Yaga Venugopal Reddy , former Reserve Bank of India governor credited with saving the nation’s financial system from the 2008 meltdown, has said what many finance experts believed, but did not have the courage to admit publicly: microfinance is India’s subprime. “Ultimately, it’s something like subprime lending,” Mr Reddy told ET in an interview ahead of his book release. “The same incentives are operating here... it was securitisation and derivatives that...

An all-party meeting in India has failed to break a parliamentary deadlock over opposition demands for an inquiry into an alleged telecoms scam. Parliament has been adjourned for two weeks because of the stand-off. Telecommunications minister A Raja quit last week, denying claims that he had undersold mobile phone licences by billions of dollars. The government has ruled out a joint inquiry, saying "impartial" agencies were already investigating. Correspondents say the widening scandal involving...

Rising food prices have not yet reached crisis levels but they are expected to remain very volatile for about the next decade, researchers said Thursday. The conclusions were based on a new study of the factors that contributed to the 2007-08 food crisis, which researchers hope will shed light on what actions might be taken to avoid food crises in the future. "There were many suspects for what caused the crisis, but...

Fifty thousand jobs? The U.S. economy has lost that many every week, on average, for a straight 140 weeks since December 2007. Now that the media's gush and drool over the Obama visit has run dry — thanks to other far more interesting events — it might be worth looking at a couple of ‘outcomes' that much of our media seemed pretty taken with.‘Twenty deals worth 10 billion dollars that create...

India's Supreme Court has directed PM Manmohan Singh to explain his "alleged inaction" in failing to sanction the prosecution of a former minister. Telecommunications Minister A Raja has resigned over allegations he undersold mobile phone licences worth billions of dollars. He denies the claims. Opposition MP Subramanian Swamy says he wrote letters to Mr Singh in 2008 calling for Mr Raja's prosecution. He says Mr Singh took more than a year to reply,...