Barclays has been named as the party that called on the Bank of England's emergency lending facility on Monday, as the stock market uncertainty claimed another victim, the Scotsman reports.
The UK's third-largest bank, which is involved in a takeover battle with a Royal Bank of Scotland-led consortium for Dutch peer ABN Amro, is understood to have borrowed £314 million from the BoE.
AMERICA’S FOUR BIGGEST BANKS, including Citigroup and JPMorgan Chase, have backed the Federal Reserve’s drive to restore stability to the financial system by borrowing $2 billion from its so-called discount window, the Times reports.
The banks, which also include Bank of America and Wachovia, are borrowing $500 million each after the Federal Reserve last week cut the rate charged on “discount window” loans to banks from 6.25 per cent to 5.75 per cent.
The move was one of the steps the Fed took on Friday to boost liquidity by encouraging banks to borrow from it. The other measures included extending the term of these loans from one day to 30 days.
WORLD MARKETS HAVE BEEN CALMED FURTHER after Bank of America provided Countrywide Financial, the troubled US mortgage lender, with a much-needed $2bn (£1bn) cash injection, the Telegraph reports.
Bank of America said it hoped the investment "will be a step toward a return to a more normal liquidity in the mortgage markets.”
BHP BILLITON, THE WORLD’S LARGEST MINING COMPANY, announced record post-tax profits of $13.4 billion (£6.7 billion) yesterday as demand from China continues to drive the resources sector, reports the Times.
Profits in the year to the end of June were up 28 per cent and BHP believes that the boom in commodities will continue for the foreseeable future.
The rapid industrialisation of China is creating enormous demand for BHP’s raw materials.
For example, Chinese expenditure on BHP’s stainless steel materials, primarily nickel, has increased from $2 million in 2002 to $2.3 billion last year. That increase has led to a sharp rise in commodity prices and BHP expects this to continue as India joins China in rapidly industrialising its economy.
HSBC HAS SUFFERED AN EARLY SETBACK in its attempt to secure a £2.5bn takeover of Korea's sixth-largest banking group, Korea Exchange Bank, the Telegraph reports.
Korea's Financial Supervisory Commission said any decision on the sale of Lone Star Funds' 51pc stake would have to wait until a legal tussle over the US buyout firm's 2003 acquisition of the bank is settled. That may take three years or more, Lone Star's lawyers said.
Lone Star has confirmed it is in "exclusive talks" to sell its stake to HSBC, which has ambitions to expand in Asia's third largest economy. However, a deal will require regulatory approval, which may not come until a legal case is resolved.
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Is this the same Barclays who wants to be regulated by the Dutch Regulator and not the UK Treasury/BoE? Sorry I mean FSA, don’t I?
Phil Castle is an IFA at Financial Escape.IFAonline
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