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European authorities are growing more concerned about the quality of additional tier one instruments as regulatory capital, with the Bank of England saying it may bar AT1 from counting towards banks’ leverage ratios and Sweden’s regulator looking set to break with market precedent by effectively requiring its banks to issue trigger levels as high as 8%, writes Graham Bippart.
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The Bank of England’s Financial Policy Committee said additional tier one (AT1) debt may be an "inappropriate" means of meeting leverage ratio requirements, in a paper published last Friday. The FPC said it might also consider completely barring banks from using AT1 in the leverage ratio calculation.
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Citigroup’s second quarter profit was 96% lower from a year earlier, suffering from the $7bn agreement it made with federal prosecutors over the weekend, but expected declines largely beat expectations.
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Daiwa Capital Markets has reshuffled part of its top investment banking team, naming a new head for Europe and the Middle East.
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Deutsche Bank is set to hire BNP Paribas's Vikram Gandhi for its capital structuring team.
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BNP Paribas has named two senior executives to drive its fixed income business in Germany, as part of its decision six months ago to upgrade Germany to one of its domestic markets, alongside France, Belgium, Luxembourg and Italy.