ADVFN - Advanced Financial Network.
HOME» NYSE » C » C Stock Price » C Stock News

Citigroup Share News

 Citigroup Stock Price
C Stock Price
 Citigroup Stock Chart
C Stock Chart
 Citigroup Stock News
C Stock News
 Citigroup Company Information
C Company Information
 Citigroup Stock Trades
C Stock Trades

Deutsche Bank Would Use Bridge Bank in Case of Failure

--Would sell some US assets, transfer others to bridge bank --The bridge bank would be German government-owned special purpose vehicle --Measures form part of bank's so-called living will Deutsche Bank AG (DB) would sell some U.S. assets and transfer systemically important assets and liabilities to a German government-owned bridge bank if it were to fail, under the terms of a "living will" contingency plan it submitted to U.S. regulators. "[German regulator] BaFin would issue a transfer order pursuant to which all or part of the assets, liabilities and material contracts" that are systemically important would be transferred into a German government-owned special purpose vehicle, called a "bridge bank," Deutsche Bank said in the crisis resolution scheme. The plan was requested by U.S. regulators to guide the banks' liquidation in the case of severe crisis. More than 100 large financial firms are required to submit living wills to the Federal Reserve and the Federal Deposit Insurance Corp. This was demanded by the 2010 Dodd-Frank financial overhaul to halt the perception that such firms are "too big to fail," or so large and complex that the government would be pressured to rescue them in a crisis. In the case of Deutsche Bank, the bridge bank would continue to operate the systemically important or "good" parts of the bank for a period of time, Deutsche Bank said. The rest would be wound down at the expense of equity holders and creditors. Deutsche Bank said it assumes U.S. regulators would cooperate with Germany's BaFin, which would establish an order for the assets to be transferred to the bridge bank. While some banks suggested concrete steps for a break-up in their living wills, Deutsche Bank only said "some of the U.S. businesses would be saleable to third-party purchasers, including other foreign financial institutions, certain U.S. banks and non-bank financial institutions," adding that other U.S. businesses may need to be wound down. Citigroup (C) in its report argued for a quick sale of its brokerage businesses and Goldman Sachs (GS) backed quick piecemeal sales of all its business lines to avoid liquidation of the whole institution. Goldman Sachs said that in the event it goes under, it would be better to sell its various businesses individually rather than to initiate a company-wide asset liquidation that could weigh on markets. -Write to Eyk Henning at eyk.henning@dowjones.com

Stock News for Citigroup (C)
DateTimeHeadline
09/29/201423:00:21Bank Branches in U.S. Dip to Lowest Since 2005
09/29/201422:52:12Bank Branches in U.S. Decline to Lowest Level Since 2005 -- Update
09/26/201412:20:11LONDON MARKETS: Bank Stocks Lift FTSE 100; Sports Direct Drops
09/26/201400:00:09Hedge Funds to Back Citibank in Argentina Bond Dispute
09/25/201423:15:38Hedge Funds to Back Citibank Payment Request In Argentina Bond...
09/23/201402:50:20Bank of China to Sell Bond Fund in Europe
09/18/201419:55:36Senate Confirms Sheets as Treasury Under Secretary for International...
09/17/201420:43:11ASX Offers to Buy 49% Stake in Yieldbroker
09/16/201409:44:34U.S. Hot Stocks: Hot Stocks to Watch
09/16/201400:53:47Citigroup Releases Mid-Cycle 'Stress Test' Figures
09/12/201413:05:55Sterling Steady as Scottish 'No' Camp Regains Lead--Update
09/12/201407:13:56Sterling Steady as Scottish 'No' Camp Regains Lead
09/11/201419:00:08Treasury Monitoring Swaps Loopholes at U.S. Banks
09/10/201411:30:16Emerging-Market Currencies Slide on Fed Rate Jitters
09/09/201416:33:12Astenbeck Hedge Fund Cuts Back Bets, Boosts Cash -- Update
09/09/201401:57:21Amazon to Offer Fire Phone for 99 Cents
09/09/201401:57:04Pound Slumps on Scotland Poll -- 7th Update
09/09/201401:55:58Crude Prices Slide on Demand Worries
09/09/201401:50:34Crude Prices Fall on Demand Worries
09/09/201401:50:13Pound Slumps on Scotland Poll -- 6th Update

Citigroup and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad