In a statement on the financial sector reform, the Ministry of Economy said that banks will increase to 80%, their provisions for problem assets.

Madrid said that no public money would be used for banking reform and institutions had until the end of the year to increase their level of provisions. 

The aim of this reform is to trigger a new wave of consolidation in the sector to develop, four years after the bursting of the housing bubble, banks stronger and restore confidence vis-à-vis Spain, which could still be a victim of the debt crisis in the euro area if ever it were to worsen.

Took office in December, the new right-wing government led by Mariano Rajoy is committed to restructuring the banking sector in the country once and for all. 

The previous government, Socialist Jose Luis Rodriguez Zapatero, had forced some 45 regional savings banks, the "cajas" – for the most highly exposed to noxious claims after the collapse of the housing market in 2007 – to merge with each other and to raise capital, brandishing the threat of nationalization for those who do not would comply with its guidelines.

With the austerity measures taken by the two successive governments to Spain to avoid being carried away by the debt crisis, an unemployment rate that reached 23% the labor force and a likely recession into the fourth largest economy in the euro area – the second in four years – bank loans do not increase. 

But their potential losses are so high – $ 176 billion according to the Bank of Spain 18% of GDP – that markets are not likely to repeat immediately trust sector.

The bank most threatened by the banking reform is Bankia, the result of the merger of seven "cajas" became the fourth bank, which is particularly exposed to the real estate sector.

The property, which has already received 4.5 billion euros of state aid, a portfolio of 41 billion euros in loans to developers and 11 billion of real estate with were seized.

The CAC 40 index ended down 2.17% to 3075.16 points in the wake of the fall in Milan instead of 3.78%.

The London Stock Exchange was down 1.92%, the Frankfurt 2.21% and the Eurostoxx 50 index of 2.34%.

The Stoxx European banks index (-3.67%) and insurers (-4.38%) signed the two largest declines sector in Europe.

Silvio Berlusconi said Wednesday he would resign the Presidency of the Italian Council once approved emergency economic reforms demanded by the European Union.In recent years, Greece, Ireland and Portugal have each in turn been forced to call for international help after seeing the cost of their debt to cross that threshold.

Most European stock markets had yet opened in the green, in the wake of positive fences in New York and Tokyo after the announcement Tuesday night, next to the resignation of Prime Minister Silvio Berlusconi.

But doubts about the timing of his departure, the identity of the successor and the risk of political instability continue in the third-largest economy in Europe have quickly gained the upper hand, replacing Italy Greece at the forefront of topics concern.

This loss, which is the highest charged by the Japanese electronics group in ten years, compared with a previous profit forecast that anticipated a net profit of 30 billion yen for the fiscal year to March 2012 and the benefit net 74 billion recorded during the previous year.

From July to September, Panasonic has released an operating profit of 42 billion yen, an amount greater than its own forecast of 4.4 billion yen, but below the 50 billion predicted by the Thomson Reuters consensus I / B / E / S.

Last year, at the same time, he recorded an operating profit of 85.2 billion.

The group now expects an annual operating profit of 130 billion yen, while previously planned 270 billion. Analysts on average had forecast 225 billion yen.

As a number of Japanese exporters, Panasonic is faced with the high yen, which discourages consumers to purchase products made in Japan.

Speaking at a press conference with his German counterpart Angela Merkel, he stressed that Greece would fulfill its obligations for sure and that the country was a primary deficit to zero in 2012.

"Conditions have changed because of the recession," he said."But the goals have remained the same."

"But it is important to receive a sign of support from our European partners," he added.

Angela Merkel, for his part reiterated that the right-wing coalition in power in Berlin would get the vote of strengthening the powers of bailout funds EFSF Thursday without having to call on opposition voices.

Germany, Merkel said, wants a strong Greece "will do whatever is necessary" for this purpose.

But, she added, Greece must fulfill its obligations for the discharge of its donors meeting in the troika (International Monetary Fund, European Central Bank and European Commission).

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Kweku Adoboli, 31, was charged with false accounting and fraud.Wearing a light blue sweater and a white shirt, the trader, in tears, was served that he would remain incarcerated until next Thursday.

It is defended by the British cabinet Kingsley Napley, who had advised Nick Leeson, the British trader who caused the collapse of Barings Bank in 1995.

Kweku Adoboli, son of a Ghanaian UN official retirement, had specialized in index funds.

Fraud is a blow to the new director for risk management at UBS and has ruined the banking industry's efforts to convince that this situation could happen again.

Market rumors suggest the hypothesis of a foreign exchange loss resulting from the decision of the Swiss central bank set a floor for the franc-euro parity, which has pushed the Swiss currency and the stock market bounce.

UBS said losses related only to the shares. She did not comment on the indictment of the trader.

A trader at UBS in London said he expected further job cuts in the next two weeks.

"In my team people are afraid and are low profile. The idea is to remain here and keep his job.In the current situation, it would be difficult to find work elsewhere, "said the trader told Reuters on the condition of anonymity.

UBS INVESTMENT INDUSTRY THREATENED

A senior UBS said that the meetings and other meetings were canceled because he said the crisis experienced by the bank or an appointment with the financial regulators.

"The morale is abysmal," said the banker."It's very bad for our reputation."

The bank has dropped the stock market Thursday, having reported that it could record a loss in the third quarter as a result of these uncontrolled transactions.

The loss erased in fact the two billion Swiss francs ($ 2.3 billion) of savings that the bank hoped to release as a result of a cost reduction program announced in August that will result in the elimination of 3,500 jobs .

It also threatens the future of investment banking, which is evaluated by the CEO Oswald Grübel as part of restructuring.

UBS, which says that no position of customers were affected, held on November 17 a day for investors to probably announce the restructuring of the investment bank.

"I would not be surprised that we have a preliminary confirmation of a reduction (of staff) major, perhaps as early as this weekend," said Matthew Czepliewicz, an analyst at Collins Stewart.

"This announcement can not wait for the third quarter results and Investor Day," he added.

The first two political parties the Swiss People's Party and Social Democrats, called for separating UBS's investment banking arm of its asset management.

Rating agencies Standard & Poor's and Moody's placed the credit rating of UBS on negative watch.

The UMP Gilles Carrez, general rapporteur of the budget in the Assembly, is considering raising the VAT rate on luxury hotels, after the Finance Committee of the Assembly was retoqué a similar measure for theme parks, Les Echos reported Friday.

"By raising the VAT to 19.6% of the few luxury hotels, as was the case from 1981 to 1994, Gilles Carrez hopefully garner revenue the same as those expected with the theme parks: 13 million euros this years and 90 million per year from 2012, "the paper said.

The business daily said that no decision has been made for establishments covered by any such action and that this project has not been approved by the government.

Asked by Les Echos, the president of the National Union of Hoteliers (Synhorcat), Didier Chenet, considers that an increase in VAT rates on luxury hotel would be "intolerable" because it would penalize an industry that attracts a customer generation of significant tourism revenue. The increase in the VAT rate in the theme parks has been repeatedly criticized since its announcement in the anti-deficit plan decided by the French government.

Jean-Pierre Raffarin, Senator of Vienna, Department of Futuroscope, has reiterated Thursday that it was "inappropriate action" and that it was the "delete". The founder of Park du Puy du Fou (Vendée), Philippe de Villiers, has also requested its withdrawal.

The Finance Committee of the Assembly on Wednesday adopted an amendment introduced by some fifty members of the majority, against raising the VAT rate in the theme parks.

To be adopted, it will be voted on next Tuesday in open session.

The transaction will allow the private equity fund Permira, owner of Provimi in 2007, winning more than 2.3 times its initial investment.

The Company has issued an Ebitda of 86 million euros in the first half, up 20.3%.

"Cargill has offered a clear and compelling case and we believe that the combination of its activity feed with Provimi will create a stronger business," said the CEO of Provimi, Ton van der Laan.

Provimi had been coveted in June of DSM, Nutreco and Chinese New Hope.

The statements of the U.S. central bank were eagerly awaited after the lowering of the sovereign rating of the U.S. Standard & Poor's Monday has resulted in a rout of financial markets.

Investors are struggling to interpret the possible impact of this commitment by the Fed on U.S. growth since the Dow Jones operates in a very volatile from the statements by the Fed.

The Federal Reserve, which reduced its growth forecast at its June meeting, continued to be pessimistic for the first global economy, saying that the increase in gross domestic product this year will be lower than expected.

"The release of the Fed is very negative outlook for the economy," said Omer Esin, market analyst at Commonwealth Foreign Exchange.

"By committing to maintain interest rates at an extremely low level until far into the future, the Fed implied that it anticipates a period of slow growth much longer than expected."

Following a meeting of its Monetary Policy Committee (FOMC), the U.S. central bank, as expected, kept the fed funds rate within a range from 0% to 0.25%.

The Fed had reduced interest rates at that level in December 2008, in a financial crisis.

THE FED SAYS HE WILLING TO DO MORE

"The committee believes that today's economic conditions – including a low utilization rate of resources and moderate outlook for inflation over the medium term – are likely to ensure an exceptionally low level of federal funds to at least mid 2013, "said the Fed in a statement.

Three members of the monetary policy meeting – Richard Fisher (Dallas Fed), Narayana Kocherlakota (Minneapolis) and Charles Plosser (Philadelphia) voted against this commitment to keep rates low for two years, suggesting a monetary policy committee divided.

Not since a November 1992 meeting, three members of the Monetary Policy Committee had opposed the decisions taken by the committee as a whole.

The Federal Reserve also suggested it was ready to do more to support the economy, saying it still had tools to do it and would use them if necessary.

Some believe that it can be concluded from this estimate that the Fed has not closed the door to a third repurchase program obligations or "EQ3", which was highly expected by many market participants.

"Sixty percent of the market had anticipated a form of EQ3. But there is no QE3 but there is an explicit commitment to low levels until 2013 (…) This is a factor of certainty and that should help to generate higher levels of lending activities, "said Alberto Bernal (BullTick Capital Markets).

The Fed also reiterated its policy of reinvesting the proceeds of maturing bonds in its portfolio without specifying the calendar in the matter.

The deterioration of the sovereign rating of the United States has given an international dimension to the debt crisis, hitherto confined to the euro area, which requires global coordination, the source added.

"The G7 will meet by telephone.It is not known yet whether this will happen in one or two steps, today and tomorrow, "the source said Saturday.

Italian Prime Minister Silvio Berlusconi proposed Friday that the G7 meeting should be held in the coming days but the French finance minister, Baroin, said Saturday morning that it was "premature" to consider an early meeting.

France is the current chair of the G7 group of seven major industrial powers in the world but China is excluded.