Text size [+][-] Friday July 3 2009GLOBAL EDITION
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Banks will now be allowed to use older valuations when shifting toxic assets off their balance sheets. Investors got excited, hoping the new rules would create extra capital for the likes of Commerzbank. But that doesn’t look likely. The banks still have all the risk.
No, not Shakespeare's play - the US car parts maker’s bankruptcy. Shareholders will probably get nothing, after turning down a generous offer from Carl Icahn two years ago. They thought Lear's CEO had a sweet deal; but next time they should know to focus on what they are getting.
The folks in Rome don’t seem to know about the recession. The wages of Italian government workers are up 7%. That’s worse than a joke. For Italy to stay in the rigid eurozone, it has to learn self-control. That means wage cuts when necessary. Now is the right time to start.
Corporate borrowers have tapped bond markets with record issuance following the collapse in bank loans. They can partly thank less-discerning investors swimming in liquidity for the volume. But the general shift in funding is one of the good developments from the crisis.
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Even when you don't agree, it still makes you think. Charles Sherwood, partner and member of the board, Permira
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