On the informal data, one of the largest banks in the USA America Corp. (BofA) plans to return $45 billion of state help to the American bank till the end of 2009. BofA expects to receive money from private investors and sale of not profile actives. In particular, the bank is intended to get more than $35 billion already in the end of September, 2009.
BofA expects to gain nearby $6-7 billion from sale of such actives, as private bank First Republic, financial company Financial Data Services and insurance company Balboa.
At the same time due to the sale of a part of a share in China Construction Bank Corp. the bank has received nearby $7,3 billion.
BofA also plans to carry out converting of preference shares for the sum of $9 billion and to get $2 billion by means of the postponed taxes.
It is worth of mentioning, that on May, 20th, 2009, BofA has finished the placing of new shares, started on May, 8th, 2009. After promulgation of the governmental stresses-tests the bank has sold $1,25 billion of ordinary shares to investors and thus it has received about $10,77 billion.
Largest American bank cards-emitter American Express (AmEx) is ready to pay $300 to each client, in case of debt liquidation of debt account. Analysts believe that such step will help company to reduce growth of nonpayment under credits.
In terms of financial boom the card companies actively increased the client base by means of special offers - from charge of bonuses to indemnification of part of the expenses made by card. However, situation has cardinally changed during the crisis. In order to pay to get rid of the clients, menacing to bring the problems to company in the future, AmEx is ready to take radical measures now. AmEx has offered its clients Â«to simplify the financeÂ», having closed credit accounts. In case of the response to this special offer clients will receive the prepaid bank cards for about $300. AmEx has not informed exact number of clients to which this offer has been directed, no less than criteria on which borrowers were selected. AmEx analysts prove that they consider various variants of management of credit risks, being based on the general credit profile of their clients.
Analysts notice, that, offering money to clients, the company tries to solve at once two problems. First of all, AmEx guarantees primary money repays against the clients, using credit cards at once of several companies-emitters, and secondly, the company relieves itself of a part of the risks connected with nonpayments under credits. It is better to make it now while clients still have any money. It is worth of mentioning that nonpayments under the credits, which have been given by AmEx, have grown for about 7 %. According to Goldman Sachs analysts, defaults under credits by the end of this year can reach 11 % that will lead to decrease AmExs profit by 40 %.
American Express suffers from caused by crisis of growth of nonpayments and decrease in number of card operations more than its competitors -Visa and MasterCard - as they do not give credits and offer only serve transactions of banks. The company has already received $3,4 billion from the US Ministry of Finance.
Since May, 12th, one of the world’s largest reinsurance companies Swiss Re closes the Moscow office,Â¬ which was engaged in operations of life and health reinsurance. Head office managers prove, that this decision is connected not with crisis, but with desire to simplify organizational structure of the company all over the world.
Swiss Re informs that it is going Â«to concentrate resources of support in the largest offices and to consolidate specific functions in the global centers of group serviceÂ».
Thus Swiss Re underlines, that this organizational change does not concern the reinsurance agreements, signed with Swiss Re in Moscow. The director of Moscow office Swiss Re Miroslav Kovalski has refused to give comments, having confirmed only, that the office will be closed since May, 12th.
In the beginning of April it became known, that Swiss Re is going to cut more than thousand workplaces and in the context of the program of reduction of expenses for 400 million Swiss francs (351 million dollars) by the end of 2010 since May, 1st, it appointed Agostino Galvagni as a new Chief Operating Officer. The next year 10 % from more than 11 thousand employees of the company will be dismissed. Experts also prove that the company will not manage to return profitableness, as long-term assets on its balance make almost $50 billion.
Largest American banks - Bank of America Corp. and Citigroup Inc. are asking for additional capitalization. Results of stresses-tests of the largest banks of the USA have showed lack of capitalization. Some regional banks also will face capital shortage.
As The Wall Street Journal marks, results of stresses-tests regulators recommended Citigroup and Bank of America to increase their capital. In particular, according to the edition, capital deficiency of Bank of America makes billion dollars.
However, the management of both banks does not agree with preliminary results of the stress-tests.
According to the results of the first quarter, 2009, Bank of America has shown the profit, which has repeatedly exceeded forecasts. bankâ€™s net profit has grown 3,5 times and has reached $4,25 billion in comparison with $1,21 billion in the first quarter of last year.
The third on size the American bank Citigroup Inc. has shown losses in size less than $1 billion, however, these results became good news as losses reduced more than on $4 billion in comparison with the similar period of last year. Aggregate profits have grown almost twice - up to $24,79 billion though analysts predicted only $21,73 billion.
During crisis these credit organizations have got the governmental support in $95 billion.
American regulators have spent special stresses-tests to define financial stability of banks. Earlier US Federal reserve system informed, that level of the capital of the majority of the banks, which were tested, is sufficient to consider these banks as well capitalized. However, according to FRS, substantial damages have essentially lowered capitalization and have affected crediting.
Experts and investors predict that some regional banks, especially those, in which portfolios great volume of the credits provided with the commercial real estate, will show extremely negative results of stresses-tests. Such American banks as Regions Financial Corp., Fifth Third Bancorp and Wells Fargo and Co.Major need additional capitalization.
In April Swiss bank UBS declares about additional of the staff reduction on 26,4 thousand people - basically in Switzerland.
First of all, the departments, which have not been connected directly with bank activity, for example, marketing departments, will suffer.
The Swiss company on actives management, winning first place in the world on the size of actives, has suffered more than its competitors. Earlier it has been declared, that the company will dismiss more than 10 % of stuff in 2009.
In April DeltaCredit improved terms of hypothec crediting programs.
Rates under bank programs in rubles and dollars are offered with 14,5 % and 11 % accordingly.
Thus the standard commission for all credit products makes 1,5 %.
The offer operates in all regions of DeltaCredit presence and banks-partners of its correspondent program.
Swiss private banks have forbidden their top-managers to leave the country, even if they want to visit France and Germany, because of fears, that those will be arrested in connection with world struggle against bank secret.
The head of one large Swiss bank has informed on conditions of anonymity that USA and Germany have started to struggle actively with concealment of taxes and bank secret, and the Swiss banks have been compelled to go for such measures in order to protect their employees.
This interdiction should be entered before G20 summit, where the problem of bank secret will be discussed.
Let’s remind that in 2007 UBS has appeared in the center of the whole series of the American criminal and civil prosecutions. On June, 19th, 2008, former UBS banker Bradley Birkenfeld has admitted to court of Florida, those employees of bank helped some rich clients to hide their actives from US tax specialists.
As American accusers have counted up, thus UBS has been hidden nearby $20 billion, which are belonging to US unfair citizens, and bank received annual profit in 200 million dollars from this money. UBS has already agreed to pay $780 million to the US authorities.
Rescue of a financial system of the USA acquires scandals. Insurance company AIG has disclosed information about how it used state injections: $93 bln. have been listed to the American and European banks within the limits of execution of obligations under contracts of the insurer. The major part of this sum has been given to Goldman Sachs ($12,9 bln.) in which ex-Minister of Finance of the USA Henry Polson and present AIG head worked.
AIG has been rescued by the American authorities from crash in September, 2008, since then the state help volume has grown from $85 bln. to $170 bln. The company has directed $93 bln. on payments to banks within the limits of execution of obligations on insurance of their investments into hypothec securities, crediting of the securities, and also closing of contracts with banks. The largest payees from rendered AIG to the state help became were Goldman Sachs ($12,9 bln.), and also a trio of the European banks: Societe Generale ($11,9 bln.), Deutsche Bank ($11,8 bln.) and Barclays ($8,5 bln.) became the largest payees from AIG’s state help. And AIG’s payments under the obligations can increase, as the company has disclosed information since September, 16th, till December, 31st, 2008.
In the fourth quarter 2008 losses of American hypothec agency Fannie Mae in the fourth quarter has made $25,2 billion.
Hypothec giant has informed, that $15,2 billion is required to it to cover the deficit of the means, caused by growth of volumes of bad debts and falling of interest rates.
In the fourth quarter, 2008, Fannie Mae’s losses have seven times exceeded losses for the similar period of the previous year, and made $3,56 billion. During 2008 the company has lost $58,7 billion.
Fannie Mae is one more leader of the US hypothec market - Freddie Mac.
Credit cards market has difficult times now. Many clients close their accounts while banks toughen access conditions to credits and raise interest rates.
The most interesting is that, that credit cards users became more conscious: if earlier Americans made practically all purchases on credit now they try to save and use credit cards only in case of emergency.
Moreover, some experts notice, that against growing unemployment and aggravation of a condition of the American economy consumers try to buy only the most necessary things. According to bank analysts, so sharp decrease in purchasing capacity testifies of credit crisis aggravation. In particular, the expert believes, that accessible consumer liquidity in the form of demand lines of credit will be reduced on 45 %.
However, debts on credit cards can bring big problems to the large banks, in particular, to JPMorgan Chase and Co, Citigroup Inc, American Express Co and Discover Financial Services.