In Short

A round-up of other banking news

US rescue plans welcomed

The world's biggest economies welcomed the US plan to take toxic assets off the balance sheets of struggling banks, but there were no immediate moves yesterday to follow the initiative or help the US treasury fund it.

Japan's finance minister came closest to offering financial support, saying Tokyo could provide funds to an international effort to deal with the financial crisis.

Germany said it had not been asked for help.

Britain said the US move would "reinforce international financial stability" but chancellor Alistair Darling was not asked to help fund it. The UK said it had no plans to follow the US in setting up a kind of Resolution Trust Corporation to take on bad assets. - ( Financial Timesservice)

HSBC abandons Korean move

HSBC dropped a $6.3 billion offer for 51 per cent of Korea Exchange Bank, blaming turmoil in financial markets and ending what would have been the biggest cross-border move in South Korea's bank sector.

The move added to speculation HSBC would look to buy a distressed western peer.

HSBC, Europe's biggest bank and faring better than most rivals during the financial crisis, has been rumoured as a potential suitor for US savings and loan Washington Mutual and other troubled banks.

Its executives have played down the prospect of a big deal for an investment bank or US commercial banks, however, and it is not interested in Morgan Stanley, a person familiar with the matter said on Thursday amid rumours it could be looking. - (Reuters)

Oil over $100 on US bailouts

Oil rose nearly $3 to above $100 yesterday on expectations a comprehensive US government plan would help battered financial markets.

News of the plan sent global financial markets higher and helped push US crude up $2.74 to $100.62 a barrel. Prices have rebounded from a midweek seven-month low of $90.51.

London Brent crude gained $2.66 to $97.85 a barrel. "I think oil is up because there is more confidence in the financial markets," said Gerard Rigby, an independent energy consultant based in Sydney. - (Reuters)