Receiving Wide Coverage ...
For Sale: HSBC is in talks to sell its stake in China's Ping An Insurance, which is worth $9 billion to $9.5 billion, depending on which paper you believe. A deal could net the bank around $7.5 billion. The FT name drops "Thai billionaire Dhanin Chearavanont, who controls the Charoen Pokphand Group" as a potential buyer. While the move is apparently not in line with HSBC chief executive Stuart Gulliver's statement last year that he had no intention of selling its big stake in Chinese companies, it does fit in with his modus operandi of making "streamlining HSBC's sprawling global operations and increasing profitability" a priority. Papers also attribute the sale to stricter capital requirements set to go into effect next year that make holding a stake in financial institutions more "onerous." HSBC is, however, likely to retain its stake in other Chinese companies, including in the Bank of Communications.
Shadow Banking on the Rise: A new report from the Basel-based Financial Stability Board has found the shadow banking system — which includes "hedge funds, private equity firms and other investment companies" — valued at a new high of $67 trillion worldwide last year. That stat — and various others disclosed in the report — has led the FSB to call for heightened regulatory control of the nonbank banking industry. "If it looks like a bank and quacks like a bank, it has got to be subject to bank-like safeguards," one U.K. regulator told the FT. Its current suggestions for doing so include setting clear limits for money market funds and tightening controls on securities lending and repurchasing.
Extended: The European Commission has granted ING more time to sell its assets and repay its government bailout. The Dutch firm now has until 2015 to repay the $3.8 billion (plus a 50% premium) it still owes from the original $12.7 billion bailout. It also has until 2018 to completely divest its European, Asian and U.S. insurance businesses though it is expected to have certain percentages of these units sold off by various deadlines along the way. Chief executive Jan Hommen said the firm was pleased with the agreement as it leaves ING's "strategic objectives unchanged."
Wall Street Journal
A trustee for Lehman Brothers has
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Financial Times
Investment job cuts are to be expected in general, according to a new private sector report that estimates "investment banks are set to