A federal judge has issued a ruling saying the city of Stockton, California would be unable to offer basic government services without bankruptcy protection.
The city’s troubles are attributed to a severely decreased tax base in the wake of the U.S. housing market crash. The tax base of the city declined 70% in the last few years. Continue reading
The leaders of the BRICS nations are discussing the creation of a development bank that would be in direct competition to the World Bank.
The heads of Brazil, Russia, India, China and South Africa have long complained about a western bias in the decisions made by the World Bank. The fund would develop infrastructure projects in developing nations. Continue reading
The Cyprus central bank has declared that all banks in the nation will be closed through Thursday as measures are put in place connected to the nation’s bailout.
President Nicos Anastasiades called the moves “very temporary restrictions” and said that controls to keep money from leaving the country has been put in place. Continue reading
A bailout for Cyprus has been reached that will put 10 billion euro into their economy.
As part of the deal, the nation’s second largest bank will be closed down and anyone holding more than 100,000 euros in the bank will face losses of anything over 100,000. Continue reading
Heavy losses to investors at nationalized banks are on the horizon in Spain.
The Spanish government also announced that they will be hiring external financial advisers to work with the country’s Fund for Orderly Bank Restructuring to get the nation’s banking system solvent. Continue reading
Eurozone finance ministers were holding unscheduled meetings trying to find a “plan B” for Cyprus as the country’s financial system is rapidly collapsing beyond their control.
The country’s banks have been shut until next week because of a run on savings accounts. Rumors that the European Union and the International Monetary Fund would require all Cyprus account holders to sacrifice a portion of their savings to obtain a bailout of the nation. Continue reading
Admit outcry from citizens, the government of Cyprus has unanimously rejected a bailout measure from the European Union and the International Monetary Fund that would require seizing funds from every bank account in the nation.
After the vote the European Central Bank said they would move to assist Cyprus in any way they can under the currently approved banking systems. Continue reading
Banks in Cyprus are closed through Thursday after citizens tried to withdraw all their funds ahead of a possible government seizure of funds.
The European Union and International Monetary Union have requested that Cyprus seize a portion of all bank accounts in the country before any bailout funds will be given to the nation. Continue reading
Less than a week after their Prime Minister said they would no longer take austerity measures because of an improving economic situation, Greek officials have said unemployment has reached new highs.
The debt-ridden nation’s unemployment rate rose to 26% in the final part of 2012, up from 24.8% in the third quarter of the year and 20.7% a year in 2011. Continue reading
Greek Prime Minster Antonis Samaras has placed his country and the European Union on notice that austerity measures have ended in Greece.
The proclamation comes as Greece’s international creditors extended an audit of the nation’s finances and crisis reforms. Continue reading
