Hedge funds and other investors stand to make huge profits on credit default swaps (CDS) if GM deÂclares bankruptcy, a prospect that is complicating efforts to persuade creditors to agree to a restructuring plan for the automaker.
The Federal Reserve plans to deliver results of stress tests on U.S. banks to executives today. The test is expected to show that 10 companies need additional capital to weather a deeper recession.
The Federal Deposit Insurance Corp. may offer investors financing to buy distressed U.S. bank assets without requiring them to share an equity stake with the Treasury, according to people familiar with the matter.