News
US props up Bank of America
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UK fraud 'iceberg right ahead'
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PWG committees release hedge fund best practices
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Additional executive compensation rules issued under TARP
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DTCC to publish more CDS data
The Depository Trust and Clearing Corporation (DTCC), the largest derivatives clearing house in the US, is to expand the data it publishes on the credit derivatives market.
UBS "reprioritises" commodity business
UBS today agreed to purchase the commodity index business of AIG Financial Products Corporation for $15 million plus an earnout, after confirming the sale of its base metals, oil and US power and gas businesses to Barclays Capital on Friday.
Banks tighten conditions on revolving credit extensions
More stringent terms and conditions are being attached to revolving credit facilities (RCFs), although banks are still extending them to investment-grade corporates. Analysts and bankers agree that RCFs are becoming more expensive and smaller and will…
Basel Committee prepares to raise capital requirements with 'stressed VAR' test
Banks may face significantly higher regulatory capital requirements under proposed changes to the Basel II capital adequacy rules released today.
Massive writedowns expose failure of RBS' ABN Amro takeover
Ahead of its 2008 results announcement next month, Royal Bank of Scotland has warned of £28 billion in writedowns and losses, much of it associated with the 2007 takeover of parts of the Dutch bank ABN Amro. The UK government has again stepped in to help…
CDSs widen on Spanish banks
The cost of credit protection on a wide range of firms fell in early trading today, while spreads widened on Spanish financials and US sovereign debt.
UK government creates £50 billion ABS fund
The UK government outlined further plans today to try to stabilise the economy and encourage banks to lend more.
Basel Committee out with Basel II enhancements
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$20 billion in Tarp aid for Bank of America after Merrill losses
Bank of America will receive a $20 billion cash injection and guarantees on $118 billion of debt in return for carrying through its acquisition of Merrill Lynch at the start of the year.
Citi hit by $8.9 billion Q4 loss, splits company
US banking giant Citi today reported a net loss of $8.9 billion for the fourth quarter and a $18.7 billion loss for the whole of 2008. The bank will now be split into two entities.
UBS sells base metals and energy business to Barcap
UBS today announced that it will sell its positions in base metals, oil and US power & gas to Barclays Capital.
Euro Libor falls on ECB rate cut
Three month euro Libor dropped 20bp over the week to 2.45% today from 2.65% on Monday, January 12, following Thursday's 0.5% cut in interest rates by the European Central Bank, while sterling and dollar Libor remained stable.
CDSs tighten on financials and widen on sovereigns
In early European trading spreads on US and European financials tightened, while Middle Eastern and European sovereigns widened.
SG's Johnson relocates to Paris from Seoul
Nick Johnson has left his role as Seoul-based branch manager of SG Securities, Société Générale's South Korean branch, to become Europe head of the bank's new security and anti-fraud (Safe) department in Paris.
Sifma approves plan to unfreeze $200bn of CMOs
A plan to re-inject liquidity into into the collateralised mortgage obligation (CMO) market will go into action later this month after being approved by a major US industry association.
G-30 calls for far-reaching reforms
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JP Morgan Q4 net income plunges 74%
JP Morgan remained in the black in the fourth quarter of 2008, but its profits dropped sharply to $702 million after significant losses on leveraged loan and mortgage exposure.
G-30: large banks may be too big to trade
Large banks could be restricted from risky prop trading for their own good, suggests a Group of Thirty (G-30) report issued today.
New Chicago petroleum contracts to be listed on ClearPort
CME Group has launched four Chicago petroleum contracts on its ClearPort trading platform.
CDSs widen on Australia and tighten on financials
Spreads on Australian financials and Asian telecommunication companies widened in European trading this morning, while banks were trading tighter in the US and Europe.