Obama will stop his vacation and will announce the appointment at around 13:00 GMT (9:00 local time), official sources from White House said Monday.

“Ben approached with wisdom and calm a financial system that was on the brink, with bold action and innovative thinking that have helped efforts to break the free fall of the economy”, says a preview of the speech published by Reuters.

“Legacy” Bernanke’s first term included lowering key interest rates to near zero and flooding the financial markets with hundreds of billions of dollars to combat the credit crisis.

By giving Mr. Bernanke a second term, Obama signals that he has confidence in the Fed chairman’s ability to strengthen the economy in a period when unemployment and bankruptcies are increasing rapidly, notes Reuters.

Texas Guaranty Bank had assets of $12 billion and deposits from customers of $11.5 billion. Texas Guaranty’s banking activities will be taken over by the second largest Spanish bank, BBVA, through its American subsidiary BBVA Compass for an unspecified amount.

The Federal Deposit Insurance Corp. (FDIC), which administers the deposit-guarantee plan in the U.S., insures deposits of customers up to $250,000 per account.

Last year, 25 banks were closed by the U.S. government, compared to only three in 2007. The largest U.S. bank failure this year was Colonial Bank which closed on August 14. Colonial had assets of $25 billion.

Analysts said the agreement – one of the first of its kind – marks a significant step in the fight against tax evasion.

Under the agreement, authorities in Washington will initially have access to the accounts of 4,500 American customers of UBS, but the investigation led by the Treasury Department could unearth the identity of over 10,000 customers may have evaded tax authorities.

In total, the account have a value of over $18 billion. A representative of the Treasury said these customers have the option to present themselves to the authorities until September 23.

The Swiss Minister of Justice stated that this agreement does not violate the country’s bank secrecy law. The law is not intended to protect criminals the minister said. UBS will notify customers before their bank data will be made available to the U.S.

It is the second agreement between UBS and the U.S. this year. To avoid a justice case, the bank admitted in February that it helped Americans to avoid paying taxes. UBS has agreed to pay a fine of $780 million and will make available the names of 250 customers suspected of tax evasion.

In contrast to Sarkozy’s statement, the chief of France’s central bank, Christian Noyer, said that the package allocated by BNP for bonuses are within the guidelines for banks established by G20 nations in April.

A political conflict was triggered last week after opponents on the left said that the BNP Paribas bonus plan proves that Sarkozy and the govenment have not managed to bring the banking sector under control following the collapse of the credit markets.

G20 Reshaped the Culture of Bonuses

In April, leaders of the largest economies of the world came together to reform the so-called “culture of bonuses” of the banks considered to have generated a wave of risky transactions with derivatives that triggered the crisis on the credit markets worldwide. The G20 agreement states that multi-year guaranteed bonuses should be eliminated that that employee incentives should be closely linked to the overall performance of the bank.

“Today, the government paid 605 million dollars for Russian gas” stored in underground tanks, said Timosenko.

Last Friday, international financial institutions and the European Commission reached agreement with Ukraine to help this country to pay bills on Russian gas and to accumulate stocks, allowing avoiding a new gas crisis.

The agreement will allow funding of approximately 800 million dollars (570 million euro) from the World Bank and the European Bank for Reconstruction and Development in October 2009, explained a spokesman of the EC.

In addition, the IMF unblocked 3.3 billion dollars, the third installment of a credit line of 16.4 billion dollars granted to Ukraine for two years. Part of these funds will be used to help Ukraine to buy gas for the accumulation of stocks.

Budget expenditure will be 9.822 trillion ruble, income – 6.636 trillion ruble and a deficit of 3.186 trillion ruble.

The volume of budget deficit was increased by 7.5% creating a budget deficit of 500 billion ruble.

To cover the deficit, the Ministry of Finance may borrow from the domestic market 962 billion ruble and the external market 649 billion ruble.

Taking into account the average of 34.5 of the Russian currency against the U.S. dollar, external borrowing size could reach 19 billion dollars, which would increase the external state debt of the Russian Federation.

The strategy of expansion abroad is meant to encourage foreign investments and acquisitions, especially those of large industrial groups owned by the state such as PetroChina , Chinalco, China Telecom and Bank of China.

“We need to hurry the implementation of the ‘out in front’ and currency reserves to combine with our company expansion,” said Jibao, in a speech delivered in front of Chinese diplomats.

The strategy “going out” is a slogan to encourage investments and acquisitions abroad, especially through state giants PetroChina, Chinalco, China Telecom and Bank of China.

On the other hand, Hungary would be able to access the first tranche scheduled for 2010 of the loan, said the general director of the agency’s executive management of public debt, Andras Laszlo Borbely.

The Hungarian financial market ground to a halt in October of last year due to the global credit crisis, so the government in Budapest made a funding arrangement with the IMF European Union (EU) worth around 20 billion euro.

The authorities have made use of loans to finance its debts in April, when the government began again to issue bonds, initially small amounts, which were gradually increased in July, Mediafax notes.

On Thursday, the Hungarian agency for the administration of public debt issued bonds denominated in forints worth 84.5 billion forints (about 300 million euro). On Friday the agency completed the first issue of bonds denominated in euro made since the onset of global crisis, amounting to one billion euro.

Despite Goldman’s stellar quarter, the results of other banks are less encouraging. Georges Ugeux, Chairman of Galileo Global Advisors, is of the opinion that to assess the recovery of financial system we must evaluated health of commercial banks, not investment banks.

“To see if the financial system was repaired, we must analyze the impact of the crisis at banks that are engaged in private credits”, says Ugeux. “The bank results may be less encouraging.”

One example is CIT Group, which today is struggling with bankruptcy. For this reason, the financial results of JP Morgan and Morgan Stanley this week will be more telling.

Chairman of Galileo Global Advisors, Ugeux is Dr. in Law and Bachelor of Economics at the Catholic University of Louvain in Belgium. He was a banker at Societe Generale, Morgan Stanley, Kidder Peabody, President of the European Investment Fund and Chairman of International Division NYSE. Galileo Global Advisors is a bank and consulting business founded by him.

The recommendation was made after the government in Kiev promised to reduce spending in the next period, writes Bloomberg News. “We managed to reach an agreement,” said Ceila Pazarbasioglu, IMF mission chief in Kiev. “Ukraine has met all quantitative criteria, including the international reserves, and made real progress in terms of strengthening the banking system.”

A loan from the International Monetary Fund for Ukraine, with which to pay debts to Russia, is the only solution to avoid a new crisis of gas, in conditions in which the European Union has already announced that he has no money to help former socialist republic, badly affected by the financial crisis.

Ukraine needs 4 billion dollars (3 billion euro ) for the storage and purchase of gas from Russia for the winter.