The treasury

WASHINGTON: U.S. Treasury Secretary Steven Mnuchin on Tuesday said he approved the creation of a new primary dealer credit facility to ease credit market disruptions caused by the coronavirus epidemic, resurrecting the second 2008 financial crisis-era backstop in less than a day. The facility, managed by the Federal Reserve Bank of New York, will offer loans up to 90 days to the two dozen Wall Street primary dealers who are important conduits for the sale of a broad range of bonds and other financial assets. Mnuchin said the primary dealer credit facility would be in place for at least six months and may be extended as conditions warrant. Earlier on Tuesday, Mnuchin approved a Fed backstop for the US$1 trillion commercial paper market, using US$10 billion from the Treasury's Exchange Stabilization Fund (Reporting by Andrea Shalal and David Lawder; Editing by Chris Reese) … [Read more...] about US Treasury approves revival of Fed primary dealer backstop

LONDON: Global stock markets tumbled and government bonds rallied on Friday as disruptions to business from the spreading coronavirus epidemic worsened, stoking fears of a prolonged economic slowdown. European shares opened sharply lower, with travel stocks bearing the brunt. The pan-European STOXX 600 index was down 3.5per cent by midday in London, reaching its lowest level in more than six months Germany's DAX slid 3.5per cent, Britain's FTSE 100 fell 3.2per cent and France's CAC 40 fell 3.7per cent. The MSCI All-Country World Index , which tracks shares across 49 countries, was down 0.84per cent. After their worst weekly performance since the 2008 financial crisis, global stocks measured by the MSCI index are up 1.7per cent this week, as policymakers provided stimulus to combat the economic effects of the virus. (Graphic: Global stocks' performance vs reported coronavirus cases - https://fingfx.thomsonreuters.com/gfx/mkt/13/2961/2926/globalstocks.png) Yields on U.S. … [Read more...] about World stocks succumb to virus fears, Treasury yields hit record lows

The Treasury Department has sanctioned two leaders of the Iran-backed Houthi rebel group in Yemen, citing actions that have “ prolonged Yemen’s civil war and exacerbated the country’s humanitarian crisis.” The agency announced the new sanctions in a press release Tuesday, writing that Mansur Al-Sa’adi and Ahmad ‘Ali Ahsan al-Hamzi were “responsible for orchestrating attacks by Houthi forces impacting Yemeni civilians, bordering nations, and commercial vessels in international waters.” “These actions, which were done to advance the Iranian regime’s destabilizing agenda, have fueled the Yemeni conflict, displacing more than one million people and pushing Yemen to the brink of famine,” the Treasury Department added. ADVERTISEMENT According to the press release, the sanctions block “all property and interests in property” of the two military leaders that are in the U.S., as well as “any entities that are owned, directly or indirectly, 50 percent or more by one or … [Read more...] about Treasury blacklists Houthi military leaders in Yemen

WASHINGTON: U.S. House Speaker Nancy Pelosi urged the U.S. Treasury on Wednesday not to hold up US$25 billion in cash grants approved by Congress last week to airlines for payroll costs. "We do want them to honor what our conversation was, which is this is just a stopping-off point for the check. It goes to the airline and directly to the employee," Pelosi told reporters on a conference call. "We just don't want to hold it up." Major aviation unions and some airline officials are concerned the U.S. Treasury will demand too much in warrants or equity as a condition of the grants for airline payroll costs. Treasury on Monday told airlines to propose financial instruments as part of their applications for grants that they want to see by Friday. Treasury did not immediately respond to a request for comment on Wednesday. The legislation requires equity, warrants or other financial compensation for taxpayers for the US$25 billion in loans, but gives Treasury Secretary Steven … [Read more...] about Democrats urge US Treasury not to delay US$25 billion in grants to airlines

WASHINGTON: U.S. House Speaker Nancy Pelosi urged the U.S. Treasury on Wednesday not to hold up US$25 billion in cash grants approved by Congress last week to airlines for payroll costs. "We do want them to honor what our conversation was, which is this just a stopping off point for the check. It goes to the airline and directly to the employee," Pelosi told reporters. A major aviation union and some airline officials are concerned the U.S. Treasury will demand too much in warrants or equity as a condition of the grants for airline payroll costs. (Reporting by David Shepardson; Editing by Chizu Nomiyama) … [Read more...] about Pelosi urges US Treasury not to delay US$25 billion in grants to airlines