ABN Amro Rothschild Deal Comes To An End
by Stewart Douglas
Story link: ABN Amro Rothschild Deal Comes To An End
Rothschild and ABN Amro have today announced their partnership in equity capital markets over the last eleven years is to be allowed to come to an end before 2008, as a result of the acquisition of ABN Amro’s investment banking business by the Royal Bank of Scotland.
The pair have teamed up over the period through [...]
Citigroup Announce SIV Acquisitions To Stabilise Debt Exposure
by Stewart Douglas
Story link: Citigroup Announce SIV Acquisitions To Stabilise Debt Exposure
Investment bank Citigroup has today announced it is to acquire no fewer than seven failing investment funds at an estimate $50 billion, with a view to recovering its losses within the financial markets, in the first high profile move of new executive Vikram Pandit.
The move today has been designed to help Citigroup counteract the potential [...]
Banks may turn to shareholders to offset losses
by Gill Montia
Story link: Banks may turn to shareholders to offset losses
The markets director of the Bank of England has suggested that some banks may need to go to their shareholders to restore balance sheets, in the wake of the US sub-prime mortgage crisis.
When speaking at a London conference, Paul Tucker stated that: “some replenishment of common equity may be needed” to offset large losses on [...]
Pakistani banks’ outlook downgraded by Moody’s
by Richard Kilner
Story link: Pakistani banks’ outlook downgraded by Moody’s
Yesterday Moody’s evaluated the outlook for Pakistani banks with a negative rating.
The downgrading was due to the political instability in the country, and the risks inherent to such a situation. Moody’s expects the Pakistani banking sector to be robust in the immediate future, but could face difficulties should the uncertain political situation continue for too [...]
Global stock markets suffer due to lack of confidence
by Richard Kilner
Story link: Global stock markets suffer due to lack of confidence
Worldwide shares suffered at the hands of rising anxieties regarding the central banks’ ability to counter the credit crisis engulfing the financial world at the moment.
In America, shares in Wall Street achieved a late rally. Elsewhere, in Asia and Europe, warnings that the plans to try and counter the credit crunch were too small to [...]
Bank of England sees public support slump to 7 year low
by Richard Kilner
Story link: Bank of England sees public support slump to 7 year low
According to the Bank of England’s most recent monthly survey, public confidence in the institution is the lowest it has been for seven years.
The news adds to the pressure mounting on Mervyn King, the bank’s governor.
The downturn in public confidence is presumed to be indicative of the public’s response to the bank’s management of recent [...]
HBOS on course for £5.8 billion profit
by Gill Montia
Story link: HBOS on course for £5.8 billion profit
In a trading update, HBOS, the UK’s fourth largest bank, has reported that it is writing down just £180 million in connection with the credit squeeze.
The bank’s chief executive, Andy Hornby, confirmed that profits and costs for 2007 will be in line with market expectations and that the bank’s full-year profit forecast of around £5.8 [...]
Virgin loses “preferred” status in Northern Rock sale
by Gill Montia
Story link: Virgin loses “preferred” status in Northern Rock sale
Virgin Group has lost its “preferred bidder” status in the battle for Northern Rock because rival bidder, Olivant, has threatened to withdraw from negotiations unless it is treated equally with Sir Richard Branson’s company.
The decision was taken at a meeting between Northern Rock, the Bank of England, the Financial Services Authority and the consortium led [...]
Sachsen LB Takeover Move To Proceed
by Stewart Douglas
Story link: Sachsen LB Takeover Move To Proceed
The proposed takeover of troubled lender Sachsen Landesbank by German contemporary LBBW came one step closer today with the announcement that an agreement has been reached with the state of Saxony over financial guarantees for current potential liabilities.
The takeover bid was thought to have run aground after arguments over who would foot the bill for [...]
Lehman Brothers Announce Declined Income
by Stewart Douglas
Story link: Lehman Brothers Announce Declined Income
US based investment bank Lehman Brothers has today announced a decline in its income figures for the final quarter of the year, despite previous analyst forecasts that it would report much less strong results over the period.
The firm today announced that income from core businesses had fallen by 12% over the fourth quarter as compared [...]
Islamic banks aim to expand into Europe
by Richard Kilner
Story link: Islamic banks aim to expand into Europe
The Islamic banks of London are preparing to gain more business from the 15 million European Muslims, who, other than those who live in London, they have had little effect upon.
By 2010 it is predicted that Islamic banking will reach a value of $1 trillion, a prediction that has led the UK to woo the [...]
Markets soften despite central banks’ action
by Richard Kilner
Story link: Markets soften despite central banks’ action
The centralised banks’ plan to manage credit conditions caused Asian markets to be somewhat subdued today. Over the night the yen had fallen slightly, but recovered to a more solid level afterwards.
The initial confidence that greeted the banks’ move faltered, with oil and gold falling to $94 per barrel for US crude and white gold [...]
HBoS sub-prime exposure falls to £430m
by Richard Kilner
Story link: HBoS sub-prime exposure falls to £430m
HBoS today announced that it was exposed to the sub-prime investments to the tune of £430m.
This represents a fall from the end of August exposure which stood at £550m, and now comprises just 0.1% of the firm’s balance sheet.
In addition HBoS has declared it will suffer a £180m writedown on losses from the credit crunch.
The [...]
Northern Rock chief executive resigns ahead of schedule
by Gill Montia
Story link: Northern Rock chief executive resigns ahead of schedule
The chief executive of Northern Rock, Adam Applegarth, has resigned with immediate effect.
Mr Applegarth’s departure comes nearly two months earlier than expected and he will be replaced by Andy Kuipers, who has worked for the bank for 20 years and had key involvement in the strategic review of the business that is due to be [...]
Central banks inject £54 billion into money markets
by Gill Montia
Story link: Central banks inject £54 billion into money markets
Five central banks have taken the unprecedented step of acting jointly to release cash into the money markets to ease the liquidity crisis.
The total funds injected into the markets amount to around £54 billion, which could be described as a modest amount when taking into account the scale of the problem it expects to ease. [...]
Northern Rock To Fall From The FTSE
by Stewart Douglas
Story link: Northern Rock To Fall From The FTSE
Troubled mortgage lender Northern Rock is facing another major share sell off today with the announcement that it is to be dropped from the FTSE 100 index as a result of the decline in its market value after its recent, high profile problems, in a move that could see yet further share price slumps to [...]
Citi Appoint New Chief Exec
by Stewart Douglas
Story link: Citi Appoint New Chief Exec
Troubled banking group Citigroup has today announced that it has appointed a new chief executive following the departure of Chuck Prince last month over the sub-prime losses uncovered by the banking firm, seeing an internal candidate appointed to the post.
Vikram Pandit, formerly of the Citigroup investment banking division has been appointed to the position of [...]
Peshawar banks given security advice by police
by Richard Kilner
Story link: Peshawar banks given security advice by police
Police in Peshawar have asked banks and other financial institutions to install CCTV and other security devices in their buildings.
A meeting was held yesterday between Tanveer-ul-Haq Sipra, Capital City Police Officer (CCPO), and the heads of a number of financial institutions. During the talks the managers informed the CCPO of the law and order problems [...]
ADB says corruption is affecting Pakistani educational projects
by Richard Kilner
Story link: ADB says corruption is affecting Pakistani educational projects
The Asian Development Bank has condemned Pakistan’s education sector, describing it as being damaged by corruption, lack of funding and gender and regional inequalities. These problems all cause and maintain social inequality and a poorly delivered education service.
An evalutation report by the ADB has said that a drastic improvement is required if Pakistan is to [...]
Northern Rock bidders down to two
by Gill Montia
Story link: Northern Rock bidders down to two
Cerebus, the US private equity firm, is reported to have withdrawn from the bidding for Northern Rock, the troubled mortgaged bank.
If this is the case, two serious bids remain: Virgin Group (the preferred bidder) and a consortium led by former Abbey National chief executive, Luqman Arnold, and his investment company Olivant.
Meanwhile, Sir Callum McCarthy, [...]
