Reuters Insider - Inside the News: Euro Dips on Greek Rating Warning
13/06/2016 10:59
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Source: Thomson Reuters
Description: Fitch has placed Greece's BBB- issuer-default
ratings on rating watch negative, and New York
charges Ernst & Young with covering up a $50
billion transaction affecting Lehman's balance
sheet in 2008.
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Transcript (May be auto-generated)
Let's go inside the news at 2PM. The Euro has dipped below its 200-day moving
average after news of a potential ratings cut for Greece. Fitch ratings is
placing the country's BBB insurer default ratings on Rating Watch negative,
that's pending the outcome of a review expected to be completed next month. New
York prosecutors are suing Ernst & Young, accusing the firm of helping to hide
Lehman Brothers' financial problems. It is the first major government legal
actions stemming from the Wall Street bank's 2008 downfall.
Reuters Correspondent Grant McCool is at the Manhattan Court. Grant, what's the
latest? New York Attorney General Andrew Cuomo is suing the outside auditor of
Lehman Brothers focusing on an accounting technique known as Repo 105 which
temporarily removed as much as $50 billion in assets from Lehman's balance sheet
in 2008 before its collapse. Grant, thanks for that. AIG shares were up 2.5%
after sources told Reuters the US is likely to sell shares in the firm in two
large offerings next year.
The US will then get rid of any remaining stock in 2012. The sale would mark a
major step in getting the government out of its investment. Reuters
Correspondent Paritosh Bansal says despite this AIG still faces a lot of
hurdles. Well, for one, they have to sort of still stabilize and grow their core
companies, Chartis and SunAmerica. Chartis faces tough pricing environment and
SunAmerica faces a low interest rate environment that needs to get forward.
And then there has Benmosche's health who has cancer in that sort of uncertainty
still hangs over the company. Elsewhere, the FCC has adopted new rules on
Internet traffic. The legislation would prevent providers from blocking lawful
content but still let them ration access to their networks. The FCC's decision
was made 3 to 2 along party lines. Verizon Communications says it is deeply
concerned by the news saying it departs from past policies on Internet
innovation without government interference. Coming up at 2:30, find out why
riskier covenant-lite loans are making a comeback with Westlaw's Editor-in-Chief
Ely Razin, and your next Inside the News Update will be at 3PM. I'm Rhonda
Schaffler. This is Reuters Insider