Federal Reserve finds banks tighten subprime mortgage standards
' WASHINGTON - More banks have tightened lending standards on subprime mortgages, the Federal Reserve said Monday in a survey that provided further evidence of spreading problems.
The Fed said it found that over half of banks responding to a survey reported they had tightened their lending standards for subprime mortgages, loans offered to borrowers with weak credit histories.
The Fed survey found that of 16 banks that said they were still in the subprime market, nine of those banks had tightened lending standards in the past three months. The 16 banks are among the nation's largest and accounted for 57 percent of all residential loans at the end of March, the Fed said.
Former Adelphia execs go to prison
' RALEIGH, N.C. - John and Timothy Rigas lived a high life on the tab of Adelphia Communications, and the price for looting one of the nation's largest cable television companies is years at a low-security federal prison in North Carolina.
After fighting one of the nation's largest corporate fraud cases, Adelphia founder John Rigas and his son Tim, the company's former chief financial officer, turned themselves in Monday at the Butner Federal Correctional Complex, located about 45 minutes northwest of Raleigh.
John Rigas, 82, was sentenced to 15 years and Timothy Rigas, 51, to 20 years for their role in the collapse of Adelphia. They were convicted in 2004 on multiple charges of securities fraud, conspiracy to commit bank fraud and bank fraud.
ECB sends more than 47 billion euros into banking system; Fed injects $2B
' PARIS - The European Central Bank led a third day of emergency lending to banks Monday but reduced the scale of its intervention amid signs that rattled credit markets were steadying.
The ECB injected 47.67 billion euros ($65.3 billion) into money markets, less than the 61 billion euros ($83.6 billion) of additional liquidity it released Friday and the nearly 95 billion euros ($130 billion) it injected Thursday.
Other major central banks around the globe provided extra funds on a much smaller scale as well. Together, the Bank of Japan and the U.S. Federal Reserve added around $7 billion Monday, with 600 billion yen ($5 billion) coming from Japan's central bank and $2 billion coming from the Fed.