Information on non-life unit was sent to potential buyers, including private equity firms, the newspaper, without saying where it obtained the information. The initial deadline for the division of the tenders shall be mid-October, the Times said.

HSBC said last month it will eliminate 30 000 jobs worldwide by the end of 2013, or about 10 percent of employees and reduce costs by as much $ 3.5 billion because of rising costs of work and prepare for more stringent capital rules. Gulliver is to cut costs and sales activities and focus on how to invest in emerging growth of the creditor.

London-based HSBC, “does not comment on market rumors,” Jessica Lennon, Hong Kong-based spokesman for the bank said in a telephone interview.

HSBC is to explore your options for the insurance company, which sells non-political life in the United Kingdom, France, Hong Kong and Singapore, the newspaper said, citing an unnamed person.

Last month, HSBC said that collecting $2.4 billion after taxes rose to the sale of the division of the U.S. credit card Capital One Financial Corp., the UK banks have this year to sell the property in Russia and said that off branches in Poland.

The rate has remained unchanged since November, and economists had widely tipped Australia follow a wait and see approach, given the recent financial crisis in Europe and the United States.

The Australian dollar rose slightly on news of U.S. $ 1.0512 U.S. $ 1.0528.

Reserve Bank of Australia (RBA) governor Glenn Stevens said that the conception of the world economy is more uncertain than it was earlier this year.

“Conditions in global financial markets have been highly volatile in recent weeks, because participants were forced to uncertainty and the resolution of sovereign debt problems and prospects of economic growth in Europe and the United States,” he said.

Although the impact on Japan’s earthquake and tsunami in the supply chain and the negative effect of the price of raw materials have been facilitating the way in which European and U.S. problems in other areas were still largely unknown, has said.

“Uncertainty and volatility in financial markets is to reduce confidence and can lead to more cautious behavior by firms and households in major countries,” said Stevens.

Resources of Australia has led the economy weathered the global financial crisis without dipping into recession, and was among the first nations leading to increase interest rates after the crisis.

The current account fell 33 percent to national $ 7.42 AUS dollars (U.S. $ 7.81 billion) in the second quarter growth data released Wednesday and is expected to show solid growth.

Stevens said the mining boom has been to see the investment of resources and a good trading partner, while China was strong, some industries have been due to cautious spending by consumers and the Australian dollar high.

“Overall, the short-term outlook still seems a bit ‘weaker than expected in a few months ago,” he said.

‘Beyond the short term, growth is still likely to trend higher, or, if not the world economic outlook continues to worsen. “

Stevens said that while measures of core inflation had remained in line with the objective of the RBA in a 2-3 percent year-ended basis, the bank had concerns about the prospects of medium-term inflation.

“The key issue is the extent to which growth softer global and domestic inflation is the time,” he said, adding that it appeared that monetary policy has been the target of some restraint.

Analysts are divided on how long the RBA would keep prices stable.

“We waited and waited for them on hold, they would keep an eye on inflation,” HSBC chief economist Paul Bloxham said.

“Global financial markets are still volatile today, but we continue to believe, and an obstacle to change in the direction (polarization of monetary policy) is still high.

“It is not likely to see cuts soon.”

Nomura chief economist Stephen Roberts said the central bank could return to a closed position in 2012 if the global outlook is stable.

“I am uncertain about what Europe and the United States is a problem in other areas, but prices for Australian producers are still high,” he said.

Italian five-year credit default swap as a form of insurance against default raped four percentage points after the closing of this level for the first time Friday. CDS of the country was 0.29 percentage points higher to 4.29 percentage points, according to data provider Markit. This means it now costs an average of $ 422,000 per year to provide $ 10 million of debt issued by the country. Spain five years CDS has also come back to four percentage points, trade by 0.2 percentage points higher by 4.1 percentage points.

Investors’ fears grew among the signs of political tensions in the euro area struggled to reduce the budget deficit without falling into a recession. Chancellor Angela Merkel on Sunday suffered another setback in the elections for the German state of Mecklenburg-Vorpommern, the latest in a recent string of electoral defeats. Greece is resisting calls for more cuts to reduce the deficit on track, and a high level International Monetary Fund predicted that Greece does not pay its debt in March at the latest.

News on Friday blocked the U.S. labor market has had a negative tone. Monday data showed the euro zone’s economic growth slowed to two-year low in August, the last string of the region suggests the economy is faltering.

“Although the U.S. economic situation offers no comfort, the crisis of European sovereign debt has increased even more,” said Markus Ernst, credit strategist at UniCredit bank. “Clearly, the sovereign risk events remain the main market driver earlier this week.”

Stress is not the domain of highly indebted countries of the region’s geographical periphery. Country has also seen major debt insurance costs rise as fears of contagion returned.

French five-year CDS spread was 0.12 percentage points wider than the 1.83 percentage points. His record close of 1.72 percentage points to hit on August 10, although closed 1.71 points on Friday.

The cost of insuring a basket of 15 European leaders were also above the level reached a new record close on Friday. The iTraxx Europe index SovX West was 0.09 points higher at 3.19 percentage points, after closing at 3.1 percentage points on Friday.

CDS is the financial companies have been pushed to new records. The banks were at the root of the credit crisis and their movements are closely linked to the rulers.

The cost of insurance against financial failure affected European companies new record highs on Monday continued to worry about the weak economic data and the evolution of sovereign debt crisis.

ITraxx Europe Senior Financials index, which investors can buy or sell a security, 25 banks and insurance companies, was 0.15 percentage points wider than the 2.62 percentage points according to the information provider Markit. The index ended the previous all-time record 2.54 percentage points in August 23.

Europe Subordinated Financials index was 0.235 percentage points wider than the 4.66 percentage points. This was also above the previous closing record of 4.55 percentage points to hit on August 24.

“It’s just a little bit of everything today,” said a broker of financial CDS. “Nobody wants to take any chances with anything going on.”

Lord, the creation of money to adapt to the growing demand for loans from state-owned enterprises (SOE), Town Village Enterprises (thrombosis), and local governments. Saving large (sometimes mandatory), controlling the rate of interest, and the rapid growth of Chinese banks to enjoy a constant rate spreads and a larger amount of loan. As I explain to my co-author of a book The Rise and Fall of Abacus Banking in Japan, and China, the problem is that Chinese banks are not real banks and state enterprises, companies and thrombosis are not true, either. They are all “units” within the areas of public ownership and control of China. So it is not clear whether these loans are actually intergovernmental transfers or loans of money.

In a sense, the Chinese banking system is similar to the Japanese banking system during the era of high growth countries, while Japanese banks are not government owned. But they also benefited from the seigniorage income to enable them to benefit from interest rates and strictly controlled environment of high economic growth. However, as the control of interest rates were raised during the country’s largest financial explosion, and that slowing economic growth, the profitability of Japanese banks have disappeared and many of its assets lost value. Would it be the same for China?

Bank of America shares rose nearly 26 percent at one point but gave up most of those gains in early afternoon, closing 9.4 percent higher at $ 7.65. Trading was so heavy that at one point mid-day Bank of America shares up nearly 13 percent of the volume of composites for the stock market overall.

Buffett and Bank of America said it had made an unsolicited call to the bank’s offer Wednesday morning to make an investment. Buffett told CNBC the idea came to him while taking a bath, and the case was made within 24 hours.

Its trade with the insurance company Buffett, Berkshire Hathaway Inc. buying $ 5 billion in preferred stock and receive warrants to purchase 700 million shares. Warrants helped to increase the Berkshire Hathaway a lot of paper profits of more than $ 3 billion, while trade has not yet been closed.

The transaction is expected to close on September 1 and includes provisions that prohibit Buffett to raise its total stake to Bank of America rose 14.9 percent. Full exercise, the number of shares the latest mandates represent a share of 6.5 percent.

Even if the bank has said it does not need to raise capital, investors generally believed that the need for more money and it looks like it could easily raise funds. Employees have been raised at the briefing. This is at least one of BOFA trading floor, traders cheered when the news crossed the wires.

Bank of America is hit by fears that bad mortgage loans and legal liabilities of the group ties compressed Countrywide to pull tens of billions of dollars in new losses, which stretched its capital.

Trade has proven once again that Berkshire Hathaway has become a sort of last resort of the financial system, because when it is placed by Goldman Sachs Group Inc. and General Electric Co. Buffett’s role to help the economy and financial system has become a symbolically important, since there are no alternatives left for the U.S. government and the central bank to boost demand.

“This shows that the market if the bank needs additional capital, we do not think they do, but if you need to calm the markets by raising capital, you could do in 30 minutes with a simple call to Uncle Warren “said Sean Egan, managing director of Egan-Jones Ratings.

The agreement comes at a price of Bank of America. Payment of $ 300 million annual dividend it does reduce earnings per share and the transaction will affect the number of shares outstanding.

All these factors, the analyst John MacDonald, Sanford C. Bernstein believes that the benefit of the corporation shall be reduced by 5 percent for 2012 and 2013.

Instant Return

Omaha-based Berkshire Hathaway, is a better deal.

Berkshire receives warrants to purchase common stock 700 million slightly more than $ 7.14 per share, which is unusually long period of 10 years. Berkshire said the proprietor of one of the options are by far the best part of the contract.

“He could easily do a 100 percent return on their investment within a few years,” said James Armstrong, president of Henry H. Armstrong Associates. “It ‘amazing how just a hug Buffett is worth these days.”

Linus Wilson, assistant professor of finance at the University of Louisiana at Lafayette, who studied the price of the orders of the populations of large banks, these bonds were worth $ 3.17 billion before the transaction was announced, while $ 5 billion preferred shares worth $ 4.46 billion, giving a total profit of $ 2.63 paper Buffett billion in the beginning of the case.

As part of the bank soared, earnings rose to the position.

Bank of America is to sell Berkshire shares 50 000 cumulative perpetual preferred stock with a dividend of 6 per cent. The bank may repurchase the investment at any time Buffett paying 5 percent more than face value.

It ‘s almost a mirror transaction in Berkshire Goldman did a deep financial crisis in autumn 2008, with the exception of Goldman paid a dividend of 10 percent and 10 percent redemption fee. Goldman deal Berkshire paid $ 15 as long as dividends according to Goldman Buffett has bought earlier this year.

“This is a very reasonable price for Buffett. It is opportunistic, “said Tom Russo, a portfolio manager at Gardner Russo & Gardner, which owns shares of Berkshire.

On June 30, Berkshire had 39 percent of their capital investments in the financial sector, according to Standard & Poor.

Banking Problems

Earlier this month a further $ 10 billion on soured mortgage securities in American International Group Inc. helped boost the fears of Charlotte-based Bank of America, liabilities and questions about how it should pay for more losses.

In recent weeks, investors have sold shares of the bank’s concern that Bank of America may need more capital – as much as $ 50 billion by some estimates – to cope with losses and comply with the rules of capital.

Shareholders, who have seen the bank to take two government bailouts, and saw the government step in earlier this year to prevent the expected increase in dividends, dilution would be a bitter pill to swallow.

There is no endorsement of expectation is necessary in this case, a regulatory official said.

CEO Brian Moynihan said in August 10th, the bank could add to its capital gains and asset sales. His comments come two days after the bank’s shares plunged 20 percent.

However, many are not convinced. Tuesday, blogger Henry Blodget said the bank could face $ 100 billion 200 billion in profit and loss and balance problems, a debt to the bank refused, but pushed its shares lower in early 2009.

“This contributes to the loss of credibility that I think existed in the minds of some shareholders,” said Jon Finger, associate director of Interests fingers in Houston. The family sold her finger one bank to another American of the year.

Moynihan said the bank aims to 6.75 to 7 per cent of Tier 1 common capital ratio by the end of 2013 the new rules of Basel III, to ensure that the big banks have enough capital to withstand the crisis, large and small.

The cost of insuring the debt of Bank of America in case of default rose, but fell yesterday after the matter of Buffett, up to 68 basis points to 305 basis points. This means it would cost $ 305 000 per year for five years to provide $ 10 million of debt.

The Bank’s operating profit in the first six months rose 109.48 billion yuan ($17.13 billion) from 84.60 billion yuan over the same period a year ago, said in a statement that the Hong Kong Stock Exchange.

The result beat the average forecast of 107.30 billion yuan in a survey of eight analysts polled by Dow Jones Newswires.

“In the first half of 2011, the internal situation and the economic crisis has been very complex, market competition has intensified and strengthened financial regulation,” said the ICBC in a statement.

The bank reported a 46 percent increase in revenue from fees and commissions during the period January-June Net interest income, income from the difference between interest received and paid, rose 22 percent to 174.50 million yuan.

ICBC said it saw a rapid growth of small business loans, trade finance and personal loans. The amount of its loans yuan from its national branches increased by about 6.6 percent.

“At the moment, the world economy is still struggling to recover, and the international financial system is becoming increasingly fragile.”

“But clearly see a complete picture of the challenges we face, we must also see new opportunities,” said the forecast for the rest of the year.

Bank shares in Hong Kong ended up 1.89 percent to HK $ 4.85 (62 U.S. cents).

Loans grew by Chinese banks has slowed since China has introduced a number of measures to curb liquidity to fight inflation, which hit three-year high 6.5 percent in July.

The central bank raised the benchmark interest rate twice in the first half of the year and the amount banks must hold in reserve at the central bank six times.

Profit for the six months prior to June 30 amounted to 66.5 billion yuan ($10.4 billion), or 0.24 yuan (3 U.S. cents) per share, Beijing-based bank said. Net sales increased by 25 percent to 165.9 billion yuan ($25.9 billion).

The Chinese State Bank took advantage of his quick recovery driven by the rise of the global financial crisis in 2008. Bank of China also warned, however, that China will face a “challenging environment” this year due to global risks.

Chinese banks are the world’s largest economically viable without a mortgage after credit problems felled western institutions.

Bank of China said it was a resource 11.5 trillion yuan ($1.8 billion) from June 30, rose 9.8 percent over the previous year.

The Federal Deposit Insurance Corp. said Tuesday that the industry has received $ 28.8 billion in the second quarter of $ 7.9 billion increase over the previous year.

This is slightly lower than the profit $ 28.9 billion recorded in the first quarter.

The Agency has again warned that the increase in revenues is attributed to banks setting aside at least to protect against bad debt losses.

“As the levels of provisions for losses close to their historical norms, the prospects for improved earnings further reductions in provisions disappear,” FDIC Chairman Martin Gruenberg said at a working conference on the new release of its quarterly banking report .

Bank revenues continue to decline.

During the second quarter net income fell by $ 3 billion, or 1.8 percent, compared to levels recorded a year ago, the agency said.

In a positive sign for the industry increased bank loan balances during the second quarter for the first time in three years, up to $ 64.4 billion, or 0.9 percent.

Gruenberg said the increase, but added a warning.

“A significant proportion of the loan growth was total loans within the company between banks related,” he said. “Lending activity has a long way to go before approaching a level normal. ”

KBW Bank <index. BKX> stock has fallen 33 percent this year as investors fear a U.S. recovery spray and the spread of the economic crisis of European debt.

There was evidence in the report of how the industry continues to recover from the slump in the financial crisis of 2007-2009.

The number of banks in the “problem list” of the agency fell for the first time in 15 quarters, increasing to 865 in the second quarter from 888 in the first quarter. There have been 68 bank failures so far this year, the mostly small institutions.

The Deposit Guarantee Fund, the FDIC uses to cover the failures of banks changed to positive for the first time in two years.

Late in the second quarter, the Fund was $ 3.9 billion positive improvement, negative $ 1 billion at the end of first quarter.

Sensitive to the ups and downs over the global economy, global banks have reported close to 50 000 layoffs, begins today and will continue in the coming years.

HSBC <0005.HK> and Lloyds Banking Group announced major cutbacks.

The job cuts in Bank of America, expected to be completed by the end of September, are scattered throughout the company, including investment banking and trade, said the Journal, citing people familiar with the situation.

Bank of America was not immediately available for comment after hours in corporate America.

Thousands of additional reductions expected as part of a review known as the “New Project of alcohol,” said the WSJ.

The leaders will discuss the variety of the bank can still cut, but a person familiar with the situation said that at least 10 000 jobs are likely to be removed, the report said.

Investors hammered shares in fear of the Middle may need to raise funds by offering new shares to help absorb billions in legal fees and credit arising from its 2008 purchase of shares of Countrywide Financial Corp the largest U.S. bank has more than halved since peaking above $ 15 per share in January, closed at $ 7.01 Thursday.

Willing to make active and rebuild their battered capital base, Bank of America announced Monday its intention to sell its portfolio of 8.6 billion Canadian dollars by credit card in the TD group.

Bank of America has lost more than $ 22 billion from its mortgage division over the past four quarters.

It decided in June to pay $ 8.5 billion of mortgage-backed securities, investors and fighting numerous lawsuits challenging the regulations and other mortgage questions.

Deputy Prime Minister of Turkey, Ali Babacan said Friday that the Turkish banking system was very strong.

“The weakness of the banks is another reason of this problem in the United States and Europe,” Babacan said while addressing a meeting of the Antalya Chamber of Commerce and Industry.

Babacan also said Turkey was included in the overall resolution mechanisms, and closely followed developments in the country.

“The world needs strong leaders. Major economies need strong leadership. Fortunately, the political stability of Turkey is very strong. Confidence is good. Our people have confidence in government and in the future. We have entered the atmosphere turbulence of the atmosphere of trust and political stability. Let’s go on, but we will not remain indifferent to those occurring in the world. We are aware of developments in the world and we will take action, “he said.

“Business and industry must take steps to overcome these days with the least possible damage. We believe that this environment will have a lasting impact on Turkey in the medium and long term. Our banks are not affected by the vagaries of change” he said.

Babacan said that the net external debt was close to zero.

Emphasizing that the Turkish economy is one of the fastest growing economies in the world last year, Babacan said, “Turkey’s growth in the first quarter of 2011 is 11 percent. We are the fastest growing countries in the world. Employment fell by four points. During the inflation rate is in line with the objectives. Many economic indicators are telling the Turkish economy is a good point. Another sign that we focus on the current account deficit. ”

Babacan said that sales growth in Turkey in 2011 would be below last year, “we will act wisely, but continue to grow at moderate rates. Despite this, Turkey will be one of the most dynamic in Europe.”

Babacan wanted people to be careful of their allegations, “should not be any problem in Turkey, if all conditions are held. We are willing to see the efficiency of the economy in Turkey, the economy, not extravagance.”