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...The top US consumer finance watchdog has raised doubts about megamergers in the credit card industry, just as Capital One attempts to close its $35.3bn takeover of card issuer Discover Financial Services...
...JPMorgan Chase spent about a year discussing a possible deal with Discover Financial before Capital One agreed a $35bn bid for the credit card company, as the largest US bank pursued ways to get control...
...Thames Water is on the brink of financial collapse after being hit by higher interest rates on its £18bn debt. Southern Water is also under close watch over its financial stability by regulator Ofwat....
...Switzerland’s financial regulator has attempted to block the release of key documents to investors who are suing it after $17bn of bonds were wiped out in the rescue of Credit Suisse....
...Private credit is booming, nearing $2tn in assets globally. Most of that debt is being traded out of the public eye, a fact highlighted in the latest Global Financial Stability report from the IMF....
...Leverage deployed by private credit funds is typically limited, but the private credit value chain is a complex network that includes leveraged players ranging from borrowers to funds to end investors....
...Crucially, Poste Italiane kept its post office network and financial services, unlike Royal Mail. Chief executive, and former JPMorgan banker, Matteo Del Fante has used both to good effect....
...Third, financial product innovation is a vital enabler....
...Capital One’s $35.3bn proposed takeover of Discover Financial Services would fuse two leading credit card lenders and give it control of a network that connects consumers, merchants and banks....
...In the US, lawmakers have renewed an earlier effort to pass the Credit Card Competition Act, which would give merchants more flexibility to choose their payment networks....
...Of this, Visa or Mastercard, which operate the networks that connect cardholders with banks and merchants, collect perhaps 20 cents....
...When traditional financial institutions seized up amid monetary tightening and Silicon Valley Bank’s implosion in 2023, private credit funds were the only game in town to fund most deals....
...Large parts of the rail network have been taken back into the control of the state because of poor performance or financial problems....
...US lender Capital One has agreed to buy rival Discover Financial for $35.3bn, in an all-stock tie-up that is set to unite two of America’s largest credit card companies....
...Discover is a combined credit card payment network and card-issuing bank. It ranks fourth as a network behind the titans Visa, Mastercard and American Express....
...balances and auto loans signalling “increased financial stress”....
...Much debated at the Financial Times’ New York office yesterday: was the eclipse an economic boost or a drag?...
...Poor risk controls were a big factor in the fall of Credit Suisse. Finma is rare among national financial regulators in its inability to fine the companies that it oversees....
...At the start of 2023, Credit Suisse’s financial strength appeared bullet-proof. Its common equity tier one capital ratio exceeded 14 per cent, far above US regional bank Truist....
...These should offer extra returns for holding complexity or illiquidity without adding credit risk....
...For years, commercial property was a popular investment among the members of Tiger 21, a network of super-rich investors, based mainly in the US....
...Discover today is one of four card networks standing — it is the smallest after Visa, Mastercard and the third-place American Express....
...A post mortem by the Financial Stability Board found Swiss authorities would have been capable of shutting down Credit Suisse....
...“Things have dramatically changed,” said Zerlina Zeng, a senior credit analyst at CreditSights, adding that Ant’s expansion into the traditional financial services sector had been curbed....
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