Kinner Lakhani News
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Natixis SA posted the biggest gain in 3 ½ years in Paris trading after announcing a 2 billion-euro ($2.67 billion) exceptional payment to shareholders.
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European banks, including Deutsche Bank AG and Standard Chartered Plc, have less equity relative to assets than their U.S. peers, and will have to shrink or boost capital as regulators demand reduced leverage.
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British, French and Nordic lenders may be among the biggest winners of the decision by central bank chiefs to relax liquidity rules, according to analysts.
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Regulators may diminish the central role of government bonds in planned banking rules designed to make the financial system safer.
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European banks may have to write down some of the $270 billion of goodwill from their purchases in the run-up to the financial crisis before they can sell assets, or new stock, to bolster capital.
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The biggest U.S. prime money-market funds cut their investments in Deutsche Bank AG by $8.1 billion in October, the largest drop among 35 of the largest banks in Europe, the U.S., Japan and Canada, Bloomberg analysis shows.
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The biggest U.S. banks captured the highest share of global trading revenue in at least two years as their counterparts across the Atlantic reduced risk in the fourth quarter amid a worsening sovereign-debt crisis.
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In 2006, Georges Pauget, then Credit Agricole SA Chief Executive Officer, bought Greece’s Emporiki Bank, calling it a “perfect fit.” Six years on, the purchase has put the French lender in the eye of a perfect storm.
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Credit Suisse Group AG, the second- largest Swiss lender, is eliminating about 100 jobs at its U.K. investment-banking unit as it presses ahead with cost-cutting plans, said three people with knowledge of the reductions.
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UBS AG’s decision to cut as many as 10,000 jobs and retreat from capital-intensive trading businesses will help position Switzerland’s largest bank to return more funds to shareholders.
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