5 billion already released in their favourFor the startup the approach is differentIssuers must also make a significant haircutWhile Citigroup still enjoys a Tier1 by 11Sitting on the dock Barbie has the blues4 of GDP this year would be more profoundTransmission a strategic issue for the CFAThe overall budget of the ICC represents 3Own fundsIt is not repeated the Dutch clean2 billion of financial flows are expected in the areaThe stock markets, brought by the financial to are offered a vigorous rebound yesterday. Investors were reassured to learn that Citigroup would display, this quarter, its best performance since 2007. An internal memo of the American Bank, which on several occasions received the support of the State, was made public. Wall Street was at the party. S & P 500 index is awarded 6,37 at the end, to 719,60 points, the Dow Jones 5.8, to 6.926,49 points and the Nasdaq 7.07 to 1.358,286 points. Citi took off from 37,14 to 1.44 dollar after its course had dropped under 1 dollar, to the rank of "penny stock" last week. Yesterday, in his wake, Bank of America climbed 27,73, JP Morgan 26,46, Morgan Stanley 20.3 and Wells Fargo 18,46.
European indices followed the movement, the Bank values is also leading the rise. The DJ Stoxx 600 won 4.93, 165,99 points, is its largest increase for three months. The European banking compartment is granted almost 12. It had fallen by 18 last week, while the Pan-European index down to its lowest level since the end of 1996.
Markets concerned
Yesterday, the relief was also linked to speculation on Barclays. The British Bank would have sufficient capital and would not need the help of the Government.
So far, it is clear that the market was not reassured by measures to support the banking sector in the United States and Europe. The plan announced by the US State Secretary, Timothy Geithner, on toxic assets from financial institutions has yet to be implemented, which poses a number of issues, especially on private actors willing to participate in the operation. Nationalization of the Lloyds Bank and the system of guarantee of banking assets up to 260 billion pounds announced last weekend did not provoked momentum of optimism on the London Stock Exchange Monday.
Voltage of the 3 month Libor
On the contrary, risk perception indices related to this sector be are even strained. At the beginning of the credit, the Itraxx "financial" (on the subordinated debt and senior debt) even reached highs the market de le le marché de le l' financier l' l' financier "financial" The lowering of the perspective of the note by HSBC from "stable" to "negative" by Moody's helped fuel the fears. CDS (credit default swaps"), which reflect the cost of a guarantee against default risk, also evolved to very high levels in the insurance sector.
Another little encouraging sign: the interbank rate in dollars, to 3-month Libor, tends to every day since February 24. 1.24 Thus passed to 1.33, reflecting a rebound in the uncertainties to the banking system. After the bankruptcy of Lehman Brothers, the Libor and his counterpart in euros, the Euribor, had jumped, while banks refused to lend cash. To address this, central bankers had to inject massive funding and lower the rent of money. The return of confidence in the banking system obviously requires more. It passes through the establishment of stricter rules, as noted yesterday the President of the US Federal Reserve, Ben Bernanke, who returned on regulatory issues.
