Speculation is growing that Britain's Barclays may abandon its bid for the Dutch bank ABN Amro, CNBC’s Maria Bartiromo reported. Barclays is due to finalize its bid for ABN next week, Bartiromo said, "but sources tell me there is a chance Barclays will pull out" because of "past liability concerns over past money-laundering questions."
The head of the Dutch Central Bank said regulators would not object in principle to a offer by a rival bidder for ABN Amro even if it meant the Dutch bank was broken up, the Financial Times reported on Monday.
Speculation that Bank of America could make a move on Barclays returned this week and several analysts have said Britain's third biggest bank has made itself vulnerable to being taken over if its discussions to buy ABN fail.
Britain's Barclays hired Citigroup as an advisor on its bid talks with ABN AMRO, sources familiar with the matter said on Wednesday, effectively ruling the U.S. group out of counterbidding for the Dutch lender.
New Century Financial, the troubled subprime mortgage lender, said on Wednesday it voluntarily ended its relationship with mortgage financier Freddie Mac, and that "several" of its own lenders plan to sell loans that had backed $17.4 billion of credit lines.
Stocks erased nearly all of their losses for the year after investors interpreted comments from the Federal Reserve to mean that an interest rate hike is less likely.The S&P 500 and the Nasdaq turned positive for the year, erasing all of last month's selloff, while Dow Jones Industrials is still down slightly for the year.
ABN Amro Holding, the Netherlands' largest bank, said Monday it was in early-stage talks about a "potential combination" with the British bank Barclays. The disclosure came amid reports that Barclays was eyeing a possible purchase of its smaller rival. At Monday's closing stock prices, ABN Amro was worth about $76 billion.
It started with SPDRs and then we got QQQQs, but now people know that all that alphabet soup spells ETFs. Scratching your head? On “Power Lunch Sue Herera unscrambled all the confusion with Lee Kranefuss, the CEO of I-Shares (which is part of Barclays Global Investors.)
Shares of Barclays surged for a second day as speculation mounted that Bank of America could buy it, with a leading analyst saying there would be strong merit to a deal.
A possible banking mega-deal is the talk of Wall Street today. Merrill Lynch is apparently telling clients that Bank of America is interested in acquiring Britain’s Barclays -- a move that would make Bank of America the world's largest bank. To some--the merger makes a lot of strategic sense because of the synergies both sides would bring to the table.
Stocks closed the session higher, after investors spent the day sifting through various economic reports and parsing words from Federal Reserve Chairman Ben Bernanke, who provided a mixed economic outlook.