LONDON, Jan 9 (Reuters) – Blue-chip names like Johnson
& Johnson (JNJ.N: Quote, Profile, Research), Pfizer (PFE.N: Quote, Profile, Research) and Peugeot (PEUP.PA: Quote, Profile, Research) are
among firms bailing out Europe’s ailing banks in a reversal of
the established roles of clients and lenders.

One source with knowledge of the so-called repo deals or
short-term secured lending, said the two U.S. pharmaceutical
groups and French carmaker were the latest to sign up for them.

LONDON (Reuters) – U.S.-based State Street Corp (STT.N: Quote, Profile, Research) pulled out of British government bond auctions on Wednesday, a sign banks are shying away from markets they once queued up to support and a potential new stress for countries struggling to raise money.

Although the number of banks taking part in bond auctions has risen sharply in the past few years, many are now reassessing the risks they previously absorbed as the price of good relations with governments.

LONDON, Dec 14 (Reuters) – State Street Bank Europe
has resigned with immediate effect as a participant in
British sovereign bond auctions, the country’s Debt Management
Office said, as banks find it increasingly unattractive to take
part in these sales.

“Overnight, State Street Bank in Boston has announced its
withdrawal from various global cash bond trading activities,
which includes UK government bonds,” the DMO said.

LONDON, Dec 12 (Reuters) – Britain’s veto of European
Union treaty changes drew an embarrassed silence from London’s
financial heartland, where bankers fear last week’s hardline
stance will lead to a further loss of influence for the City.

Prime Minister David Cameron said he had vetoed the changes
to allow countries that share the euro to pursue closer fiscal
union because his EU partners would not give Britain enough
freedom over how it regulates the City of London.

LONDON, Dec 9 (Reuters) – European governments — many
of whom are already struggling to woo buyers for sovereign debt
– could find it even harder to raise money as the investment
banks they relied on to sell the debt baulk at the cost.

Banks are reconsidering the cosy relationships that in the
past saw them subsidise bond sales in the hope it
would curry favour with governments and lead to other
lucrative business, such as state privatisations.

LONDON, Nov 30 (Reuters) – Banks face a double hit to
costs and revenues from a spate of credit rating downgrades,
another burden for a sector already struggling because of the
European Union’s failure to deal decisively with its financial
crisis.

Standard & Poor’s cut its ratings on 15 big banks such as
Bank of America Corp and Morgan Stanley on
Tuesday, as it seeks to give more insight into its methods and
repair its reputation after the credit crisis.

LONDON, Nov 25 (Reuters) – Greece is demanding harsh
conditions from its creditors as it starts talks with lenders
about a proposed bond swap, a key part of Europe’s plan to
reduce its debt pile and save the euro, people briefed on the
talks said.

Charles Dallara’s Institute of International Finance (IIF)
– a bank lobby group — has so far been the lead negotiator,
but there are increasing doubts that he has enough support to
secure enough take-up for the swap, which will cost banks
billions.

LONDON (Reuters) – J.P. Morgan will soon announce it has bought a 4.7 percent stake in the London Metal Exchange (LME) from defunct U.S. brokerage MF Global, two people familiar with the situation said on Tuesday, making it the exchange’s largest shareholder.

The U.S. investment bank would pay 25 million ($39.1 million) pounds for the stake in the world’s largest metal market, the sources said, implying a total value of around 530 million pounds for the operator.

LONDON (Reuters) – J.P. Morgan (JPM.N: Quote, Profile, Research, Stock Buzz) will soon announce it has bought a 4.7 percent stake in the London Metal Exchange (LME) from defunct U.S. brokerage MF Global, two people familiar with the situation said on Tuesday, making it the exchange’s largest shareholder.

The U.S. investment bank would pay 25 million ($39.1 million) pounds for the stake in the world’s largest metal market, the sources said, implying a total value of around 530 million pounds for the operator.

LONDON (Reuters) – A raft of bidders including J.P. Morgan is lining up for failed brokerage MF Global’s stake in the London Metals Exchange, two sources familiar with the situation said, providing some solace for creditors.

If succesful, a bid would make the U.S. investment bank one of the largest shareholders in the venerable London institution — one of the few exchanges to still operate an open outcry ring — with a stake of just under 11 percent.