December 2011

Top stories

ECB: The end of the last resort

ECB: The end of the last resort

Politicians and market participants, seeing investors turn their backs on the EFSF and abandon the European government bond markets, are pressing the ECB to save the day and increase its buying. That will require a dramatic change of heart. And could an already stressed ECB balance sheet even cope with the demands that such a programme would entail?

Western Europe

Property crisis drains Spain’s hopes of recovery

Property crisis drains Spain’s hopes of recovery

As a seventh bank is taken under state control, Spain faces a race against time to deal with its bad real estate assets before they contaminate the entire banking sector. A bad bank could be the only solution, despite opposition from bankers and politicians.

Rebuilding Europe’s banks: Irish lessons

Rebuilding Europe’s banks will take a long time and cost a fortune. Ireland, which has done more than any other country to rebuild and right size its banking system, offers important lessons for this process.

North America

US retail banks go to war

Universal banks need retail revenues more than ever as investment banking profits plummet. The US industry is facing its biggest challenge as some 7,000 banks battle to make their business models work. The main battleground: deposits.

Asia Pacific

Real estate: Property throws a shadow over China

Talk of a Chinese property bubble and potential crash is misleading. The country’s real estate sector is as varied as China itself. But what unites Chinese property investors, and the government, is concerns about the pace at which building continues, prices are falling and the extent of exposure in a growing shadow banking sector.

Glitch and glamour of Chinese IPOs

The allure of public listings has been tarnished by offshore scandals while banks are tightening their lending, forcing CEOs of China’s most dynamic companies to look to new funding sources. Is the offshore IPO market dead?

Debt markets

Covered bonds: Fund-starved banks risk collateral damage

Banks are turning to the covered bond market to replace prohibitively expensive senior unsecured funding, fuelling anxious investors’ concerns over encumbrance levels. But should they be looking closer at claims elsewhere on the balance sheet?

Foreign Exchange

RBS hangs hat on prime brokerage to boost FX revenues

Foreign exchange provides the best return on equity of any capital markets business. To drive more volume through their franchises, banks need a successful prime brokerage business. For RBS, it holds the key to making up lost ground in foreign exchange.

Central Asia

Central Asia: Micro matters

Microfinance has its problems, but it can drive the economies of developing nations. So what if it wasn’t there? To find out, Euromoney went to the former Soviet republics of Tajikistan and Kyrgyzstan to meet its lenders and clients.

Latin America

Latin America: Debt-defying Deutsche eyes equities

Latin America: Debt-defying Deutsche eyes equities

In the past two years, Deutsche Bank has enjoyed strong growth in its debt capital markets business in Latin America – its eighth autonomous region. Now Bernardo Parnes, its regional chief executive, reveals his plans to take on the competition in equities and M&A.

Operational risk

Emerging markets

Patchwork story for emerging Europe’s bankers

Eurozone-based lenders dominate banking in central and eastern Europe. They have faced writedowns and intransigence in parts of the region. But good profit growth means the CEE is still the central focus of their business.

Banking news

Markets news

Asia news

Latin America news

EEMEA news

Market leaders

Columns

Macaskill on markets: Downgraded banks face hits from additional collateral payments

Bank of America recently issued a footnoted warning in a regulatory filing about $11.5 billion of additional collateral payments on derivatives it faces because of rating agency downgrades. At the end of September the bank was on the hook for $4.9 billion of extra collateral that it might be required to pay but had not yet posted, including $3.2 billion linked to its September 21 downgrade by Moody’s.

Sideways: Nominees try to be Wall Street smart

The decision by Congressman Barney Frank not to seek re-election to the US House of Representatives next year could result in an unexpected financial windfall for some employees of Goldman Sachs.

Against the tide: Euro’s end game

Unless crucial links in the chain of contagion are broken and sufficient resources are provided to cover all sovereign liabilities, the eurozone is doomed.

Easing Europe’s woes after failed Bund auction

Does a failed Bund auction last month reveal serious investor concerns about Germany’s credit fundamentals if treaty changes lead to closer fiscal union and put it on the hook for the periphery’s debts?

Front End

Research Guide