Risk magazine
NAB sets up structured products desk in Singapore
National Australia Bank’s investment bank, nabCapital, has hired Peter Zeitsch as a director to build a structured products business in Singapore. He was previously head of correlation trading at Singapore bank DBS.
Restructuring and resignations at Fannie Mae
US housing agency Fannie Mae has undergone significant management changes after going in to conservatorship on September 7.
Markets dip as bailout drags on
The financial markets have reacted negatively as the US government rescue plan for the financial sector makes slow progress through Congress.
New York governor announces CDS regulation
The governor of New York, David Paterson, has declared parts of the credit default swaps (CDS) market will be regulated from January 2009, in an attempt to clamp down on what he described as a major contributor to the emerging crisis on Wall Street.
Nomura acquires Lehman’s Asian and European operations
Following its filing for bankruptcy last weekend, the carving up of Lehman Brothers has continued with Japanese bank Nomura Holdings agreeing to acquire the Wall Street firm’s European and Asia-Pacific franchises.
Goldman and Morgan become bank holding companies
Goldman Sachs and Morgan Stanley have applied to the US Federal Reserve to become bank holding companies, in response to the crisis that has seen the bankruptcy of Lehman Brothers and the acquisition of Merrill Lynch by Bank of America.
Taiwan limits short-selling on 150 stocks
Taiwan’s financial regulator today placed restrictions on the short-selling of 150 key index stocks for two weeks from September 22, following similar moves by Australian, Taiwanese, UK and US regulators, among others.
CDS spreads continue to tighten
Credit default swap (CDS) spreads on financial institutions had tightened further by close of play on September 19, as market confidence continued to rise after large injections of cash from central banks
Australia extends shorting ban to covered short sales
Sydney-based regulator the Australian Securities and Investments Commission (Asic) today extended its ban on naked short-selling – introduced last week – to covered short sales of all listed stocks.
Pressure eases on interbank lending
Strain on the interbank lending markets is easing as large infusions of liquidity start to take effect and market confidence improves.
Short selling ban could hit derivatives business
A short selling ban imposed by the US Securities and Exchange Commission (SEC) could result in reduced equity derivatives and structured products business for dealers.
SEC and FSA ban short selling on financials
The US Securities and Exchanges Committee (SEC) and UK Financial Services Authority (FSA) have both announced temporary bans on the short selling of financial stocks, as they look to halt the slide in bank equity prices.
Lehman crisis hits Primus
Primus Guaranty, the Bermuda based parent company of the first standalone credit derivatives product company (CDPC), had its counterparty credit rating of BBB+ placed on rating watch negative by Standard and Poor's on September 17.
Barclays to launch FX trend index
Barclays Capital will next week launch the latest in its range of investable foreign exchange indexes, the Barclays Adaptive FX Trend Index. This follows the Intelligent Carry Index (ICI) the bank launched in 2006 and the FX Volatility Indices it…
Paulson announces new Resolution Trust Corporation
US Treasury secretary Henry Paulson has confirmed he is working with the Federal Reserve Board and the Securities and Exchange Commission to get legislation through the US Congress to remove illiquid mortgage assets from the balance sheets of stricken…
CDS spreads tighten after central bank efforts
Credit default swap (CDS) spreads on financial institutions tightened yesterday as market confidence improved following a range of measures from central banks.
Barclays Capital expected to take over Lehman indexes
Barclays Capital looks set to acquire Lehman Brothers’ suite of indexes, widely used as a benchmark in the fixed-income market.
Wachovia appoints Phelan as CRO
Kenneth Phelan has been appointed chief risk officer at Wachovia against the backdrop of increased financial turmoil and a possible merger with Morgan Stanley.
MBIA and Ambac in further ratings review
The two largest monoline insurers, MBIA and Ambac, were placed on review for downgrade by Moody's Investors Service yesterday.
Naked short-selling banned in Australia
The Australian Securities and Investments Commission (Asic), the country’s main financial watchdog, today effectively banned naked short-selling – selling securities without borrowing them first – from September 22 until further notice.
Banks scoop up Lehman's derivatives clients
Dealers have reported a surge in business in the wake of the bankruptcy of Lehman Brothers, as former clients of the failed investment bank look for new counterparties to replace hedges.
Central banks reveal co-ordinated response to liquidity crisis
The world's major central banks today unveiled plans for a $180 billion injection of liquidity to restore stability to global financial markets.
BOCHK reveals $69 million exposure to Lehman Brothers
Bank of China Hong Kong (BOCHK), the 60%-owned subsidiary of Beijing-based Bank of China, has direct exposure to troubled US dealer Lehman Brothers of $69.21 million in the form of Lehman corporate bonds.
CDS spreads continue to widen
Credit default swap (CDS) spreads on financial institutions have continued to widen, despite the bailout of US insurer American International Group (AIG) by the US Federal Reserve Board on Tuesday.