The crisis in Kuwaitâ??s banking sector deepened on Tuesday as the chairman of Gulf Bank resigned over derivatives losses and Moodyâ??s warned it could downgrade the bank.
Colonial First State, Australiaâ??s biggest fund manager, suspended redemptions from its mortgage funds on Monday. The decision by the Commonwealth Bank of Australia unit, which had A$3.3 bn in mortgage funds at the end of September, lifts the total frozen by such funds to A$24 bn.
The Financial Services Authority (FSA) said it did not see the need for more regulation of hedge funds, and that most funds had so far weathered recent financial turmoil fairly well.
Alan Greenspan, former Federal Reserve chairman, said on Thursday the credit crisis had exceeded anything he had imagined and admitted he was wrong to think that banks would protect themselves from financial market chaos.