Tag Archives: Europe

Credit Suisse to Cut Heads in Europe


LONDON – The Credit Suisse is reducing its management staff in investment banking department in Europe up to a third, said three sources familiar with the matter, at a time when tighter regulation and weak markets is affecting the sector.

“In the business of European investment banking (Swiss bank) will get rid of 60 managers and general managers,” a source said Monday.

The department troubled investment banking advisory affected in mergers and acquisitions, stock market quotation, financing and debt issues.

“This is one third of managers and between 10 and 15% of general managers,” said one source, referring to those who usually are the two most senior positions in the banking world.

The layoffs would occur in July, said the source. The formal process may take several months.

A second source said the cuts at Credit Suisse could ultimately affect between 20 and 30% of managers of investment banking in Europe. Credit Suisse declined to comment.

Other major investment banks have begun to cut jobs after a difficult second quarter.

Several international banks have fired at least 50 people in Asia over the past three weeks and is expected to continue at the cuts.

Credit Suisse last year announced a plan to cut 3,500 jobs worldwide and reduce 2.100 million in annual costs by the end of 2013 in their private banking divisions, asset management and investment banking.

The entity continues to conduct layoffs after having cut about 2,000 jobs in the first quarter of 2012. In total, the bank aims to cut 7% of its workforce.

Spain Will Ask Help from Europe


BRUSSELS – Saturday, Spain became the fourth country to ask for help from the beginning of the debt crisis in Europe.
The country will order financial assistance to its partners in the eurozone, but not until you have a clear idea of ​​the amount of capital that banks need from private audits will be completed in a few weeks, told Reuters on Saturday three sources of the European Union (EU).

Spain said during a teleconference with the finance ministers of 17 countries in the euro area would aid its banks, but could not specify the amount until Oliver Wyman and Roland Berger (two independent consultants) present its assessment of capital requirements by 21 June.

“They want the help, but only say how much money is in a few days,” said one source.

A bailout of faltering banks in Spain could reach up to 100,000 million (125,000 million) once it is requested by Madrid.

It is unclear whether the figures are defined Rescue on Saturday, but the International Monetary Fund (IMF) gave a clear guide to what you think is needed to say that in a scenario of “stress”, several Spanish banks need additional capital 40.000 million. However, the agency advised to collect more than that.

“Going forward will be critical to clearly communicate the strategy to provide a deterrent credible to the scarcity of capital, a brake as experience shows, it is better to overestimate than underestimate,” Ceyla Pazarbasioglu, assistant director of the Monetary Department and Capital Fund, said in a statement .

Eurozone leaders want to strengthen the position of Spain before the Greek elections of June 17, which could bring the country Hellene a block output and unleash a wave of contagion.

Members of the Government in Spain have said that in practice, the parameters of the audits of the IMF and private firms are the same, implying that Spain could make your request for assistance based on figures from the bottom instead of waiting to another report.

Meanwhile, the president of the Bundesbank, Jens Weidman said that Spain should use available tools, such as the European Financial Stability Fund (EFSF), if they feel overwhelmed by their financial needs.

Although all indications are that Spain will join Greece, Ireland and Portugal to receive a European bailout, officials say that the aid would focus only on its banking sector, without taking the Spanish state of credit markets.

That would be crucial to avoid overloading the bailout funds from the euro area, which would struggle to cover the costs of the Spanish debt over the next three years, plus possible additional assistance to Portugal and Ireland.

Any political conditions on aid would not be excessive, would be related to banks and probably adding to the austerity measures and structural economic reforms that the Government of Rajoy has already started, sources said the EU and Germany.

Loan, not bailout: Spain

The Spanish government admitted his intention to seek foreign funding to capitalize the banks.

At a press conference at the headquarters of the Ministry of Economy of Spain, the portfolio holder, Luis de Guindos, said it’s not a bailout but a loan.

The official noted that the amount will be sufficient to meet the needs and added a “significant cushion” in addition there will be no macroeconomic conditions, since the measure is limited to the financial sector.

They argued that the loan application to the EU to the Spanish banks will only conditions for financial institutions, so it is excluded country’s economic policy.

In Guindos, downplayed the Spanish prime minister, Mariano Rajoy, has not appeared to explain the application of EU aid to Spanish banks.

Rajoy said that was not brought “by a very simple question, I am the member of the Eurogroup and the Prime Minister”.

In the press conference, the Spanish minister said that this is a loan on highly concessional terms, better than the market, and that “will not leave the slightest loophole for doubt.”

He said that the injection is made through the Rescue Fund Management Banking (FROB), which will interface and divert government entities need.

Ministers confirm agreement

The 17 finance ministers from the eurozone reported that Spain will “soon” formal request for assistance to its members and will receive up to 100,000 million (125,000 million) once the application is processed.

After a conference of more than two hours, the ministers said in a statement that financial assistance would be provided by some of the two mechanisms rescue the block, the EFSF or MEDE, and would be designed to recapitalize banks Spain going through more trouble.

German recognition

German Finance Minister, Wolfgang Schaeuble, recognized Spain for its decision to seek help from their partners.

Madrid said he was “big steps” to control their economic and financial problems and was on the right track.

“It has launched structural reforms. Spain, and this is what they are saying all international institutions, is on the right track,” he said.

Schaeuble believes Spain can control its banking problems.

Europe Paves the Way for Eurobonds

BRUSSELS – In June, the European Council President, Herman Van Rompuy, will present a road map to “strengthen and deepen” the monetary union, in an attempt to lift the euro in the current crisis.

“We have to bear the monetary union to a new phase. There is a consensus that we must intensify integration,” said Van Rompuy at a press conference this morning, at the end of an informal meeting with the leaders of the European Union (EU) in the Belgian capital.

Greater fiscal and monetary integration in the euro area is considered by many countries as a prerequisite for the creation of so-called Eurobonds, an initiative by France, which relies on it to help stimulate growth in the commonwealth.

However, after nearly eight hours of discussion with their counterparts, French President, Francois Hollande said he understood that “certain countries are totally hostile” to the idea, particularly Germany, a historical ally of France.

German Chancellor, Angela Merkel, said that, “Eurobonds are a tool for integration, not growth.”

“I respect your point of view (Merkel) when you say that Eurobonds are not an instrument of growth in themselves. But they are tools that can help you get growth,” the French President added.

Moreover, the rulers agreed on the need to adapt EU policies to promote growth, including the area of ​​international trade, and improve labor mobility and investment in training to support job creation.

It also called on the European Investment Bank (EIB) to analyze, in the face of June, how it will strengthen its capital to improve access of SMEs to credit.

The OECD and World Bank said that emerging countries have taken steps to help them cope with the crisis.


Mitsubishi stops production in Europe

Japanese carmaker Mitsubishi Motors will stop production of cars in Europe this year.

The company becomes the second Japanese automaker to do so after the onset of the global financial crisis, says Reuters.

The company said that by 2013 cars will cease production at its plant in Born (The Netherlands), which are assembled model subcompact Colt and Outlander SUV. However, Mitsubishi Motors will continue to sell cars in the European market but those vehicles will be produced either in Thailand or Japan.

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