Lloyds Banking Group (LON:LLOY) and HSBC Holdings plc (00005.HK) are reportedly using toxic assets left over from the financial crisis to plug huge holes in their pension funds.

HSBC and Lloyds Banking Group have both injected assets they have found difficult to sell into their pension schemes, with the effect of reducing their pension deficits, while shifting problem assets off their balance sheets reports the Daily Mail.

Bank funding issues across the Atlantic

Concerns are growing as to whether Bank of America, the largest US bank by assets, is facing a liquidity crunch.

The Times reports that Bank of America has been left fighting rumours that it may have to raise about $50bn in new capital to bolster its finances amid growing concerns about global financial liquidity.

Jefferies' analyst Layla Peruzzi writes: "Our traders and desk strategist think the reality is that the market is forcing Bank of America into a capital raise and the lower stock price goes, the worse it gets."

Jefferies believe that Bank of America might need to raise up to $50 billion.

Short sellers remain calm

Short sellers and securities lenders have remained calm in spite of controversial short selling bans for bank stocks introduced in Europe this month.

Securities lending data show that the amount of stock on loan – used as a proxy for tracking the scale of short positions – has dropped just 0.1 per cent on average since immediately before the 15-day prohibitions on shorting bank stocks were announced by France, Spain, Italy and Belgium, according to the Financial Times.

German investor sentiment

A collapse in German investor sentiment and weakening demand for new homes in the US sent out fresh warnings about the general health of the global economy.

The Markit monthly snapshot of economic confidence in Europe's biggest economy found that optimism was at its lowest ebb since December 2008 – the depths of the recession that followed the collapse of Lehman Brothers, writes the Guardian.

Gender Diversity

Leading companies are failing to tackle gender diversity at board level, experts warn. That's despite a government deadline demanding they publish proposals to boost the number of female board members.

In February Lord Davies called on FTSE 350 companies to achieve "urgent change" and announce aspirational goals within the next six months.

The deadline falls tomorrow, but while figures from FTSE 100 firms point to positive action, outside the main blue chip index the response appears less favourable, according to the Independent.

Source:economy-news