Finacial Sector Updates on Research and NEws $C $CME $BAC

Financials

· Banks – M Whitney co-hosted CNBC early this morning (5amET); she said housing prices will come under further pressure as shadow inventory comes on the market; she thinks this will put further pressure on bank balance sheets and force them to raise more capital – FT

· RBS – the co is planning a vast balance sheet restructuring in an attempt to boost capital strength and enhance its standing w/bond investors; the deal could involve a debt buyback worth at least GBP10B. RBS is examining which instruments it should make cash tenders for and which it makes sense to exchange into new coupon-paying paper. FT

· C - Citigroup Inc. will pay 269.7 billion Chilean pesos ($519.7 million) to increase its stake in the controlling shareholder of Banco de Chile SA to 50% - WSJ

· C – the co to bolster its prop trading unit; Citigroup may increase the group’s trading limits and capital – Bloomberg

· CME – behavior of CME in wake of Lehman failure raises fears around derivatives clearing – in the wake of the bank’s collapse, CME convened an emergency committee that conducted a forced transfer of the bank’s positions, the only time this has been done by the exchange operator. FT

· AXS - expects industry insured losses for the 8.8 magnitude earthquake in Chile will be between $4 and $8 billion and the Company estimates its net losses relating to the earthquake will be between $60 and $125 million. The Company expects industry insured losses for European Windstorm Xynthia will be between $2 and $4 billion and the Company estimates its net losses relating to the windstorm will be between $10 and $20 million

· ENH - Endurance estimates that its combined losses related to the Chilean earthquake and European Windstorm Xynthia will be $65 million, pre-tax and net of reinsurance and reinstatement premium

· Unicredit - Chief Executive Officer Alessandro Profumo is threatening to resign at a board meeting Tuesday afternoon in a clash with Chairman Dieter Rampl and shareholder representatives – DJ

· WMT - plans a 50% increase this year in the number of the company's stores offering bank-like services. WSJ

· BXS – files K; net income for ’09 cut by $21.6MM from previously reported levels; the co is holding a conf call Tues @ 9amET announced the filing of its Annual Report on Form 10-K for the year ended December 31, 2009 with the Securities and Exchange Commission. The previously reported financials have been revised to reflect: A $27.6 million increase in the provision for credit losses; a $4.5 million increase in foreclosed property expense, which included $3.8 million for a valuation allowance; a $2.3 million expense related to a specific litigation matter; and a reversal of interest income totaling $606,000 related to loans placed on non-accrual; A $21.6 million, or $0.26 per diluted share, reduction in net income

· Senior Deutsche Bank official talking to ICBC - Lee Zhang, Deutsche Bank’s head of global banking for Asia- Pacific outside Japan, was in talks to join ICBC – Bloomberg

· ABK - filed today a Form 12b-25 notification of late filing with the Securities and Exchange Commission in connection with its Annual Report on Form 10-K for the year ended December 31, 2009. Ambac will also delay the release of its earnings for the year ended December 31, 2009 until the filing of its Form 10-K. Ambac Cites Talks With Counterparties To Certain Obligations. Also Cites Talks With Wisconsin Insurance Commissioner. Outcome Of Talks Could Have Material Impact On Statements