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December 2, 2008 6:05:50 AM CST

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In Need of Cash, Banks Looking to Sell

Posted Dec 28, 07 7:48 AM CST in Business 

(Newser) – Still in need of cash, as subprime writedowns continue to maul bottom lines, US and European banks are selling off or shuttering non-critical assets. They've already sold stakes to foreign investors and borrowed from central banks; now it's time for the yard sale, as the Wall Street Journal puts it. Citigroup and the UK’s HSBC, among others, are primed to sell.

Merrill Lynch Monday booked $1.3 billion for its commercial lending business, and Morgan Stanley took part of its investment-analysis business public, raising $250 million in November. Experts say Citigroup could raise $12 billion selling small- to mid-sized units and expect HSBC to float its $13 billion US auto-loan unit. Both may struggle to find buyers in the current environment. 

Source Wall Street Journal

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The Morgan Stanley sign is seen at their world headquarters December 19, 2007 in New York City. Morgan Stanley, America's second largest investment bank, reported a fiscal fourth-quarter loss caused by...   (Getty Images)
Pedestrians pass the Citibank building April 17, 2006 in New York City. Citigroup announced late on November 26, 2007 that it had sold a $7.5 billion stake to the Abu Dhabi Investment Authority, a sovereign...   (Getty Images)
A man walks by an HSBC bank branch August 22, 2007 in San Francisco, California. London based HSBC, Europe's largest bank, announced today that it will cut 600 jobs in the U.S. and close a mortgage office...   (Getty Images)
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