Briefcase
Bernanke urges nations to help ease trade gaps
PARIS – Federal Reserve Chairman Ben Bernanke on Friday urged countries with large trade surpluses, like China, to let their currencies rise in value to help prevent another global financial crisis.
He also called on nations with persistent trade deficits, like the U.S., to narrow their budget shortfalls and save more.
Both steps would help balance trade and investment flows among countries, Bernanke said in a speech at the G-20 conference in Paris. Many countries worry about speculative money flooding their economies and inflating assets like real estate or stocks.
Associated Press
Judge sides with resorts in Credit Suisse case
BOISE — A federal judge says property owners at ski resorts in Idaho and Montana can move forward with a multibillion-dollar lawsuit accusing Credit Suisse Group of engaging in predatory lending practices.
The $24 billion lawsuit was filed in U.S. District Court in Boise last year by property owners at Idaho’s Tamarack Resort and the Yellowstone Club in Montana. Plaintiffs also include investors at Nevada’s Lake Las Vegas resort and a resort in the Bahamas.
They accuse the bank of issuing predatory loans as part of a scheme to later take over the properties when investors ran into trouble repaying the debt.
Credit Suisse lawyers sought to have the lawsuit dismissed.
But Magistrate Judge Ronald Bush says some claims have merit and the case should move forward.
His recommendation needs final approval by U.S. District Judge Edward Lodge.
Associated Press
Ford makes plans with Russian automaker
DETROIT – Ford Motor Co. is teaming up with Russian automaker Sollers to make and distribute cars in Russia, one of the fastest growing auto markets.
Under a deal announced Friday, Sollers will build Fords at Russian plants, helping to boost a struggling local industry. Ford will have access to a huge market that could bolster its revenues.
Financial details weren’t disclosed, but the automakers said they will have equal stakes in their joint venture called Ford Sollers. Ford declined to give production or sales targets for the venture.
Associated Press
Panel says new market rules must be flexible
WASHINGTON – A special committee said federal regulators have made positive changes, but they also need to create new rules that anticipate market problems to avoid another disruption like the May 6, 2010, plunge that rocked investor confidence.
The joint advisory committee of the Securities and Exchange Commission and the Commodity Futures Trading Commission recommended, in a report Friday, that the SEC consider new incentives or rules that would restrain market strategies commonly used by high-speed trading firms.
The report says there are limitations to some restrictions the regulators put in place after the plunge, such as curbs that briefly halt trading of some stocks that make big price swings. Given the complexity of the market, rules “have to be more forward looking,” it says.
Associated Press