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Latest Business News: Greece Picks Eurobank to Buy Postbank Ahead of Mid-July Deadline

Wochit 1:20 mins

Greece's bank rescue fund picked Eurobank to buy New Hellenic Postbank as part of consolidation in the sector and to meet a condition for the next tranche Greece's bailout, it said after a board meeting on Saturday. Athens agreed with its euro zone and International Monetary Fund backers to sell Postbank (TT) and Proton Bank by July 15 as a condition for the release of more funds from the 240 billion-euro rescue keeping Greece afloat. Concerns over the Bank of Japan?s commitment to so-called quantitative easing ? coupled with fears that the Federal Reserve in the United States would soon end its own bond-buying program ? helped push the country?s stocks into yet another correction. From its May 22 peak, the Nikkei 225 index of Japanese shares fell more than 20 percent by June 13. But then it came roaring back by more than 16 percent on more recent signs that the country?s economy was indeed nearing a turnaround. Several regulators such as Federal Deposit Insurance Corporation, the Federal Reserve Board and the Office of the Comptroller of the Currency want to raise the percent of capital that big banks must have on hand to cover losses. But get ready for an onslaught of industry lobbying against the plan.

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