Sunday, December 20, 2009

Greece, Dubai Updates

by Bill McBride on 12/20/2009 09:34:00 PM

From the WSJ: ECB Member Says No Bailouts

The European Central Bank won't bail out debt-stricken member states such as Greece, which must repair its public finances on its own, ECB governing council member Ewald Nowotny said.

"One has to be very clear: The ECB has no mandate or intention to take into account the situation of a specific country, especially not with regard to public finances," he said in an interview late Friday.
...
The ECB said Friday that it expected banks in the euro zone to see much higher losses than it had previously thought, mainly from their exposure to Eastern Europe and commercial real estate.
And from Bloomberg: Dubai World May Not Present Standstill Offer Yet, Bankers Say
Dubai World ... may be unable to present a “standstill” offer to lenders today as the terms of government support for the state-owned holding company have yet to be agreed, two bankers involved in the talks said.

The complexity of Dubai World Group and its funding structure are to blame for the delay, one banker said ...
No updates on Spain, Ireland and Eastern Europe, but sovereign debt will remain a hot topic.

For a summary of the last week and a look ahead, please see my earlier post. Best to all.