Spain is setting up what has been called a bad bank to take over the
toxic
assets held by country's banks following the property crash. The government hopes the bank can help draw a line under the debt crisis. Spain recently requested a multi-billion-dollar bailout from its European partners to help its struggling banking sector. Speculation continues that it may ask for a bailout for its public finances.
The Chairman of the US Federal Reserve Ben Bernanke has described the America's economic situation as far from satisfactory. Mr. Bernanke told the gathering certral bankers and academics that the FED would be taking additional steps to prompt a stronger recovery. Here is Andrew Walker.
Mr. Bernanke's speech was not quite a promised to take any particular immediate action, but it was a strong suggestion that the FED is ready to try further stimulus. He described the
stagnation
in the job's market as a grave concern. He also said that without previous FED actions, the recession would be in deeper and recovery slower. The options include further purchases in the markets of financial assets such as government debt with newly created money. A policy is known as quantitative easing. Critics say it could lead to sharply higher inflation.
A senior Brazilian politician from the governing Workers Party has
pulled out of
mayoral elections in October after being convicted of corruption, making him the first political casualty of a major long-running trial. Joao Paulo Cunha, the former president of lower house of Congress, said he would not run for mayor of Osasco city. On Thursday the Supreme Court convicted him of corruption and money laundering as part of alleged scheme to pay coalition partners for support in Congress between 2002 and 2005.