Free Republic

Shake-up gives Fed a boost Last Updated: 2:02am BST 30/03/2008 AMBROSE EVANS-PRITCHARD SOPHIE BRODIE THE US government will tomorrow unveil a radical overhaul of financial regulation that would give the Federal Reserve greater powers to oversee market stability. The proposals are part of a wider effort to simplify labyrinthine US regulation, consolidate regulators and make the market more competitive. The review began last year, but has become increasingly critical as the Fed struggled to restore confidence in markets shattered by the credit crunch and bail-out of Bear Stearns. advertisement While the plans would allow the Fed to scrutinise more closely...

Daily FX Further Carnage For the Carry But Could Dollar-Yen Soon Find Support? Thursday August 16, 6:07 am ETBy Boris Schlossberg, Senior Currency Strategist strategist@dailyfx.com Yet another night of brutal carry trade liquidation in the currency markets as equity investors continue to reduce risk pushing yen higher across the board. Talking Points-          Australian Dollar: Wage growth strong but Aussie sold risk aversion-          Japanese Yen: Strengthens further as Nikkei slides and risk aversion persists-          Pound: Retail Sales jump to best in 5 months-          Euro: German CPI data in line-          Dollar: Housing data on tap   Overnight the Nikkei dropped another 2%...

(AFX UK Focus) 2007-08-15 10:22 GMT: Hong Kong shares close sharply lower as carry-trades unwound - UPDATE HONG KONG (XFN-ASIA) - Share prices closed sharply lower as growing risk aversion prompted global investors to unwind yen carry-trades, with the Japanese currency moving to a four-month high against the US dollar in Asian trade today. Dealers said hedge funds squeezed by problems in the US sub-prime and credit markets are being forced to dump stocks to raise funds to pay back low-interest bearing yen loans, which were used to invest in risky assets globally. Revelations that more hedge funds are being...