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Financial Services Top Stories Of The DayLast update: 1/26/2009 10:00:00 AM

FINANCIAL SERVICES TOP STORIES

DESPITE TARP, LENDING DROPS AT BIG US BANKS
Lending at many of the U.S.'s largest banks has fallen in recent months, even after they received $148 billion in taxpayer capital that was intended to help the economy by making loans more readily available.

CREDIT AGRICOLE, SOCGEN SET UP ASSET MANAGEMENT UNIT
Credit Agricole and Societe Generale unveil plans to jointly create Europe's fourth-largest asset management business, as banks seek ways to create economies of scale and trim costs to better resist the challenging context for the financial services industry.

UK POLICE PROBE RBS FOR ALLEGED MIS-SELLING
U.K. police are "conducting inquiries" into Royal Bank of Scotland's GBP12 billion rights issue, and whether the bank fraudulently sought investors knowing it was insolvent, a U.K. paper reports.

BNP PARIBAS POSTS EURO 1.4B 4Q NET LOSS, TO SEEK STATE AID
French bank BNP Paribas says it posted a EUR1.4 billion loss in the 4Q, and now expects to post a EUR3 billion net profit for 2008, and adds it would like to participate in the second round of the French state's bank support plan.

SURVEY SHOWS US RECESSION DEEPENED AT END OF 2008
The National Association for Business Economics January survey depicts the worst business conditions since the survey began in 1982, confirming that the U.S. recession deepened in the 4Q.

GLOBAL CRISIS TO DOMINATE AT DAVOS
As business and political leaders prepare to make their yearly trek to the Swiss ski resort of Davos for the World Economic Forum, which starts on Tuesday, global capitalism is undergoing a period of self-doubt.

DESPITE TARP, LENDING DROPS AT BIG US BANKS
Lending at many of the U.S.'s largest banks has fallen in recent months, even after they received $148 billion in taxpayer capital that was intended to help the economy by making loans more readily available.

BARCLAYS TO REPORT 2008 PRETAX PROFIT ABOVE POUND 5.3B, SHARES RALLY
Shares in U.K. bank Barclays rally more than 50% after the chairman and chief executive say the bank will report "significant" pretax profits on February 9, the, adding that capital resources are "well in excess" of regulatory requirements. The rally follows nine consecutive days of decline amid fears over the prospect of further nationalization of U.K. banks.

BANKERS' FEAR OF UNEMPLOYMENT
Bankers' worst nightmare is the unemployment rate climbing toward 10%, a level at which credit losses could balloon because of high defaults among people with previously strong credit histories. Peter Eavis reports.

US TAX CASE AGAINST UBS WIDENS
UBS is under legal pressure as U.S. prosecutors expand their investigation into whether the Swiss bank helped tens of thousands of Americans avoid paying taxes, sources say.

BARCLAYS BUYS ITSELF MORE TIME
Today's open letter to shareholders should buy Barclays some time, says Simon Nixon, and after the temporary insanity of last week, the bank has a further chance to calm the market when it releases its full year results on February 9th.

BANK OF AMERICA WOES PUT PRESSURE ON CEO LEWIS
Bank of America's handling of its acquisition of troubled Merrill Lynch has put Chairman and Chief Executive Kenneth Lewis in the hot seat with irate shareholders, who are disappointed about the steep decline in the bank's stock.

MERRILL BROKERS GET PAID CASH FROM RETENTION BONUSES
Merrill Lynch brokers get a nice start to the weekend as Bank of America hands out the cash from retention bonuses it offered top producers in return for staying with the firm for the next seven years.

US REGIONAL BANKS PREPARE FOR WORST
Banks, reporting declines in quarterly profits because of souring loans, are bracing themselves for worse. Several large U.S. regional banks reporting earnings yesterday disclosed that they have become more aggressive in setting aside capital for future loan losses.

LEHMAN BROKERAGE SETTLES $690M BOTCHED TRANSFER
Barclays Capital will receive about $690 million of cash and securities in deal with Lehman's brokerage to compensate for missing assets tied to Barclays's purchase of the unit.

GEITHNER SUPPORTS EXPANDED OVERSIGHT
U.S. Treasury secretary nominee Timothy Geithner supports expanding oversight of derivatives and hedge funds, as well as expanding limits on executive compensation to all U.S. companies.

SOME WARY OF FINANCIALS DESPITE BULLISH INDICATORS
Credit-default-swap spreads on banks narrow, indicating reduced expectations those financial institutions will default on debt, while short interest in bank stocks falls dramatically, Geoffrey Rogow says, but increasingly nervous equity investors aren't swayed. (END) Dow Jones NewswiresJanuary 26, 2009 10:00 ET (15:00 GMT)