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Securitization People and Markets

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  • The U.K.’s Financial Services Authority and the Swiss Financial Market Supervisory Authority may impose a penalty on UBS for oversight failures that led to costly unauthorized trades and some $2.3 billion in losses last year.
  • Antonio Horta-Osorio, ceo of Lloyds Banking Group, is said to be planning management changes that would result in his relinquishing some responsibilities in the hopes of avoiding another bout of exhaustion, which led to his recent two-month medical leave.
  • Stephen Hester, ceo of Royal Bank of Scotland, has waived his bonus of nearly £1 million ($1.6 billion) after the U.K.’s Liberal Democrat party threatened to force the government, which holds a 83% stake in RBS, to cancel the compensation.
  • Bank of America is said to have told investment bankers that their compensation would on average be 25% less than a year ago.
  • Portugal’s Banco BPI is planning to raise its capital ratio with a discounted buyback offer for a covered-bond issue, the second European bank to do so this year following National Bank of Greece.
  • Morgan Stanley has been hit with lawsuits by two foreign banks over residential mortgage-backed securities.
  • UniCredit is looking to boost its capital with an offer to buy back up to EUR3 billion ($3.9 billion) of Tier 1 and Tier 2 bonds.
  • John Hourican, head of Royal Bank of Scotland’s investment bank and its highest-paid staffer, is under pressure to forgo £5.6 million ($8.8 million) of long-term bonuses that he is due according to his contract.
  • Citigroup may cut back further in spending on its securities unit if revenue doesn’t improve this year, says John Gerspach, the bank’s cfo.