U.S. Banks Eased Lending Standards in Late 2013 (WSJ)
Banks generally eased their lending policies for commercial and industrial loans in the fourth quarter, citing increased competition and less uncertainty about the economy, according to the Fed’s quarterly survey of senior bank loan officers.
Anglo Irish executives blamed for Irish banking crisis go on trial (Guardian)
Three leading figures in the defunct and disgraced Anglo Irish Bank – Sean FitzPatrick, Pat Whelan and William McAteer – will each face 16 charges of unlawfully providing financial assistance to individuals for the purpose of buying shares in Anglo Irish Bank in 2008. All of the charges relate to transactions with 16 individuals who allegedly received financial assistance from the accused trio between 10 July and 17 July 2008. The three former bankers deny all the charges against them. Among the star witnesses expected to give evidence will be Ireland’s one-time richest man, Sean Quinn, who borrowed billions from the bank to fund a global property portfolio during the Celtic Tiger boom years. When property prices collapsed across the world, Quinn owed billions and had to file for bankruptcy.
Euro May Be Resurfacing as a Safe Haven (WSJ)
The chief driver of the change has been the euro zone’s large and growing current-account surplus—a broad measure of trade—analysts at BNP Paribas say. The surplus has several effects. For one, it means steady demand for euros: The euro zone is exporting more than it is importing. The current-account surplus in November widened to €23.5 billion, the highest ever. The ECB’s low interest rates also makes loans in euros attractive. Overseas borrowers can use them to fund riskier, high-yielding investments elsewhere, much as investors have long funded investments with ultracheap borrowing in Japanese yen.
With Fortune Falling, a 1 Percent Divorce (NYT)
It was into [740 Park] that Elizabeth and Kent Swig stepped during a season of high financial spirits. That the Swigs managed to scale such heights surprised no one: They were something of a royal couple in property circles. Their marriage, in 1987, had united two of America’s great real estate clans, the Macklowes of New York on her side, and the Swigs of San Francisco on his. By the time the couple arrived on Park Avenue, in 2002, Kent Swig, a charismatic dealmaker with a surfer-dude demeanor, was already starting to build a name for himself with equal parts debt and daring. As the onetime protégé of his father-in-law, Harry B. Macklowe, the powerful New York property developer, Mr. Swig was soon credited with helping transform the dull-as-bond-tables financial district into a fashionable residential address. In a business where there was always revolving credit and a bigger deal, the only way, it seemed, was up. At the peak, his properties were worth an easy $3 billion. Then Lehman Brothers went bust and the bottom fell out, and the Swigs’ life collapsed beneath them, in a 10-figure version of the great American housing crisis. Creditors called in loans. Mr. Swig had personally guaranteed an estimated $116 million of debts. Lawsuits flew. One business partner struck Mr. Swig with an ice bucket.
A Lonely Bet Against Portugal’s Debt (Dealbook)
…while he may not bring with him the buzz of billionaire hedge fund moguls like Daniel S. Loeb and William A. Ackman, David Salanic, the chief executive of Tortus Capital, has his own target — Portugal — and it is bigger in size than any of the major corporations that have come under attack by his larger peers. Putting it bluntly, he said he believed that the country, despite accolades for its economic reform efforts, would soon default on its private sector bonds — in the same way Greece did in 2012…His thesis is that Portugal, with one of the slowest growth rates of any country in Europe, is in no position to make good on its debt, which, at 128 percent of gross domestic product, is on the verge of passing Italy to become the second-largest in the euro zone after Greece. Moreover, Mr. Salanic said he believed that the country’s debt was understated and that if you added in debts guaranteed by the state, as well as other off-balance-sheet transactions that state-owned corporations have put in place with foreign banks, the true figure approaches 150 percent of economic output.
Police: Man bites off brother’s ear at Super Bowl party (USAT)
A man here is accused of pulling a Mike Tyson, biting off part of his brother’s right ear following a Super Bowl party. Sean Fallon-Nebbia, 27, was charged with first-degree assault, a felony, after he and his brother fought at the tail end of a Super Bowl party in Fallon-Nebbia’s apartment, just before midnight Sunday, according to Rochester City Court documents. He is also accused of punching his brother, Frank Fallon-Nebbia, in the face several times, rendering him unconscious when emergency responders arrived…Court papers allege that the brothers drank more than a bottle of whiskey together at the Super Bowl party and were roughhousing after the game when the incident occurred. A doctor who treated the injured brother told police that the ear was permanently disfigured, court documents show. Another resident of the apartment told police that the brothers were drunk, were “play wrestling,” and latched onto one another before they “turned violent and aggressive.” Read more »