ECB Deposits
Banks deposited $590 billion overnight at the European Central Bank on Wednesday. That was higher than the record set on Tuesday. The actions say that the sovereign debt crisis in Europe is not nearly over, at least as far as bank executives are concerned. The use of the ECB also shows that financial firms in the region do not want to lend money to one another. That implies that one or more large institutions could reach the brink of collapse. Despite ECB efforts, some banks have lost a portion of their deposits as money moves to safer havens like the U.S. This cripples the ability of these EU banks to make loans, which could, in turn, further hurt any chance of an economic recovery in the region.
4G iPad Rumors
Conversation about the business world can never stray long from Apple (NASDAQ: AAPL). New speculation is that the next generation of the iPad will be released in the latter half of 2012. It may add some of the features of the iPhone 4S, which could include the voice recognition feature. The largest single mystery about a new iPad will be whether it can operate on new 4G superfast broadband networks. Apple products have lagged in this regard. Apple’s major competitors, particularly HTC and Samsung, have released products for the 4G market for most of the past year.
Fed Board Nominations
President Obama has announced his two nominations for open positions on the Fed board of governors. The fates of Jeremy Stein, a Harvard economist, and Jerome Powell, an investment banker and former Treasury official, will rest with the Senate. Republicans in the body have developed a habit of blocking presidential appointments. Senate Banking Committee Chairman Tim Johnson is a Democrat, but that does not mean the party has a clear path to final approval of the two nominees.
Douglas A. McIntyre
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