Strong trading results have offset large loan losses as banks report a mixed bag of first-quarter results.
The cost of credit protection on major US banks fell yesterday in the wake of JP Morgan posting a first-quarter profit of $2.1 billion.
Citigroup saw $1.59 billion in net income in the first quarter of 2009, compared with a net loss of $8.29 billion in the fourth quarter of 2008, and of $5.11 billion in the corresponding quarter last year.
Five-year senior credit default swap (CDS) spreads referencing European banks narrowed this morning. With JP Morgan announcing a first-quarter profit of $2.1 billion, market participants hoped for more encouraging news from the US.
The cost of credit protection on European banks increased this morning, as UBS predicted a first-quarter 2009 loss of Sfr2 billion.
The cost of credit protection on European banks decreased this morning, after Goldman Sachs reported a first-quarter net profit of $1.81 billion yesterday.
The recent popularity of put spreads and put-spread collars has helped push down volatility skew to record lows on global equity indexes, according to dealers.
Citi has appointed Mike Corbat as chief executive of Citi Holdings, which includes brokerage and asset management, local consumer finance and a pool of toxic assets that are partly covered by a loss-sharing agreement with the US government.
The cost of credit protection on European financial institutions fell this morning following the end of the Group of 20 leading economies (G-20) summit in London yesterday.
The cost of credit protection on European banks began to fall this morning following data from the US showing the rate of decline in the US manufacturing sector is decelerating, coupled with reports of UK house prices rising for the first time since October...
The cost of credit protection on US banks increased yesterday, following the Obama administration's warning that it would let the US auto industry slide into bankruptcy if necessary.
As equity markets tumbled this morning amid fears the US government would not extend further aid to the auto industry, the cost of credit protection on European banks rose.
US commercial banks reported $9.2 billion in derivatives trading losses during the fourth quarter of 2008, bringing total trading losses in 2008 to $836 million, according to a quarterly report by the Office of the Comptroller of the Currency (OCC). This...
The cost of credit protection on UK banks rose marginally this morning. As the deadline of March 31 for UK banks to sign up to the government's asset protection programme approaches, banks already participating in the scheme saw their CDSs widen the most.
Banks may be the latest victims of a continuing drive by rating agencies to impose harsher tests on highly-rated structured finance products, analysts said.
The cost of credit protection on UK banks rose this morning after two days of narrowing in five-year senior credit default swap (CDS) spreads.
The cost of credit protection on both US and European financials continued to fall today, in the wake of US Treasury secretary Timothy Geithner announcing a toxic-asset purchase plan aimed at boosting the US financial system yesterday.
The cost of credit protection on European financials fell this morning, ahead of US Treasury secretary Timothy Geithner's announcement of further support for the US financial system.
Citi's board of directors will undergo a reshuffle next month with five existing members stepping down to make way for four new independent candidates.
The US government's stake in Citigroup will swell to at least 36% through the conversion of just under half of its existing preferred share holdings, the ailing financial group and the US Treasury have confirmed.
Plans to reshape the US single-name credit default swap (CDS) market are causing concerns among some credit portfolio managers, due to a limit on their ability to get capital relief for hedges under Basel II.
Fading investor confidence in the stability of financial institutions has caused the cost of credit protection on banks across the globe to increase over the past 24 hours.
Nine major dealers agreed to use an EU central counterparty (CCP) for clearing trades in credit default swaps (CDSs) today, paving the way for talks to resume with the European Commission.
The need for discretionary pay was one of numerous thorny issues put to chief executives of eight major banks during a hearing of the US House Financial Services Committee in Washington, DC.