Keywords:

"We must break up the largest banks, and could do so by expanding the Volcker Rule and significantly narrowing the scope of [these] institutions."
Thomas Hoenig, Kansas City Federal Reserve President, in a speech lamenting the lack of powers regulators have in reining in financial giants that are “a threat to our capitalistic system."

The following are notes from our Monday morning meeting.

HSBC will today announce the bonuses of its top 200 earners, out of a pool of $2.1b, along with expected 2010 profits of $20b.

US banks may pay $20b in total fines for incorrect mortgage foreclosure procedures, for which Citibank is expecting up to $4b, Bank of America $1.5b and Wells Fargo $1.2b.

Brazilian prosecutors are investigating former president Lula da Silva for spending $5.7m to mail 10m letters to pensioners to raise funds for Banco BMG, which has been implicated in illegal financing.

Lebanon's Bank of Beirut acquired 85% of the 10-branch Laiki Bank in Australia for $420m.

Korea Exchange fined Deutsche Bank a record $880,000 and is seeking staff suspensions and demotions for triggering a 2.7% fall in the KOSPI in November 2010, earning it $40.1m in “improper profit”.

China’s CBRC laid out new capital rules for its largest banks, adding a 2.5% counter-cyclical element for banks it feels have abnormally strong credit growth, raising their requirements to 14%.

Taiwan’s Chinatrust is planning to launch a private bank by the end of the year.

Myanmar’s largest privately-owned lender Kanbawza Bank suffered a run due to rumours that senior leader Maung Aye, a close associate of owner Aung Ko Win, may be removed from power.

Two Malaysian CEOs are believed to have resigned last week: EON Bank’s Michael Lor, in the midst of a murky takeover deal for parent EON Capital, and Tajuddin Atan of RHB Bank.

Bank of India is the first local lender to offer trade settlement between the rupee and the renminbi.

ANZ is investing $165m to put its two New Zealand units onto one IT platform.