Financial Times Summary

Tue 21 Oct 2008

HSBC
The credit crisis risks triggering a rise in protectionism that could prolong the downturn, the chairman of HSBC, the world's largest bank, has warned. Stephen Green acknowledged that the crisis had put free markets "in the dock" and that a recession, which now seems "inevitable" challenge the world's commitment to free trade.
Royal Bank of Scotland
One of the largest shareholders in Royal Bank of Scotland and HBOS yesterday signalled that it might be willing to add to its stakes in both banks after they agreed a £31.5bn capital injection from the government.
French Banks
The French government is to inject £8bn into France's six largest banks in a bid to shore up their balance sheets and ensure they continue to provide credit to consumers and businesses. Credit Agricole will receive 3bn euros, BNP Paribas 2.55bn euros, Societe Generale 1.7bn euros, Credit Mutuel 1.2bn euros, Caisse d'Epargne 1.1bn euros and Banque Populaire 0.95bn euros.
Societe Generale
Shares in Soc Gen fell sharply for the second time in a week on concerns that France's second-largest bank might need to recapitalise.
Icelandic Banks
Iceland is poised to announce a $6bn rescue package, led by the International Monetary Fund and backed by a number of other central banks, to help it stabilise its economy after its banking system collapsed earlier this month. People with knowledge of the talks between Iceland and IMF said that the fund expected to contribute just over $1bn, with central banks from the Nordic and Japan contributing the rest.
Bank of America
Bank of America's takeover of Merrill Lynch is likely to cause thousands of lay-offs, John Thain, Merrill's chief executive said on Monday. Speaking in Dubai whilst on his regional tour, Mr Thain said that the jobs would be lost in the corporate and services sectors, such as information technology. He added that B of A's acquisition of Merrill's investment and wealth management businesses would be completed by the end of the year.
HSBC
HSBC on Monday continued its expansion into fast-growing Asian economies by buying a majority stake in an Indonesian bank. It is acquiring 88.89% of Bank Ekonomi for $607.5m, in a move which will almost double its branch network across Indonesia and give it access to key areas such as commercial banking.
ING
ING, the Dutch banking and insurance group, on Monday agreed to sell its Taiwan life assurance business to Fubon Financial for $600m. The sale announcement came after ING accepted a $10bn capital injection from the Dutch government and reported its first quarterly loss of 500m euros.
Bayern Lb
Bayern Lb, the state-owned regional lender, is set to become the first German financial institution to accept billions of euros of assistance from the government's 500bn euro rescue package. Erwin Huber told the newspaper Bild that the bank's Munich-based supervisory board, which he heads, would meet on Tuesday to take concrete look at making a bid for help.

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