Daily Market Commentary for December 7, 2011
German stock market operator Deutsche Boerse AG's chief financial officer, Gregor Pottmeyer said Deutsche Boerse wants a merger with NYSE Euronext "but not at any price." (read more at Millennium-Traders.Com)http://www.millennium-traders.com/news/newscommentary.aspx
America remembers the horrific attack on a naval base located on the southern coast of Oahu Island, Hawaii known as Pearl Harbor, 70 years ago today on December 7, 1941, in a surprise military attack by the Japanese. The attack was intended by the Japanese as a preventive action to keep the U.S. Pacific Fleet from interfering with military actions planned by the Empire of Japan in Southeast Asia against overseas territories of the United Kingdom, the Netherlands, as well as the United States. The attack came as a profound shock to the American people and led directly to the American entry into World War II.
The Federal Deposit Insurance Corporation, Federal Reserve and Office of the Comptroller of the Currency voted today to introduce a proposal that would require the biggest banks use three alternative analysis approaches for the use of credit ratings in evaluating how much capital they need to hold in their trading books, in an effort to offset risks with investments in securitizations and debt. An official from the FDIC said that the new risk weight proposals would create a significant increase in capital charges that meet new hikes in capital required by new international Basel III requirements. During the financial crisis of 2008, those institutions with positions that were deeply downgraded, would be required to hold particularly high capital.
Senate Democratic Leader Harry Reid said that the Senate will not adjourn for the year, without passing a bill to extend the payroll tax cut into next year. Both Congressional Democrats and Republicans want to extend the payroll tax cut however, they remain bitterly at odds over how to pay for it. Senate Democrats are scheduled to vote this week on a bill that would put a surtax on the income of millionaires' - to pay for the tax cut, while House Republicans are planning to roll out their own proposal, tomorrow.
According to the National Oceanic and Atmospheric Administration, the U.S. has already set a new record for weather-related disasters during 2011 with a dozen billion-dollar incidents. Estimated total damage from the 12 weather-related disasters is nearly $52 billion and easily blows away, the previous record of $9 billion-dollar in disasters set during 2008. Over 1,000 lives have been lost so far this year, from weather-related events - with 646 perishing in the top 12 weather-related disasters alone.
A federal judge threw the book at former Illinois Governor Rod Blagojevich as he was sentenced to a total of 14 years in prison - even though prosecutors wanted to lock him up for 15 to 20 years. The Federal Bureau of Investigation arrested Blagojevich in December 2008 and charged with conspiring to sell the U.S. Senate seat that had been vacated by President Barack Obama, among other things. In June, Blagojevich was convicted of 10 counts of wire fraud and 10 other charges of extortion and bribery. The Chicago Democrat will have to serve 85% of his sentence before being eligible for parole, under current guidelines. The sentencing consisted of three separate sentences; 168 months, 60 months and 36 months however; Blagojevich will serve them concurrently.
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