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China's banks start to samba with Petrobras deal

Another sign of how fast the global financial markets are changing. Industrial and Commercial Bank of China (IDCBY.PK) will be one of the investment banks running the book for the $32 billion share offering of Petrobras (PBR). This will be the first time a Chinese...

Look for another wave of bank acquisitions

Banks are about to start scrambling for capital again. In the United States that means it will be hunting season for banks looking to make acquisitions. But because they’re bumping up against rules that limit individual U.S. banks to 10% of national deposits, the...

A banking recovery for big banks only?

Increasingly the U.S. banking story is a tale of two sectors. For big banks, it’s the best of times. Well, at least, a very tasty recovery. For small banks, it’s, if not the worst of times, still pretty grim. And the discrepancy is still growing. The 7,000 banks...

Update HSBC (HBC)

It’s by no means a done deal—nothing is in South Africa these days—but Nedbank, the South African bank majority owned by insurer Old Mutual (OML.L), is HSBC’s (HBC) deal to lose. HSBC beat out rival Standard Chartered (SCBFF.PK) for the right to hammer out a formal...

Euro (central bank) politics kill the euro rally–dead

If this is what a euro hawk is saying now, the European Central Bank will be in the emergency lending business well into 2011. That would match the U.S. Federal Reserve’s recent promise (most recently from Fed chairman Ben Bernanke today, August 27) to continue its...

McDonald's financial secret sauce contains yuan

Want some yuan with that Big Mac? On August 19 McDonald’s (MCD) became the first foreign non-financial company to sell yuan-denominated bonds in Hong Kong. The U.S. company sold 200 million yuan (about $30 million) of 3% notes due in September 2013. Standard Chartered...

Update HSBC (HBC)

Wait! A bank with too much capital? Hard to believe but analysts at UBS calculate that’s exactly the “problem” that HSBC (HBC) is likely to face over the next four years. UBS forecast that the bank’s Tier One capital ratio hit 10% by the middle of 2010 after...

It's a wonderful bank

If you were designing a bank now, from scratch, for growth and maximum profits, what kind of bank would you build? Bank earnings to date—from the biggest and most aggressive investment banks such as Goldman Sachs (GS) to the do-everything behemoths such as JPMorgan...

Update US Bancorp (USB)

US Bancorp (USB) CEO Richard Davis wasn’t all that optimistic about the U.S. economy in the conference call after his company reported second quarter earnings on July 21. Demand for credit from businesses continues to fall and unemployment may climb to 10% later in...

Goldman will take the SEC's fine out of petty cash

It’s not even a slap on the wrist. The $550 million fine agreed to by Goldman Sachs (GS) as part of its settlement with the Securities & Exchange Commission (SEC) amounts to roughly a week’s worth of trading revenue for Goldman. Considering that the SEC put the...

LIBOR climbs and bank stocks fall–what else is new?

Bank stocks are down today around the world—and the blame goes to that old devil LIBOR. Dollar LIBOR, the London Interbank Offered Rate that banks pay for short-term loans in dollars, climbed to 0.536% from 0.510% yesterday. That’s the 11th day in a row that LIBOR has...