The European Commission approves restructuring, capital injection of 10 billion program to sell assets with state aid element 20 billion and guarantees totaling 145 billion euros for the banking group Hypo Real Estate, said the European Commission. According to the commission plan for the restructuring of its bank group and Deutsche Pfandbriefbank will restore the viability of the financial institution. All of the foreign activities of the banking group will be displayed outside, with the exception of banking. Competition Commissioner Joaquin Almunia said today that the European Commission’s decision ends one of the biggest cases of state aid in a crisis.
“The restructuring plan must ensure that serious liquidity problems, which suffer from Hypo Real Estate, will be repeated”, Almunia added. Brussels recall that in September 2008, shortly after the bankruptcy of Lehman Brothers, Hypo Real Estate began experiencing liquidity problems. On April 1, 2009 the German authorities informed the European Commission’s first plan for restructuring the banking group.

The U.S. authorities sue Deutsche Bank AG and a subsidiary of the Bank of systematic fraud mortgages that should have been included in the insurance program of the government, writes Wall Street Journal. According to the indictment, the scheme by Deutsche Bank AG has received from the resale of mortgages. The United States and the federal prosecutor in New York Priest Bharara begin proceedings against Deutsche Bank and its subsidiary for mortgage MortgageIT for allegedly repeatedly lied to participate in government programs for the selection of loans with government insurance. Once they were enrolled in the program the two units are chosen by careless way mortgage loans in violation of the rules of the program because they knew all of that borrowers are able to pay their contributions on loans. So the U.S. authorities want to obtain compensation for the associated program for government insurance programs for mortgage loans for the poorest households. They want to receive benefits and interest for an amount to be determined. In response to these allegations Deutsche Bank says it will defend itself vigorously against unreasonable according to her allegations. Deutsche Bank DB is divided by 1.44 percent after news of the case filed against her. The Federal insurance program Federal Housing Administration has paid policyholders for more than 386 million dollars due to approved by Deutsche Bank and MortgageIT mortgages, which are not actually meet the requirements for participation in the program.

HSBC, which is the Europe’s largest bank, has decided to suspend its operations in retail banking in Russia just two years after entry into this business and after that make another British bank – Barclays, Reuters reported, citing a document sent by HSBC to customers.
“We invite all members to close their accounts and HSBC Premier HSBC Plus before June 30, 2011, specifies the document said. HSBC, whose branch in Russia is among the 100 largest banks in the country by assets, will focus on serving corporate customers, bring in a statement. This decision of HSBC, which started operations in retail banking in Russia in mid-2009, comes after the news, announced in February by Barclays to sell their business in retail banking in Russia and will be redirected to investment banking. In the Russian banking sector dominance are state-owned banks, which control nearly 60% of total assets in the system.

The ten largest hedge funds in the world have made profit of colossal $ 28 billion for the six months of 2010. With this data they got higher profits in comparison with the largest banks. The profit of 28 billion dollars is $ 2 billion more than the total profits of banking giants Goldman Sachs, JPMorgan, Citigroup, Morgan Stanley, Barclays and HSBC. Paradoxically, even in the biggest hedge funds run by several hundred people, while in six banks toil over 1 million people. The data relied on Financial Times, show that since its top 10 hedge funds have brought profits of 182 billion dollars of their clients. Leader in this regard is the fund of George Soros Quantum, which since 1973 has so far brought a net profit of $ 35 billion. The Fund John Paulson Paulson & Co is close to the achievement of Quantum, since only the last six months of 2010 has brought a profit of 5,8 billion dollars of depositors. Since its inception in 1994 Pauson & Co has brought its brand of depositors 32.2 billion dollars. The investment banks are often compared to hedge funds before the collapse of the financial system in 2008. And many fund managers opposed this, arguing that banks use much higher leverage in its business.
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The British bank Barclays will buy credit card business in the country of online bank Egg from Citigroup, the amount of the transaction does not state, officials said. The agreement is part of Barclays’ plan to expand its consumer lending. By Barclays reported that the business of Egg credit card in the UK contains 1.15 million accounts. Barclays will integrate the accounts of his division in Egg Credit Card Barclaycard. The deal is expected to be finalized in the first half of this year. Citigroup sold assets of the Egg is part of the program of the U.S. Bank “shedding” of businesses that do not belong to the core business, following a rescue loan from the U.S. authorities during the crisis. From Citigroup acquired by the British Egg insurer Prudential in 2007 to 575 million pounds and for some time trying to sell it.

The Egyptian banks resumed operations today with bank cards, suspended because of unrest in the country. The largest banks in Egypt – Banque du Caire, Bank Misr and Al Ahli, announced today that their customers will again be able to enjoy all the ATMs that are loaded with cash. The authorities also pledged that by the end of the day of the holders of bank cards will be translated into pensions and salaries for February. Cairo Stock Exchange will remain closed until the end of the week. The Egyptian authorities assured the public that food stocks are sufficient and do not expect delivery delays. The government adopted a number of stabilization measures, and for food security were introduced temporary customs exemptions. Authorities say the stocks of grain must reach by June, and deliveries under contracts already concluded are not interrupted. Furthermore, management promised to pay compensation to all those whose property or production affected by the ongoing unrest over a week. In some cases the entrepreneurs have promised tax relief. The extraordinary measures were adopted because of acute shortages of food and cash in the country. Non-working exchange offices, banks closed, Discharged or broken ATMs do not allow tourists to exchange currency. Egyptians themselves have already spent almost all its cash for food and essential goods whose prices started to rise.
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The U.S. regulators have closed three banks in Kansas and Missouri on Friday, bringing the total number of bank failures in the U.S. this year reached 132, reported AP. Federal deposit insurance Corporation (FDIC) has closed based in Jefferson City, Missouri, Premier Bank, which has assets of around 1.18 billion and deposits of 1.03 billion; WestBridge Bank and Trust Co. in Chesterfield, also in Missouri, with assets of 91.5 million and 72.5 million in deposits, and Security Savings Bank in Oleyta, Kansas, with assets of 508.4 million and deposits of 397 million. With the number of 132 bankruptcies in the country this year seems to exceed the pace of last year, when 140 banks were closed. At this time last year, regulators had closed 99 banks. The pace is accelerating due to losses that banks accumulate loans for commercial real estate and construction projects. During the recession, many companies ceased operation, freeing up space in malls and office buildings financed with loans. This in turn led to defaults on the part of entrepreneurs. The total number for 2009 is the highest since 1992.
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The U.S. investment fund Texas Pacific Group (TPG) Capital is negotiating with the Russian government to acquire 10% stake in Russia’s second largest bank VTB, the state plans to sell by year’s end. This writes the newspaper Kommersant, citing its sources by the government. If the deal is done, the U.S. fund may become the largest minority shareholder of VTB Bank (Foreign Trade Bank), in which the state currently has a share of 85.5%. According to preliminary estimates 10 percent of the capital of VTB may cost 2.4 to 3.1 billion dollars. Data to Release on Monday on the issue of selling a package of 10% of the shares of VTB had a meeting with Deputy Prime Minister Igor Shuvalov. Experts explain that if that deal with U.S. fund is implemented, this would have happened to “circumvent” the standard procedure of privatization in Russia, “for which there is a way. During the meeting in question, according to an inside source, it became clear that so far the major potential strategic investor for VTB is TPG Capital, which has said it intends to bring the transaction to a group of nearly 40 other co-investors.
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The Investment Bank Goldman Sachs has decided to close one of its main divisions, which takes care of its own trading account in securities. Communication comes after the end of July, Congress approved the largest financial sector reform in the U.S. from the years since the Great Depression. Took a similar decision this week and JPMorgan, announcing the brokers in the marketing division with equity, it will be closed due to the changes in the regulation of the financial sector. Trading for own account involves the use of equity capital for transactions in securities. Its share of the operations of both banks declined significantly in recent years at about 10 percent of the revenues of Goldman Sachs. Investment banks and large companies in the U.S. came under fire from the public last year, so that caused the financial crisis of 2008 with excessive risks not make in mourning for its own account. Bill Dodd-Frank on financial reform, which was signed by U.S. President Barack Obama this summer, limiting banks risking equity through transactions on their account.
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The British banking group Lloyds Banking Group announced that it is withdrawn from the market in Ireland. As a reason for this state financial institution “concluded that the country is minimal growth opportunities,” said Wall Street Journal. The decision of Lloyds, 41% of capital owned by the British government, comes after the closure of the entire network of bank branches to Ireland. It took place in June when 44 branches across the country closed doors. Before the financial crisis, Lloyds has managed to achieve significant gains from the real estate boom in lending, but now the situation in the country is quite different. Because of the crisis leading banks in Ireland are facing huge losses, but three of the largest financial institutions were nationalized. Nationalization because investors fear that the country will need to pour more of taxpayers’ money in the banking sector, which in turn negatively impact on confidence in the stability of Ireland. In recent months, speculation about a collapse of the financial system periodically recruited force, which is reflected in strong growth in the risk premium of Ireland.
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