of the subcommittee that oversees the Federal Reserve, said on Sunday he will seek greater transparency but will not be sending Subpoenas to the Central Bank chairman from Day One. Paul, a longtime critic of the Fed, will be the new chairman of the domestic Monetary Policy subcommittee of the House Financial Services Committee when the new Congress is seated in January. "Now that doesn't mean that the first week in January I...