Chicago billionaire Penny Pritzker sailed toward confirmation as U.S. Commerce secretary after satisfying some critics over her offshore investments and role in a bank’s collapse during testimony at a Senate committee.
Brazil is drafting rules that would wipe out some creditors of failing banks in an effort to avoid taxpayer rescues, echoing European proposals to make bondholders shoulder more costs after three bailouts in as many years.
U.S. bank regulators are boosting efforts to set up agreements for shuttering failing banks with officials in overseas hubs such as Switzerland and Japan, said Federal Deposit Insurance Corp. Chairman Martin Gruenberg.
Within the next few weeks, the European Commission is due to announce plans for a single bank- resolution authority for the euro area, a reform that is crucial for maintaining confidence in Europe’s financial system.
Residential Capital LLC and its biggest unsecured creditors signed a deal to free the mortgage company’s parent, Ally Financial Inc., from the threat of billions of dollars in bankruptcy-related lawsuits.