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Europe opportunity to get into Transaction Banking for US banks / funds

The year of the Water Dragon comes once in 60 years, while the 3.5% IMF/Germany maximum request and the 4.0% minimum required by investors to agree keep s interest in the Euro Foreign Ministers’ conference as also the size of the 2013(now 2012 European Stability Mechanism)

Meanwhile German and French banks will likely get additional 3 years to keep their insurance subsidiaries without new leverage and solvency norms to the holding company and also they will not be required to share their leverage.

Ikea which refused to change its sourcing to feed India’s 100% FDI requirements for its stores has grown at 3 stores a year in China from 2009 when it had only 6% of its business from China on a turnover of $30 bln( PAT $2.77 bln)

Above : The Markets team at DJ’s Marketwatch looks to the Japanese banks growing at the expense of European retrenchment and says JP Morgan could go in for more Trade Finance in this weak year for Europe..

Meanwhile US funds are back in the continent funding $ 6bln of US banks owned abroad and $3 bln for foreign domiciled bank notes. Funds with $2.7 tln in the highly rated funds according to the FT, had shipped out of Europe on pssibility of a default late las t  year and are again participating in French one month paper as well as Spanish, Dutch and Scandinavian paper ( AAA, 6 months) aftter the default saga completed.

Funds are also responsible for a bump up in Short end treasuries and collateral to 25bp and 30 bp as they move into now safe credit instead of govt issue.

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One comment on “Europe opportunity to get into Transaction Banking for US banks / funds

  1. Pingback: New Derivatives for Trade Finance | Banking Insight | The Banking and Strategy Initiative

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This entry was posted on January 23, 2012 by in Amitonomics, Banking, US and tagged , , , , , , , .


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