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European officials round on Lagarde

Author: 1 от 30-08-2011, 19:19
European officials round on Lagarde

(FT) -- European officials rounded on Christine Lagarde on Sunday, accusing the managing director of the International Monetary Fund of making a "confused" and "misguided" attack on the health of Europe's banks.

Ms Lagarde, the former French finance minister who replaced Dominique Strauss-Kahn as head of the IMF in July, used her address at an annual meeting of central bankers in Jackson Hole, Wyoming, to call for an "urgent" recapitalisation of Europe's weakest lenders, saying that shoring up the banking system was key to cutting "chains of contagion" across the region.

But officials said Ms Lagarde's comments missed the point of banks' current difficulties. "The key issue is funding," said one experienced central banker. "Banks in some countries have had trouble securing liquidity in recent weeks and that pressure is going to mount. To talk about capital is a confused message. Everybody -- politicians, regulators, other officials -- is quite concerned."

Officials, nervous that Ms Lagarde's statement would further spook bank investors, said they planned to urge the former French finance minister to clarify her statement.

35 killed in series of attacks across Iraq, officials say

Author: 1 от 30-08-2011, 18:31
35 killed in series of attacks across Iraq, officials say

Baghdad (CNN) -- A series of bomb attacks throughout Iraq left 35 people dead and scores injured, officials with Iraq's Interior Ministry and police said Sunday.

At least 28 people were killed in a suicide bombing attack in a Sunni mosque in the Ghazaliya neighborhood in western Baghdad late Sunday, an Interior Ministry official said. At least 37 others were wounded in the attack. A Sunni member of Parliament, Khalid al-Fahdawi, was among the dead.

In Tarmiyah, about 40 kilometers north of Baghdad, two people were killed and five were wounded after a bomb exploded near a Sunni mosque as worshippers finished up a nightly prayer for the celebrations of Ramadan, an Interior Ministry spokesman said.

Also Sunday, an bomb explosion killed two people in the Baghdad's Shiite-majority neighborhood of Jadriya, the spokesman said.

In Mosul, six roadside bombs exploded in the town's center, wounding five police officers and two civilians.

European officials round on Lagarde

Author: 1 от 30-08-2011, 10:17
European officials round on Lagarde


(FT) -- European officials rounded on Christine Lagarde on Sunday, accusing the managing director of the International Monetary Fund of making a "confused" and "misguided" attack on the health of Europe's banks.

Ms Lagarde, the former French finance minister who replaced Dominique Strauss-Kahn as head of the IMF in July, used her address at an annual meeting of central bankers in Jackson Hole, Wyoming, to call for an "urgent" recapitalisation of Europe's weakest lenders, saying that shoring up the banking system was key to cutting "chains of contagion" across the region.

But officials said Ms Lagarde's comments missed the point of banks' current difficulties. "The key issue is funding," said one experienced central banker. "Banks in some countries have had trouble securing liquidity in recent weeks and that pressure is going to mount. To talk about capital is a confused message. Everybody -- politicians, regulators, other officials -- is quite concerned."

Officials, nervous that Ms Lagarde's statement would further spook bank investors, said they planned to urge the former French finance minister to clarify her statement.

European politicians and regulators are still struggling to come up with a mechanism that will calm investors' skittishness about banks' exposure to sovereign debt across the southern eurozone. A high-profile pan-European "stress test" of bank balance sheets has failed to allay investors' concerns about their ability to withstand a default by a European government, or a severe deterioration in their credit portfolios across the region.
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