Top US officials on Thursday stated they hoped to provide the US$650 trillion derivatives industry additional time as they work out how the fresh rules on swap contracts will apply abroad.
A lot of foreign banks, as well as US banks, confront a December 31 deadline by which they need to comply with many of the latest regulations from the top US derivatives official for swaps, financial instruments used currently mostly for speculation. Following are some big US banks and their updates.
Bank of America Corp (NYSE:BAC) announced that it has issued a notice of default to MBIA Inc. (NYSE:MBI) after purchasing some of the bond insurer’s notes in an effort to obstruct a legal maneuver in their three-year disagreement over deadly mortgage assets. [article_detail_ad_1]
Bank of America, which remained unsuccessful to convince investors to sell it a majority of the $329 million of 5.7% bonds payable in 2034 that were due early in November, stated in a statement yesterday that it has purchased $136 million of the notes. MBIA stated on November 26 that it bought back $170 million of the securities, leaving $159 million in investors’ possession, in accordance with figures compiled by Bloomberg.
Wells Fargo & Company (NYSE:WFC) Advisors, which possesses the simplest pay structure among main broker-dealers, has upgraded the target on the revenue its brokers must make to be eligible for its 50% payment next year. As an incentive, it added a bonus for gathering fresh clients and assets.
Citigroup Inc. (NYSE:C) this week assisted the US Treasury sell the final of its equity holding in the insurance giant American International Group, Inc. (NYSE:AIG), bringing an end to a 19-month sale procedure that Citi had been engaged in from the beginning.
The US government purchased 92% of AIG’s common stock in 2008 to stop the collapse of an institution considered to pose a systemic risk to the financial sector.