| U.S. Federal Reserve to improve liquidity to stem credit turmoil
WASHINGTON (AP) - The U.S. Federal Reserve, trying to calm Wall Street, announced Friday it will provide financial liquidity to help bolster U.S. markets. The Fed, in a short statement, said it will provide "reserves as necessary" to help the markets safely make their way. The central bank did not provide details but said it would do all it can to "facilitate the orderly functioning of financial markets." The Fed's action comes one day after a financial panic about a credit crunch swept through Europe. That prompted the Europeans to pump US$130 billion into their financial system. .
Cooper Tire & Rubber Company Reports Second Quarter Profit on Record Sales
FINDLAY, Ohio, Aug. 6 /PRNewswire-FirstCall/ -- Cooper Tire&Rubber Company (Nachrichten) today reported net income of $17.6 million or 28 cents per share for the quarter ended June 30, 2007. The dramatically improved earnings were achieved as total sales increased by 20 percent to a new second quarter record of $751 million. This compares to a net loss of $21 million generated on sales of $625 million in the second quarter of 2006.
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During the quarter, the Company continued to benefit from the cost reduction and profit improvement initiatives it announced in September 2006, as well as improved price and mix in North America, and increased tire unit sales for the International segment. As a result, operating profit improved to $32 million in the second quarter of 2007 compared to an operating loss of $26 million in the second quarter of 2006.
Federal Reserve finds banks tightening standards on subprime mortgage
A majority of the nation's banks have tightened lending standards on subprime mortgages, the Federal Reserve said Monday in a survey that provided further evidence of the spreading problems in mortgage lending. The Fed said it found that 56.3 percent of banks responding to a survey reported that they had tightened their lending standards for subprime mortgages, loans offered to borrowers with weak credit histories. The survey found that 40.5 percent of banks responding said they had tightened loan standards for so-called nontraditional mortgages. The Fed defines this category as adjustable-rate loans with multiple payment options, interest-only mortgages and products referred to as "Alt-A" loans that offer such features as limited verification of incomes. The Fed survey found that even on prime loans, which offer traditional payment options such as 30-year mortgages to borrowers with strong credit histories, 14.3 percent of the banks responding said they had tightened their lending standards "somewhat." The Fed's latest quarterly survey of bank loan officers found them responding to growing troubles in subprime mortgage lending.
Fed's efforts to calm markets are far from over
The bright start to trading on Monday will encourage Federal Reserve policymakers to believe they have struck the right balance in response to credit market turmoil: stepping up liquidity support aggressively when the interbank market came under strain at the end of last week, but offering no signal that they are yet resolved it will be necessary to cut interest rates. .
South Africa: Repo Rate Increase Likely Amid Market Chaos
The South African Reserve Bank (SARB) is likely to hike the repo rate by 50 basis points to 10 percent, amid unstable global market conditions, spurred on by a liquidity crisis in the United States. The credit crisis in the US subprime mortgage market resulted in a squeeze in corporate debt globally last month, and a full-blown liquidity crisis this week. .
Fed leaves key interest rate unchanged; concerns about inflation play into decision
WASHINGTON — The Federal Reserve chose not to lower a key interest rate Tuesday as worries about inflation trumped concerns about turbulent financial markets. Chairman Ben Bernanke and his colleagues voted unanimously to keep the target for the federal funds rate, the interest that banks charge one another, at 5.25 percent, where it has been for more than a year. .
Bulking Up on Equity: Countrywide Home Loans Offers Tips for Homeowners to 'Come to Terms' with Mortgages
Refinancing to shorten loan terms may give homeowners an equity boost. Calabasas, CA (PRWEB) August 8, 2007 -- Countrywide Home Loans, Inc. is leveraging its parent company's status as America's #1 home loan lender* to spread awareness among homeowners about maximizing their mortgage investment. As part of this effort, Countrywide is offering a range of tools and resources to help borrowers identify the potential gains from refinancing 30-year mortgages and opting for loans with 10-, 15- or 20-year terms. "Homeowners can give their home equity accumulation a powerful boost by securing a shorter-term loan—which also can mean substantial interest savings down the road," said Greg Lumsden, senior managing director and president of Countrywide Home Loans' Full Spectrum Lending Division.
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