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Securitization People and Markets

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  • The U.K. has rejected a recommendation by Vince Cable, its business secretary, to break up the Royal Bank of Scotland and create a bank to boost lending to businesses.
  • BBVA has become the first Spanish bank to take over a nationalized lender, Unnim, for a single euro as the Bank of Spain looks to unload troubled institutions it holds.
  • Lloyds Banking Group is putting together a £600 million ($949 million) portfolio of loans for its second such sale in six months. .
  • Allied Irish Bank is planning to cut 2,500 jobs, about 20% of its workforce.
  • Vince Cable, the U.K.’s business secretary, is recommending that the government break up the Royal Bank of Scotland and to create from it a British Business Bank to expand lending to businesses.
  • Major European banks such as Barclays and Lloyds Banking Group have borrowed funds through the European Central Bank’s Long-Term Refinancing Operation through their subsidiaries in other countries to make them more financially self-sufficient and reduce their exposure to these units in the event local economies worsen.
  • Credit Suisse has announced that it plans to repurchase about CHF 4 billion ($4.38 billion) in outstanding securities to meet tougher capital requirements imposed both by the Swiss government and the Basel Committee on Banking Supervision.
  • Germany’s Commerzbank says it plans to raise its core Tier 1 capital by EUR776 million ($1.02 billion) in the first half of the year by exchanging an estimated 361 million new shares for debt securities that have an aggregate principal amount of EUR965 million ($1.32 billion).
  • HSBC Holdings stands to lose £18 billion ($28.57 billion) of its value, thanks to a new U.K. levy imposed on banks and legislation that would force banks to ring-fence their retail banking operations, according to Stuart Gulliver, new group ceo.