The Bank of England has elected to keep its stimulus program on hold. No statement was issued to explain why, specifically, but the paper suggests inflation concerns and "a move by Chancellor of the Exchequer George Osborne to claim cash built up from interest payments on the BOE's bondholdings" may have contributed to the decision.
Financial Times
Three former employees are alleging Deutsche Bank hid up to $12 billion in losses by misvaluing "a giant position in derivatives structures known as leveraged super senior trades." The alleged faulty accounting enabled the bank to avoid a government bailout. Deutsche Bank said the allegations were old and also "wholly unfounded."
Morgan Stanley, Goldman Sachs and Wells Fargo "are likely to face strong regulatory pressure" to join the ranks of banks charged with the setting the London interbank offered rate, after an analysis from the U.K.'s Financial Services Authority revealed them as strong candidates to do so. This finding was unveiled alongside the FSA's preliminary rules for revamping how Libor is set, which includes replacing the British Bankers' Association with an independent administrator who can oversee the process.
New York Times
This DealBook article takes a look at JPMorgan Chase's frequent move to underwrite loans backing companies getting ready to purchase other companies. A $9.5 billion loan facility to support Freeport-McMoRan Copper & Gold's takeovers of Plains Exploration & Production and the McMoRan Exploration Company is cited as the latest example.
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