FA Notes Tuesday November 8, 2011
WSJ – “Mr. Berlusconi has resisted calls for his resignation as worries about Italy’s ability to rein in its debt have grown. A routine budget vote set for mid-afternoon in Rome is seen as a key test for the Italian prime minister, with failure potentially setting up a confidence vote… Investors hope that a new government formed in the wake of a Berlusconi ouster would be able to move more quickly to reassure markets.”
”Japan’s Olympus Corp. said Tuesday it covered up investment losses for decades and used a series of acquisitions to clean up its books, helping clear up some of the mystery surrounding those deals and reversing weeks of statements defending the transactions.”
”With Italian bond yields surging higher, analysts said Italy is at the brink of being unable to afford to borrow in the public markets… And with €1.9 trillion in debt ($2.62 trillion) and €200 billion of debt coming due next year, Italy can ill afford to see rates remain at these high levels.”
“The EFSF’s chief executive, Klaus Regling, said euro-zone ministers would discuss the two options and hoped to have one or both of them in place by December.”
”Dynegy’s plan to eliminate billions of dollars owed to bondholders while sparing parent company shareholders flips usual bankruptcy rules on their head. Creditors are usually paid first during bankruptcy proceedings and shareholders often are left with nothing”