Posted by bruni
on August 16, 2008
By Alan Greenspan
Published: August 4 2008 18:54 | Last updated: August 4 2008 18:54
The surprise of recent months is not that global economic growth is slowing, but that there is any growth at all. The credit crunch of the past year has not followed the path of recent economically debilitating episodes characterised by a temporary freezing up of liquidity – 1982, 1989, 1997-8 come to mind. This crisis is different – a once or twice a century event deeply rooted in fears of insolvency of major financial institutions.
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Posted by bruni
on August 08, 2008
NEW YORK (Reuters) - The office New York Attorney General Andrew Cuomo said on Friday it planned to bring legal action against Citigroup Inc, accusing the bank of fraudulently selling auction-rate securities and destroying documents that had been subpoenaed by the state.
In a letter of intent obtained by Reuters, the state said its five-month probe into auction-rate markets revealed the bank falsely assured customers that these securities were as liquid as cash. The securities have been difficult to sell since credit markets tightened earlier this year.
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