Financial Biz Cheat Sheet: Visa Argentina For Sale, CDS Spreads Widen Dangerously at Morgan Stanley
Payment processor Visa Argentina is for sale, and according to sources, could draw more than $500 million. The processor is owned by several banks that issue Visa (NYSE:V), including Banco Santander Rio (NYSE:STD), Citibank (NYSE:C), and HSBC Argentina (NYSE:HBC). Morgan Stanley (NYSE:MS) is among those reportedly interested in buying the company.
Hot Feature: What Are These Big Banks Saying About the Economy?
The spread on five-year CDS from Morgan Stanley (NYSE:MS) has widened to 455 bp, its highest since March 2009. The news is troubling given that the CDS are located in more dangerous derivative contracts rather than safer interest rate swaps. Bank of America’s (NYSE:BAC) spread is also up 3% to a record 410 bp.
Barclays’ (NYSE:BCS) Japanese unit is facing 10 days of suspended trading next month after a regulator found a technical glitch in its order system. Barclays: “This was caused by an IT system coding error and an internal review concluded that there was no deliberate intention to manipulate the market and derive a benefit.”
Denmark’s central bank will provide as much as 400 billion kroners ($73 billion) to the nation’s banks as part of an emergency liquidity program intended to supplement the banks’ access to raise loans.
The European Commission has granted approval to aid 3 Spanish banks — NCG Banco, Catalunya Banc, and Unnim Banc — saying their solvency ratio needs to be boosted to a 10% capital ratio.