By Brai Odion-Esene WASHINGTON (MNI) – The Federal Reserve, along with other regulators, is amassing huge amounts of information to bolster its enhanced macroprudential supervisory role, but there is a real concern that an information overload could impede its ability to spot developing systemic risks, San Francisco Federal Reserve President John Williams said Friday. Speaking [...]

According to Fitch Ratings, MF Global Holdings Ltd.'s bondholders may recover as little as 10 cents on the dollar in the company's bankruptcy recently filed. Owners of the failed broker's senior unsecured debt will get back between 10% and 30% of the notes' face value.    The analysis is based on MF Global's balance sheet as [...]

According to various news sources, leading asset-management firms asked the U.S. Securities and Exchange Commission for less regulation when it comes to setting new rules for how mutual and exchange-traded funds use derivatives. In letters to the SEC earlier this week, firms including BlackRock, Inc. and State Street Corp. argued that derivatives have an important [...]

Greek fin min Venizelos re-appointed,  forecasts surplus in 2012 SNB’s Danthine says ready to take further action; EUR/CHF jumps Stark: ECB will never become a lender of last resort Rumors EFSF may peg bond yields Yellen: Fed to undertake new round of bank stress tests “in a couple weeks” Italian 10-year yields fall 48 bps [...]

WASHINGTON (MNI) – The following is the text of a statement by the White House Friday: Today, the President reached out separately by phone to Senator Murray and Representative Hensarling. With the Joint Select Committee’s deadline to report approaching, the President wanted to hear from the bipartisan leadership of the committee on the status of [...]

By Suzanne Cosgrove CHICAGO (MNI) – Federal Reserve Board of Governors Vice Chair Janet Yellen Friday said that “it is important to have overlap between those responsible for monetary policy and those responsible for financial stability.” In addition, she said “it is important for those making monetary policy to keep in mind that very low [...]

The EUR/USD weekly candle is looking an awful lot like the Oct 3 and Oct 17 weeklies. Large rallies followed both. Simplistic, yes but it fits well with the break higher today.

By Steven K. Beckner (MNI) – Warning of potential damage to the U.S. financial system, Federal Reserve Vice Chairman Janet Yellen called Friday for “forceful action” to resolve the European debt crisis. Although U.S. banks’ direct exposure to European debtor nations is “manageable,” they are more vulnerable to European banks, and that vulnerability could worsen [...]

A bit of risk coming out of the market here. AUD and CAD getting hit.

–Not Convinced Fin Reg Reforms Enough To Forestall Another Crisis By Brai Odion-Esene WASHINGTON (MNI) – While micro and macroprudential policies are the appropriate “first lines of defense” against financial instability, the concern that these defenses could be breached means monetary policymakers will need to be more involved in forestalling the next crisis, San Francisco [...]

Not convinced recent financial reforms enough to forestall another crisis Risk of runs on the market still a very real concern Reform doesn’t fully address runs, contagions and panics Untested if supervisors can winds down a financial firm successfully Significant risk that another asset bubble could develop No comment on the current outlook

By Johanna Treeck FRANKFURT (MNI) – The European Central Bank will never become a lender of last resort but stands ready to further ease interest rates should the crisis spark deflationary risks, ECB Executive Board member Juergen Stark said. In an interview with Swiss newspaper Neue Zuercher Zeitung due for publication on Saturday, Stark said [...]

Gold is near the session high USD/CAD is near the session low Everything else looks to have settled into a range Maybe some volatility at the US stock close. Also watch the JPY numbers in the COT report. If the net longs rise back toward 40K, we may see some short covering into the close.

If things don’t fall apart in Italy this weekend, my money is on the Greek bond haircut as the next shoe to drop. On Oct. 26 the EU negotiated a 50% haircut but the swap is set for early next year and it’s not a done deal yet. There’s a new government in Greece now [...]

GDP – Q3 Industrial Production %q/q %y/y %m/m Sept %y/y Median Forecast 0.2 1.4 -2.4 3.1 High forecast 0.3 1.6 1.3 4.2 Low forecast 0.1 1.4 -3.4 2.3 Previous period 0.2 1.6 1.2 5.3 - Number of responses 12 8 8 4 4Cast 0.2 1.4 N/A N/A Action Economics 0.1 N/A -3.0 N/A Barclays 0.2 [...]

GDP – Q3 ZEW – November %q/q %y/y Current conditions Median Forecast 0.5 2.5 35.0 High forecast 0.7 2.7 37.5 Low forecast 0.1 2.2 25.0 Previous period 0.1 2.8 38.4 - Number of responses 12 7 7 4Cast 0.5 2.5 35.0 Barclays 0.5 N/A N/A Action Economics 0.3 N/A N/A BNP Paribas 0.6 2.4 37.5 [...]

GDP – Q3 %q/q %y/y Median Forecast 0.35 1.6 High forecast 0.40 1.7 Low forecast 0.10 1.5 Previous period 0.00 1.7 - Number of responses 10 5 Action Economics 0.2 N/A Barclays 0.4 N/A BNP Paribas 0.3 1.6 Capital Economics 0.3 N/A Commerzbank 0.3 1.5 DZ Bank 0.4 1.6 ING 0.4 1.6 SEB 0.1 N/A [...]

The only question is: which drug cartel did it? Sad state of affairs in that country. I visited Mazatlan in March, a once thriving tourist hot spot that’s now completely vacant. More details Mr. Blake would be the second Mexican interior minister in Calderon's presidency to be involved in an aviation accident.

A new round to begin “in a couple weeks” (Geithner assures us there is nothing to worry about) European crisis poses “significant downside risks to US” Further European financial disruptions could lead to deterioration of conditions in US Fed monitoring very closely, will do “all we canL to mitigate effects Won’t rule out monetary policy [...]