by Calculated Risk on 4/30/2010 11:46:00 PM

This is an unofficial list of Problem Banks compiled only from public sources.

Here is the unofficial problem bank list for April 30, 2010.

Changes and comments from surferdude808:

Failure Friday and the FDIC issuing its enforcement actions for March contributed to many changes in the Unofficial Problem Bank List.

Of the seven failures this week, six were on the list including Westernbank Puerto Rico ($11.9 billion), R-G Premier Bank of Puerto Rico ($6.1 billion), Frontier Bank ($3.6 billion), Eurobank ($2.6 billion), CF Bancorp ($1.7 billion), and BC National Banks ($67 million). There was one other removal as the action against University Bank ($134 million) was terminated.

Thirty-five institutions with aggregate assets of $9.8 billion made their first appearance on the list this week. Among the additions are FSGBank, National Association, Chattanooga, TN ($1.4 billion Ticker: FSGI); Centennial Bank, Fountain Valley, CA ($848 million); Beach Community Bank, Fort Walton Beach, FL ($706 million Ticker: BCBF); and CIBM Bank, Champaign, IL ($698 million Ticker: CIBH). The additions include four institutions based in Illinois, Minnesota, and Nevada, and three in Florida, Georgia, Texas, and Washington.

The FDIC also issued Prompt Corrective Action orders against a few banks already on the Unofficial Problem Bank List including Nevada Security Bank, Reno, NV ($502 million) and Sun West Bank, Las Vegas, NV ($381 million). After the failures and additions, the Unofficial Problem Bank List stands at 722 institutions with aggregate assets of $349.8 billion.

This week, Cascade Bank, Everett, WA ($1.7 billion Ticker: CASB) disclosed that it now expects to sign a Consent Order in Q2.

"[I]n light of the current challenging operating environment, along with our elevated level of nonperforming assets and adversely classified assets and our recent operating results, we expect Cascade Bank to enter into a Consent Order with the FDIC and Washington State DFI during the second quarter. We expect that under the Order, Cascade Bank will be required, among other things, to improve asset quality and reduce classified assets; to improve profitability; and to increase Tier 1 capital.

We also expect the Company will enter into a similar Order with the Federal Reserve Bank of San Francisco."

The list keeps growing ...

by Calculated Risk on 4/30/2010 09:14:00 PM

Wide open frontier
A limitless horizon
Much like our debt load.
by Soylent Green is People
From the FDIC: Union Bank, National Association, San Francisco, California, Assumes All of the Deposits of Frontier Bank, Everett, Washington

Frontier Bank, Everett, Washington, was closed today by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of December 31, 2009, Frontier Bank had approximately $3.50 billion in total assets and $3.13 billion in total deposits. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $1.37 billion. ... Frontier Bank is the 64th FDIC-insured institution to fail in the nation this year, and the sixth in Washington. The last FDIC-insured institution closed in the state was City Bank, Lynnwood, on April 16, 2010.

Is that about $7 billion today?

by Calculated Risk on 4/30/2010 07:33:00 PM

Butler bank failure
Deposits gone with the wind
I don't give a damn
by Soylent Green is People
From the FDIC:Community First Bank, Butler, Missouri, Assumes All of the Deposits of BC National Banks, Butler, Missouri

BC National Banks, Butler, Missouri, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ..

As of December 31, 2009, BC National Banks had approximately $67.2 million in total assets and $54.9 million in total deposits. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $11.4 million. ... BC National Banks is the 63rd FDIC-insured institution to fail in the nation this year, and the third in Missouri. The last FDIC-insured institution closed in the state was Champion Bank, Creve Coeur, earlier today.

by Calculated Risk on 4/30/2010 06:34:00 PM

Leafy green money
The breakfast of Champion
They drank our milk shake
by Soylent Green is People
From the FDIC: Bankliberty, Liberty, Missouri, Assumes All of the Deposits of Champion Bank, Creve Coeur, Missouri

Champion Bank, Creve Coeur, Missouri, was closed today by the Missouri Division of Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of December 31, 2009, Champion Bank had approximately $187.3 million in total assets and $153.8 million in total deposits....

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $52.7 million. ... Champion Bank is the 62nd FDIC-insured institution to fail in the nation this year, and the second in Missouri. The last FDIC-insured institution closed in the state was Bank of Leeton, Leeton, on January 22, 2010.

Busy day ...

by Calculated Risk on 4/30/2010 06:23:00 PM

Michigan's distress
Autos and banks only hope
Federal bailouts.
by Soylent Green is People
From the FDIC: First Michigan Bank, Troy, Michgan, Assumes All of the Deposits of CF Bancorp, Port Huron, Michigan

CF Bancorp, Port Huron, Michigan, was closed today by the Michigan Office of Financial and Insurance Regulation, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...


As of December 31, 2009, CF Bancorp had approximately $1.65 billion in total assets and $1.43 billion in total deposits....

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $615.3 million. ... CF Bancorp is the 61st FDIC-insured institution to fail in the nation this year, and the second in Michigan. The last FDIC-insured institution closed in the state was Lakeside Community Bank, Sterling Heights, on April 16, 2010.

That makes four today ... "only" $615 million cost ...

by Calculated Risk on 4/30/2010 04:44:00 PM

Banco Colapso
Los prestamos dudosos
Peo gestion
by Soylent Green is People
From the FDIC: Oriental Bank and Trust, San Juan, Puerto Rico, Assumes All of the Deposits of Eurobank, San Juan, Puerto Rico

Eurobank, San Juan, Puerto Rico, was closed today by the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of December 31, 2009, Eurobank had approximately $2.56 billion in total assets and $1.97 billion in total deposits. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $743.9 million. ... Eurobank is the 58th FDIC-insured institution to fail in the nation this year. Eurobank is one of three institutions closed in Puerto Rico today.

From the FDIC: Scotiabank de Puerto Rico, San Juan, Puerto Rico, Assumes All of the Deposits of R-G Premier Bank of Puerto Rico, Hato Rey, Puerto Rico

R-G Premier Bank of Puerto Rico, Hato Rey, Puerto Rico, was closed today by the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of December 31, 2009, R-G Premier Bank of Puerto Rico had approximately $5.92 billion in total assets and $4.25 billion in total deposits. ...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $1.23 billion.... R-G Premier Bank of Puerto Rico is the 59th FDIC-insured institution to fail in the nation this year. R-G Premier Bank of Puerto Rico is one of three institutions closed in Puerto Rico today.

From the FDIC: Banco Popular de Puerto Rico, San Juan, Puerto Rico, Assumes All of the Deposits of Westernbank Puerto Rico, Mayaguez, Puerto Rico

Westernbank Puerto Rico, Mayaguez, Puerto Rico, was closed today by the Office of the Commissioner of Financial Institutions of the Commonwealth of Puerto Rico, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ...

As of December 31, 2009, Westernbank Puerto Rico had approximately $11.94 billion in total assets and $8.62 billion in total deposits...

The FDIC estimates that the cost to the Deposit Insurance Fund (DIF) will be $3.31 billion. ... Westernbank Puerto Rico is the 60th FDIC-insured institution to fail in the nation this year. Western Bank was one of three institutions closed in Puerto Rico today.

There goes a quick $5+ billion from the DIF ...

by Calculated Risk on 4/30/2010 04:00:00 PM

First, housing economist Tom Lawler will be on CNBC around 4:15 PM ET with Maria Bartoromo to discuss the expiration of the housing tax credit.

Second, Goldman is having a bad day, from Dow Jones: Goldman Sachs Shares, Bonds Slide On Criminal Probe

The stock has slumped more than 20% since the Securities and Exchange Commission filed civil securities-fraud charges against the company two weeks ago. Analystssaid they see little near-term upside for the shares. The Wall Street Journal's report late Thursday that the Justice Department is conducting a criminal investigation into whether Goldman or its employees committed securities fraud in connection with mortgage trading pushed the stock down ...

Goldman is off almost 10% today.

Click on graph for larger image in new window.

And from Doug Short:

This graph from Doug is titled: "Four Bad Bears".

Note that the Great Depression crash is based on the DOW; the three others are for the S&P 500.

by Calculated Risk on 4/30/2010 02:41:00 PM

This is one of several industry specific indexes I track each month.

Click on graph for larger image in new window.

This is the first time in 29 months that the index is showing expansion.

Unfortunately the data for this index only goes back to 2002.

Note: Any reading above 100 shows expansion for this index.

From the National Restaurant Association (NRA): Restaurant Industry Outlook Continues to Improve as Restaurant Performance Index Tops 100 for the First Time in More Than Two Years

[T]the National Restaurant Association’s Restaurant Performance Index (RPI) ... stood at 100.5 in March, up 1.4 percent from February and its strongest level since September 2007. In addition, the RPI rose above 100 for the first time in 29 months, which signifies expansion in the index of key industry indicators.

The RPI’s solid performance in March was driven by improvements among both the current-situation and forward-looking indicators,” said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association. “Restaurant operators reported net gains in both same-store sales and customer traffic in March, the first time in 31 months that both indicators stood in positive territory.”

“In addition, restaurant operators are increasingly optimistic about growth in sales and staffing levels in the months ahead, while their outlook for the economy soared to its strongest level in five years,” Riehle added.
...
For the first time in 22 months, restaurant operators reported net positive same-store sales.
...
Restaurant operators also reported a net increase in customer traffic in March, the first positive reading in 31 months.
emphasis added

Restaurants are a discretionary expense, and they tend to be 'first in, last out' of a recession for consumer spending (as opposed to housing that is usually first in and first out).

by Calculated Risk on 4/30/2010 11:59:00 AM

The change in private inventories was smaller this quarter - adding 1.7% to GDP in Q1 2010 compared to 4.4% in Q4 2009. It is important to note that the inventory contribution to Q4 GDP was from a slowdown in the liquidation of inventories, but in Q1 businesses were building inventories - and this inventory build will probably slow in Q2.

As I noted earlier, the two leading sectors, residential investment (RI) and personal consumption expenditures (PCE), were mixed. RI declined to a new record low as percent of GDP, however PCE increased at a 3.6% real annualized rate.

The increase in PCE does not seem sustainable unless employment and incomes increase soon. A large portion of the increase in PCE came from a decrease in personal saving.

Click on graph for larger image in new window.

This graph shows personal saving as a percent of disposable personal income.

It is not unusual for the saving rate to decline at the beginning of a recovery as people become more confident. This helps drive consumer spending, but with the high levels of household debt, I expect the saving rate to increase over the rest of the year.

Here are some Q1 numbers (all annualized):

Personal consumption expenditures (PCE) increased $130.7 billion

Personal saving declined $88.5 billion.

Government social benefits to persons increased $61.1 billion.

So the boost in PCE came from the decline in saving and the increase in benefits. That is not sustainable.

The second graph shows real personal income less transfer payments as a percent of the previous peak.

Unlike the recovery in GDP, real personal income less transfer payments has barely increased and is still 6.6% below the pre-recession level.

The peak of the stimulus spending is in Q2 2010 (right now), and then the stimulus spending starts to taper off in the 2nd half of 2010. So underlying demand better increase soon - and that means jobs and incomes going forward.

Unfortunately residential investment is usually one of the key engines for employment and growth at the beginning of a recovery - and I expect RI to be sluggish all year because of the huge overhang of existing housing units. So my guess is the recovery will probably remain sluggish, and I still expect a slowdown in the 2nd half of 2010.

by Calculated Risk on 4/29/2010 09:05:00 PM

Three followup stories ...

From Alana Semuels at the LA Times: '99ers' dread future without jobless benefits

In California, state officials estimate there are nearly 100,000 people who are still looking for work but can no longer draw an unemployment check. Federal labor officials could not provide a number nationally, but private-sector experts say it could easily top 1 million.

What is certain is that, as the jobless rate remains stubbornly high, more Americans will have to face the challenge of making ends meet without a monthly check.

"People are going off a cliff and we're not really doing anything about it," said Andrew Stettner, deputy director of the National Employment Law Project.

From Eric Dash at the NY Times: Puerto Rican Lenders Face Their Own Crisis

At least three of Puerto Rico’s banks — Eurobank, R-G Premier Bank and Westernbank — are operating under cease-and-desist orders from regulators ...

Now that the deadline has come and gone, regulators have been working on a confidential plan to auction off the lenders ... It is known as Project Themis ... the efforts could cost the F.D.I.C. insurance fund as much as $5 billion, some analysts estimate.

And from Susan Pulliam and Evan Perez at the WSJ: Criminal Probe Looks Into Goldman Trading . No real details, but earlier the NY Post reported that Goldman "may soon settle its [civil] fraud case".

And Q1 2010 GDP will be released in the morning. Consensus is for 3.4% annualized real GDP growth, but the details will be important.

by Calculated Risk on 4/29/2010 05:44:00 PM

From the Financial Times: Greece agrees €24bn austerity package

Greece has agreed the outline of a €24bn austerity package, including a three-year wage freeze for public sector workers, in return for a multibillion-euro loan from the eurozone and the International Monetary Fund ...
except with permission

The final details are still being worked out, but apparently the value-added tax (VAT) will be increased, public sector workers will lose their two large bonuses, and the retirement age will be increased significantly among other measures. This is intended to reduce the budget deficit by 10+ percentage points over 3 years.

From the NY Times: Europe Moves Swiftly on Greek Rescue Plan

European leaders raced on Thursday to complete their part of a long-delayed financial rescue package for Greece, hoping to head off a chain reaction against other heavily indebted European nations that could turn into a financial meltdown across the continent.

People have been comparing Greece to Lehman, but maybe a better comparison would be to Morgan Stanley (the bank everyone thought was next before TARP). This might be the beginning of the European sovereign TARP.

by Calculated Risk on 4/29/2010 03:23:00 PM

From Bloomberg: More Than a Million in U.S. May Lose Jobless Benefits (ht Chris)

[Lawmakers] are quietly drawing the line at 99 weeks of aid, a mark that hundreds of thousands of Americans have already reached. In coming months, the number of those who will receive their final government check is projected to top 1 million.
...
Interviews with state officials found that in New York, 57,000 people have received their last check. In Florida, 130,000 are no longer eligible as are about 30,000 Ohioans.

According to the BLS, a record 6.5 million workers have been unemployed for 27 weeks or more. The article notes a study by the Pew Fiscal Analysis Initiative that shows 3.4 million workers have been unemployed for more than a year.

Not all states have 99 weeks of benefits, but some workers are starting to exhaust all of their benefits.

The job market better pickup soon ...

by Calculated Risk on 4/29/2010 12:08:00 PM

From HotelNewsNow.com: STR: Occupancy buoys chain scales' weekly results

Overall, the industry’s occupancy increased 2.4 percent to 60.7 percent, average daily rate dropped 2.4 percent to US$98.16, and RevPAR ended virtually flat with a 0.1-percent decrease to US$59.55.

The following graph shows the occupancy rate by week and the 52 week rolling average since 2000.

Click on graph for larger image in new window.

Notes: the scale doesn't start at zero to better show the change.

The graph shows the distinct seasonal pattern for the occupancy rate; higher in the summer because of leisure/vacation travel, and lower on certain holidays.

The occupancy rate is running slightly above 2009 - the worst year since the Depression - but still well below the normal level of close to 65% for this week.

Data Source: Smith Travel Research, Courtesy of HotelNewsNow.com

by Calculated Risk on 4/29/2010 09:40:00 AM

Note: This is a composite index based on a number of economic releases.

From the Chicago Fed: Index shows economic activity improved in March

Led by improvements in production- and employment-related indicators, the Chicago Fed National Activity Index increased to –0.07 in March, up from –0.44 in February. Three of the four broad categories of indicators that make up the index made positive contributions in March, while the consumption and housing category made the lone negative contribution.

The index’s three-month moving average, CFNAI-MA3, increased to –0.18 in March from –0.31 in February. March’s CFNAI-MA3 suggests that growth in national economic activity, while still below average, continues to improve.

Click on table for larger image in new window.

This graph shows the Chicago Fed National Activity Index (three month moving average) since 1967. According to the Chicago Fed:

A zero value for the index indicates that the national economy is expanding at its historical trend rate of growth; negative values indicate below-average growth; and positive values indicate above-average growth.

We are now about 9 months into the recovery, and growth by most indicators is still below trend.

by Calculated Risk on 4/29/2010 08:30:00 AM

The DOL reports on weekly unemployment insurance claims:

In the week ending April 24, the advance figure for seasonally adjusted initial claims was 448,000, a decrease of 11,000 from the previous week's revised figure of 459,000. The 4-week moving average was 462,500, an increase of 1,500 from the previous week's revised average of 461,000.
...
The advance number for seasonally adjusted insured unemployment during the week ending April 17 was 4,645,000, a decrease of 18,000 from the preceding week's revised level of 4,663,000.

Click on graph for larger image in new window.

This graph shows the 4-week moving average of weekly claims since 1971.

The four-week average of weekly unemployment claims increased this week by 1,500 to 462,500.

The dashed line on the graph is the current 4-week average. The current level of 448,000 (and 4-week average of 462,500) is still high, and suggests continuing weakness in the labor market.

The 4-week average first declined to this level in December 2009, and has essentially moved sideways for four months.

by Calculated Risk on 4/28/2010 08:02:00 PM

From the WSJ: FDIC Auction of Lenders In Puerto Rico Draws Bids

At least four banks entered bids in a Federal Deposit Insurance Corp. auction ... A deadline passed Tuesday for interested parties to make offers for W Holding Co. Inc.'s Westernbank, R&G Financial Corp.'s R-G Premier Bank and EuroBancshares Inc.'s EuroBank. The FDIC held the auction in case any of the banks fail ...

It is possible that one or more of the banks could raise capital and not be seized by the FDIC.

Also there was a rumor today of liquidity problems at one of the banks, and a Thursday seizure is possible. A local source tells me 'there are lots of "Dentists" in town for a Dental convention that doesn't appear to exist' ... nice cover!

by Calculated Risk on 4/28/2010 04:55:00 PM

Catherine Rampell at the NY Times Economix asks: How Long Is an ‘Extended Period’?

Short answer: Longer than many analysts expect.

First we can compare to the "considerable period" language in 2003:

June 25, 2003: Lowered Rate to 1%, Unemployment Rate peaked at 6.3%

August 12, 2003: “the Committee believes that policy accommodation can be maintained for a considerable period.” Unemployment rate at 6.1%

December 9, 2003: Last statement using the phrase "considerable period". Unemployment rate at 5.7%

January 28, 2004: the Committee believes that it can be patient in removing its policy accommodation. Unemployment Rate 5.7%

May 4, 2004: “the Committee believes that policy accommodation can be removed at a pace that is likely to be measured.” Unemployment Rate 5.6%

June 30, 2004: FOMC raised the Fed Funds rate 25 bps. Unemployment Rate 5.6%

So "extended period" is probably 6+ months after the language changes - the next meeting is June 23rd and 24th, so the earliest rate hike would probably be in December (barring a significant pickup in inflation or rapid decline in unemployment).

Last September I wrote: Fed Funds and Unemployment Rate. Here is an excerpt with an updated graph:

Click on graph for larger image in new window.

This graph shows the effective Fed Funds rate (Source: Federal Reserve) and the unemployment rate (source: BLS)

In the early '90s, the Fed waited more than a 1 1/2 years after the unemployment rate peaked before raising rates. The unemployment rate had fallen from 7.8% to 6.6% before the Fed raised rates.

Following the peak unemployment rate in 2003 of 6.3%, the Fed waited a year to raise rates. The unemployment rate had fallen to 5.6% in June 2004 before the Fed raised rates.

Although there are other considerations, if we assume the unemployment rate peaked in October 2009 - and add 18 months - then the Fed would probably wait until early 2011 to raise rates (at the earliest). My guess is the Fed will probably wait until the unemployment rate is closer to 9% before removing the "extended period" language, and it is unlikely they will raise rates until the unemployment rate is below 8%.

by Calculated Risk on 4/28/2010 02:15:00 PM

From the Fed:

Information received since the Federal Open Market Committee met in March suggests that economic activity has continued to strengthen and that the labor market is beginning to improve. Growth in household spending has picked up recently but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit. Business spending on equipment and software has risen significantly; however, investment in nonresidential structures is declining and employers remain reluctant to add to payrolls. Housing starts have edged up but remain at a depressed level. While bank lending continues to contract, financial market conditions remain supportive of economic growth. Although the pace of economic recovery is likely to be moderate for a time, the Committee anticipates a gradual return to higher levels of resource utilization in a context of price stability.

With substantial resource slack continuing to restrain cost pressures and longer-term inflation expectations stable, inflation is likely to be subdued for some time.

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period. The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability.

In light of improved functioning of financial markets, the Federal Reserve has closed all but one of the special liquidity facilities that it created to support markets during the crisis. The only remaining such program, the Term Asset-Backed Securities Loan Facility, is scheduled to close on June 30 for loans backed by new-issue commercial mortgage-backed securities; it closed on March 31 for loans backed by all other types of collateral.

Voting for the FOMC monetary policy action were: Ben S. Bernanke, Chairman; William C. Dudley, Vice Chairman; James Bullard; Elizabeth A. Duke; Donald L. Kohn; Sandra Pianalto; Eric S. Rosengren; Daniel K. Tarullo; and Kevin M. Warsh. Voting against the policy action was Thomas M. Hoenig, who believed that continuing to express the expectation of exceptionally low levels of the federal funds rate for an extended period was no longer warranted because it could lead to a build-up of future imbalances and increase risks to longer run macroeconomic and financial stability, while limiting the Committee’s flexibility to begin raising rates modestly.

The key language about rates stayed the same: "The Committee ... continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period."

The comments on the economy were slightly more positive.

On housing, here is the language over the last several statements:

Nov, 2009: "Activity in the housing sector has increased over recent months"

Dec, 2009: "The housing sector has shown some signs of improvement over recent months."

Jan, 2010: No comment.

March, 2010: housing starts have been flat at a depressed level

April, 2010: Housing starts have edged up but remain at a depressed level

At least this time the Fed didn't confuse an increase in housing activity with accomplishment!

by Calculated Risk on 4/28/2010 11:32:00 AM

S&P downgraded Spain to AA with a negative outlook based on a forecast for an extended period of sluggish growth.

From Bloomberg: S&P Downgrades Spain to ’AA’; Outlook Negative

Update: Quote from MarketWatch:

"We now believe that the Spanish economy's shift away from credit-fuelled economic growth is likely to result in a more protracted period of sluggish activity than we previously assumed," said Marko Mrsnik, an S&P credit analyst. "We now project that real GDP growth will average 0.7% annually in 2010-2016, versus our previous expectations of above 1% annually over this period,"

Seven years of pain ... in Spain.

by Calculated Risk on 4/28/2010 08:49:00 AM

From Bloomberg: Stocks Drop as Sovereign-Debt Crisis Spreads; Greek Bonds Slump

[Y]ields on Greek two-year notes jumped to a record 26 percent ... The yield soared almost 600 basis points at one stage today. Ireland’s jumped 90 basis points to 4.64 percent, Portugal’s increased 93 basis points to 6.24 percent and Spain’s rose 20 basis points to 2.26 percent.

The IMF, ECB and German officials are meeting today. They have scheduled a press conference at 9 AM ET, to be followed by a press conference with German Chancellor Angela Merkel at 10:45 AM ET.