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ECONOMICS – FINANCE – WORLD NEWS – GREEK DEBT

Berlusconi creeps back, Citi cuts 11,000 jobs

This morning, Italy’s government was shaking once again, when the Italian upper house voted on Monti’s economic growth package. But Mario Monti prevailed despite Berlusconi’s People of Freedom party walking out on the vote. Italy’s next election is scheduled for March, and Berlusconi has suggested his return again and again. read article

After yesterday’s Autumn Statement, which can probably be summarized as pushing around money in little proactive fashion, the UK’s credit rating is in more danger than it was before. In March, Fitch had put the country on ‘negative outlook‘. But when George Osborne neither announced substantial tax increases nor spending cuts yesterday, the agency concluded that Britain’s way of dealing with its public finances was reason to worry – more. read article

Speaking of rating issues: after Greece announced to buy €10bn of its debt back (estimated to be 32-34 cent on the euro), S&P has reduced the country’s credit grade to ‘stubborn selective default‘.

When Vikram Pandit left his position as CEO of Citigroup, everybody denied that there had been tensions in the bank’s senior management. The 180-degree-turn of the company’s strategy says something quite opposite. Last week, there was the modest announcement that 150 jobs would be cut. Last night, the number of overall job cuts within the company rose to 11,000, more than double of what Pandit had had in mind. According to Fortune Magazine, Citi employed 266,000 people this year. read article

Other news are almost exclusively legal issues: HSBC’s fine for that Mexican money laundering incident could rise to up to $1.8bn, while Standard Chartered has to pay an additional $330m for breaching Iranian sanctions. The bank has already paid $340m in August.

But the gossip of the day comes from Deutsche Bank, which failed to, or chose not, or accidentally didn’t report losses of up to $12bn between 2007 and 2009. So far, it seems like that might have been a good thing. Thanks to Deutsche’s ‘don’t ask don’t tell’ policy, the bank may have avoided a government bailout. Suspiciously, the whistle-blowers are three former employees of the company, and if 2012 has taught us anything it is to take those things with a bucket of salt. read article

So long.

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2 Responses

  1. princess1960 says:

    THANK YOU
    Italy is like GR in political debate (iam watching in TV every day)really nothing diffrent from the debates we see evey minute in TV greek) in the end someone will take the GV .but i think this is not problem who is ..problem is what he will do .
    Berlusconi (is strong ) ..believe me ..
    i like MONTI
    -BANK’S CITY GROUP have problem before 2008
    but they do very good to take acttion for NOT wors
    CCC GR ..ha ..(iam very curios witch what criteria ) thay make because here nothing work .
    0 export 26% unemployment
    everyday close smaller busineses .shoping
    Anyway ..say good to be good ..
    Laundering money (some bastard in key post ) banking thinking is smart ..if i am i put all in jail ..and confecsion..
    -to day long
    enjoy ..

  2. […] Last week Thursday, the Italian parliament faced turmoil, after Berlusconi’s party walked out of a vote on fiscal matters. Since then, rumors got louder that Silvio Berlusconi will try to return to office. He is currently being charged for relations with an underage prostitute and abuse of power (possibly related, but two court cases). In Italy, all legal charges are put on hold if an individual is running for a public office. Berlusconi had been convicted to four years imprisonment for tax fraud in October 2012, which was later reduced to one year and then to the prohibition from ever running for office again. Clearly, that has not worked out so well. But the left ranks before Berlusconi’s People of Freedom party in the polls. The Wall Street Journal spoke to Pier Luigi Bersanti, the current favorite according to said polls. read article […]

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