Foreign exchange
Meagre $5bn profit for US commercial banks, says FDIC
Federally insured US banks posted total profits of just $5 billion for the second quarter of 2008, an 87% drop on the $31.8 billion earned over the same period in 2007 and the second-worst earnings results since 1991.
Banks' latest ARS settlement falls short
Merrill Lynch has agreed a $7 billion settlement with its auction rate securities (ARS) customers, but the deal leaves the larger purchasers uncovered, as did a similar settlement at Goldman Sachs.
Canadian ABCP restructuring faces last hurdle
Efforts to restructure C$32 billion ($30.6 billion) of Canadian asset-backed commercial paper (ABCP) moved closer to a resolution on August 18, when the Ontario Court of Appeal unanimously dismissed the claims of a group of corporate investors that…
Fannie and Freddie equity plunge continues as bailout looms
Speculation is mounting in the US that the Treasury will shortly have to give direct support to Fannie Mae and Freddie Mac, as the government-sponsored enterprises’ (GSEs) equity prices plunged to 17-year lows today.
Foreign banks face $475 billion subprime losses
Although banks such as UBS have reported massive subprime-related writedowns in the early stages of the mortgage crisis, European banks are not over-represented in the subprime market, according to research published by the US Federal Reserve.
BarCap appoints new FX structuring head for Americas
Barclays Capital has appointed Tim Davenport as managing director and head of FX structuring for the Americas. Davenport joins the bank from Bear Stearns, where he was head of structured derivative products for the past two years.
Deutsche launches proxy inflation index
Deutsche Bank has created a proxy inflation index that seeks to mirror inflationary trends in Asia excluding Japan by using a combination of inflation in Europe, the US and Japan, and commodity exposures in food and metals.
Bank monoline exposures creep up in second quarter
Second-quarter results yielded further markdowns at major dealers due to the increasing counterparty risk posed by monoline insurers.
A clear message
Editor's blog
CEBS addresses Basel II implementation issues
Daily news headlines
RBS strengthens FX and rates exotics in Asia-Pacific
RBS has strengthened both its trading and structuring teams in Asia-Pacific with two senior appointments. Rubin Rajendram joins as head of euro and US dollar rates exotics trading and Richard Summerbell as head of currency structuring for Asia ex-Japan…
Dow Jones offers new Indian index
Dow Jones Indexes has launched the Dow Jones India Titans 30 index, which is designed to provide exposure to the 30 largest and most liquid stocks listed on the Bombay Stock exchange and the National Stock Exchange of India. The index will be licensed as…
£5.6m fine for Credit Suisse over mismarking
The UK Financial Services Authority has fined Credit Suisse £5.6 million for failing to stop mispricing by some of its structured credit traders.
Evolution launches catastrophe derivatives division
Environmental brokerage firm Evolution Markets has introduced a brokerage and transaction service to focus on the catastrophe derivatives market.
UK regulators propose remedies for future mortgage bank recoveries
As a result of the fallout from the crisis at Northern Rock, the UK Treasury, Bank of England and Financial Services Authority have produced consultation papers with recommendations on how to deal with similar episodes in future.
Indian Basel II brings mixed blessings for banks
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The price isn’t right
Shifting European power marketstructures and fundamentalsmake price risk management formajor consumers a real challenge.Noreen Guy and Damien Coxexamine the most effectiveprocurement strategies
Calibrating trees to the market prices of options
How trinomial trees can be used to calibrate a local volatility model tothe market prices of average price options. By Jim Clark, Les Clewlowand Chris Strickland
DME sells equity stake to trading firms
The Dubai Mercantile Exchange (DME) has concluded the sale of a 20% equity stake in the exchange to six global financial institutions and energy trading firms.
UBS commits to $18.6 billion ARS buyback
UBS has joined Citi and Merrill Lynch in agreeing to buy back auction rate securities (ARS) at par, in an offer that could affect up to $18.6 billion in securities over the next two years.