Keywords:

“Casting doubt on the sustainability of public debt or of the European financial system may bring us to a ceaseless downward spiral of sovereign debt and banking crises.”
Emilio Botin, Chairman of Banco Santander, on key challenge for European banks, which need $150b in new capital after EU emergency stress tests.



The following are notes from our Monday morning meeting.


Goldman Sachs had a 3Q loss of $428m because of its private equity business, its 2nd quarterly loss ever; Morgan Stanley earned $2.2b, Citi $3.75b, Wells Fargo $4b, JP Morgan $4.26b and BOA $6.2b.

Alessandro Profumo, CEO of UniCredit, is among 23 executives from Italy’s largest bank and Barclays reportedly under probe for tax evasion.

RBS abandoned plans to open an investment banking arm in Brazil.

Qatar National Bank and HSBC are both bidding on DenizBank, the Turkish subsidiary of troubled Belgian lender Dexia.

Mitsubishi UFJ will slash 20% of staff in the struggling Japanese securities JV with Morgan Stanley it owns 60% of, cutting 1,300 jobs to reduce costs. Larger rivals have cut fewer positions.

China plans to sign an agreement with ASEAN to formalise renminbi trade settlement, providing a framework for future currency swaps.

Taishin Financial Leasing, a subsidiary of Taiwan’s Taishin Financial, set up its headquarters in Nanjing, with plans to open branch offices in Dongguan and Shanghai by the end of 2011.

Floods in Thailand forced 14 banks to close 227 branches in two provinces north of Bangkok.

Pakistan appointed Yaseen Anwar governor of the central bank, replacing Shahid Hafiz Kardar.

NAB hired JP Morgan and Deutsche Bank to help it issue covered bonds, a $130b market approved last week by Australia’s parliament.