Global Glance: Deutsche, Credit Suisse to pay billions; Italy rescues Monte dei Paschi

Powered by The Associated Press

Here are today’s top business headlines from across the nation and world:

Deutsche, Credit Suisse to pay billions over mortgage bonds

FRANKFURT, Germany (AP) — Two big European banks will give billions in loan relief to U.S. borrowers to settle civil claims over risky securities that helped spark the 2008 financial crisis. Deutsche Bank said Friday it has agreed on a $7.2 billion settlement with the U.S. Justice Department over its dealings in issuing mortgage-backed bonds. Under the deal, which isn’t yet final, Germany’s biggest bank agreed to pay $3.1 billion in fines and $4.1 billion in compensation through such measures as easing loan repayment terms for homeowners and borrowers. Read more

Italy rescues Monte Dei Paschi after it fails to get cash

ROME (AP) — The Italian government stepped in Friday to rescue Monte dei Paschi di Siena after Italy’s third-largest lender failed to raise the 5 billion euros ($5.2 billion) it needed to stay afloat. The government passed the decree early Friday, saying it was 100 percent guaranteeing the bank’s retail customers with part of a 20 billion-euro fund approved by parliament to guarantee the stability of Italian banks. Read more

US business investment rose in November for 2nd month

WASHINGTON (AP) — U.S. businesses stepped up their spending on industrial machinery, steel, and other big-ticket items last month, a sign that one of the economy’s weak spots may be improving. The Commerce Department said Thursday that a measure that tracks business investment rose 0.9 percent in November, after a slight 0.2 percent rise the previous month. Yet those gains follow a 1.5 percent drop in September. Orders for all big-ticket factory goods fell 4.6 percent, mostly because of a sharp fall in demand for commercial aircraft, a volatile category. Excluding transportation-related goods, orders rose 0.5 percent. Read more

Justice Dept. sues Barclays over mortgage-backed securities

WASHINGTON (AP) — The Justice Department on Thursday sued Barclays Bank PLC and several of its U.S. affiliates over the sale of risky mortgage-backed securities. The civil complaint, filed in federal court in Brooklyn, New York, seeks to recover civil penalties for fraud from the British bank. It accuses the bank and its employees of misrepresenting the quality of the loans they sold to tens of thousands of investors between 2005 and 2007, in the run-up to the country’s financial meltdown. The investors, which included credit unions, pension plans and university endowments, lost billions of dollars, the Justice Department said. Read more

United States resumes a trade beef with European Union

WASHINGTON (AP) — The United States is resuming a trade fight with the European Union over barriers to American beef exports. The Office of the U.S. Trade Representative is threatening to bring back tariffs – covering EU exports to the U.S. of truffles, Roquefort cheese and other products – to pressure the EU into ending a ban on U.S. beef treated with hormones. The EU maintains that the ban reflects health concerns about hormone treatments. The U.S. sees the ban, which effectively bars most U.S. beef, as an unfair trade barrier. Read more

Want the state’s top business and entrepreneurship news in your inbox? Sign up here for our newsletters.

Leave a Reply

Have you heard?

Missouri Business Alert is participating in CoMoGives2019!

Find out how we plan to use your gift to enhance training and programming for our students