A month ago, FT Alphaville took a closer look at a particular transaction that Barclays completed in order to decrease the amount of regulatory capital it was required to hold against a portfolio of loans.
The transaction is called “synthetic securitisation”. The bank buys protection on the credit risk of part of its own loan portfolio, sold by outside investors. They transfer the risk but the loans themselves physically remain on Barclays’ balance sheet. Read more
Or, how crunchy a credit crunch from European banks might we get?
We know European banks have until the end of June 2012 to get their core capital ratios up to 9 per cent. The European Banking Authority is going to detail individual bank targets on Friday, Reuters reports. Read more
Underlining the complexity of managing the Gaddafi financial asset freeze on Friday, HM Treasury has carved out an exception for any traders dealing with ‘non-Libyan financial institutions’:
(H/T Natsuko Waki of Reuters) Read more
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