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Securitization People and Markets

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  • HSBC is said to be preparing to issue new shares to help pay for cash bonuses that exceed £50,000 ($78,425), a limit adopted by other banks, including the Royal Bank of Scotland, Lloyds Banking Group and Barclays.
  • The Royal Bank of Scotland and Lloyds Banking Group are predicted to post combined losses of at least £4 billion ($6.27 billion) this week, stoking concerns that it may be years before the U.K. government is repaid for keeping the lenders afloat.
  • UBS is planning to sell more loss-absorbing banks to help raise $16 billion to meet higher capital requirements after its first such offer sold $2 billion last week.
  • Law firm Baker & McKenzie has picked up Christopher Horn as a partner in the firm’s securitization and structured finance practice in New York.
  • A bankruptcy judge in Delaware has approved Washington Mutual’s plan for exiting bankruptcy and repaying creditors some $7 billion.
  • The PrinceRidge Group has expanded its mortgage-backed securities team with the hiring of Kate Lee to head its new collateralized mortgage obligation effort and Jason Huey as a member of the MBS sales staff.
  • Hungarian Central Bank’s decision to introduce a two-year collateralized credit facility, expand the range of eligible securities for repos, and propose a universal forint-denominated mortgage bond purchase scheme to ease bank liquidity pressures and reduce the risk of a credit crunch are credit positive, according to Moody’s Investors Service.
  • Lloyds Banking Group has become the first U.K. bank to claw back bonuses from executives since the start of the financial crisis.
  • The U.K.’s Financial Services Authority has fined Santander £1.5 million ($2.38 million) for failing to accurately communicate to customer confirm under which circumstances its structured products would be covered by the Financial Services Compensation Scheme.