The U.S. banks are not vulnerable to the contagion effects of
a debt default by the PIIGS but Washington has some major league debt issues of its own.
Not exact matches
It hopes to submit its restated financial statements for 2015 to regulators
by April 29 to avoid
defaulting on its
debt.
What we don't know the state of credit
default swaps held
by banks against sovereign
debt and against European banks, nor do we know the state of CDS held
by British banks, nor are we certain of how certain the exposure of British banks is to the Ireland sovereign
debt problems.»
«But Clinton is convinced that most American voters did not intend to greenlight a radical anti-govenrment agenda and were appalled
by the near
default on U.S.
debt and the downgrading of U.S. Treasuries.
The goal was to forestall wide - scale foreclosures
by convincing
debt servicers to modify loan payments when homeowners went into
default.
It may now be forced to
default on its
debt to international lenders if not bailed out
by the Russian government.
Officials in Washington, D.C., and San Juan have expected for some time that Puerto Rico would
default Monday on
debt owed
by its Government Development Bank.
CNBC's John Harwood with a look at JP Morgan Chase CEO Jamie Dimon and today's speech at the US Chamber of Commerce event, where he criticized the extent of Dodd - Frank regulation and the possibility the U.S. may
default on its
debt by not raising the
debt limit.
In addition to factors previously disclosed in Tesla's and SolarCity's reports filed with the U.S. Securities and Exchange Commission (the «SEC») and those identified elsewhere in this document, the following factors, among others, could cause actual results to differ materially from forward - looking statements and historical performance: the ability to obtain regulatory approvals and meet other closing conditions to the transaction, including requisite approval
by Tesla and SolarCity stockholders, on a timely basis or at all; delay in closing the transaction; the ultimate outcome and results of integrating the operations of Tesla and SolarCity and the ultimate ability to realize synergies and other benefits; business disruption following the transaction; the availability and access, in general, of funds to meet
debt obligations and to fund ongoing operations and necessary capital expenditures; and the ability to comply with all covenants in the indentures and credit facilities of Tesla and SolarCity, any violation of which, if not cured in a timely manner, could trigger a
default of other obligations under cross-
default provisions.
That is crucial, because an involuntary
debt revamping would be seen
by creditors as a
default — a step Greece and Europe are trying hard to avoid.
Combining this with poor sales growth results in a dismal outlook for earnings 3) the pressure on earnings will continue to hurt capital spending, which is usually just a magnified image of earnings, 4) the same factors will continue to raise
default rates, causing earnings problems and
debt downgrades among banks and financial companies, 5) earnings shortfalls will also lead to continued job cutbacks, with the unemployment rate rising to at least 5.5 % (indeed, once the unemployment rate has advanced
by 0.5 % from its lows, it has never reversed until rising
by least 1.5 % off those lows).
The Obama Administration's Wall Street managers have kept the
debt overhead in place — toxic mortgage
debt, junk bonds, and most seriously, the novel web of collateralized
debt obligations (CDO), credit
default swaps (almost monopolized
by A.I.G.) and kindred financial derivatives of a basically mathematical character that have developed in the 1990s and early 2000s.
In 2011, when congressional Republicans were threatening to allow the government to
default on its
debts if their policy wish list was not met, Powell met with a number of GOP lawmakers, urging them to reconsider their strategy
by pointing out the serious risks involved.
For a third example, not everyone in the early 1960s believed that the USSR would inevitably overtake the US economically before the end of the century, but excluding fierce anti-Communists predicting fire and brimstone, I don't know anyone who expected that
by the 1980s the USSR would essentially be insolvent (technically it wasn't, but LDC
debt traders nonetheless included the country in their universe of
defaulted or restructuring sovereign borrowers).
Excessive
debt can be resolved
by default or
by growth.
It is wishful thinking to imagine that the most extreme economic,
debt and investment bubble in history was corrected
by a mild economic downturn, a market decline that leaves stocks at 21 times peak earnings (higher than at the 1929 and 1987 peaks), and just a few large - scale
defaults from a corporate
debt position which continues to claim a record share of operating earnings to finance.
Quantitative easing subsidizes U.S. capital flight, pushing up non-dollar currency exchange rates Quantitative easing may not have set out to disrupt the global trade and financial system or start a round of currency speculation, but that is the result of the Fed's decision in 2008 to keep unpayably high
debts from
defaulting by re-inflating U.S. real estate and financial markets.
Credit -
default swaps on the senior
debt of Banco Espirito Santo were the worst performing among financial companies around the world this week jumping 54 percent to the highest in eight months, according to data compiled
by Bloomberg.
The net amount of the bank's
debt protected
by credit -
default swaps almost doubled to a two - year high of $ 940 million on July 4 since April, according to the Depository Trust & Clearing Corp..
Specifically, Defendants made false and / or misleading statements and / or failed to disclose that: (i) the Company was engaged in predatory lending practices that saddled subprime borrowers and / or those with poor or limited credit histories with high - interest rate
debt that they could not repay; (ii) many of the Company's customers were using Qudian - provided loans to repay their existing loans, thereby inflating the Company's revenues and active borrower numbers and increasing the likelihood of
defaults; (iii) the Company was providing online loans to college students despite a governmental ban on the practice; (iv) the Company was engaged overly aggressive and improper collection practices; (v) the Company had understated the number of its non-performing loans in the Registration Statement and Prospectus; (vi) because of the Company's improper lending, underwriting and collection practices it was subject to a heightened risk of adverse actions
by Chinese regulators; (vii) the Company's largest sales platform and strategic partner, Alipay, and Ant Financial, could unilaterally cap the APR for loans provided
by Qudian; (viii) the Company had failed to implement necessary safeguards to protect customer data; (ix) data for nearly one million Company customers had been leaked for sale to the black market, including names, addresses, phone numbers, loan information, accounts and, in some cases, passwords to CHIS, the state - backed higher - education qualification verification institution in China, subjecting the Company to undisclosed risks of penalties and financial and reputational harm; and (x) as a result of the foregoing, Qudian's public statements were materially false and misleading at all relevant times.
The proximate cause of death for virtually every
defaulting junk bond is a liquidity crisis occasioned
by either an inability to generate enough cash to service
debt, or an inability to refinance maturing
debt.
Tsipras is seeking to assuage the left flank of his party — some of whom want Greece to
default on its
debt altogether —
by focusing on tax increases for companies and high - income individuals instead of spending cuts.
If I were thinking about purchasing GECC's
debt, I would first ask myself the following question: In the event that GECC were on the verge of a
debt default and a bailout
by the parent company would require a sum of money that would put undue hardship on GE, would GE guarantee GECC's
debt?
The negotiation of such an agreement had long been rejected
by the country's prior populist administration, leading creditors to gain a ruling in US courts that precipitated Argentina's
default in 2014, and so prevented it from issuing further
debt.
Recently gold challenged it's all time highs, being propelled largely
by renewed concerns over the Greek
debt crisis and the possible ramifications a
default could have on global financial markets.
Credit
default swaps on Saudi Arabian
debt have ballooned, and Dubai's
debt pile, estimated to have reached $ 130 billion at the end of 2015
by the Institute of International Finance, is once again garnering the attention of distressed
debt investors.
Credit
default swaps are held
by some investors for insurance against
debt defaults.
A downgrade on
debt issued
by the United States would have less severe consequences than a
default, which takes places when a government fails to pay its creditors.
And inasmuch as creditors insist on protecting themselves from inevitable
default by possessing collateral, it is natural that most of the economy's
debts are owed on its largest asset: land and buildings.
The U.S. has no other feasible alternative than
DEFAULT ON THE
DEBT OR DEVALUE THE DOLLAR... and rest assured Washington will elect for the latter
by trashing the greenback, which will catapult the gold and silver prices into orbit.
It's a near certainty with the island likely to record its first
default on August 1st (the commonwealth failed to make the necessary deposit to cover
debt of its Public Finance Corporation due August 1st), and with the governor's Economic Recovery Working Group expected to make reform recommendations
by August 30th.
Restructured
debt backed
by Treasuries and issued
by emerging market countries after
defaulting on original loans.
So the average borrower has $ 30,000 in student loan
debt, you add 16 to 25 percent to that and they're racking up thousands of dollars in unnecessary costs
by defaulting,» Josuweit says.
Once a credit card
debt defaults, it will trigger an aggressive
debt collection process, during which borrowers are contacted frequently
by collection agencies.
By rejecting
debt default as an option, they created the ultimate moral hazard problem.
Moody's Investors Service announced it would review «for possible downgrade» the credit ratings of five states, including Maryland, that could be hit particularly hard if Congress fails to raise the nation's
debt limit
by the Aug. 2 deadline and
defaults on its financial obligations.
He also warned that Salmond's plans to refuse to pay Scotland's share of the national
debt if Westminster rejected a currency union would be viewed as a
default by credit rating agencies.
More generally, the European Union (EU) is perceived
by many to be in crisis, buffeted
by the twin threats of sovereign
debt default...
Already Buhari has started giving excuses for the abysmal performance.He attributed the quagmire to drop in the price of oil globally and cleverly laid the blame on the doorsteps of all Nigerian accusing them of relying solely on oil.All renowned rating agencies including fitch continue to downgrade Nigeria ever since Buhari took over and it is projected that Nigeria will not be able to repay its
debt obligations.Fitch for instance downgraded Nigeria's longterm foreign currency issuer
default rating to B + from BB - and longterm local currency IDR to BB - from BB.The general position expressed
by almost all the Briton wood institutions is that Nigeria's fiscal and external vulnerability has worsened under Buhari and it is projected that the government's general fiscal deficit could grow up to 4.2 %
by the end of 2016 after averaging 1.5 % under the previous regime.A recent capital importation report
by Nigeria Bureau of Statistics confirms that, last year, the country recorded total inflow of capital into the economy stood at $ 9.6 billion which was a 53 % drop from previous year and the lowest recorded total since 2011.
Now, if the US prints dollars to pay its
debt, that can cause inflation, but the cost of inflation is borne
by everyone while the cost of
default is borne
by only the bondholder.
The only way the U.S. will immediately
default upon reaching the
debt ceiling is if the government actively chooses to do so
by not making
debt payments.»
The idea, proposed
by House Republican leadership, would raise the
debt limit for six weeks, staving off a
default that economists say would devastate the economy.
The campaign warns voters about the effects of a possible
default if the
debt ceiling isn't raised
by Aug. 2 and spins a near - doomsday scenario of high gas and food prices along with dire consequences for 401 (k) accounts.
In another twist, UKEF has, following a lot of pressure from the Jubilee
Debt Campaign, just published information showing that overseas countries owe the UK millions of pounds as a result of
defaulting on payments for weaponry bought
by the likes of Egypt's General Mubarak and Iraq's Saddam Hussein.
(i.e. there governmental bond holdings, to make it possible to compare what they would lose
by the government
defaulting as compared to what they would gain
by not being taxed to repay the
debt over X years?
Atlantic City, N.J., averted
default by making a $ 1.8 million
debt payment today, but its mayor warned the Jersey Shore resort town still faces serious trouble.
They are currently benefiting from not being able to
default by paying a lower interest rate than other types of unsecured
debt.
Washington (CNN)-- A back - up plan proposed
by Senate Republican Leader Mitch McConnell that would keep the U.S. government from
defaulting on its
debts next month is viable and under consideration
by Senate Democrats, according to Sen. Dick Durbin, the No. 2 Democrat in the chamber.
For now, most investors and forecasters seem to expect a lot of bluster from the White House and Republicans, followed
by an eleventh - hour agreement that avoids a government shutdown or
debt default.
Hon. K. T. Hammond was sent
by President J. A. Kufuor to Paris and London to amicably resolve the US$ 47 million
default judgment
debt with SG
by convincing the Company to accept the US$ 14 million out - of - court settlement instead of insisting on the US$ 47 million judgment
debt.