European banks pledged last year to cut more than $1.2 trillion of assets to help them weather the sovereign-debt crisis. Since then they’ve grown only fatter.
Lenders in the euro area increased assets by 7 percent to 34.4 trillion euros ($45 trillion) in the year ended July 31, according to data compiled by the European Central Bank. BNP Paribas SA (BNP), Banco Santander (SAN) SA, and UniCredit (UCG) SpA, the biggest banks in France, Spain and [...]
After Draghi said he will preserve the euro and the big sovereign bond markets “by any means necessary,” the markets shot higher. Every asset that investors had just given up on was suddenly roaring. But move fast, Cramer warns, because this kind of optimism never lasts. Germany’s “iron chancellor,” Angela Merkel, will always be there to “pull the rug from underneath.”
“How many times have I told you not to [...]
By London Bureau
LONDON — Banco Santander SA SAN -8.09% will shut 96 high street branches as part of its effort to complete the integration of the British lenders it bought during the financial crisis, the Sunday Times reported.
The sites will be closed in towns where the bank has several branches close together, many of which were previously branches of Alliance & Leicester or Bradford & [...]
June 26 (Bloomberg) — Spain is poised for a downgrade to junk by Moody’s Investors Service, according to investors who sent the cost of default insurance for the nation’s biggest banks and companies close to record highs.
Credit-default swaps on Banco Santander SA, the country’s biggest bank, jumped 23 percent this quarter to 454 basis points, compared with an all-time high of 474 in November. Banco Bilbao Vizcaya Argentaria SA rose 26 percent to 477, approaching [...]
Moody’s cuts long-term debt and deposit ratings for 28 Spanish banks between one and four notches. The move comes in the wake of this month’s downgrade of the country’s sovereign debt. The only banks rated above the sovereign: Banco Santander (SAN) and Santander Consumer Finance, for diversification and sufficient Tier 1 capital.
The long anticipated downgrade of the recently bailed out Spanish banking sector has arrived. Moody’s just brought the [...]
As is well-known in the ratings world, sovereign downgrades never come alone: first the sovereign is cut, then sovereign-supported domestic banks (the sovereign is the threshold rating), then general financial companies like insurance firms and specialty fins. Such downgrades are particularly painful when they go through a major threshold such from A to B as they spring various collateral and margin calls into action. One thing we do know is [...]
Spanish banks may need further long-term loans from the European Central Bank, according to bankers advising such firms, after clients withdrew deposits and some lost money investing in government bonds, leaving them without sufficient funds to pay back debt maturing this year.
Lenders in the country took the largest slice of the €1trn loaned out to banks under the ECB’s two three-year longer-term refinancing operations, and currently owe €317bn to the [...]
Bank run started on Santander Bank UK:
The high street bank also saw an increase in enquiries by worried savers to its call centres and in its 1,380 branches across Britain yesterday. Customers are worried that the bank will be dragged into the eurozone crisis because it is owned by Spain’s Banco Santander.
On Thursday, Banco Santander, its UK subsidiary and 15 other Spanish banks had their credit ratings downgraded due to [...]
#1 Moody’s has announced that it has downgraded the credit ratings of 16 Spanish banks. Included was Banco Santander, the largest bank in the eurozone.
#2 Shares of the fourth largest bank in Spain, Bankia, dropped 14 percent on Thursday.
#3 Overall, shares of Bankia have declined by 61 percent since last July.
#4 Shares of the largest bank in Italy, Unicredit, dropped by about 6 percent on Thursday.
#5 According to CNBC, a Spanish bond auction on Thursday went very poorly….
The Spanish Treasury had to [...]
Various austerity programs have been a disaster for the European recovery, shrinking the economy, reducing government revenues and tipping precarious borrowers from performing to nonperforming. If Europe’s banks collapse, U.S. banks will — at best — take a hard body blow from their exposure:
LONDON–European banks are bracing for a wave of ratings downgrades in coming weeks that could intensify pressure on the fragile industry and further undercut recent efforts to [...]
AT A GLANCE: European Banks’ Disclosure On LTRO Participation | 4-Traders
*Intesa Sanpaolo SpA (>> Intesa Sanpaolo SpA) took EUR24 billion, its CEO said.
*UBI Banca SpA (>> UBI Banca Scpa) took up about EUR6 billion, a person familiar with the matter said.
so, we’re looking at 30B of the 75B total going to 2 banks, possibly? and other banks notreporting due to bloodyStigmata? this was designed by mario4mario so this li’l can is kicked for 3 whole years! what “can” happen next is [...]
European banks, under pressure from regulators to bolster capital, are selling some of their fastest-growing businesses to competitors from outside the region — at the expense of future profit and economic growth.
Spain’s Banco Santander SA (SAN), Belgium’s KBC Groep NV (KBC) and Germany’s Deutsche Bank AG are accelerating plans to exit profitable operations outside their home markets. Santander, which said in October it needs to plug a 5.2 billion-euro [...]
Standard & Poor’s ratings service just cut the ratings of Goldman Sachs, Bank of America, Morgan Stanley and Citigroup from A to A-.
Wells Fargo was also cut from AA- to A+. The agency gave both Wells Fargo and Goldman Sachs have a negative outlook.
Those cuts were part of more than 37 ratings reviewed by the agency. Bloomberg says those are dependent upon “criteria change[s]” that were published on November 9.
Other banks mentioned in the [...]
Under orders from Congress and a court order stemming from a lawsuit filed by Bloomberg, the Fed has finally released details of its emergency lending starting in 2007.
As Bloomberg notes:
Bank of America Corp. and Wells Fargo & Co. were among the top borrowers from the Term Auction Facility [TAF]…
Bank of America had three loans for $15 billion each outstanding from the facility as [...]
1) Spanish Banks Face Funding Hurdle Amid Bailout Threat
“Spainâ€™s banks may struggle to refinance about 85 billion euros ($111 billion) in debt next year as costs surge on concern continental Europeâ€™s fourth- biggest economy may need an Irish-style bailout.
â€œThereâ€™s a universal dumping of Spain going on,â€ said Andrea Williams, who helps manage about 623 million pounds ($968 million), including shares in Banco Santander SA, at [...]