Chillin' out till it needs to be funded
Deutsche Bank’s deal for up to $3 bln from its non core fund businesses including two REITs and a Institutional Fund business as well as a Pension Fund and a US/ retail Funds business from Scudder, seem to be ready for a deal with Guggenheim partners. JP Morgan apparently did not ant to add anything more than Scudder yet. the news appears in Wall Street Cheat sheet as JP Morgan’s Investor Day leads to more good news for the bank’s investors and the bank continues its strong buy back program into the new year.
The European Central Bank issues the next tranche of three year Long Term Refi Operations, today’s digit being EUR 550 bln the number of outstanding debt European Banks needs to repay this year. Both JP Morgan and HSBC carry $15 bln and $12 bln in European Exposure apart from the large write offs from French and German Banks. DB ‘inherited’ GGB stakes in the Postbank deal. Investments in Portugal have been sounded a warning by S&P even though the State has a much lower debt to GDP ratio as austerity cuts into growth and apparently the state itself is revisiting its austerity plans and financing needs, though not asking for a dole. Any amount worth $1.5 bln or more would add back considerable clean capital to the DEutsche Bank balance sheet to complete the previous EBA gap requirements due by June 2012. European Banks have also been RWA optimising their portfolios to make up for the gap as
deleveraging will continue for 3-5 years with final Basel 3 terms kicking in in 2015 and 2018 including a leverage cap for the overall bank based on its equity to 33 times , a herculean effort for European wholesale funding model fed banks to comply. IIF is mulling a private bond exchange offer from Greece currently as S&P’s SD notation on its CCC rating puts paid to the scheduled vote on Greek financing in Germany
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