Category Archives: Banking News

Standard Chartered embarks on £1.78bn rights issue

Standard Chartered embarks on £1.78bn rights issue

Standard Chartered has announced plans to raise £1.78 billion in a rights issue.

Existing shareholders will be able to buy 30 shares for every 91 shares held at a price of 390 pence a share, representing a 48.7% discount on the company’s closing price on Friday 21st November.

According to the emerging markets bank, the fundraising will strengthen its position in the current economic uncertainty and allow it take advantage of opportunities that may present themselves in the global financial services sector.

The group, which is listed in London and Hong Kong, has reported that existing shareholder, Temasek, will be subscribing in full to the issue of new shares. The Singaporean sovereign wealth fund already holds a 19% stake in the business. more

Clinton Is Said to Accept Offer of Secretary of State Position

Clinton Is Said to Accept Offer of Secretary of State Position

Published: November 21, 2008
WASHINGTON — Hillary Rodham Clinton has decided to give up her Senate seat to become secretary of state in the Obama administration, making her the public face to the world for the man who dashed her own hopes for the presidency, confidants of Mrs. Clinton said Friday.

The accord between the two leading figures of the Democratic Party was the culmination of a weeklong drama that riveted the nation’s capital. President-elect Barack Obama and Mrs. Clinton fought perhaps the most polarizing nomination battle in decades, but in recruiting her for his cabinet, Mr. Obama chose to turn a rival into a partner, and she concluded she could have a greater impact by saying yes than by remaining in the Senate.

Her selection is still to be formalized and will not be announced until after Thanksgiving. It would be yet another direction in the unlikely journey of a onetime political spouse in Arkansas who went on to build a political base of her own and become a symbol of achievement to many women.

The role, though a supporting one, would make her one of the most influential players on the international stage, and it would represent at least one more act for one of the nation’s most prominent public families, as former President Bill Clinton would also become an ad hoc member of the Obama team.

The sometimes awkward dance between Mr. Obama and Mrs. Clinton in the eight days since he invited her to Chicago for a meeting culminated in a telephone call on Thursday. Before the call, Mrs. Clinton was skeptical about the prospect of joining the cabinet, said her confidants, who insisted on anonymity to discuss the situation. But Mr. Obama addressed her concerns about access, personnel and other issues, leading her to conclude she should take the job, they said.

“She’s ready,” one of Mrs. Clinton’s confidants said. The first meeting in Chicago “was so general” that she needed to have a better sense of how she would fit into Mr. Obama’s administration, and the call helped her “just getting comfortable” with the idea of working together, the confidant said.

Mr. Obama’s advisers said that although no offer had been formally accepted, her nomination was “on track” and would probably be announced after the holiday. Mrs. Clinton’s Senate office broke a week of silence to acknowledge the talks but cautioned that they had not been made final. more

Financial Banking News Worldwide

S-a lansat noul site care va prezinta ultimele stiri din domeniul financiar, bancar si economic international. Daca vreti sa fiti la curent cu ultimele detalii despre criza economica internationala, cu ultimele mutari strategice ale firmelor internationale si sa fiti conenctat la viata financiara mondiala va asteapta cu doza zilnica de stiri.

Abbey and Deutsche Bank linked in Porterbrook sale

Abbey and Deutsche Bank linked in Porterbrook sale

Abbey is reported to be selling its train leasing business to Deutsche Bank, for £2 billion.

Porterbrook Leasing Company was acquired by the bank in 2000 from Stagecoach, for approximately $1.2 billion in cash.

The firm specialises in the leasing of all types of railway rolling stock and associated rail equipment.

The business is now valued at around £2 billion and according to a report in The Sunday Times, Abbey’s parent company, Santander, could be making the disposal to improve its capital position.

In June, Royal Bank of Scotland announced that it had sold its Angel Trains rolling stock leasing business to a consortium headed by Australian infrastructure group, Babcock & Brown, for £3.6 billion.

Other members of the consortium included Deutsche Bank and AMP Capital Investors.

It is understood that HSBC is also considering the sale of HSBC Rail, another train-leasing firm, also valued at around £2 billion.

Angel Trains, HSBC Rail and Porterbrook are the three leading rolling stock leasing companies in the UK, having been formed out of the privatisation of British Rail between 1994 and 1997.

Israel cuts interest rates by 25 basis points

Israel cuts interest rates by 25 basis points

The Bank of Israel has announced a cut of 25 basis points in interest rates for November, which will stand at 3.5%.

The rate cut was largely expected, as concerns regarding inflation declined and new economic activity stalled.

Therefore the central bank decided that the balance of benefits and risks favoured a lower interest rate to try and promote economic activity, particularly as inflationary pressures appear to have begun to ease.

Tax revenues, demand and activity have all declined over the last few weeks, prompting the bank to try and bolster the situation through lower rates.

As with many other nations, the share indices in Israel have fallen substantially in recent weeks, down about 20%.

This decision follows an unscheduled cut of 50 basis points made on 7 October, with a view to returning inflation to the target range of 1-3% over the course of the next year.

The Bank of Israel forecasts a lessening of inflation in the medium term, and intends the lower interest rate to ease the cost of borrowing and promote economic growth.