StanChart set for $2bn assets move by Finance News Bulletin

Published: 17/12/07

All times are London time Search information in the FTcom siteSearchSearch speech marks in the FTcom sitespeech marksCOMPANIES UKBreadcrumb trail navigation:FT Home > Companies > By region > UKServicesStandard Chartered, the emerging markets bank, is set to take possessions worth more than $3bn on to its balance sheet as the up-and-coming markets bank attempts to unwind an lopsided sheet debt vehicle it put upThe unwinding of the vehicle, called Whistlejacket, opens up another potential solution to the headache shaped for banks and investors by structured asset vehicles, or SIVs, that have fallen victim to the credit press

StanChart’s move contrasts with actions taken by other banks to undertake their SIVs HSBC last week said it would give full liquidity support to SIVs with assets of $45bn, even though it had no legal compulsion to support the vehicles This has turned the center on Citigroup, the largest solitary sponsor of SIVs, with assets worth more than $80bnStanChart last month exchanged semi of its $280m investment in Whistlejacket for a proportionate split of the vehicle’s assets, value about $1

68bn, which it took on to its balance sheet On Wednesday, the bank said it was extremely probable that it would exchange the rest of its investment in Whistlejacket for assets before the end of the day, and indicated that other investors were planning alike movesStanChart has written down the worth of the assets by $46m, reflecting miserable market prices, but the bank on Wednesday said it was sure that valuations would recover “This is a very cogent approach in terms of how to manage the pressure levels of the SIV world,” supposed Richard Meddings, StanChart’s finance director

The news came as StanChart issued an upbeat appraisal of its trading, reflecting buoyant financial growth in Asia, the Middle East and AfricaMr Meddings said it was “a story of two worlds” While western economies were slowing, he said, its business was concentrated in Asia, the Middle East and Africa where “there is strong liquidity, financial growth and increasing self-confidence”StanChart supposed it was comfortable with the mid-range of analysts’ forecasts, which are predicting proceeds of about $3

96bn, up from $318bn last yearCopyright The Financial Times Limited 2007normal Chartered in loan to BRAC - Dec-03Chinese banks seek bet in StanChart - Nov-19Lombard: StanChart’s Chinese suitors - Nov-19Attention moves to Temasek bet tactics - Nov-19StanChart buys AEB for $860m - Sep-19StanChart buys oil and gas boutique - Sep-06More from this regionBlogsBrussels BlogCharles PretzlikClive CrookDear LucyEconomists’ ForumEnergy FilterJohn GapperGideon RachmanTech BlogThe in secret EconomistWestminster BlogWillem Buiter’s MavereconRegional pagesLatin American agendaChinaIndiaBrusselsInteractivePodcastsDebates & pollsAsk the expertMarkets Q&AJobs and classifiedsBusiness for saleContracts & tendersJobs Search kind your search criteria below:* smallest amount delay 15 minutesAll times are London timeFT HomeSite mapContact usHelpAdvertise with the FTMedia centreStudent offersFT ConferencesFT SyndicationCorporate subscriptionsFT GroupPartner sites: Chinese FTcomLes EchosFT DeutschlandExpansionInvestors ChronicleExec-Appointments

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