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Last week, UniCredit announced it had taken a 9% stake in Commerzbank, confirming that half of this shareholding was acquired from the government. Commerzbank shares jumped 20% on the day UniCredit's stake was announced. A cross-border styled merger between UniCredit and Commerzbank would be more preferential than a domestic merger between Deutsche Bank and Commerzbank, according to Reint Gropp, president of the Hall Institute for Economic Research. "The German banking structure is long overdue for a consolidation process. The German bank also has less excess capital than UniCredit and therefore "cannot really afford" a takeover, Alloatti said.
Persons: Kirill Kudryavtsev, UniCredit, Andrea Orcel, Commerzbank, Orcel, Ignacio Cerezo, Berenberg, David Benamou, Benamou, CNBC's, Arnaud Journois, Journois, Emmanuel Macron, Reint Gropp, Gropp, Filippo Alloatti, Hermes, Alloatti, We've Organizations: Afp, Getty, Bloomberg, Reuters, UniCredit, Wednesday, UBS, Investments, European, Morningstar, Commerzbank, Analysts, CNBC, Deutsche Bank, Hall Institute for Economic Research, Will Deutsche Bank, ABN Amro Locations: Frankfurt, Germany, Commerzbank, Berlin, Italian, U.S, Europe, UniCredit, Italy
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailECB has no grounds to block UniCredit's higher Commerzbank stake: Federated HermesFilippo Alloatti, head of financials in the credit team at Federated Hermes, discusses Italian bank UniCredit's request to raise its stake in Commerzbank.
Persons: Hermes Filippo Alloatti Organizations: ECB, Federated Hermes Locations: Commerzbank
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFederated Hermes: European banking was 'about cost control' over the last yearFilippo Alloatti of Federated Hermes discusses the outlook for the European Central Bank's monetary policy.
Persons: Filippo Alloatti, Federated Hermes Organizations: Federated, Central
Analyst discusses U.S. bank earnings
  + stars: | 2023-04-19 | by ( ) www.cnbc.com   time to read: 1 min
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailAnalyst discusses U.S. bank earningsFilippo Alloatti, head of financials at Federated Hermes, says there will eventually be a "bifurcation" between large and regional banks.
By offloading some of the risk on their loans, the banks can significantly reduce how much capital they need to set aside to cover potential losses, according to law firm Clifford Chance. A bank can normally transfer risks of losses equivalent to around 7% to 12% of a loan portfolio, two market sources said. With synthetic structures, a bank transfers the risk via credit derivatives or guarantees but keeps holding the underlying exposures. The IFC sold BNP a $50 million guarantee on $1 billion of loans to emerging markets, they said, without disclosing terms. While Europe has been at the forefront for risk transfers, the stock of loans covered by SRTs is small relative to European banks' balance sheets.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFAB deal with StanChart is trying to 'recycle' U.S. dollar oil money into financial services: AnalystFirst Abu Dhabi Bank and Standard Chartered could come to an agreement closer to July, according to Head of Financials at Hermes Investment, Filippo Alloatti, after FAB said it was not evaluating an offer for the London-listed bank.
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