08 May 2009

Bank Results Mean Futures Rise

Bernanke seems pretty happy with the outcome, and indeed US Futures stocks rose as a result: the results of the stress test conducted on the main US banks.

Ten of the tested banks will need to boost their cash reserves, but the amount by which they need to do this has been less than expected - the total figure stands at around $75 billion.

The central banks of Europe also had decisions to make - and the outcome was quite different. Many had speculated that the ECB was ready to take on "unconventional" and drastic measures such as the creation of new money, but in fact they seemed to stay on the safe side. Interest rates were cut to an expected 1 per cent. The Bank of England, on the other hand, kept rates at the same level and have plans to introduce yet more money to use in quantitative easing. The news brought a weakening to the Pound against the dollar and the euro, but in fact bank officials are saying that so far, their measures have been going well!

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