The withdrawals of deposits from individuals in the French-Belgian banking group Dexia in September exceeded the EUR 1 billion, reports the Belgian newspaper De Tijd. Only on 4th October, Tuesday when securities of the banking group plummeted by 22%, depositors Dexia, frightened by the news of its financial problems, downloaded new bank branches in 300 million, and another 100 million – by Internet banking. Today the international rating agency Fitch has confirmed long-term rating of the banking group at A + and its stable outlook, but the list for review with the possibility of lowering its rating for financial stability, which is currently at b +, this is considered a signal risk of downgrade of the group and the need for government support. The Agency also noted that ratings for financial stability will be removed from the list of possible relief only after a final assessment of the effectiveness of measures taken by management for financial institutions to overcome this situation. The central banks of Belgium and France have already announced that full support Dexia. The concerns about the financial group is increased against the background of growing tension in terms of a possible bankruptcy of Greece. At the end of the second quarter, Dexia had the assets to Greek government bonds worth 3.8 billion EUR.
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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.

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 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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Since most European banks have moved long-awaited stress tests, they now face even more serious challenge in the coming months, namely – the collection of long-term resource for billions of dollars with which to finance lending. Card is placed on the fragile economic recovery across Europe. Unlike the U.S. the majority of European companies rely on bank financing. If banks fail to attract investors to the bond markets, they will be able to grant long term loans, which businesses to fund their investments. According to the European Central Bank (ECB) bank loans accounted for 70% of debt financing to companies in the euro area, while 80% of loans to U.S. companies raised through capital markets, reported Wall Street Journal. European governments are hoping stress tests that only 7 of 91 banks failed to pass, to reduce concerns about the health of the banking sector in Europe, encouraging investors to buy bonds of credit institutions. So far, banks face problems raising funds from markets, and instead resorted to mass services of the ECB to fund their daily operations. “The real test is whether banks will be financed at a reasonable price from the capital markets to perform their usual function in the economy,” said Gary Jenkins, head of analysis of fixed income instruments at Evolution Securities.
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Plans by financial regulators around the world to force banks to set aside billions of dollars in additional capital to cope more easily with future crises will be lifted because of intense lobbying against them by the financial sector. Details for Regulatory Reform, which was published six months ago, became the subject of heated disputes between lawmakers and representatives of the banking sector. Now achieved consensus tends to reduce the severity of the proposed changes, writes Financial Times. Preliminary draft of the latest proposals of the Basel Committee, responsible for regulation in the banking sector worldwide, will be presented at the summit of the G-20, which will be held in Toronto this weekend. The most significant change proposed by the committee’s recommendations affect the financial reforms of the amount of liquid funds that banks must hold to protect themselves in financial crisis. Measures to improve the capital base of banks in the short term are retained. Basel Committee, however, may abandon the idea that banks should maintain a stable long-term lending. This means that more stringent rules for consideration of the maturity of their assets and liabilities may be removed. According to representatives of the banking sector made design changes to the financial reform could prevent an excessive increase in funding costs for banks that will affect them and the fees they pay customers. Six months ago they predicted in its initial form measures could bring the industry to 5 billion additional costs.
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The British bank Standard Chartered Bank has gathered 537 million dollars from offering shares in India, announced the Air Force. The issue was oversubscribed more than twice. Standard Chartered has sold Indian shares through depository receipts. This is the first such sale made by a foreign company in the country. The Bank will issue 240 million Indian depository receipts at a price of 104 rupees (2.24 dollars) each. Interest in the issue was both by institutional investors, and the individual. Receipts will be listed two exchanges – Bombay Stock Exchange and National Stock Exchange of India, to 11 June Buyers will receive receipts of bonuses or dividends on them in the same way as if they were direct owners of shares in Standard Chartered. The Bank plans to increase its presence in India, has opened its first branch more than 150 years. Really this revealed in front of many investors the potential of the Asian market and show that the countries like India and China can be the consumer of the financial instruments offered by the European companies and banks.
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Raiffeisen International Bank Holding AG may sell units in Russia and Ukraine in the event that the financial company had to strengthen its capital base and reserves with which to cover possible losses from bad loans to its subsidiaries. This forward Moskow News, quoted the Chairman of Raiffeisen International Christian Conrad, the Austrian group that is ready to give up control over their Russian and Ukrainian banks. Raiffeisen International is one of the largest foreign banks in Russia and owner of Raiffeisen Russia in Russia and Raiffeisen Bank Aval in Ukraine. According to Christian Conrad final decision will depend on whether and how much will have to increase the reserves of the subsidiaries of the Bank’s bad loans. By Raiffeisen International also stated that there are several possible scenarios for the development of the group in the future, one provides its teams in Russia and Ukraine to be sold through initial public offering (IPO). In February, Raiffeisen Zentralbank Osterreich, which is one of the largest cooperative banks in Austria and Raiffeisen International announced plans for a possible merger. Raiffeisen International is a public company in which 70% of capital held by Raiffeisen Zentralbank, the rest are traded freely within the Austrian Stock Exchange. The main market is Raiffeisen International Central and Eastern Europe, the bank is represented in 17 countries in the region.
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