The U.S. Securities and Exchange Commission’s fraud suit against Goldman Sachs Group Inc. may trigger additional probes of collateralized debt obligations and lead to stricter regulation, analysts and academics said.
Credit Suisse Group AG hired four bank analysts and two equity salespeople from JPMorgan Chase & Co. in London as it rebuilds a team weakened by departures, according to two people with knowledge of the moves.
European Union stress tests found banks need to raise 3.5 billion euros ($4.5 billion) of capital, about a tenth of the lowest analyst estimate, leaving doubts about whether regulators were tough enough.
Germany’s 10 biggest lenders, including Deutsche Bank AG and Commerzbank AG, may need about 105 billion euros ($135 billion) in fresh capital because of new regulation, the Association of German Banks said.
Emerging-market stocks gained for a fifth day and currencies strengthened after South Korea’s economy grew faster than analysts estimated and most European banks passed stress tests assessing their strength of capital.
European banks rose, led by Dexia SA and Alpha Bank SA, after stress tests found the region’s lenders need to raise 3.5 billion euros ($4.5 billion) of capital, about a tenth of the lowest analyst estimate.
Deutsche Postbank AG , Banca Monte dei Paschi di Siena SpA and most of Greece’s largest lenders are the only publicly traded banks that may fail European stress tests and be forced to raise capital, Credit Suisse Group AG said.