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Securitization People and Markets

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  • Lehman Brothers Holdings said it will make a first payout of roughly $22.5 billion to creditors April 17, more than twice the expected minimum.
  • NBNK has revised its bid for Lloyds Banking Group’s 632 branches after Co-operative Group, which had the winning offer, has yet to close the deal.
  • The Paragon Group has acquired additional unsecured consumer loans from the Royal Bank of Scotland as part of its agreement announced last October to acquire such loans for consideration of £43.2 million ($68.9 million) and more modest acquisitions from time to time.
  • New rules adopted by the U.S. Consumer Financial Protection Bureau will likely raise operational, compliance and reporting expenses for mortgage servicers, including large banks, according to Fitch Ratings.
  • Performance indicators for Portuguese residential mortgage-backed securities are misleading, according to Fitch Ratings.
  • Spanish banks may have to close an additional 10,000 to 12,000 branches as a result of a reduced demand for loans, according to Enrique Garcia Candelas, head of retail banking at Banco Santander.
  • BNP Paribas, Commerzbank and the Royal Bank of Scotland are among the European banks looking to unload an estimated EUR100 billion ($130.7 billion) in debt to meet new capital requirements through a wide range of debt instruments, including covered bonds and hybrid debt.
  • Top executives of the Royal Bank of Scotland and Lloyds Banking Group say their distressed loan books are improving, with RBS’ non-performing loans rising only 6% last year, while Lloyds’ impaired loans have dropped by 10%.
  • The sales of commercial mortgage-backed securities linked to multifamily buildings by Fannie Mae, Freddie Mac and Ginnie Mae soared 81% in the first quarter to $13.5 billion from a year earlier, the highest quarterly issuance since Bloomberg began tracking the data in 1993.