March, 2009
Remarked to market, a bonus for US banks this week?
The onslaught against mark-to-market accounting continues. This week being a rather crucial one. Readers may recall that the FASB — the regulatory body which determines accounting rules and policy in the US – announced a series of changes to its mark-to-market rulebook a fortnight ago.
Playing chicken with Citi’s Nikko Cordial
Citigroup’s latest moves, to sell off its Nikko Cordial brokerage business in Japan, has triggered speculation about the likely buyer of Japan’s third-biggest broker – not least because Japan’s big banks,
Markets live transcript 30 Mar 2009
Markets live chat transcript for the chat ending at 12:09 on 30 Mar 2009. Participants in this chat were: Paul Murphy, FT (PM) Neil Hume, FT (NH) PM:Hi there! PM:Welcome!
Back to earth for Barclays
Unsurprising, perhaps. Barclays might have passed the FSA’s stress test, but not everyone is prepared to give the bank a clean bill of health.
Take the banks team at Société Générale, who on Monday slapped an aggressive “sell”
Macquarie in a Brisconnections mess
Australian investment bank Macquarie – which prides itself on savvy investment strategies – looks to have landed itself in a right financial and legal mess in the form of toll road operator BrisConnections.
Russia invades the Hungarian energy sector
By Haig Simonian in Zurich
A Russian oil company loyal to the Kremlin on Monday bought Austrian energy group OMV’s stake in MOL, the Hungarian energy group, for twice its market value.
The deal involving Surgutneftegas is likely to sound alarm bells in Hungary,
US refuses fresh funding for GM, Chrysler
By Tom Braithwaite in Washington
The Obama administration refused on Sunday night to give fresh bailout money to General Motors and Chrysler, telling the carmakers to come up with new plans or risk insolvency.
Back to 2005…
Morgan Stanley’s Huw van Steenis has published a substantial tome on the outlook for global wholesale and investment banking, produced in conjunction with management consultants Oliver Wyman. The conclusions are relatively upbeat,
Examining oneself three times daily, and other thoughts, from the PRC
For those who have not come across it already, worth reading ahead of Wednesday’s G20 gabfest is this – the People’s Bank of China’s remarks on international regulatory reform, put out at the end of last week.
“I’m not the best person for this topic but…”
It seems the Cayman Islands have been getting some unwanted media attention, with various broadcasters keen to get something in the can on tax shelters ahead of this week’s G20 summit.
No matter. The George Town Portfolio of Finance & Economics Public Relations Unit is on hand,
Nationwide buys Dunfermline
08:06:35 DI *DJ Nationwide B.S. Takes Ownership Of Dunfermline’ Retail Deposits
08:06:52 DI *DJ Nationwide B.S:. Retail Deposits Valued At GBP2,353M
08:07:28 DI *DJ Nationwide B.S.: Dunfermline Brand Will Remain
Statement:
Further reading
Elsewhere on Monday,
- Obama’s Nobel headache.
- It pays to understand the mind-set.
- The nature of fiscal stimulus.
- Re-regulating hedge funds.
- Seven things you should know about the next chief executive of GM.
Pink picks
Commment, analysis and other offerings from Monday’s FT,
Alan Greenspan: Equities show us the way to recovery
The former Federal Reserve chairman writes stock markets across the globe have to be close to a turning point.
Snap news
Breaking pre-market news on Monday,
- Dana Petroleum sees profits up 34%, bank debt fully repaid – statement.
- Concateno in advanced sale talks – statement.
- Tui Travel finalises Tuifly/Air Berlin agreement – statement.
G20 to tighten financial regulation
G20 leaders are set to reiterate a pledge to avoid protectionism and complete stalled global trade talks at their April 2 summit this week in London, but offer little in economic stimulus plans. A draft of the summit’s final communiqué,
Car chiefs ousted
The car sector claimed its first two top-level victims on Sunday when Rick Wagoner and Christian Streiff were ousted from GM and Peugeot Citroën respectively. Wagoner is to step down as chief executive of GM at the request of the White House,
Citi seeks Nikko Cordial bids
Citigroup is inviting bids for Nikko Cordial, Japan’s third-largest brokerage, in a move that could raise more than $5bn for the troubled US bank. After informal talks with potential bidders, including Japan’s three largest banks,
US to announce aid for carmakers
US president Barack Obama is expected to say on Monday that GM and Chrysler will receive extra government support on top of the combined $17.4bn they have already received if they fulfil certain conditions.
Fiat, Chrysler, wait to close deal
The boards of Chrysler and Fiat have given executives approval to complete an alliance deal that now hinges on the terms of extra aid for the struggling US automaker, reports Reuters. The news comes ahead of a Monday announcement by US President Barack Obama on auto industry aid,
Dunfermline set for UK bailout
UK taxpayers are set to take responsibility for up to £750m worth of loans at Scotland’s largest building society following disastrous investments in commercial property and mortgage-backed securities.
Fresh writedowns, job cuts at UBS
Switzerland’s UBS is expected to announce more writedowns and job cuts in coming days, according to Swiss newspaper Sonntag, reports Reuters. Shares in UBS fell 7% on Friday amid rumours of a profit warning and Q1 writedowns.
Spain launches Caja bail-out
The Spanish government and the Bank of Spain on Sunday began the country’s first bank rescue in the current financial crisis, providing up to €9bn in liquidity to Caja Castilla La Mancha, a troubled S&L institution,
UK’s Pendragon revs up for debt deal
The UK’s biggest car retailer, Pendragon, is close to securing a crucial but expensive new financing deal with its banks, reports The Times. It is understood that the highly indebted company will be forced to pay a total of around £25m – more than two-thirds of its market value – for a fresh set of banking covenants amid continued deterioration in the car market,
UK deals collapse amid caution
The UK has experienced a complete collapse of M&A deals amid growing caution among executives of volatile debt and equity markets. The volume of UK deals has fallen to just $14.6bn, excluding government activity,
Bond sales drive capital markets
Corporate bond sales hit record levels in the first quarter, despite a bleak period for the capital markets and lending businesses of investment banks globally. Equity sales and syndicated loans saw their lowest global volumes since Q1 of 2003,
Reforms spur Zimbabwe’s gold miners
Zimbabwe’s gold trade could be reviving, making gold the first industrial sector to benefit from recent economic reforms in the country. Mwana Africa, a miner listed on London’s Aim market, plans to reopen the Freda Rebecca gold mine,
Overnight markets: Down
Asian stocks declined on Monday for the first time in six trading days, paring the regional benchmark index’s best month since 1999, after commodities prices fell and speculation grew of a delayed recovery for banks.
The Weekender
On FT Alphaville this week,
- On Monday, full details of the Geithner plan.
- Of congressmen, hypocrisy and corporate jets.
- Moody’s downgrades GE.
- Tuesday, ArcelorMittal performs a volte face and taps the market.
US commercial banks lost $9.2bn on derivatives trades in Q4 08
The Office of the Comptroller of the Currency is an under-remarked institution, given its mandate:
The Office of the Comptroller of the Currency (OCC) charters, regulates, and supervises all national banks.