Vilified for worsening the financial crisis, the credit derivatives market is undergoing a structural shift as money managers take on risk shunned by banks after regulators forced lenders to shrink their dealings.
The Chinese government is reviewing whether domestic banks’ reliance on high-end servers from International Business Machines Corp. compromises the nation’s financial security, people familiar with the matter said, in an escalation of the dispute with the U.S. over spying claims.
China will almost certainly retaliate against the U.S. for accusations that it infiltrated computer networks to steal corporate secrets, though its slowing economy will restrain any actions, according to trade analysts.
A federal regulator’s plan to pay smart-grid companies including Comverge Inc. and consumers such as Alcoa Inc. for using less electricity was struck down today by a U.S. appeals court, handing a victory to utilities that argued the system would discourage power-plant investment.
In a highly publicized indictment this week, U.S. prosecutors accused five Chinese military hackers of stealing information from American companies that would be useful to the firms’ competitors in China.