RBS Privatization Scheduled, Credit Suisse to Pay U.S. Regulators: Weekly Financial Biz Recap
Here’s your Cheat Sheet to this week’s financial industry business headlines:
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Shares of CreXus Investment Corporation (NYSE:CXS) were downgraded from Buy to Hold at Deutsche Bank on Tuesday, following the offer of $12.50 per share on Monday by Annaly Capital Management (NYSE:NLY) for all outstanding shares of the former, and also, the price target was elevated from $12 to $12.50. No further bidders are expected, and the analyst expects that the offer will be accepted.
The Bank of Ireland (NYSE:IRE) has conducted its first public bond sale within two years on word that it’s prepared to leave a state guarantee plan, along with saying anew that it anticipates loan losses will shrink. The company is Ireland’s biggest lender by assets, and a statement released Tuesday indicated that it sold 1 billion euros, or $1.27 billion, of three- year, Irish residential mortgage-covered bonds, which was twice its minimum target. The Bank added that “This transaction marks an important step for Bank of Ireland in returning to a more sustainable funding position and reducing reliance on monetary authority borrowings.” Citigroup (NYSE:C) and Morgan Stanley (NYSE:MS), among others, were mandated to carry out the transaction.
Last week, the Federal Reserve released its instructions for the next round of stress tests for banks, igniting the perennial guessing games among analysts, observers and investors as to how much each company will be allowed to pay their shareholders. On Tuesday, analysts at Bernstein have calculated that JPMorgan Chase & Co (NYSE:JPM) and Bank of America Corporation (NYSE:BAC) should be able to provide more for their investors than first thought, although Citigroup (NYSE:C) might get less to spread around than it hoped. Specifically, predictions are for as much as 35 cents from JPMorgan and 2.5 cents from BofA, with Citi coming in with 12 cents a share.
Goldman Sachs Group (NYSE:GS) was in the asset management business in South Korea for five years, but is now opting out off that fiercely competitive market, according to a statement by the firm’s representative in Hong Kong. Dealing with South Korea’s own institutions and tiny profit margins is known to be difficult, and if a firm is trying to compete by using only sub-scale operations, the task is far more difficult. Presently, Goldman’s division manages approximately $4 billion in assets while employing around 40 persons.