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European Central Bank sued by 200 investors over Greek debt deal

"In a case which could pave the way for a raft of legal action from the private sector, a group of Italian retail investors are claiming damages in excess of €12m from the ECB for an alleged violation of its 'equal' creditor status during the biggest private sector debt restructuring in history in 2012. During the episode, the ECB was able to 'swap' its holdings of Greek government debt for protected bonds with no repayment date. The move ensured the ECB did not suffer losses from the deal to stave off a Greek bankruptcy in March 2012. Private sector creditors, however, were forced into accepting a 53.5pc 'haircut' on their holdings." Continue reading →

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In Copenhagen, Apartment Prices Jump 60% After Rates Go Negative

"Denmark’s biggest mortgage bank says there’s a 'real risk' Copenhagen is heading into a property bubble. Property prices in Copenhagen have risen 40-60 percent since the middle of 2012, when the central bank first resorted to negative interest rates to defend the krone’s peg to the euro. The benchmark deposit rate has been minus 0.75 percent since February as Denmark’s currency war intensified, and most analysts surveyed by Bloomberg see negative rates lasting at least through 2017. The Danish regulator this month warned Danske Bank against pursuing a growth strategy in Sweden as the housing market there shows signs of imbalances." Continue reading →

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Fed ends ‘too big to fail’ lending to collapsing banks, with caveats

"The Fed's new restrictions come from the Dodd-Frank Act of 2010, which brought in a wave of reforms after the financial crisis. Under the new rule, banks that are going bankrupt -- or appear to be going bankrupt -- can no longer receive emergency funds from the Fed under any circumstances. However, it's important to note that the new rule allows the Fed to judge by its own measures whether a firm qualifies for its emergency aid. The idea is the Fed can still lend to banks during times of emergency, but the bank must be able to pay it back. Yet the true health of a bank in turmoil can be very difficult to assess." Continue reading →

Continue ReadingFed ends ‘too big to fail’ lending to collapsing banks, with caveats

Pressure on China central bank for 15% yuan depreciation: sources

"China's central bank is under increasing pressure from policy advisers to let the yuan currency fall quickly and sharply, by as much as 10-15 percent, as its recent gradual softening is thought to be doing more harm than good. The PBOC has spent billions of dollars buying yuan over recent months to defend the exchange rate, but has failed to stabilize market sentiment. The currency has steadily lost another 2.6 percent against the U.S. dollar even after the bank sprung a surprise devaluation of nearly 2 percent in August. China's foreign exchange reserves fell by more than half a trillion dollars last year as the central bank bought yuan to support the exchange rate." Continue reading →

Continue ReadingPressure on China central bank for 15% yuan depreciation: sources

Shanghai Fund Manager Dumps All Holdings in ‘Insane’ Market

"'This is insane,' Chen Gang, chief investment officer at Shanghai Heqi Tongyi Asset Management Co., said in an interview on Thursday. 'We were forced to liquidate all our holdings this morning,' said Chen, whose firm manages about 300 million yuan ($45.5 million). Many private funds and hedge funds in China have agreements with investors spelling out mandatory liquidation levels if their holdings drop below a certain value. The CSRC capped the size of stakes that major investors are allowed to sell at 1 percent of a company’s shares for three months effective Jan. 9, the regulator said in a statement on Thursday. The restriction replaces an existing six-month ban that is due to expire Friday." Continue reading →

Continue ReadingShanghai Fund Manager Dumps All Holdings in ‘Insane’ Market

Arizona Bill Would Set the Stage to Nullify Some Executive Orders and Supreme Court Opinions

PHOENIX, Ariz. (Jan. 7, 2016) – A bill prefiled in the Arizona House would set the stage for the state to refuse cooperation with any executive orders or Supreme Court opinions “not in pursuance of the Constitution,” nullifying such actions in effect. Rep. Mark Finchem (R-Tucson), along with seven other sponsors and cosponsors, introduced House…

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Virginia Bill Would Block Obamacare Enforcement

RICHMOND, Va. (Jan. 7, 2016) – A bill prefiled in the Virginia House would prohibit state cooperation or implementation for most of Obamacare, taking a huge step toward nullifying the federal health care program in practice within the state. Del. Brenda Pogge (R-Norge) prefiled House Bill 338 (HB338) on Jan. 5. The legislation would prohibit the state…

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Wyoming Bills would Ease State Marijuana Laws, Help Nullify Federal Prohibition

CHEYENNE, Wyo. (Jan. 7, 2016) – Two bills filed in the Wyoming House would significantly ease the state’s marijuana laws, taking a big step toward nullifying federal cannabis prohibition in practice in the state. Rep. James Byrd (D-Laramie) prefiled House Bill 3 (HB0003) on Dec. 17. The legislation would decriminalize possession of small amounts of…

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New Hampshire Proposal would Ban State Funding of Planned Parenthood

CONCORD, N.H. (Jan. 7, 2015) – A proposed amendment to the New Hampshire state constitution would effectively ban any state funding of Planned Parenthood, or any organization involved in abortion. This would take a small step toward effectively nullifying Roe v. Wade in the Live Free of Die State. A coalition of 17 legislators prefiled…

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Households lost from quantitative easing; gov’ts, big business won [2013]

"The big winners, to the tune of $1.6 trillion by the end of 2012, were the governments of the US, the UK and eurozone, from the reduced costs of servicing their debts and from the increased profits made by the their respective central banks (who magically create money to buy government debts which pay them interest). McKinsey believes that households have been significant losers from cheap money. How much have they lost? Well McKinsey says that from 2007 to 2012, the cumulative net loss of interest income for American households was $360bn, compared with a cumulative net loss of $160bn for eurozone citizens and $110bn (£70bn) for British people." Continue reading →

Continue ReadingHouseholds lost from quantitative easing; gov’ts, big business won [2013]