JPMorgan Joins BofA in Cutting Senior Mortgage Traders
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JPMorgan Said to Join BofA in Cutting Mortgage Traders

JPMorgan Chase & Co. in New York.

JPMorgan Chase & Co. in New York. Photographer: Daniel Acker/Bloomberg

JPMorgan Chase & Co. (JPM) and Bank of America Corp., the two biggest U.S. banks, are cutting senior mortgage traders and salesmen amid a decline in the asset-backed securities market, people with knowledge of the moves said.

Raphael Gonzalez, JPMorgan’s co-head of trading in subprime mortgages, and John Ang…………… continues on Bloomberg

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Egypt lawmakers, government disagree on IMF loan
News from The Seattle Times:

CAIRO —

An International Monetary Fund team was due to leave Cairo Wednesday without securing an agreement over a $ 3.2 billion loan to help boost the nation’s battered economy.

Holding up the deal was political wrangling between the Islamist-dominated parliament and the government, an arm of the ruling military.

Economists say Egypt needs to sign the loan agreement within six months to shore up confidence in an economy hit hard by the effects of political unrest following Hosni Mubarak’s ouster last year.

The IMF has made broad political consensus a condition for the loan, but both the country’s powerful Muslim Brotherhood and the second most powerful party, Al-Nour, said Wednesday they will not support accepting the loan as long as the government’s plan remains vague.

The $ 3.2 billion dollar loan is about a quarter of what the government says Egypt needs to prop up reserves and external financing in order to avoid an uncontrolled devaluation of the Egyptian currency.

The stand-off leaves Egyptian politicians and officials with just a few months to quibble, since Cairo will eventually have to sign the deal with the IMF, according to the London-based consultancy Capital Economics.

“In the near-term, uncertainty is never a good thing for financial markets,” said Neil Shearing, a senior economist at Capital Economics.

“Two m…………… continues on The Seattle Times

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