Portugal Banks Face 'Intolerable Risk'; Need Capital (Reuters)
The Bank of Portugal reiterated that the austerity measures, including higher taxes and wage cuts in the public sector, would have a recessive impact on the economy next year, although it said the impact could be mitigated by external demand for Portuguese products.
Spanish Banks Are Seen as the Weak Link in Debt Crisis (Reuters)
This just in.
Level Global Says It's Not A Target (Bloomberg)
Level Global, with offices in New York and Greenwich, Connecticut, said in a letter to investors that it met with the U.S. Attorney’s Office on Nov. 23 and that the government said yesterday it wasn’t a target of the probe. “Nor, in fact, has the firm been alleged to have engaged in any misconduct or wrongdoing,” Level Global said in the letter.
Obama Proposes Freeze On Federal Worker Pay (WSJ)
Obama on Monday proposed a two-year salary freeze for all federal civilian employees, signaling an apparent willingness to reach toward Republicans ahead of negotiations on deficit-cutting that are likely to dominate Washington next year.
Did New Rules Worsen Pay Situation? (WSJ)
A set to be released Tuesday and commissioned by the Council of Institutional Investors, which represents about 130 pension funds, contends that financial firms still tie too much of their compensation to short-term results and have increased salaries to offset the impact of recent regulatory curbs on pay. "Very little of any real import has changed" since financial stocks began tumbling in 2007 as the subprime-mortgage issue emerged, wrote Paul Hodgson, a senior research associate at Corporate Library, a corporate-governance research firm that produced the report. "On balance, pay practices have worsened."
Rattner Assails Cuomo Offer (Dealbook)
In a strongly worded, previously undisclosed correspondence, a lawyer for Steven L. Rattner, the financier ensnared in a wide-ranging investigation of suspected kickbacks, described a proposed payment of at least $20 million to the New York attorney general office as excessive, “misconceived” and “wholly untethered from the facts” in the case.
BofA Mortgage Morass Deepens on Promissory Notes Issues (Bloomberg)
Judge Wizmur’s ruling is being scrutinized by lawyers for borrowers seeking to stall repossessions as a way to press lenders to modify their debt. Attorneys for homeowners have already won cases by calling into doubt the legitimacy of affidavits used to take back properties. “If this is correct, many, many, many foreclosures already occurred in which this plaintiff didn’t have the note,” said Bruce Levitt, the South Orange, New Jersey, attorney representing Kemp. “This could affect thousands or hundreds of thousands of loans.”
Nomura said to be building a prop trading business, HIRING prop traders (eF)
“Nomura are building their risk trading business,” says one equities focused consultant. “They’ve got a big balance sheet, so it makes sense for them to move into prop trading.”