Deutsche Sees Significant Consolidation, Santander’s New IPO: Financial Business Update

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The world banking industry is about to experience “significant consolidation” due to the Basel Committee on Banking Supervision’s lates series of regulations, says Deutsche Bank’s (NYSE:DB) co-Chief Executive Anshu Jain. He believes that, “Only a few strong large universal banks will remain,” including Germany’s largest lender, Deutsche Bank. Jain’s remarked were heard Wednesday at a conference in Dubai. Under the new guidelines, European lenders will be mandated to reserve more than three times their core capital than was required prior to the financial crisis. The most recent bank in Europe to pull back is UBS (NYSE:UBS) when it announced in October that it would cut fixed-income trading following The Royal Bank of Scotland Group (NYSE:RBS) which has said that in January, it will either close or sell its equity and merger-advisory divisions.

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Banco Santander (NYSE:SAN) is looking to repeat its recent success with the listing of its subsidiary in Mexico by a new IPO of its rapidly-growing United States car financing division, say inside sources. The division is based in Fort Worth and provides loans through over 13,000 car dealers nationwide along with holding a loan portfolio of approximately $18 billion.

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