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Overnight markets: Turmoil
FT Alphaville — Asian shares fell on Monday , with banking stocks particularly hard hit, amid lingering concerns that more measures would be required this week to help fend off a global recession. Japanese banking stocks tumbled even as the Nikkei 225 initially edged higher on fears that lenders would need to raise capital as the value of their stockholdings continue to drop. Local reports said MUFG, Mizuho and Sumitomo Mitsui are considering raising capital. The yen was hovering at a 13-year high against the dollar. Japan’s finance minister said the country is ready to take ...

Another Bad Day Dawns in Asia
naked capitalism — ... hold substantial equity positions in other companies (note these stockholdings are much smaller than they were in the bubble years, when banks were important members of industrial groupings, later called keiretsu as the linkages weakened). The BIS, in a concession to this Japanese peculiarity, allowed a portion of the value of these shares to be counted towards regulatory capital requirements (forgive me for not checking the current rules, but it used to be 50%). From the Financial Times: Shares across Asia fell on Monday amid lingering fears that more ...

Two views of the Footsie - twin peaks or cliff dive
FT Alphaville — Here’s the FTSE 100 on Monday - off 5.5 per cent, or 210 points at 3673 around 8.20 GMT. 2563.jpg Here’s a longer-term perspective. The index is now less than 400 points above the low 3287 struck in March 2003, when a spiral of forced selling by insurance companies triggered regulatory intervention. 2565.jpg Related links: Asian stocks drop on recession fears - FT