The Troubled Asset Recovery Program (TARP) was started by the U.S. government in 2008 to purchase assets and equity from troubled financial institutions and strengthen the sector at the height of the credit crisis. Billions of tax payer funds were loaned to banks and other lenders thru this program. According to a report in The …
On August 23rd, the British-banking giant HSBC Holdings (HBC) bid for Nedbank(OTC: NDBKY), South Africa’s fourth largest bank. HSBC is trying to buy the majority stake held in Nedbank by Anglo-South African insurer Old Mutual. The deal potentially valued at $6.8B would give HSBC a 70% stake in Nedbank and offer the bank a strong …
The stress test for European bank is over. The majority of the banks passed the test though some question the depth and usefulness of the exercises. Generally similar to US banks reporting better earnings, most of the large European banks are in the recovery phase and are reporting higher profits and lower provisions for losses. …
On July 23rd European regulators will release the results of the stress tests which measures the ability of Europe’s bank to withstand future economic shocks. In the U.S., similar stress tests were conducted last year and for the most part the results were positive. Some of the Eurozone banks with strong capital levels and exposure …
Continue reading ‘Review of Capital Levels of European Banks’ »
The investment firm KBW has published its “Takeover List” in the U.S. banking sector after a gap of about two and half years. An article in The Wall Street Journal noted some of the reasons for the expected M&A activity include: A lack of earnings power Tough regulation on capital and use of debt More …