Financial Business Review: Regional Banks DOWNGRADED, UBS’s Facebook Debacle
Top German banks Deutsche Bank (NYSE:DB) and Commerzbank (CRZBY.PK) are reaping the Eurozone whirlwind: Deposits in Greece, Ireland and Spain are moving to Germany, leaving banks in that country ‘flush’ with cash (up 4.4 percent year-to-year to €2.17 trillion as of April 30, according to the ECB). At the same time, deposits in the three aforementioned countries have fallen by 6.5 percent to €1.2 trillion.
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Nine regional sector banks have been downgraded by Citi: SVB Financial (NASDAQ:SIVB), First Horizon (NYSE:FHN), First Niagara (NASDAQ:FNFG), KeyCorp (NYSE:KEY), PNC, SunTrust (NYSE:STI), M&T (NYSE:MTB), Wells Fargo (NYSE:WFC), and ZION.
Ares Capital (NASDAQ:ARCC) reports that a revolving funding facility has been increased from $500 million to $580 million, with a further rise to $865 million possible. The firm currently holds three facilities, the total of which stands at $1.7 billion, and pay an average of Libor plus 2.3 percent.
Facebook (NASDAQ:FB) trading might have caused a loss to UBS (NYSE:UBS) of as much as $350 million, says a CNBC report. Facebook is reportedly prepping legal action against Nasdaq (NASDAQ:NDAQ), as well.
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