DeltaCredit reduces interest rate on 1,5 %
Written on 22 September 2008 by adminSavings and loan association DeltaCredit represents the unique program of hypothec crediting in rubles - DeltaEconomy, which will allow borrowers to receive the hypothec credit under the interest rate on 1,5 % below the size within the limits of the standard program of bank.
Delta Economy is a unique product for the Russian market, intended for the borrowers, wishing to save on the mortgage due to the low interest rate and correct finance management.
In general, the program represents symbiosis of products with the fixed and floating interest rate. Repayment of the credit within the first 5 years occurs in view of the fixed interest rate, which value starts from 11,45 %, that is on 1,5 % below the interest rate under the standard program of bank. And, since 6 years of credit life, DeltaEconomy may be transformed into the credit with the floating interest rate adhered to index Mosprime3M + from 5 %. The program does not provide any additional commissions for borrowers.
The new offer operates in all regions of DeltaCredit’s and banks-participants’ presence.
American bank Lehman Brothers is bankrupt
Written on 15 September 2008 by adminAmerican bank Lehman Brothers Holdings Inc. (LBHI) has declared about the intention to submit the application on bankruptcy to the American court on bankruptcies according to reference 11 of United States Bankruptcy Code.
According to the application, such decision was accepted for protection of bank’s actives and maximization of its cost for shareholders.
Thus the application for bankruptcy does not concern broker divisions of the company, which will continue to work in former mode: in particular, the application for bankruptcy will not mention division Neuberger Berman LLC and Lehman Brothers Asset Management.
According to the legislation on bankruptcy, LBHI is measured to send to the United States Bankruptcy Court a list of prime actions, which will allow the bank to continue operational activity regularly, to court on bankruptcies. These prime actions will, first of all, include payment of wages and other indemnifications to employees.
Now LBHI studies an opportunity of sale of the broker operations and as appeared earlier, negotiates for sale of the investment management division to several potential investors. Sale of these divisions is considered alongside with other strategic alternatives.
MasterCard and Citibank introduce PayPass
Written on 10 September 2008 by adminIn the beginning of October international payment system MasterCard and Citibank are going to introduce the project on use of technology of contact-free payments - PayPass in the Moscow transport.
PayPass technology is widely used for payment of the goods - it is simply enough to put a card with the special built in microprocessor to the terminal. By function PayPass can be equipped not only to MasterCard, but also a watch, a charm, a mobile phone or any other subject, which person has got used to carry daily. The similar technology payWave exists at Visa system. In Russia it is used only for using Moscow underground by means of Moscow Bank’s Visa Electron cards.
PayPass - is very useful technology in the industry with low cost of transactions and with high frequency of transactions, for example as transport. The technology will have a wide circulation in the future, but for this purpose it will be necessary to strengthen safety of transactions.
Sale of Postbank is still under the question
Written on 4 September 2008 by adminSituation with sale Postbank remains not clear within several months. Now the main problem of the transaction relies in question of the price. Financial crisis has destroyed all plans of parent concern Deutsche Post, which hoped to receive about 10 billion euro for the bank. Times, when the rate of Postbank’s shares exceeded 60 and even 70 euros, have remained in the past.
On Monday its securities cost about 44 euros. Thus, exchange cost of Postbank has decreased approximately up to 7 billion euro.
In view of such succession of events Deutsche Post has declined to postpone sale of “daughter” till the best times - when the situation in the financial markets will become more favorable.
Recently there was information, that Deutsche Bank is the most probable candidate on purchase of Postbank, however, names of Spanish bank Santander and Netherlands ING simultaneously sounded.
After Commerzbank’s and Dresdner Bank’s merge it became obvious, that the variant of their “tripartite alliance” with Postbank from the agenda is finally postponed.
In a year credit crisis leave 2,5 million Americans without houses
Written on 31 August 2008 by adminIn the second quarter in the USA because of hypothec crisis the quantity of cases of deprivation of the rights to the incorporated inhabited property has doubled and Americans began to receive notices on eviction from banks, to which they have run into debt. According to branch organization RealtyTrac Inc., each 171-st American house owner is to loose the right of the habitation repayment. They also cannot to sell their houses urgently, as market cost of objects is already frequently less than the sum of duty under the hypothec credit, and the transaction becomes obviously unprofitable.
In comparison with the last year the quantity of the house owners, who have received from bank the prevention of possible sale of property or the notice on a default under the credit, and also those who has already lost the right to the repayment of the incorporated real estate, has increased on 121 %. Only for the second quarter growth of this parameter has made 14 %. Fast recession of the prices for the real estate in the USA has compelled experts RealtyTrac to increase the forecast on evictions by 2008 up to 2,5 million cases.
RBS can sell credits for 8 billion dollars
Written on 25 August 2008 by adminYesterday Financial Times (FT) has informed that the second-largest bank of Great Britain Royal Bank of Scotland (RBS) sells to funds of direct investments Apollo, TPG and Blackstone credits for 8 billion dollars. Bank’s mass-media representatives do not make comments on this information. Analysts mark, that the transaction can be a part of strategy of bank within the limits of which it from the beginning of year has reduced actives on 200 billion dollars.
According to FT sources, RBS sells a part of the credits portfolio for the repayment of the companies. Thus, according to Blackstone’s President buyers of credits can receive the 30 percent income on the transaction as the credits, which have fallen in price because of crisis. Investment division Blackstone GSO Capital is one of participants of the transaction, however, its concrete conditions while are unknown.
Thus if the transaction will prove to be true, it will become one more step in strategy of bank on reduction of the actives, which it realizes after purchase of Dutch bank ABN Amro.
Credit crisis has come to Asia
Written on 18 August 2008 by adminThe majority of the Asian economies have practically not suffered from August crisis of credits of subprime level. As the American financial system tried to recover from summer crash, the Asian companies enjoyed stable profits and increased manufacture.
However, recently business in this region does not go well. Economists mark, that in June, 2008, volume of export from the countries of Asia has sharply gone on recession, testifying that credit crisis has come to the Asian states.
The chapter of Hong Kong Feng Tai Footwear Co Ltd marks that the problem consists in the western companies. Because of purchasing capacity decrease they do not know what to do with the goods and often break off contracts with suppliers.
In economists opinion, rates of growth of the Asian economy (except for Japan) will decrease from 9,1 % in the past to year up to 7 % in this year.
If demand from the USA will continue to decrease, the majority of developing countries will face sharp delay of rates of economic growth. And the Asian countries will not be the exception.
SocGen and Northern Rock have disclosed their losses
Written on 10 August 2008 by adminNet profit of French bank Societe Generale (SocGen), which in the beginning of the year has become a victim of the swindle largest in history from the trader, in the second quarter, has reduced more than twice - up to 644 million euro.
Yesterday the victim of credit crisis, largest in the Great Britain bank, Northern Rock (NR) in the first report after nationalization has opened semi-annual losses in 747 million euro.
Yesterday in the Great Britain NR has informed on the loss in the first half-year in 592 million pounds sterling (747,3 million euro), it is connected with write-off by bank of the delayed credits for the sum 191,6 million pounds (242 million euro), and also with charges on business reorganization.
NR has been nationalized in February of the last year after what it has gone through crisis of liquidity and scale response of means from deposits. Nationalization has been caused by absence of competitive private offers; however, this step still causes disputes.
NR, however, has informed, that has paid to Bank of England 9,4 billion (11,9 billion euro) from 26,9 billion pounds (34 billion euro), which it still should pay. Northern Rock has informed, that it will return to profit not earlier than 2010, when it expects to extinguish completely debts before British Central Bank. Thus yesterday the government has met NR, actually having given to it new financial injections: 3 billion pounds (3,8 billion euro) from the remained duty and preference shares for the sum 505 million the euros belonging the government, will be converted in ordinary bank’ shares.
European banks disclose credit losses
Written on 5 August 2008 by adminYesterday The largest bank of Europe HSBC has informed on decrease in semi-annual profit almost on third, up to 10,2 billion dollars, on a background of write-offs in the American hypothec business. HSBC became the first of European banks, which this week would open the losses before investors.
Nevertheless analysts mark, that the bank copes with crisis much better the majority of competitors owing to business diversification and good presence in developing markets of Asia.
Meanwhile HSBC only the first in a turn of the European banks which will open the losses from crisis. Analysts expect, that British Royal Bank of Scotland (RBS) will inform on the loss from 1 billion up to 1,5 billion pounds sterling (2-3 billion dollars) in the second quarter, which becomes the largest in history of bank sector of the country. Under analysts’ forecasts on Thursday Barclays will show 35 percent decrease in quarter profit, up to 2,6 billion pounds (5,1 billion dollars).
Besides, today French bank Sosiete Generale can declare falling profit on 69 %, up to 550 million dollars, and BNP Paribas can open, that after write-off 475 million euro its profit has fallen to third, up to 1,5 billion euro. From the beginning of crisis credit losses of the European banks have already exceeded 209 billion dollars.
Japanese banks become more active
Written on 26 July 2008 by adminThe bank sector of Japan has overcome consequences of the American hypothec crisis almost lost-free. Local financial institutions operated cautiously and promised high percent reacted to investment offers at the minimal risks. The Japanese bank branch has started to show activity just now.
According to Association of the Japanese banks, net-profit all financial institutions of the country has fallen on the average to 38 % and is on the lowest for last three years a level in 2,12 billion yens.
One of the largest Japanese banks Mizuho, which has suffered all the same strongly enough in result of the American financial crisis, plans to address to local investors. Thus it is necessary to note, that unlike the western banks crisis has not destructed it. And its competitors in Japan have even enough means to be aimed at favorable purchases worldwide.
So, for example, bank Sumitomo Mitsui buys a share in strong on-suffer as a result hypothec troubles Barclays in London. The concept of their cooperation provides, in particular, mutual support at release on the domestic market of the partner. Sumitomo Mitsui managers prove that interaction with the global player allows moving ahead in those segments where they could not make the way. Now the largest investment bank of Japan Nomura plans to create division, which similarly to a hedge-fund will invest in the bond in the New York branch. In these purposes Japanese have got firm Proxima Alfa Investments. It has also become known that the leader of the Japanese financial branch bank Mitsubishi UFJ Financial Group also prepares serious transaction.
