European and Asian stock markets fell on Monday as worries continue about a possible U.S. recession that could affect other leading markets. Asia's losses were led by China's Shanghai composite Index which plummeted to close down more than 7 percent, while the U.K.'s FTSE 100 was off 2 percent in early afternoon trading. U.S. stocks were set to open lower.
The junior financial trader accused of making huge unauthorized trades leading to a loss of 4.9 billion euros ($7.1 billion) at France's Societe Generale Bank was being held in police custody in Paris for questioning, according to media reports.
Wall Street banks face a big challenge: a U.S. economy on the edge of recession
Mizuho Financial Group will join forces with India's top bank, State Bank of India, on syndicated loans and other areas, as Japan's second-largest lender looks to capitalize on the growing Indian economy.
Blackstone Group LP, the U.S. private equity company, is setting up a $675 million fund to invest in Brazil and will contribute $500 million in capital, the Valor Economico newspaper said on Friday.
Wall Street banks battered by mortgage and credit losses survived 2007 only to face an even bigger challenge: a U.S. economy on the edge of recession.
U.S. investment bank Goldman Sachs plans to release about 5 percent of its global workforce in coming months, a company spokesman said on Friday.
France stepped up efforts to restore confidence in the banking system as Societe Generale faced tough questions on Friday over why it failed to prevent the biggest financial dealing scandal in history.
The rogue trader who is said to have caused 4.9 billion euros ($7.2 billion) in losses at Frech bank Societe Generale carried out huge unauthorized trades in secret, overcoming high security controls, company officials said.
Morgan Stanley, Lehman Brothers Holdings, Inc. and Credit Suisse Group are cutting over 1,640 jobs, according to people familiar with the matter, Bloomberg reported.
U.S. gold futures spiked over $900 an ounce in New York on Thursday after the dollar dropped against the euro and boosted trader's appetite for the precious metal, also causing platinum futures to hit a new record.
Societe Generale, France's second largest bank, said on Thursday that alleged fraud by one of its junior traders led to a $7.2 billion (4.9 million euro) loss.
A massive fraud by a junior rogue trader has punched a $7 billion hole in the finances of French bank Societe Generale, leaving its credibility in tatters and forcing it to get emergency cash. France's central bank and government scrambled to shore up confidence in the banking system after Societe Generale, France's second-biggest bank, said on Thursday it had been the victim of massive and exceptional fraud resulting in losses of 4.9 billion euros.
U.S. gold futures fell on Wednesday spurred by volatile trading in stock markets on concerns of a global economic slowdown.
Getty Images, Inc, the photo distributor to media outlets worldwide, confirmed in response to media reports this week that that said it is in talks with interested parties to pursue strategic alternatives.
Gold gains as dollar falls on Fed's interest rate cut
Gold on Tuesday gained boosted by an emergency cut in interest rates that reduced the value of the dollar.
Hedge funds with geared wrong-way bets in hot areas such as commodities and emerging markets are feeling the squeeze from market falls, but some top managers are using this opportunity to pick up stocks they like on the cheap.
Bank of America, the second-largest U.S. bank, said on Tuesday fourth-quarter profit sank 95 percent, hurt by more than $7 billion of losses tied to poor trading decisions and mounting credit woes.Net income for the Charlotte, North Carolina-based company fell to $268 million, or 5 cents per share, from $5.26 billion, or $1.16, a year earlier. Analysts on average expected a profit of 19 cents per share, according to Reuters Estimates.
Looking diversify into a new economic sector, oil exporter Abu Dhabi announced on Monday it will invest $15 billion in alternative energy and clean technology projects.
The U.K. government said on Monday it would assist in the sale of troubled mortgage lender Northern Rock to private buyers by guaranteeing bonds issued by the firm.
Stock markets around the world plummeted on Monday, taking their lead from the U.S., where a leading index fell more than 4 percent last week following increased concern that the U.S. will head for a recession.
World stocks nosedived and demand for safe-haven bonds and currencies soared on Monday as fears gripped investors that a deteriorating U.S. economy would drag others down with it. MSCI's main world stock index, a benchmark gauge of stock markets globally, sank 2.6 percent, falling below its 2007 bottom to lows last seen in December 2006.
