In the five months after the U.S. published results of its 2009 bank stress tests, the Standard & Poor’s 500 Financials Index rose 25 percent. Five months after the European Union released its version, the Bloomberg Europe Banks and Financial Services Index is down 4 percent.
Spain’s 41 billion-euro ($54 billion) rescue of lenders, prompted by record losses at Bankia, won’t spell the end of troubles for the nation’s financial industry as the economy remains mired in recession.
Investment banks advising United Parcel Service Inc. and TNT Express NV on their blocked deal will miss about $55 million they were set to earn on the deal, which collapsed almost a year after the offer was first made.
Citigroup Inc.’s Vikram Pandit, leader of the U.S. bank that took the most government aid in the financial crisis and that has the worst stock performance over the past decade, is ready for a starring role at Davos.