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NEW YORK (MarketWatch) -- Morgan Stanley is nearing a deal to cut ownership of its in-house hedge fund FrontPoint Partners, which has $7 billion in assets, to about 20% or 25%, according to a story in Thursday's The Wall Street Journal. The move comes ahead of the so-called Volcker provision in the new financial legislation which limits banks' investments in hedge funds, private-equity and real ...
Chinas stress tests of banks will assess the risk that a possible slump in property prices may strain developers finances and cause homebuyers to default, a person with knowledge of the matter said.
Chinas stress tests of banks will assess the risk that a possible slump in property prices may strain developers finances and cause homebuyers to default, a person with knowledge of the matter said.
Chinas banking regulator told lenders last month to conduct a new round of stress tests to gauge the impact of residential property prices falling as much as 60 percent in the hardest-hit markets, a person with knowledge of the matter said.
It's not just a case that falling property prices would hurt the banks - the opposite would also be true if credit costs start to rise.

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