Citigroup, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley are together paying out $65 million extra in lending charges on $9 billion worth of bonds issued since July, according to the Financial Times.
On top of the increasing costs in the bond markets, the banks are having to pay millions in extra charges to borrow in the shorter term money markets, where interbank rates have risen sharply since July, the FT noted.
Moreover, leveraged loans, stuck on bank balance sheets as buy-out deals have been delayed and are also threatening to take a bite out of profits. According to data from Dealogic, worldwide 25 banks are together paying out an estimated $300 million extra in lending charges on $70 billion worth of bonds issued since July. Relating this back to today's Number One, this segment of Finance Inaction is all part of the continuing standoff between the major banks worldwide.
Like the U.S. Federal Reserve, they are all waiting to see which dead bodies float to the surface in financial results that are reported next week.
Like the U.S. Federal Reserve, they are all waiting to see which dead bodies float to the surface in financial results that are reported next week.
Reporting Dates for Major Brokers/or floaters :
Citigroup: October 19
Goldman Sachs: September 20
Lehman Brothers: September 18
Merrill Lynch: October 17
Morgan Stanley: September 19
Lets make lots of money.mp3. http://www.box.net/rssdownload/62608706/03.%20Opportunities%20(Let’s%20Make%20Lots%20Of%20Money).mp3
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