October 9th – Top Stories
- Yellen Is Obama’s Choice as Fed Chief - WSJ - By JON HILSENRATH And PETER NICHOLAS
President Barack Obama will nominate Janet Yellen to run the Federal Reserve, calling on the central bank’s second in command to become the world’s most powerful economic policy maker after months of sometimes bitter debate about Chairman Ben Bernanke’s successor.
Ms. Yellen’s nomination, which the White House said would be announced Wednesday, would be subject to Senate confirmation amid squabbling between Democrats and Republicans over fiscal issues. The federal government has been partially shut since Oct. 1, after its spending authority expired. The U.S. Treasury estimates that by Oct. 17 it will be low on cash because a federal debt ceiling prevents it from borrowing more
- China’s Big Four Speed up Lending in Sept, Extend CNY275Bn New Loans - Caijing
China’s four largest state-owned banks accelerate their pace of new lending in September, driven by a strong rally of deposit inflows in the last week of the month.
Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China and China Construction Bank together issued over CNY275billion (USD45 billion) new loans last month, the third highest monthly total this year,according to the 21st Century Business Herald. The “Big Four” saw a new lending of CNY220billion in August.
- U.K. Banks Ready Plans for U.S. Default - WSJ – By MARGOT PATRICK
Some banks in the U.K. are talking with regulators and drawing up internal plans on how they would cope if the U.S. fails to increase its borrowing limit.
Senior bank executives said they have had informal discussions with the Bank of England’s Prudential Regulation Authority in the past few days on how potential disruption in the U.S. bond market could affect their businesses, including the ability to provide dollar funding to clients and post collateral with trading counterparts. A spokesman for the authority declined to comment.