Daily Archives: March 19, 2015

Banks Struggle to Unload Oil Loans

Citigroup Inc., Goldman Sachs Group Inc., UBS AG and other large banks face tens of millions of dollars in losses on loans they made to energy companies last year, a sign of investor jitters in a sector battered by the oil slump.

The banks intended to sell the loans to investors but have struggled to unload them even after cutting prices, thanks to a nine-month-long plunge that has taken Nymex crude futures to their lowest level since 2009.

The losses mark a setback for Wall Street, after global banks earned $31 billion in fees over the past five years by financing energy-company stock sales, borrowing and mergers-and-acquisition transactions, according to Dealogic.

Wall Street’s losses on the loans could have a chilling effect on some oil companies’ ability to fund their operations as investors take a more cautious view of the sector.

Read on.

Ex-Rabobank Trader Sued in Singapore for Hiding Libor Rig Probe

(Bloomberg) — Former Rabobank Groep trader Tetsuya Motomura was sued by a Singapore hedge fund that hired him as chief investment officer and claims he deliberately concealed that he was being probed for rigging benchmark interest rates.

Omae Capital Management Pte is seeking S$3.75 million ($2.7 million) from Motomura, who told the firm about six months after it started operations that he had been charged in the U.S., according to a lawsuit filed in October. Motomura’s lawyer asked the Singapore High Court last week to dismiss the suit as it hadn’t been served properly.

Read on.