Deutsche Bank AG, BNP Paribas SA and Goldman Sachs Group Inc. are among banks that will need to maintain higher capital adequacy provide plans of the G-20. The higher capital buffers in the amount of 1 to 2.5 percentage points. A total of 29 banks may need to meet higher requirements stated in the document prior to the Board for financial stability. The measure was approved by regulatory authorities in order to prevent possible failure of systematically important financial institutions. Systematically important banks need “higher capital requirements to reflect the cost of their eventual bankruptcy,” said Mario Drago, president of the European Central Bank (ECB). Nomura Holdings Inc. and Spain’s Banco Bilbao Vizcaya Argentaria SA are not included in the list of banks with higher capital requirements, while Lloyds Banking Group Plc E.
“The list is generally not a big surprise if you look at what are the 30 largest global banks”, said Henry Irving, director of the British Banking Association. “It is interesting that they find the name of Standard Chartered”, he said. “Surprisingly, that is not included and Nomura”. Among the state banks in rank list Goldman Sachs and JPMorgan, but not Morgan Stanley.
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The international rating agency `s Moody’s lowered ratings of 12 British and 9 Portuguese financial institutions, including Lloyds TSB, Royal Bank of Scotland, Nationwide and Santander UK. The grounds of the rating agency to Britain reduced its expectations for the capabilities of the British government to support companies in distress. By Moody’s, however, stressed that reductions do not reflect the “deterioration of the financial stability of the banking system”. The information is immediately reflected in quotations of the shares of financial institutions such as Royal Bank of Scotland fell in value by 3.8% and Lloyds TSB – by 3.4%. “The Moody’s Investors Service today downgraded the debt with the right of first lender and the rating of the degree of security to depositors of 12 British financial institutions and affirmed the ratings of an institution. Declines are a result of revaluation by Moody’s for the supportive environment in the UK, which is reflected in the elimination of systemic support for 7 smaller institutions and reduce system support … 5 bigger and more important in relation to systemic financial institutions”, says the agency. The ratings of the government-controlled Royal Bank of Scotland are cut by 2 degrees, while Lloyds TSB, a division of partially nationalized Lloyds Banking Group – by 1 degree. In the British unit of Spanish bank Santander is a decrease of 1 degree, while Nationwide Building Society – 2.
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The U.S. authorities closed another small bank on Friday – Bank of Commerce of Wood Dale in Illinois, bringing the total number of bankruptcies in the country since the beginning of 2011 – 26. The Bank has assets of about 163.1 million dollars out of the Federal Deposit Insurance Corporation (FDIC). Depositors of the failed bank will be assumed by Advantage National Bank Group of Elk Grove Village, also in Illinois. In 2010 a total of 157 U.S. banks failed, while in 2009 140 were closed banks. The majority of bankruptcies lately are smaller institutions with assets under $ 1 billion because big banks have recovered more quickly from the financial crisis in 2007-2009. The FDIC Chairman Sheila Bair said the agency expects the number of bankruptcies in 2011 to decline. Small banks remain affected by the weak economy and bad loans, particularly in the commercial real estate. In the last quarterly report of the FDIC, published on February 23, indicating that the number of banks’ troubled list “grew to 884 from 860. Most of them will fail, but the list gives an idea of ​​how many banks experiencing difficulties. Presenting the report, however, Bear said the outlook for the sector is improving as a whole, including small bank.

The United States announced that it would introduce unilateral sanctions against 16 Libyan state-owned enterprises, including the Libyan oil company, state funds and banks and the national airline of Libya, news agencies reported. The sanctions provide freezing of their assets in the U.S. and prohibiting Americans to do business with those companies.
The penalties are imposed on the Foreign Minister Moussa Kusan whose assets are frozen in the U.S.
On 25th February the U.S. unilaterally imposed a series of financial sanctions against the government of Libyan leader Muammar Gaddafi, but that protect assets belonging to the people of Libya. Sanctions were imposed on Qaddafi and several members of his family. The crisis in Libya is still growing and the countries from G-8 got decision to make no-fly zone in the sky of the country. The forces of Muammar Gaddafi are fighting with the opposition and now are controlling more than a half from the country.

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 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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FDIC for deposit insurance in the U.S. (FDIC) announced that it has begun preparing more than 50 cases meetings of senior officials and executives in banks that had to be closed by the institution. Thus, it will attempt to recover over $ 1 billion of losses caused by the credit crisis. Decisions to initiate the proceedings were taken in the closed sessions and have not been announced publicly. The institution has closed a total of 294 banks since the beginning of 2008 so far tried to amicable agreements with bank bosses who have caused failures of their managed organizations. “We are ready to begin. You can go to court and submit them tomorrow, “stated Richard Ostarman by management of the FDIC. Currently the institution has filed only one case – against four senior officers of IndyMac Bankorp, as they sought $ 300 million. In a bank failure and intervention of the FDIC inspectors institution need about 18 months to establish whether management of a bank has a “contribution” for her failure.
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The bankers who spent last year lobbying against reforms in the sector can be attributed to well-deserved break. For others it will not be easy. In the upcoming month of August will be three years since the first problems appeared with the British bank Northern Rock, which after weeks triggered a liquidity crisis. A year later, does it require large U.S. banks to be bailed out by government. The time is ripe to ask what has changed since then to make the global financial system more secure in reporting greater risks and less dependent on government support. The sad answer is that changes are not enough. Last week the bank regulators have imposed new standards on capital adequacy and liquidity – those who had to identify harmonization and firmness in global financial regulations, against the backdrop of attempts by banks to avoid monitoring. Instead, the Bank for International Settlements (BIS) announced exchange earlier proposals and give the banks eight years to meet the requirements. BIS should succumb to pressure from France and Germany do not be too tight to their banks. Discouraging compromise followed European stress tests that only 7 of 91 banks have not passed because the criteria they were too low.
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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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