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Breakingviews: Deutsche, Barclays can ease U.S. capital pain

Friday, Dec 13, 2013 - 03:56

Dec. 13 - Deutsche Bank and Barclays are most at risk from U.S. regulations forcing foreign lenders to hold more funds. But a restructuring could provide a workaround, says Breakingviews.

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US regulations forcing foreign lenders to hold more capital in the US put -- from Barclays -- most risk says breaking use. But by restructuring they might be able to shift cheap capital. This right there is being thrown around before. Dominique -- -- is breaking news columnist joins announced here. I told of course are double to get about Credit Suisse and plan they came up -- and this is about raising capital. Century. Right rob and locally -- web the US regulates. Dinners with a plan. Obscenity having is about a month ago that credits has sent what we're going to do is we're going to have forced central Hobbs if you like in Singapore London Zurich. -- -- -- -- Bots maybe that's the regulator in the US can can be relaxed enough to let -- -- Raise capital I think at this jury and apple that's the sort of the headquarters. And then move that capital to some of these other halves. The US had previously thought you know what we will probably wants. US. Subsidiaries of banks to raise capital separately. In the states and what have been the noises from the US authorities since Christmas. For you to decide it was -- no formal approval and I understand from a a couple of people with an understanding of the situation that's. That have been some positive feedback from US regulators but there's been no formal approval said it is a bit of a risk for Credit -- I don't. Some UBS has done already or at least looked out UBS has looked it's -- but I'm not done it I mean. Credit Suisse probably was more naps and seems to to this -- can and -- into actual ball. Right that's what I was gonna come on him credits is it you say this in your piece and you can explain this a little bit it's it would be easier for credit squeeze it. Well critics authorities had quite a lot of legal separate. Entities whereas Balkans and tortured by very much organized a -- central. Entity in their home countries and -- wrong she is. Rather than separate accounts license injuries in other jurisdictions will not means is. They don't hold capital separately yet in the US so I mean in -- is case. They -- held an excellent and bought his very very Lipitor. They hold the capital century. In say the UK Germany and then they -- they think they sort of manage it got way. Credits to sort of how some capital separately in the US that sort of lends itself will not treat T dot. What -- you -- -- right mysteries I mean what went with what did you had you heard someone talk about it it actually something -- and Barclays have a thought about. -- gnaw -- you gonna talk to them about it what what what happened to try to come out well. If you think about it Credit Suisse is announcement was interesting when that happened about a month -- because. The US have yet to say anything about what exactly is going to be required of banks that. So that they -- had to -- if you like. -- and there's no reason why all the banks might not do the same another slightly different circumstances for baucus -- to have this. Threats -- console you sort of extra capital in the US hanging over them all year this site. In my did get ideas trying to get ahead of things are -- streets of Egypt about. Well I -- respect and to people that that sort of you know not not necessarily the finds that some people that on the stands. What's going on the banks don't say anything on the record about it but that my contacts that to suggest that that this isn't completely. Beyond the realms of possibility it's just that maybe that's slightly different circumstances. OK target you -- first commitments -- -- that Dominique Kelley at. After more generous heading into what's our US breaking news show every day 12:30 eastern 1730 GMT. I'm -- truffle is is righteous.

Breakingviews: Deutsche, Barclays can ease U.S. capital pain

Friday, Dec 13, 2013 - 03:56

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