Fed head
Fed Governor Kevin Warsh, once a leading contender to succeed Timothy Geithner as president of the New York Fed, will remain Chairman Ben Ber nanke’s chief liaison with the Treasury Depart ment and other regula tors, a source said. War sh’s withdrawal leaves William Dudley, the New York Fed’s top markets official and a former Goldman Sachs economist, as the leading internal candidate.
Brit rescue
The UK will unveil its second bank rescue in three months, proposing insurance to underwrite mortgage-backed debt and toxic assets and re versing plans to shrink Northern Rock Plc’s lending, a source said. The government may in crease its stakes in Royal Bank of Scotland and Lloyds Banking Group and extend a Bank of England program to in ject money into the fin ancial system. It would add at least 100 billion pounds ($149 billion) to the 250 billion pounds committed in October.
Denmark, too
Denmark will expand its financial-rescue pack age by lending the coun try’s banks and mortgage lenders 100 billion kro ner ($17.8 billion). Den mark will lend as much as 75 billion kroner to banks and the rest to mortgage institutions at a variable interest rate.
Blackstone
Blackstone Group will launch a unit in South Korea this month to buy companies and real estate assets for a combined $2 billion, the Maeil Business Newspaper reported.