The U.S. banks do everything possible to take advantage of low interest rates and rising confidence in myself to the strong performance of the sector this year. This is done through the issuance of significant amounts of new debt, thereby setting the basis for solid gains in the coming years, writes Financial Times. The high interest in fundraising in the U.S. is in sharp contrast with what is happening in Europe, where banks have problems in the issuance of bonds for government debt crisis in the euro area. In recent months, banks such as JPMorgan, US Bancorp, Goldman Sachs and Morgan Stanley easily sell bonds, which indicates a change in market sentiment and increased confidence in the sector. Less than two years after massive U.S. government intervention to rescue the financial system, U.S. banks managed to raise over 7 billion dollars by issuing debt within only one week. According to data from Dealogic, it is the largest amount of new bonds placed for one week since September last year. The US Bancorp has attracted $ 1 billion by selling five-year bonds at 2.45 percent interest. This is one of the lowest interest rates in history paid by Bank in bond, adds Financial Times.
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The end of the working week has brought the closure of three U.S. banks. Thus the number of bank failures in the country since the beginning of the year amounted to 86 and is on track to improve last year’s record of 140 closed financial institutions – the highest number since 1992. Federal deposit insurance corporation in (FDIC) has closed banks in the states of Florida and New Mexico, Georgia, as buyers are financial institutions by the states. The three failure will cost the FDIC 284,6 million dollars. “The growing problems in commercial property and the ongoing crisis in housing loans will cause many bankruptcies,” said Walter Mix, managing director at financial consulting firm LECG LLC. Over the next three and a half years the bank will claim the bankruptcy 60 billion dollar fund to FDIC, said by the corporation on 22nd June. Fund out of deficit in third quarter of last year. Florida-based Peninsula Bank was purchased by Premier American Bank, owned by Bond Street Holdings LLC. January Holding buy two troubled banks. First National Bank of Jordan was been sold by the FDIC of Savannah Bank, a High Desert State Bank in New Mexico – the First American Bank. In the first quarter of this year the list of troubled banks FDIC counts 775 institutions with assets of 431 billion.
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Extractive companies and banks have brought a slight growth of Asian markets, after Australia & New Zealand Banking Group surprise their shareholders with news that will enter Taiwan, and metals prices rose. Meanwhile, companies in the residential sector of Japan and China are ranked among the losers, after local authorities in China have proceeded once again to restrict sales of land, while land prices in Japan reported its strongest decline for the past 36 years. The regional index MSCI Asia Pacific, which monitors stock markets in ten Asian countries, Australia and New Zealand, added 0.1 percent to 124.40 points during today’s session. Friday’s trading ended with significant decreases in most measures of national stock exchange in the region after the Indian central bank increased for the first time in the past two years its main interest rate as a step to combat rising inflation in the country. Most – by 0.7% to 3 053 points lower today Chinese broad index Shanghai Composite, followed by the index of blue chip Nikkei 225 in Japan, which slid 0.5 percent to 10 774 points. Of negative territory and closed stock trading in Taiwan, New Zealand and Sri Lanka. Meanwhile, the Australian index S & P / ASX 200 rose by 0.9 percent to 4 874.8 points, led by mining and financial companies. Shares of all major banks rose, with the most – by 3%, increase the price of shares of Australia & New Zealand Banking Group.
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The Mayor of London Boris Johnson warned the bankers to stay in the City of London, warning that the temptation to move to Switzerland to them face unexpected risks, officials said. “I am told that there are some parts of the canton of Bern, where men are not allowed to urinate made after 10 o’clock at night so as not to disturb their neighbors,” Johnson told a reception organized by the Japanese investment bank Nomura in the ski resort of Davos, which is currently being held traditional World Economic Forum. His comments in the room full of bankers, were made on the news that some hedge funds and investment bankers leave London and move to Switzerland to avoid the EU regulations or imposed in the UK tax revenue over a specified amount and on bonuses. “Time is the master of the universe to show that they can be both servants of society,” said Johnson, a former journalist and a frequent guest on satirical TV shows.
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JPMorgan Chase will launch its global branch banking, which will offer commercial banking multinational corporations transmit Financial Times. This will instruct the bank alongside Citigroup and HSBC. From JPMorgan plans to invest more than $ 100 million in commercial banking division, which will consist of 300 people. The activity will initially be focused on emerging economies such as China, India and Brazil reveals Financial Times. JPMorgan is the aim of reducing their dependence on the weak U.S. economy and to benefit from the problems of Citigroup, have shared the bank’s executives told the newspaper.
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