Economies worldwide are showing momentum
Bucking fears of a sharp brake on growth after the government shutdown in the United States and earlier signs of distress in Europe and Asia, global manufacturing activity sped up in November, raising hopes for a broader global economic turnaround in the coming year.
Estimate of economic losses from storm now up to $50 billion
Economic damages inflicted by Hurricane Sandy could reach $50 billion, according to new estimates that are more than double a previous forecast. Some economists warned Thursday that the storm could shave a half percentage point off the nation’s economic growth in the current quarter.
China’s slowing economy puts pressure on US exporters
As China’s economy cools, U.S. exporters are increasingly feeling the chill.
Warnings said to be unheeded by JPMorgan Chase
In the years leading up to JPMorgan Chase’s $2 billion trading loss, risk managers and some senior investment bankers raised concerns that the bank was making increasingly large investments involving complex trades that were hard to understand. But even as the size of the bets climbed steadily, these former employees say, their concerns about the dangers were ignored or dismissed.
Bank of America breaks with Fannie Mae, can turn to other buyers
Bank of America said Thursday that it would no longer sell new mortgages to Fannie Mae, underscoring tensions in a fight between two giants of the home loan market over billions in losses in the housing bubble.
U.S. is set to sue a dozen big banks over mortgages
The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble, and seeking billions of dollars in compensation.
Buffett to invest $5 billion in shaky Bank of America
Warren E. Buffett, the legendary investor, is sinking $5 billion into Bank of America in a bold show of faith in the country’s biggest, and most beleaguered, financial institution. It comes amid deepening worries about the long-term health of the company, which has already had to set aside roughly $20 billion to atone for its mortgage misdeeds at the height of the housing bubble.
Global Decline in Manufacturing Raises Fears
Since it was founded by his great-grandfather in 1880, Carl Martin Welcker’s company in Cologne, Germany, has mirrored the fortunes of manufacturing, not just in Europe but around the world.
As It Falters, East Europe Raises Risks
Since the fall of the Berlin Wall, the countries of Eastern Europe have emerged as critical allies of the United States in the region, embracing American-style capitalism and borrowing heavily from Western European banks to fund their rise.