GFMA - News on the global financial markets

EU banks might have to write down goodwill from acquisitions
UniCredit, Credit Agricole and other European banks might have to write down billions of dollars in goodwill from acquisitions made before the financial crisis. "Banks that paid a premium for businesses when the outlook was better will need to reassess the goodwill on their balance sheets," said Andrew Spooner, an accounting partner at Deloitte. "Previous acquisitions which are exposed to peripheral Europe are most vulnerable to impairments." Bloomberg(17 Nov.)

LCH.Clearnet offer clearing services for Turquoise
LCH.Clearnet Group rolled out interoperable clearing for pan-European trading platform Turquoise. "The introduction of interoperable clearing for Turquoise is a truly positive development for the European equities market," said Wayne Eagle, executive director of equity services at LCH.Clearnet. "Choice of clearer allows customers to select the clearinghouse that best meets their requirements and results in lower costs and greater efficiencies." Financial News Online (U.K.) (subscription required)(17 Nov.), WatersTechnology.com(17 Nov.)

Deutsche Boerse and NYSE Euronext offer merger concessions
Deutsche Boerse and NYSE Euronext offered EU regulators concessions, including allowing competitors access to their trade clearinghouse, to gain approval for their planned merger, a source said. The exchange operators also said they would be willing to divest some equity-derivatives markets in Europe. Antitrust authorities are seen as the biggest obstacle for the proposed tie-up. Financial Times (tiered subscription model)(18 Nov.), Reuters(18 Nov.), Nasdaq.com/Dow Jones Newswires(17 Nov.)

Commentary: European crisis strains IMF's resources
Investors are concerned that Italy will become the first Group of Eight nation in more than three decades to accept aid from the International Monetary Fund. The move would be problematic for the IMF and taxpayers who fund it. "The scale of IMF commitments during the euro-zone crisis has already been unprecedented, and adding Italy or Spain could strain even the Fund's resources," according to this Wall Street Journal opinion piece. The Wall Street Journal (tiered subscription model)(18 Nov.)

• Other News

UBS reveals plans to shrink investment bank
The Wall Street Journal (tiered subscription model) (18 Nov.)

Regulatory Roundup

Leaders demand that ECB find a solution to debt crisis
Spanish Prime Minister Jose Luis Rodriguez Zapatero is the latest official to call on the European Central Bank to resolve the sovereign-debt crisis. Zapatero's comments come as contagion spreads from peripheral countries to Europe's core. However, the ECB, with German support, continues to resist intervening any more than it already has. The New York Times (tiered subscription model)(17 Nov.)

Central banks accelerate gold purchases
Central banks more than doubled their purchases of gold in the third quarter compared with the previous quarter, when gold buying was already inflated, according to the World Gold Council. "Central-bank buying was a highlight of the quarter. Statistics this year have been remarkable," said Marcus Grubb, the council's managing director of investment. The Wall Street Journal (tiered subscription model)(18 Nov.), Financial Times (tiered subscription model)(17 Nov.)