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.
Senior officials of the Primary Reserve fund, a $63bn US money market fund that imploded last September, were charged with fraud on Tuesday by the Securities and Exchange Commission.
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.