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Financial Problems at World’s Biggest Banks Weaken Consumer Confidence: Guardian Analyst

Business Materials 30 January 2008 15:02 (UTC +04:00)

UK, London, 30 January / corr Trend G.Ahmadova / Serious delays are being observed in the US economy, which may lead to disorders within all financial markets, Terry MacAlister, an economist analyst of the British daily Guardian told Trend Correspondent in London.

"The head of the US Central Bank has decreased the basic rate and is expected to repeat it once more this week," the British analyst said.

MacAlister said that the rate will be cut to reduce expenses for loans and to maintain the economic growth rate.

The British analyst did not clarify whether the steps taken by the head of the US Central Bank would be enough. The financial problems at the world's largest banks weaken the consumers' confidence (the lasest case involved exchange speculations at Societe Generale bank in France). Amid ongoing developments in the world stock markets, last week Jerome Kervel, a trader of Societe Generale, by himself 'took' €5mln out of the bank's assets. It is thought to be the largest bank fraud in history involving the stock market.

"Now we are experiencing six volatile months on the world stock markets, without mentioning the structural problems if recession begins in the United States," MacAlister said.

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