Conversation Starter
With passage of the Dodd-Frank Act and major changes ahead, bulge-bracket dealers have had to finally accept that the market will change radically and they need to take the bull by the proverbial horns. As a result, claims Kevin McPartland, a TABB senior analyst and author of the new research, ”The Future of OTC Derivatives: Swap Execution Facilities and the New Dealer,” contends that the number of dealers handling swaps is set to experience dramatic growth, doubling if not tripling, from roughly 10 in 2010, to as many as 30 by the end of 2011. In order to compete, TABB estimates that the top 15 dealers will spend roughly $385 million surrounding the move toward central clearing. Moreover, to create a more efficient electronic work flow instead of the current environment dominated by spreadsheets and dual keying during that same period, TABB also estimates that the top 15 banks will invest $290 million. While only the largest banks have the capacity to come at this from all fronts, McPartland says, “Competition will be fierce at every layer, driven by smaller players with highly focused offerings of their own.”
**CN: See more on the report here
**Also, more from this week's news on the OTC market:
OTC
Credit Suisse Launches Electronic Trading of Credit Default Swaps on Bloomberg
NEW YORK -- Credit Suisse has launched electronic trading of Credit Default Swap (CDS) indices, marking a major step in the evolution of the credit derivatives market. Clients now have the ability to seamlessly execute a fully electronic trade with Credit Suisse's Credit Derivatives Desk from any Bloomberg terminal.
http://jlne.ws/ab8629
EU lawmakers spar over banning naked CDS trading
Reuters
European Union plans to curb abusive trading in naked sovereign credit default swaps should be hardened into an outright ban, a senior EU lawmaker responsible for guiding the plans through the EU assembly said on Tuesday.
http://jlne.ws/bt9ehd
Ambac Bankruptcy Triggered Credit Swaps, ISDA Committee Decides
Bloomberg
Ambac Financial Group Inc.'s bankruptcy filing this week triggered contracts that protect against the company's default, the committee of banks and investors that governs credit-default swaps in North America said today in an e-mailed statement.
http://jlne.ws/9a4zJC
Gensler: Correcting the record on OTC regulation
DANIEL P. COLLINS, Futures Mag.com
Gary Gensler was sworn in as chairman of the Commodity Futures Trading Commission (CFTC) on May 26, 2009 amid a turbulent debate over regulation. His confirmation fight was a tough one as his previous work in the U.S. Department of Treasury as under secretary of domestic finance caused two Senators to hold up his confirmation because of his vigorous support for keeping over-the-counter (OTC) derivatives exempt from regulation in the Commodity Futures Modernization Act of 2000.
http://jlne.ws/agalds
Lead Stories
G-20 Nations Wrangle Over Strengthening Vow on Currencies
By Michael Forsythe and Nicholas Johnston, Bloomberg
Group of 20 nations’ efforts to tackle currency and trade imbalances floundered as China rejected policy prescriptions that fault its exchange rate regime and directed criticism at additional monetary easing in the U.S.
http://jlne.ws/9yZps8
U.S. makes $3.3 bln profit from Citi shares
Reuters
The U.S. government has made a profit of $3.3 billion from selling Citigroup Inc (C.N) shares, according
to an analysis released on Thursday.
http://jlne.ws/bfS5BP
Geithner rebuffs Greenspan over dollar
By Alan Beattie and Christian Oliver, FT.com
The US hit back at the suggestion that it was pushing down the dollar, saying it would never deliberately devalue its currency to boost exports. Tim Geithner, US Treasury secretary, was responding to a column in the Financial Times by Alan Greenspan, former chairman of the US Federal Reserve, in which Mr Greenspan said the US was “pursuing a policy of currency weakening”.
http://jlne.ws/bUBbdr
US Economy: Quantitative Easing Won’t Work: Stiglitz
By: Alex Frew McMillan, CNBC
The U.S. Federal Reserve’s policy of quantitative easing will do little to boost the U.S. economy, according to economist Joseph Stiglitz. Instead, it risks triggering currency and trade wars that will leave the country alienated, and the world worse off.
http://jlne.ws/aw9XQI
Why Fed Bond-Buying Plan Is Raising Global Tensions
Associated Press
The Federal Reserve's plan to buy more Treasury bonds has incited critics at home to complain of inevitable high inflation and financial turmoil.
http://jlne.ws/boKyjY
Treasury Bond Market Closed for US Holiday
By: Reuters and CNBC.com
The Treasury market is closed Thursday in observance of Veterans Day. On Wednesday, bond prices were mixed, with h the seven-year note posting light gains while the three-year and five-year notes edged lower in price.
http://jlne.ws/dlSnAn
Mortgage Rate for 30-Year U.S. Loans Falls to Record
By Danielle Kucera and Prashant Gopal, Bloomberg
U.S. mortgage rates dropped to a record low, the first decline in a month, as the Federal Reserve began a program to buy Treasury bonds to support the economy.
http://jlne.ws/bMTg30
Deficit panel targets Social Security, taxes
By Jeff Mason and Donna Smith, Reuters
The co-chairmen of a presidential commission to cut the budget deficit on Wednesday proposed reducing benefits and raising the U.S. pension retirement age among an array of tax and spending changes.
http://jlne.ws/cPchmM
Deficit panel leaders' plan curbs Social Security
By ANDREW TAYLOR, AP
The leaders of President Barack Obama's bipartisan deficit commission launched a daring assault on mushrooming federal deficits on Wednesday, proposing reducing annual cost-of-living increases for Social Security, gradually raising the retirement age to 69 and taking aim at popular tax breaks such as the mortgage interest deduction.
http://jlne.ws/b0r0fs
Zillow: Percentage of Underwater Borrowers Up WSJ
By AnnaMaria Andriotis, WSJ.com
In what could be another sign that the housing crisis is far from over, the percent of mortgage holders who are underwater on their homes continued to rise in the third quarter–and some say it could be another eight to 10 months before that trend turns around.
http://jlne.ws/b2B3yy
Treasury 30-Year Bonds Go At 4.320% High Yield
By Gary Siegel, The Bond Buyer
The Treasury Department today auctioned $16 billion of 30-year bonds with a 4 1/4% coupon at a 4.320% high yield, a price of 98.829162.
http://jlne.ws/9Y7zOt
FRBSF Economic Letter: Is Structural Unemployment on the Rise?
By Rob Valletta and Katherine Kuang, Federal Reserve Bank Of San Francisco
An increase in U.S. aggregate labor demand reflected in rising job vacancies has not been accompanied by a similar decline in the unemployment rate. Some analysts maintain that unemployed workers lack the skills to fill available jobs, a mismatch that contributes to an elevated level of structural unemployment. However, analysis of data on employment growth and jobless rates across industries, occupations, and states suggests only a limited increase in structural unemployment, indicating that cyclical factors account for most of the rise in the unemployment rate.
http://jlne.ws/cwPjYM
Dollar hits highest level in a month. Data, Portuguese bond auction eyed
By Nick Godt and William L. Watts, MarketWatch
The dollar rose Wednesday to its best level against the euro since early October after a combination of better data in the U.S., a weak Portuguese bond auction and rising rates in China fueled interest in the U.S. currency.
http://jlne.ws/b2AXpA
$Fed Global Backlash Grows
By JONATHAN WEISMAN, WSJ.com
NEW DELHI—Global controversy mounted over the Federal Reserve's decision to pump billions of dollars into the U.S. economy, with President Barack Obama defending the move as China, Russia and the euro zone added to a chorus of criticism.
http://on.wsj.com/dCFv3H
Sarah Palin Takes Aim at Fed, Bernanke
By SUDEEP REDDY, WSJ.com
Sarah Palin, delving into a major policy issue a week after the mid-term elections, took aim Monday at the Federal Reserve and called on Fed chairman Ben Bernanke to "cease and desist" with a bond-buying program designed to boost the economy.
http://jlne.ws/cFsd6Q
National Economic Update, November 2010 - FRB Dallas - Still Waiting for Acceleration
The previous National Economic Update detailed three broad scenarios of possible trajectories for economic output.[1] Data released since then suggest that scenario one—a pickup in growth strong enough to eventually reach the pre-recession path of output—did not occur in third quarter 2010, raising the probability of a longer period of subdued growth. However, the data releases for October, the first month of the fourth quarter, have so far been more positive.
http://jlne.ws/dpeXA9
China downgrades U.S. debt
Posted by Colin Barr, Fortune
A publicity-minded Chinese rating agency has added its two renminbi to the cacophonous debate over the Fed's latest tilt at money-printing. The state-backed Dagong Global Credit Rating Co. on Tuesday downgraded its rating on the United States to A-plus from double-A, maintaining its negative outlook.
http://jlne.ws/dgrTXi
When It Comes to Sovereign Credit Analysis, It's Back to Fundamentals
By Usman Hayat, CFA
At CFA Institute's Third Annual European Investment Conference in Copenhagen, Martha Oberndorfer, CFA, managing director of the Austrian Federal Finance Agency, part of Austria's Debt Management Office, opened a panel discussion today on the changing landscape for sovereign credit analysis.
http://jlne.ws/cYgjQb
Icahn's debt classed as junk over uncertain future
Elizabeth Pfeuti, Financial News
One of the world's most iconic activist hedge fund managers has had its latest bond rated as junk, due to its reliance on debt and uncertain income flows, which has also inflicted a negative outlook on the company.
http://jlne.ws/bHTwdo
Manager warns of US government bond bubble
Reuters
Those investors still gobbling up US government bonds as a nice defensive investment could be in for a nasty surprise, according to James Montier, a member of GMO’s asset allocation team.
http://jlne.ws/9bZ78m
Events
Making Sense of Credit Default Swaps
When: Nov. 15, 2010
Who: Institute for Financial Markets Full info: www.theIFM.org
Where: Chicago
Details: This one-day course will provide an overview of the CDS markets and how market participants use this product to express a view on a credit, or to hedge an undesirable credit risk.
Introduction to Treasury Futures: Factoring the Risks
When: Dec. 2, 2010
Who: Institute for Financial Markets Full info: www.theIFM.org
Where: New York
Details: Treasury futures are one of the most popular future contracts for both hedging and speculating. Some of the factors that influence value in the Treasury complex include: interest rate risk, inflation risk, and the willingness of investors to continue buying Treasury debt. These factors lead to volatility in the underlying value of debt instruments as interest rates move up or down. If your business borrows money, you can mitigate the effects of higher or lower interest rates by trading the Treasury future complex. Moreover, with Treasury interest rate levels at multi generational lows, a robust case can be made for hedging the threat of higher interest rates in the future now –before interest rates return to ‘normal’ levels.
Treasury Futures Basis: Beyond the Risks
When: Dec. 2, 2010
Who: Institute for Financial Markets Full info: www.theIFM.org
Where: New York
Details: This short course extends the knowledge gained from the IFM's Introduction to Treasury Futures: Factoring the Risks, and explores the important yet subtle nuances of the fixed income future contracts. We start by defining and calculating the gross basis, net basis, implied repo-rates, and the synthetic duration of a hedged position. We next consider how high or low interest rates must move to precipitate a cross-over in the CTD bond/note
Treasury Futures: Using International Fixed-Income and Money Market Spreads
When: Dec. 7, 2010
Who: Institute for Financial Markets Full info: www.theIFM.org
Where: Chicago
Details: This progressive course builds on the knowledge gained in two previous IFM courses: Introduction to Treasury Futures: Factoring the Risks [1], and Treasury Futures Basis: Beyond the Risks[2]. The program provides a decidedly international perspective and explores the enormous spread trading opportunities in trading one sovereign yield curve against another sovereign yield curve, using just futures. We begin with a discussion of the price volatility of various libor-based contracts vs. their sovereign fixed-income sovereign future contract counterparts. We reconcile how many eurodollar futures to spread vs. the ten-year note futures, among many other examples. This discussion is extended to the international arena, initially by calculating how to weight money market spreads using futures, i.e. short sterling spread vs. euribor. Next, we consider trading one sovereign yield curve vs. another one, using just futures, on a duration neutral-basis and currency neutral-basis. These currency hedged yield spreads are now popular macro strategy tool.
Economic News
Wholesale Inventories Up 1.5%; Sales Rise 0.4% in September
By Patrick Temple-West, The Bond Buyer
Wholesale inventories increased 1.5% in September, higher than expected, as businesses increased their stocks of nondurable and apparel goods, the Commerce Department reported Tuesday.
http://jlne.ws/bjhcpL
Job Openings in U.S. Decreased 163,000 in September
By Shobhana Chandra, Bloomberg
Job openings in the U.S. dropped in September for a second month, signaling a sustained labor market rebound will take time to develop, a government report showed.
http://jlne.ws/dknyp3
Pending Home Sales Index Falls 1.8% to 80.9 in October: NAR
By Gary Siegel, The Bond Buyer
NEW YORK - Pending home sales slid 1.8% to a reading of 80.9 in October from a revised 4.4% rise to 82.4 in September, originally reported as a 4.3% gain to 82.3, according to an index released Friday by the National Association of Realtors.
http://jlne.ws/cuVwpc
Exchanges, Clearing Houses & MTFs
CME: New Order Limits for Eurodollar Outright and Futures Combinations
Beginning Sunday, November 21, 2010 (for trade date Monday, November 22, 2010), CME Group will increase the Maximum Order Quantity for outright Eurodollar futures and Eurodollar futures combinations.
http://jlne.ws/aIt2vD
ELX Raises Capital,Sees Role As 'Permanent' Competitor To CME
By Jacob Bunge, Of DOW JONES NEWSWIRES
The head of ELX Futures LP said Thursday that the U.S. derivatives platform secured fresh capital from its bank-dominated backer to ensure it remains a "permanent" competitor to market leader CME Group Inc. (CME) .
http://jlne.ws/cvRiHK
After setbacks, CME chief stakes out new ground
Reuters
Bruised by two big setbacks this year, the CME’s Craig Donohue is staking out new ground in a landscape ripped up and reseeded by the financial crisis. CME Group Inc., the world’s largest operator of derivatives exchanges, was an obvious beneficiary of the crisis as regulators clamped down on over-the-counter swaps markets blamed for the 2007-2009 crisis.
http://jlne.ws/cMk0UG
Firms & Banks
Goldman Sachs Said to Pull $120 Million From Falcone Hedge Fund
By Katherine Burton, Bloomberg
Goldman Sachs Group Inc. plans to pull all of its $120 million from Philip Falcone’s main hedge fund after returns lagged behind peers and Falcone disclosed he borrowed $113 million from a smaller fund that had suspended redemptions, said three people briefed on the matter.
http://jlne.ws/aE6z8E
ING Prepares U.S. Insurance Unit for Possible IPO
BusinessWeek
ING Groep NV, the largest Dutch financial-services company, said it's taking steps to prepare its U.S. insurance business for an initial public offering and reported a sixfold increase in banking profit.
http://jlne.ws/bgCL3w
BNP Paribas, Credit Agricole Face Former Traders in Paris Criminal Trial
Bloomberg
BNP Paribas SA and Groupe Credit Agricole are confronting three former bond traders at a Paris criminal trial on claims the men orchestrated deals in the 1990s to inflate the bond prices and pocket the profits.
http://jlne.ws/dkqS5q
HSBC Profit Growth Slows, Sees 'Bumps in the Road'
BusinessWeek
HSBC Holdings Plc, the U.K.'s biggest bank, said profit growth slowed in the third quarter and that recovery in emerging markets may be faltering.
http://jlne.ws/dnxu97
Morgan Stanley CEO says no Smith Barney deal delay
Joseph A. Giannone, Reuters
Morgan Stanley (MS.N) Chief Executive James Gorman on Monday shot down recent reports that the investment bank wanted to put off purchasing a larger stake in brokerage Morgan Stanley Smith Barney from its joint venture partner, Citigroup Inc (C.N).
http://jlne.ws/cj4y8l
Gorman Says Morgan Stanley Intends to Purchase Smith Barney on Target Date
Bloomberg
Morgan Stanley Chief Executive Officer James Gorman said the firm fully intends to buy Smith Barney on target dates established in its deal with Citigroup Inc.
http://jlne.ws/95BB0R
Bank of America a Good Two-Month Bet, Morgan Stanley Says
Wall Street Journal Blogs
Morgan Stanley research analyst Betsy Graseck is out with a note Monday saying there's a "very likely" probability that Bank of America has a good two-month run ahead of it.
http://jlne.ws/aDbfQ4
A change of fortunes for J.P. Morgan CEO Jamie Dimon
Washington Post
Jamie Dimon wanted Washington Mutual and he wanted it bad.
http://jlne.ws/by7JAB
JPMorgan working on how to replace lost revenues
By Dawn Kopecki, Bloomberg News
The Dodd-Frank Act requires banks to move derivatives trading to separately capitalized subsidiaries, which JPMorgan Chase is in the process of doing.
http://jlne.ws/99F2FB
Citigroup Debt Funds Probed by SEC: Report
FOX Business
Regulators probed certain Citigroup debt funds to assess whether the bank made adequate disclosure to investors about the funds' risk levels.
http://jlne.ws/aRawls
Mortgage Investors Sue Citi Over Underwriting
FOX Business
Several Citigroup Inc mortgage bond investors, including Charles Schwab Corp, have sued the bank over its home loan underwriting processes.
http://jlne.ws/akoJ58
Citigroup's Bad Boy
Forbes
How an untested businessman got a $126 million loan--and personally owes every dime of it.
http://jlne.ws/9MCEf7
Credit Suisse And Société Générale Adopt Euroclear Bank’s Loanreach Service
ISS-Mag
Euroclear Bank announces today that Credit Suisse and Société Générale Corporate & Investment Banking have signed up to Euroclear Bank's LoanReachTM service for syndicated loan transactions.
http://jlne.ws/9YxA53
Fannie Mae's Losses Narrow, but $2.5B More Needed in Aid
Carrie Bay, DS News
The nation’s largest mortgage financier reported a smaller loss during the third quarter of this year than it did in the previous quarter, with the latest figures representing a $17 billion improvement over the company’s financial results just a year earlier. Fannie Mae says, though, that it needs another $2.5 billion from taxpayers to cover its net worth deficit for the July-September reporting period.
http://jlne.ws/buHUX5
Morgan's Gorman: Reckless big banks should fail
By Ronald D. Orol, MarketWatch
Institutions that are failing because of their own poor management or reckless business decisions should be allowed to fail no matter what size they are, said Morgan Stanley Chief Executive James Gorman. However, Gorman, who took the helm of Morgan Stanley in January, also said the government has a role of providing financing as a backstop for good institutions that are being dragged down because of panic.
http://jlne.ws/aeNT0H
Bad WaMu mortgages haunt JPMorgan Chase, Dimon
Seattle Times
JPMorgan is now saddled with $74.8 billion in nonperforming home loans inherited from WaMu, a third of the $230.7 billion in mortgages on its books.
http://jlne.ws/cFbgWR
Regulators
Ben Bernanke: The Chauncey Gardiner of Central Banking
In Ben Bernanke’s Washington Post elucidation of Fed policy, "What the Fed Did and Why: Supporting the Recovery and Sustaining Price Stability," the Fed chairman cut-and-pasted misleading paragraphs from earlier misleading speeches. He did not discuss the two most important aspects of his money experiment. Bernanke did not address, first, the real economy or, second, the rest of the world. It will be the first of these lapses that will be discussed below.
http://jlne.ws/anuBWF
Compliance: IRS pushes banks to put pressure on tax evaders
Financial Times Finance News
After the US Department of Justice settled its case last year against UBS, the Swiss bank, for helping US citizens evade taxes, some lawyers asked which jurisdiction, or bank would be targeted next.
http://jlne.ws/a4XY2q
Fed's Bullard: Benefits of QE2 Outweigh Risks
By Deborah Lynn Blumberg, WSJ.com
The benefits of the Federal Reserve’s second large scale bond buying program will outweigh the risks, Federal Reserve Bank of St. Louis President James Bullard said Monday, noting positive effects of past purchases.
http://jlne.ws/aT2WZt
Global News
Norway Caps Junk-Graded Debt as Wealth Funds Grow More Cautious
By Josiane Kremer, Bloomberg
Norway’s government will require the country’s $520 billion oil fund to limit investments in junk- rated debt amid growing concern peripheral Europe’s fiscal crisis may be escalating.
http://jlne.ws/dy2V18
Architect of Norway's Government Pension Fund Challenges "Current Paradigms" of Institutional Investment Management
By Line Wolf Nielsen, CFA
Knut Kjaer, the founding CEO of Norges Bank Investment Manager, the $450 billion Norwegian Government Pension Fund, promised delegates at CFA Institute's Third Annual European Investment Conference that he would "challenge the current paradigm of institutional investment management." In a session today entitled "Asset and Risk Management in a Post-Crisis Market," Kjaer did not disappoint.
http://jlne.ws/d3LFvU
China inflation surges to 25-month high
By Geoff Dye, Bloomberg
Chinese inflation jumped to its highest level in just over two years in October, prompting new fears that the economy could be overheating as a result of the government’s huge stimulus measures. Consumer price inflation surged to 4.4 per cent in October from 3.6 per cent the month before, well above the government’s target of 3 per cent and increasing the pressure on the authorities to introduce new tightening measures.
http://jlne.ws/9AdzNh
Can Ireland avert a Greek tragedy as debt woes mount?
Speculation is mounting that Ireland will be forced to seek a Greek-style bailout. Borrowing costs have spiked and bank shares have tumbled. And according to a Reuters poll published today, 20 of 30 analysts surveyed think Ireland can't make it through to the end of next year without getting outside help.
http://jlne.ws/d6De8j
Hong Kong gov't welcomes Moody's upgrade of bond rating to Aa1
The Hong Kong government said Thursday it welcomed Moody's decision to upgrade the government's bond ratings to "Aa1" from "Aa2" with "Positive" outlook. Moody's upgrade of Hong Kong's ratings and outlook were attributed to the city's continued and improving financial strength, particularly in comparison to other sovereigns rated in the Aaa and Aa range.
http://jlne.ws/bhHKVo
Economics focus: Fail safe What do German calls for an orderly sovereign-default scheme mean in practice?
Despite its deserved reputation as a nation of thrift and fiscal discipline, Germany has a habit of making bond markets nervous. At a European Union summit last month Germany won agreement to rewrite EU treaties to allow for a permanent scheme to deal with stricken euro-zone borrowers—including, it hopes, a mechanism for an orderly sovereign default. At that summit Jean-Claude Trichet, the head of the European Central Bank, warned EU leaders that talk of debt restructuring was likely to unsettle bond markets and drive up the borrowing costs of troubled euro-zone countries. So it proved. The gaps between the ten-year bond yield of Germany and those of Greece, Portugal and Ireland jumped sharply this week.
http://jlne.ws/bxs5Ui
E.U. Seeks to Reassure Jittery Markets on Ireland
By LANDON THOMAS Jr., The New York Times
As frantic bond investors continued to unload Irish bonds, a top European Union official said that the bloc stood ready to offer a financial lifeline if needed.
http://jlne.ws/aVFeDj
ECB Forecasts Inflation to Remain Contained
BY GEOFFREY T. SMITH, WSJ.com
FRANKFURT—Core inflation in the euro zone is likely to stay "contained" in the near term, although it may edge up slightly, the European Central Bank said in its monthly bulletin for October, published Thursday.
http://jlne.ws/bR78D5
Global banking bailout created moral hazard, Carney says
News Investment Executive
Losses incurred in future crises must be borne by the institutions themselves
Bank of Canada governor Mark Carney is backing proposed new international rules that would make banks and their shareholders and creditors -- not governments -- pay the cost of any future financial crisis like the Wall Street money crunch that triggered the recent recession.
http://jlne.ws/bACCjO
Clearing house warning to Irish bond traders
By Sam Jones and David Oakley in London and Jeremy Grant in Chicago - Financial Times
Fears over the health of the eurozone bond market intensified after one of Europe's biggest clearing houses warned investors they could be compelled to stump up substantially more money to trade in Ireland's debt.
http://jlne.ws/bAfIyE
Royal Bank of Scotland in Q3 Loss of $1.63 Billion
ABC News
Royal Bank of Scotland third quarter loss narrows 36 percent as loan losses decrease
http://jlne.ws/drIf1B
Royal Bank of Scotland back in red with massive loss
Evening Standard
Taxpayer controlled Royal Bank of Scotland fell back into the red today as it reported a loss of L1.4 billion for the last three months after making a profit of ÂL1.2 billion in its second quarter.
http://jlne.ws/aGpIG2
Bank failures much less likely - Hester
RTE News
The boss of state-controlled UK lender Royal Bank of Scotland says global banking reforms will 'significantly' lower the chances of more failures in the sector.
http://jlne.ws/cwRJRc
HSBC reconsiders London HQ over EU regulation row
Guardian Unlimited
Outgoing chief executive Michael Geoghegan said the bonus rules by the Committee of European Banking Supervisors (CEBS) could place the bank at a disadvantage to those based in the US HSBC revealed today that it will review the location of its London head office next year as it hit out against new bonus rules being proposed by European banking regulators and George Osborne's L2.5bn bank levy ...
http://jlne.ws/c8Y3ld
HSBC says Europe regulation hurts
Reuters Finance News
HSBC (LSE: HSBA.L - news) said tougher European rules on pay and a bank tax were causing it harm and left it assessing whether to stay in London, as it reported profits so far this year "well ahead" of a year ago. It said the rate of profit growth slowed in the third quarter and there could be "some bumps in the road" for emerging markets growth, and said tougher European ...
http://jlne.ws/9KSLp6
Financial Services: The European Commission Consults On Further Policy In The Field Of Credit Rating Agencies
Press Release
As part of its further work in creating a sounder financial system, the Commission services have launched today a broad consultation on credit rating agencies (CRAs). Whilst credit rating agencies are important actors in the financial markets, recent developments during the euro debt crisis have shown that there may be a need to re-examine certain aspects of the current regulatory framework.
http://jlne.ws/cxgbC7
RBS Faces 'Hard Slog' as Hester Forecasts Lower Loss
BusinessWeek
Royal Bank of Scotland Group Plc, Britain's biggest government-owned lender, faces a "long, hard slog" as it forecast a reduced loss in 2010.
http://jlne.ws/96f6qQ
RBS cuts commodities trading risk in Q3
Reuters Finance News
Royal Bank of Scotland (LSE: RBS.L - news) cut its commodities trading risk in the third quarter, in line with a wider trend at major banks to scale back exposure in expectation of a financial regulatory crackdown. RBS's financial results on Friday showed the bank's commodities trading division had a daily average Value at Risk (VaR) of 8.9 million pounds ($14.4 million) in ...
http://jlne.ws/arTxj2
No let-up for Irish debt; pressure grows
Reuters
Clearing house LCH.Clearnet hiked margin requirements for Irish debt on Wednesday and Ireland's central bank said it would take a closer look at banks' residential mortgage books...
http://jlne.ws/cPcaJ8
Irish bond yields surge to record
By David Oakley and Philip Stafford in London and Peter Wise in Lisbon, FT.com
The eurozone's debt problems resurfaced on Wednesday as worries over Portugal and Ireland intensified.
http://jlne.ws/dvvt19
Tokyo Aim to launch first market for listing bonds
By Lindsay Whipp, FT.com
Tokyo Aim, the joint venture between the London and Tokyo stock exchanges, plans next year to establish Japan's first market for listing bonds.
http://jlne.ws/9x4PVP
HSBC Chairman: Asia More Favorable Than Europe For Bank Operations
By Kyong-Ae Choi, Dow Jones Newswires
Asia offers a more favorable business environment for banks compared with Europe due to the region's rapid economic growth, HSBC Holdings PLC (HBC: 55.28 ,-0.18 ,-0.32%) Chairman Stephen Green said Wednesday.
http://jlne.ws/d3EqIW
RBS Chairman Hampton Regrets Bank of China Stake Sale, Morning Post Says
Bloomberg
Philip Hampton, chairman of Royal Bank of Scotland Group Plc, regrets the lender's decision to sell its 4.3 percent stake in Bank of China Ltd., the South China Morning Post reported.
http://jlne.ws/coKU3l
Foreign investors shun risky eurozone bonds
By David Oakley in London, Kerin Hope in Athens and Peter Wise in Lisbon, FT.com
Foreign investors have cut their holdings of so-called peripheral eurozone government bonds because of rising fears over the health of these economies. Local banks and financial institutions replaced foreign counterparts as holders of Greek, Irish, Portuguese and Spanish debt in the second quarter, at the height of the sovereign debt crisis amid fears of a default. The trend, identified in research by Citigroup based on World Bank and Eurostat data, has continued since the second quarter with government bond auctions attracting almost exclusively local buyers.
http://jlne.ws/c6XTPy
State bank delays first Thai Islamic bond again
Reuters
State-owned Islamic Bank of Thailand has again delayed plans to issue the country’s first Islamic bond, but it could come in the first half of 2011 if market conditions are favourable, its president said on Tuesday.
http://jlne.ws/cdiLh1
Royal Bank of Scotland in Q3 loss of $1.63 billion
San Diego Union-Tribune
Part-nationalized Royal Bank of Scotland on Friday said it cut losses by 36 percent in the third quarter as it booked fewer charges for bad loans.
http://jlne.ws/9Fd2Ox
HSBC in new threat to leave the UK over Osborne banking levy
Independent
HSBC yesterday made a fresh threat to quit London, saying Chancellor George Osborne's banking levy and an EU-wide crackdown on bonuses meant it was no longer on "a level playing field" with its international rivals.
http://jlne.ws/aWi0BW
Tidak ada komentar:
Posting Komentar