UBS sells sub-prime assets at $7 billion loss
by Gill Montia
Story link: UBS sells sub-prime assets at $7 billion loss
UBS, the Swiss investment bank that has so far recorded larger losses from the credit crisis than any other financial institution, has sold some of its mortgage-backed securities to BlackRock, the fund manager.
The disposal has been made for $15 billion representing a $7 billion loss on the nominal value of the loans.
The move forms [...]
Deutsche Bank make pair of Russian appointments
by Richard Kilner
Story link: Deutsche Bank make pair of Russian appointments
Deutsche Bank has named Igor Lojevsky as the new chief country officer for Deutsche Bank in Russia.
Lojevsky joins the firm from Dresdner Bank where he served as the chairman of global banking and capital markets responsible for Russia and CIS.
He will join Deutsche Bank in August to assume his new role.
The bank has also announced [...]
Chinese banking continues to work in earthquake zone
by Richard Kilner
Story link: Chinese banking continues to work in earthquake zone
In the Chinese regions affected by the recent earthquake, the financial system has remained intact, according to the People’s Bank of China.
The Sichuan, Chongqing, Gansu, and Shaanxi provinces have a stable and steady supply of cash, with currency issue vaults largely unaffected by the earthquake.
The foreign exchange trading network that exists between banks has continued [...]
World Bank: access required to help Myanmar
by Richard Kilner
Story link: World Bank: access required to help Myanmar
The dreadful consequences of the cyclone that struck Myanmar (formerly Burma) can only be addressed with proper access and the leadership of ASEAN, according to the World Bank.
Both the UN and ASEAN are appealing to Myanmar’s rulers for full access to get in aid to combat the humanitarian crisis engulfing the inhabitants of the devastated [...]
UK profits up by 18% for Bank of Ireland
by Gill Montia
Story link: UK profits up by 18% for Bank of Ireland
The Bank of Ireland recorded a 6% rise in pre-tax profit for the 12 months to the end of March, to €1,794 million.
Business in the UK saw particularly strong growth during the year, with pre-tax profit increasing by 18%.
The bank reported that its Post Office Financial Services (POFS) joint venture contributed £15 million in profit [...]
Northern Rock repayments threatened by falling house prices
by Gill Montia
Story link: Northern Rock repayments threatened by falling house prices
Northern Rock’s chairman, Ron Sandler, has admitted that falling house prices could have serious consequences for the bank’s scheduled repayment of £24 billion to the Bank of England.
Housing market optimists, including the Government, are predicting a fall of up to a 10% in UK residential property prices by the end of this year and [...]
Prudential launches low cost FundSIPP
by Gill Montia
Story link: Prudential launches low cost FundSIPP
Prudential has launched a lower cost FundSIPP option that provides direct access to 1,100 funds through supermarket Cofunds.
It is being offered through both the personal pension and income drawdown elements of Prudential’s Flexible Retirement Plan.
A maximum of 20 Cofunds can be chosen and the fund choice also include Prudential’s existing insured funds, such as [...]
Job losses as Citigroup exits UK sub-prime market
by Gill Montia
Story link: Job losses as Citigroup exits UK sub-prime market
Citigroup has announced the closure of Future Mortgages, which specialises in providing first and second mortgages to sub-prime borrowers.
The US bank is also winding up CitiFinancial, a provider of unsecured loans, which like Future Mortgages operates through intermediaries.
In the case of Future Mortgages, borrowers (thought to number around 92,000) will be transferred to [...]
Wall Street launches advanced FX transaction solution
by Gill Montia
Story link: Wall Street launches advanced FX transaction solution
Wall Street Systems, which provides treasury, trading and settlement solutions worldwide, is launching an advanced FX transaction performance facility for financial services businesses.
The solution runs on Sun Microsystems’ Solaris 10 Operating System and is designed to improve the efficiency of operational and business processes, thereby reducing costs.
Its development is in response to the challenges presented [...]
HSBC faces shareholder revolt over remuneration
by Gill Montia
Story link: HSBC faces shareholder revolt over remuneration
HSBC is facing a shareholder rebellion over the remuneration of its executives.
The bank will hold its annual general meeting on 30th May and Pirc, the body that provides advice on corporate governance, is urging investors to vote against HSBC Holdings’ remuneration report.
Pirc regards the level of potential awards contained in the report as excessive and [...]
ING Direct to acquire Interhyp
by Richard Kilner
Story link: ING Direct to acquire Interhyp
ING Direct N.V has declared its intention to put forward an offer for Interhyp AG, the largest independent residential mortgage distributor in Germany.
The offer will value the firm at 416m euros, 64 euros per share.
Joint CEOs and founders Robert Haselsteiner and Marcus Wolsdorf have promised to offer their 32% stake in the firm.
In June ING [...]
Deutsche Bank’s Supervisory Board undergoes personnel changes
by Richard Kilner
Story link: Deutsche Bank’s Supervisory Board undergoes personnel changes
Deutsche Bank AG has been informed by Prof. Dr. Heinrich von Pierer that he is no longer available to be re-elected to the firm’s Supervisory Board.
The election takes place at the bank’s AGM, which is being held this year on 29 May.
The Supervisory Board has thanked Prof. Dr. Heinrich von Pierer for his years of [...]
Significant uptake of TwoSecure’s one time password solution
by Gill Montia
Story link: Significant uptake of TwoSecure’s one time password solution
Fronde Anywhere, which provides mobile products for the financial services and corporate sectors, has reported significant uptake of its mobile two-factor authentication platform, TwoSecure.
The product was launched in April of last year and has since been installed by a French bank and a German financial institution.
In the UK, it has been implemented by financial [...]
ECB President offers little hope on interest rates
by Gill Montia
Story link: ECB President offers little hope on interest rates
Hopes for a cut in the base rate later this year look to be fading as the president of the European Central Bank (ECB), Jean Claude Trichet, issues a warning that the European economies have yet to face the worst consequences of the credit crisis.
Speaking last week at the annual conference of the International Capital [...]
Middle-classes flock for debt advice
by Gill Montia
Story link: Middle-classes flock for debt advice
Transact, the national forum that represents organisations working to promote financial inclusion, has reported a sharp rise in requests for advice in traditionally well-off areas of the country.
The organisation represents over 1,200 debt advice centres and while its member bodies are experiencing a rise in demand for debt advice across all regions of the UK, [...]
Sharp rise in finance sector job seekers
by Gill Montia
Story link: Sharp rise in finance sector job seekers
Recruitment specialist, Morgan McKinley, has reported that during April, the number of people looking for jobs in London’s financial services industry was at its highest than at any time during the past three-and-a-half years.
During the month around 11,840 finance workers considered quitting their jobs, a 20% rise on March.
According to the survey, many of [...]
World Bank grants Afghanistan $20m for healthcare
by Richard Kilner
Story link: World Bank grants Afghanistan $20m for healthcare
Yesterday the World Bank approved a US$20m grant to support the Afghan government’s efforts at healthcare provision.
The grant, which is made to the Health Sector Emergency Reconstruction and Development Project, will be aimed at improving infant mortality rates, child malnutrition and provide better access to healthcare services.
Emanuele Capobianco, a health specialist of the World Bank, [...]
Ludo Wijngaarden retires from ING
by Richard Kilner
Story link: Ludo Wijngaarden retires from ING
Yesterday ING announced that Ludo Wijngaarden, who presently chairs the Dutch Intermediary Division, is to retire from the post on 1 August of this year.
Wijngaarden has been with the firm for 19 years, and will also step down from his position as a board member of various ING companies.
In 1988 he was manager of human [...]
Libor rises to 5.84% on gloomy inflation report
by Gill Montia
Story link: Libor rises to 5.84% on gloomy inflation report
The publication of the Bank of England’s gloomy quarterly Inflation Report earlier this week was followed by an unexpected rise in Libor yesterday.
Three month Libor (the rate at which banks lend to each other) rose from 5.70% to 5.84%, in response to the news that inflation is now running at 3% and a June cut [...]
Crédit Agricole to make €5.9bn rights issue
by Richard Kilner
Story link: Crédit Agricole to make €5.9bn rights issue
French bank Crédit Agricole has announced it is to embark upon a right’s issue to raise €5.9bn.
The firm has reasoned that the move is necessary to bolster its capital ratios, and to allow its business to continue to grow organically.
The decision was made yesterday when the board of directors, chaired by René Carron, met and [...]
