An IMF Just for Emerging Markets Oct 10, 2009
The IMF rediscovered its role as a lender of last resort in the global crisis (with Iceland a notable rescue). Earlier this year it got an extra $500 billion from member countries to triple its lending capacity. (BusinessWeek)
Opening Address to the 2009 Annual Meetings of the Boards of Governors of the World Bank Group and the International Monetary Fund Oct 7, 2009
The founders of the IMF envisaged this global lender of last resort role for the IMF, but our resources are currently limited relative to the precautionary demand for reserves. Third, the IMFC endorsed the G-20 proposal for the IMF to help with their mutual assessment of policies. (IMF News)
Transcript of the IMFC Press Briefing Oct 5, 2009
And one of the reasons, maybe not the only one, but one of the reasons is that they want to avoid what happened in Asia, for instance, ten years ago which is to be squeezed by any kind of speculation and not having reserves enough and be obliged to rely on other countries or the IMF. So if we want to avoid countries, including China, to build such big reserves contributing to global imbalances, we need to find another system, and the idea of a pool of reserves is a simple idea which is finally... (IMF News)
IMF will need 'substantial increase' in funds Oct 5, 2009
In a speech Friday in Istanbul, Strauss-Kahn said there was a clear need in the post-crisis global economy "for a stable international monetary system that is anchored by a global lender of last resort.". He called for an increase in the IMF resource base "because providing global financial insurance is so critical for crisis resolution and crisis prevention.". (Yahoo! Asia News)
IMF takes on bigger role, seeks more funds Oct 5, 2009
In a speech on Friday in Istanbul, Strauss-Kahn said there was a clear need in the post-crisis global economy "for a stable international monetary system that is anchored by a global lender of last resort" and more resources were needed to do that. "How much is needed is of course a difficult question -- some have said one trillion dollars, while others think the resource base should be far larger than that.". (Sydney Morning Herald -- Business)
IMF head warns of stalled recovery, urges reforms Oct 5, 2009
He also urged for reforms to make the IMF better play the role of "the lender of last resort" to solve global economic imbalance, which has been blamed as a root for the global financial crisis that sent the world economy into the deepest recession since the 1930s. To ask countries like China and other Asian nations to reduce surpluses requires an offer of other protection for them from speculative attacks, and a more efficient and less costly solution is pooling their reserves collectively,... (Xinhuanet, China)
IMF unveils newfound strength forged in crisis Oct 3, 2009
Strauss-Kahn said the IMF needed bigger reserves to provide a more stable international monetary system and build its credibility as the lender of last resort. IMF economists see a big risk that potential post-crisis growth will be lower than it was before the crisis, in part due to a rising savings rate in the United States and an increased consumption in China and other emerging countries, he said. (Yahoo! Asia News)
Transcript of a Press Conference by International Monetary Fund Managing Director Dominique Strauss-Kahn with First Deputy Managing Director John Lipsky and External Relations Director Caroline Atkinson Oct 3, 2009
And the third point has to do with the IMF itself, and the idea that we need a more stable international monetary system including the IMF playing its role as the lender of last resort ... And of course there is one, which is a pooling of reserves, which is the role at the beginning which was in the mind of the founders of the IMF, with this institution as a lender of last resort, which may help countries to which will push the countries not to be in a situation where they have to accumulate... (IMF News)
Press Release: IMF Managing Director Dominique Strauss-Kahn Points to Three Principles to Reshape the Global Economy in the Post-Crisis World Oct 3, 2009
A strengthened international monetary system with a global lender of last resort is the third principle, the Managing Director underlined ... The IMF has the potential to serve as an effective and reliable provider of such insurance the lender of last resort but its resources are currently limited relative to the precautionary demand for reserves, he said. (IMF News)
Making the Most of an Historic Opportunity: Three Principles for Reshaping the Global Economic and Financial Framework Oct 3, 2009
And third, the international monetary system must be more stable, and anchored by a global lender of last resort ... A Strengthened International Monetary System, with A Global Lender of Last Resort ... Finally, let me put forward a third important principle for the post-crisis global economy, which is the need for a stable international monetary system that is anchored by a global lender of last resort. (IMF News)
Transcript of the Global Financial Stability Report Press Conference with Jose Viñals, Financial Counsellor and Director of the Monetary and Capital Markets Department Oct 2, 2009
Who is the lender of last resort in this moment. MR. VI. (IMF News)
BYU-I president criticizes stimulus Oct 1, 2009
Evaluating the last year, Clark said that he believed the Federal Reserve had done a very good job at doing what it is supposed to do -- being the "lender of last resort.". He said that as a result the country is seeing the financial markets become healthy and stable again -- although he said they are not there yet. (Rexburg Standard Journal, ID)
G-20: India to seek greater role in managing global economy Sep 24, 2009
Officials representing the G-20 members have also said it's unlikely the nations' leaders will make additional financial commitments on the scale of those made in April, when the G-20 leaders agreed to triple the resources of the IMF, which acts as the world's lender of last resort. The G-20 members are working on a more detailed framework for regulatory reform along with firm deadlines. (India Times)
Zimbabwe: Zimbabwe's Banks Experience Dramatic Recovery Sep 23, 2009
However, Zimbabwean banks are expected to remain cautious in their lending due to the absence of a Central Bank to function as a lender of last resort. comments. (allAfrica.com)
The International Monetary Fund: Back from the dead Sep 22, 2009
But because the organisation is still dominated by rich-country governments, emerging economies are unlikely to rely on it as a lender of last resort unless there are clear rules that promise free lending in future panics ... Striking the right balance between being a credible lender of last resort and an effective policy policeman is hard. (The Economist)
Read the 'Cost of Freedom' recap Sep 22, 2009
They are the lender of last resort currently for college loans. Now when we look at the current system there is a lot of waste. (Fox News)
Staying alive as global markets went up in flames Sep 16, 2009
No international lender of last resort rescued the US or Britain. Developed economies are expected to look after themselves. (Sydney Morning Herald -- Opinion)
Victim's friend a wheeler-dealer who likes to party Sep 13, 2009
He is one of a number of wheelers and dealers that have had the spotlight thrust upon them since the violent death of McGurk, a businessman and lender of last resort. Along with finance broker Clinton Sarina, Mr Reddy was one of McGurk's closest friends. (Sydney Morning Herald -- Australia)
India weathers 12 months of financial crisis: Swaminathan S A Aiyar Sep 13, 2009
Back in the 1991 crisis, India turned to the IMF as lender of last resort for a structural adjustment loan of $4 billion. Remittances now make the IMF (and World Bank) look puny. (India Times)
Why capitalism fails Sep 13, 2009
To prevent the Minsky moment from becoming a national calamity, part of his solution (which was shared with other economists) was to have the Federal Reserve - what he liked to call the Big Bank - step into the breach and act as a lender of last resort to firms under siege ... This time, under the leadership of Ben Bernanke - like Minsky, a scholar of the Depression - it took a very different approach, becoming a lender of last resort to everything from hedge funds to investment banks to money... (Boston Globe)
Chinese shadow over Vietnamese repression Sep 12, 2009
Yet with China's surging economic power, including as an outward investor and potential lender of last resort to Vietnam, and with increasingly assertive factional support inside the Communist Party, future expressions of anti-China dissent in Vietnam will likely be met with a similarly stern and pro-Beijing response. Shawn W Crispin is Asia Times Online's Southeast Asia Editor. (Asia Times Online)
NAB, Westpac Said to Market $1.5 Bln Project Loan for Desalination Plant Sep 11, 2009
The Victorian government will underwrite the loan syndication as lender of last resort if needed, state Water Minister said in a statement when AquaSures winning bid was announced. A group of 12 banks agreed to provide the remaining A$2 billion needed for the project, the people said today. (Bloomberg -- Australia & New Zealand)
Indian farmers told not to lose hope over lawsuit Sep 11, 2009
The lawsuit says Indian farmers and ranchers have lost at least 500 million because of discrimination in lending from the USDA's Farm Service Agency, known as the lender of last resort. It issues loans to farmers and ranchers who cannot get credit from commercial lenders. (Sioux City Journal, IO)
The stain that keeps spreading Sep 10, 2009
Others who have come under the spotlight since the murder include Ron Medich, a Point Piper property developer who funded Mr McGurk's business as a lender of last resort; another property developer, Bob Ell, who hired Mr McGurk to collect debts and scout property deals; and Richie Vereker, a disability pensioner who donated $75,000 to the NSW ALP.. Join the conversation. (Sydney Morning Herald -- Australia)
Timeline of the crisis Sep 10, 2009
It is the first sign that, rather than easing, the financial crisis is getting worse but investors are relieved that US government prepared to act as lender of last resort. 7 September 2008: FANNIE MAE RESCUE. (BBC News)
Nigeria: CBN Sends Resident Examiners to Banks Sep 8, 2009
The bank said in a statement issued by the head of corporate affairs of the bank, Mr. Mohammed Abdullahi, that any attempt to amend the CBN Act would amount to preventing the CBN from playing its role of lender of last resort ... The apex bank added: "There is no central bank in the world that has to have appropriation from the legislature to perform the vital functions of lender of last resort. "And while it is not all central banks that have the mandate to directly supervise banks or even... (allAfrica.com)
Missing Lehman Lesson of Global Shakeout Means Too Big Banks Prone to Fail Sep 8, 2009
As the lender of last resort, the Fed doubled its balance sheet, providing twice as much lending in dollars worldwide, an unprecedented bulwark of the banking system. The Treasurys Troubled Asset Relief Program, or TARP, pumped almost $300 billion into the U.S. banking system; no major banks have failed since its October inception. (Bloomberg -- Germany)
Borrowed time Sep 5, 2009
Here, he became a house painter, lighting salesman and standover man before using his work in subdividing city office buildings as a stepping stone to a career as property developer and money lender of last resort. Those close to him say he was very intelligent but also a villain; confident, arrogant and short-tempered; a recovering alcoholic. (Sydney Morning Herald -- Australia)
Street execution: 'fun-loving family' torn apart Sep 4, 2009
Neighbours and friends of the McGurks today described Mr McGurk - a 46-year-old property developer and lender of last resort - as a devoted family man who, along with wife Kimberley, raised four "beautiful, well-mannered kids" with no airs or graces, despite their wealth. "We weren't real close but we'd stand and talk and go over [to the McGurks' Cranbrook Avenue house] and have a drink at Christmas time," Mrs McCarron said. (Sydney Morning Herald -- Australia)
Beyond the Crisis: Sustainable Growth and a Stable International Monetary System, Speech by Dominique Strauss-Kahn, Managing Director of the International Monetary Fund Sep 4, 2009
Borrowing from a global or regional reserves pool, or through access to a lender of last resort, is in practice the most likely alternative. Indeed, in recognition of the need to strengthen systemic insurance mechanisms, the international community has taken steps to strengthen the Fund s role. (IMF News)
Nigeria: Central Bank to Print More Naira, Says Governor Sep 2, 2009
Addressing newsmen at the end of the 210th Monetary Policy Committee,MPC, meeting of the bank, Sanusi who stressed that CBN does not require any appropriation by the National Assembly for it to lend money to the banks as part of its statutory responsibilities, said as the lender of last resort, what it did was to create money in line with CBN Act which gave it the power to create and lend money "whenever the situation arises.". According to him, the management team of the bank would today meet... (allAfrica.com)
Bernanke May Redefine Fed's Mission With New Power Over Financial Markets Aug 26, 2009
The Obama plan also envisions a permanent role for Bernankes broadened use of the Fed as lender of last resort. The Board of Governors used emergency powers to rescue , as well as markets for commercial paper, housing bonds and asset-backed securities. (Bloomberg -- US)
A whodunnit for the rich and famous Aug 24, 2009
The Scottish-born former light fitting salesman, property developer and now lender of last resort came to public notice three years ago when he attempted to sue the Sultan of Brunei, claiming the Sultan had welched on a deal to buy a match-boxed-sized Koran, kept in a jewel- encrusted case. The 400-year-old relic, which Mr McGurk claimed was worth $9. (Sydney Morning Herald -- Australia)
Big, but dipping Aug 18, 2009
Dilip Ratha, the World Bank's main expert on remittances, says wryly that migrants have been thrust into the role of a sort of lender of last resort by developing countries facing shortages of hard currency. This is a particularly pressing for small economies which depend disproportionately on money from emigrants. (The Economist)
A pared-down solution for Georgia Aug 15, 2009
The Public Policy Foundation calls for limiting GEFA to acting as a lender of last resort for cities and counties - and even for some of its $500 million-plus loan portfolio to be securitized and sold to help refill the state s ever more depleted coffers. Georgia s budget situation may be the thing that helps Byrd s bill finally gain some traction at the Gold Dome. (Atlanta Journal-Constitution -- Opinion)
Accountability sorely needed at Fed Aug 9, 2009
Second, say the petitioning economists, "lender of last resort decisions should not be politicized.". But what are we to call the Fed's decisions during the past year to dole out trillions in loans, credit lines, guarantees, asset exchanges and so forth to big Wall Street firms. (Athens Banner-Herald)
Linking markets with Islamic finance Aug 8, 2009
The central bank is the lender of last resort and should know the conditions of the financial institutions. All transactions go through the banking sector, which is the nerve centre of the economy. (The Star Online, Malaysia -- Business)
Report faults Georgia agency lending Aug 6, 2009
It called on state policy makers to return the agency to its core purpose as a lender of last resort for small communities that can t find affordable loans through the private sector. GEFA spokesman Shane Hix said the report overestimated the potential savings of downsizing GEFA. The move would generate no more than $285 million, he said. (Atlanta Business Chronicle, GA)
Annie Leibovitz May Have Better Luck in Bankruptcy Than Fighting Lawsuit Aug 6, 2009
She went to the lender of last resort, said , an art dealer who recently started an art-financing company, Art Assure Ltd.. Cash Flow. (Bloomberg)
Remittances to developing countries: What goes up Aug 4, 2009
Dilip Ratha of the World Bank wryly remarks that migrants are being thrust into the role of a sort of lender of last resort. However, the chances that remittances will continue to hold up this year are slim. (The Economist)
Bernanke may have to curb lending Jul 30, 2009
Bernankes supporters say his actions have been consistent with the central banks traditional role as lender of last resort. The Fed is best suited to go in quickly if there is a fire, said Mark Gertler, a New York University economist and research co-author with Bernanke. (India Times)
Unfazed by Data, Stocks End Mixed Jul 29, 2009
Now, it's used more as a lender of last resort. In fact, banks prefer to borrow from one another than directly from the discount window, since the interest owed can be cheaper and going to the discount window tends to imply that the bank is in a spot of trouble. (Fox News)
Your money: Federal oversight will be a double-edged sword (2) Jul 26, 2009
Provide the Federal Reserve with basic supervisory authority over any financial institution to which it may make credit available as a lender of last resort. The Federal Reserve does not exist to bail out financial institutions, but rather to ensure stability in our financial markets. (Sioux Falls Tri-State Neighbor, SD)
Misunderstanding the Meltdown Jul 16, 2009
Instead, deregulation usually involves allowing banks to make more reckless decisions than before, while keeping the lender of last resort in place and continuing to insure their deposits. Regulation and deregulation, in other words, are beside the point. (The American Conservative)
Fed economists: Recovery not likely until next year Jul 16, 2009
Cunningham said the Federal Reserve tread into new territory during the financial crisis of 2007 and 2008, reaching beyond lending to shore up banks and beginning to shore up markets, as the lender of last resort. The short-term credit market -- loans with terms of two years or less -- is beginning to show "some semblance of normalcy," Cunningham said. (Daytona Beach News Journal -- Business)
Public Information Notice: IMF Executive Board Concludes 2009 Article IV Consultation with Panama Jul 3, 2009
In light of ongoing external vulnerabilities and the absence of a lender of last resort, Directors encouraged continued vigilance and further strengthening of the banking system. They noted the authorities interest in creating a mechanism to provide emergency liquidity support for transitory liquidity shortages, which could reduce the banks need to self-insure. (IMF News)
GM Tells Judge That Asset Sale Is Its "Only Option" Jul 2, 2009
He testified that last December the federal government was "effectively the lender of last resort" for GM, and estimated the automaker has received $10 billion in funding since its bankruptcy filing -- the bulk of it from the U.S. government. Wilson said the government wants GM to stay in bankruptcy for only 30 to 40 days. (ABC News -- Wire)
GM IPO in 2010 Jul 2, 2009
He testified that last December the government was "effectively the lender of last resort" for GM, which gave it significant leverage over the automaker's restructuring. He said the government wants GM to stay in bankruptcy for only 30 to 40 days. (India Times)
Fed E-Mails May Chill Bank Regulation After Breach of `Ironclad' Secrecy Jul 1, 2009
Banks are subject to regulation in exchange for being able to access the Fed as a lender of last resort. The four main federal supervisors, the Fed, OCC, FDIC and Office of Thrift Supervision, together employ about 6,000 bank examiners. (Bloomberg)
Tatas to inject 'millions of pounds' into JLR: Report Jun 28, 2009
Jaguar Land Rover has about 15,000 employees in the UK. The Financial Times said that Mandelson this weekend reiterated that the state had to be a "lender of last resort" only after Tata has looked to its own resources. "Any state support to Jaguar Land Rover would be conditional on the due diligence on the Indian parent being conducted by the government's City advisers," the report said quoting officials. (India Times, India)
Republic of Kosovo -- IMF Staff Visit, Concluding Statement Jun 27, 2009
Lender of last resort function. While the use of the euro has conferred welcome stability, euroization leaves fiscal policy as the only major macroeconomic instrument. (IMF News)
Financial Rules: Why a Global Fix Is So Far Off Jun 26, 2009
Until now the U.S. had enough economic heft to serve as the global lender of last resort. For example, when the U.S. government threw enormous sums at American International Group () to keep the embattled insurer afloat, at least $58 billion went to banks and other creditors based outside the U.S. an altruistic move that helped contain the global crisis. (BusinessWeek)
Poland -- Concluding Statement of the 2009 Article IV Consultation Jun 24, 2009
While we have no evidence of problems in these institutions, we are concerned that they have no direct access to a lender of last resort facility, are not supervised by the KNF, and are not covered under the banking guarantee fund, but only by their internal insurance fund. While they are small (as a share of total banking assests) and, on their own, are unlikely to pose a systemic risk, any problems could have potential contagion effects on the rest of the financial system. (IMF News)
Obama's plan gives Fed a starring role Jun 23, 2009
Washington's response was to create the Fed as a politically independent lender of last resort, with the authority to supervise banks. And although the Fed failed its first big test, the Great Depression, it has generally used its twin powers of money creation and bank regulation more wisely since then. (Herald Online, SC -- Opinion)
Bank oversight: Obama's out to bring key changes to the table Jun 18, 2009
"I'd rather that the Fed stick to its knitting of conducting monetary policy and be the lender of last resort, as opposed to take on the role of supervision of individual institutions. ... In this role, the Fed will be thrust into the center of controversy," said Hal Scott, a professor at Harvard Law School and director of the influential Committee on Capital Markets Regulation, a private-sector body. But administration officials say they carefully considered alternatives before opting to task... (USA Today -- Money)
Obama touts rules to stop financial crisis Jun 18, 2009
Obama's proposal would require the Fed, which now can independently use emergency powers to bail out failing banks, to first obtain Treasury Department approval before extending credit to institutions in "unusual and exigent circumstances," a change designed to mollify critics who say the Fed should be more accountable in exercising its powers as a lender of last resort. But the proposal also would do away with a restriction imposed on the Fed in 1999 when Congress lifted Depression-era... (Atlanta Journal-Constitution)
Role As 'Risk Regulator' Could Reshape Fed Jun 17, 2009
Under Dodd's plan, the Fed would focus on its existing mission of setting monetary policy and being the "lender of last resort" to troubled banks. Even if the Fed's powers were expanded, history suggests it might be impossible to spot the next financial bubble -- whether in housing, the stock market or elsewhere -- before it forms. (Click2Houston, TX)
Obama proposes financial system overhaul to prevent future collapse Jun 16, 2009
Under Dodd's plan, the Fed would focus instead on its existing mission of setting monetary policy, establishing a payment system and being the "lender of last resort" if a bank fails. The administration will propose tougher rules on transactions outside the banking system. (The Star Online, Malaysia -- Business)
2nd Circuit Ruling in Chrysler Bankruptcy Upholds Sale of Assets to Fiat Jun 6, 2009
He agreed with Sack that the government, as the lender of last resort, had the right to dictate certain terms of the deal. But he said that did not make the transaction an unconstitutional taking. (Law.com)
Ecuador Orders Banks to Repatriate $1.2 Billion in Funds Abroad by Aug. 31 Jun 5, 2009
Banks already have to set aside liquidity in the form of minimum reserve requirements and for a new, emergency liquidity fund that will function as a lender of last resort in Ecuadors economy, which cant issue currency, said Crespo. They have also been prudent with customers money in overseas investments, shying away from subprime products, he said. (Bloomberg -- Latin America)
US court to rule on Chrysler-Fiat deal May 30, 2009
"There is no other lender than the lender of last resort for Chrysler. We know there was no other bidder .... There is no other alternative than liquidation.". Gonzalez is widely expected to approve the sale, which comes as the US government is also working on a massive bankruptcy bailout for General Motors. (Sydney Morning Herald -- Business)
Bank ready to enshrine crisis measures May 28, 2009
In a speech before an international group of central bankers in Tokyo, Mr Tucker outlined the need for domestic monetary authorities to hold not only their traditional role as lender of last resort in the face of banking crises but also that of capital provider and market maker of last resort. EDITORS CHOICE. (FT.com -- Markets)
State extends overdraft protection to schools May 21, 2009
He wanted to put a plan into place now where his office would be a lender of last resort to avoid financial stress on school districts and county treasurer offices, he said. The state treasurer's office was going to lend $300 million to the general fund but since the state does not have that payment now because it was delayed to the new fiscal year, they will make money available to any county treasurer's office, Martin said. (Yuma Daily Sun, AZ)
Crisis Management and Policy Coordination: Do We Need a New Global Framework? Speech by Dominique Strauss-Kahn, Managing Director, International Monetary Fund May 16, 2009
As the crisis broke, countries acted in an uncoordinated manner to expand lender of last resort facilities, increase protection of creditors and depositors, and recapitalize banks with public funds. While countries reacted to the moves of others pretty quickly, the lack of coordination had some destabilizing effects, at least in the short term. (IMF News)
Feds Throw Dimon A Bone May 16, 2009
However, that JPMorgan was tapped to handle the Chrysler Financial-GMAC marriage underscores a certain quid pro quo that has developed between Uncle Sam and the bank, which slowly has become the government's de facto lender of last resort. That relationship has been blossoming since last year, when the onset of the financial market's unprecedented credit crisis led the Federal Reserve to arrange a shotgun marriage of JPMorgan and Bear Stearns, in order to prevent the latter bank from collapsing. (New York Post -- Business)
