Category Archives: Banking

Liz Truss faces backlash over plan to lift cap on bankers’ bonuses – UK politics live

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Latest updates: Kwasi Kwarteng’s plan to lift cap criticised as ‘very bad timing’ during cost of living crisis

In its response to the legal proceedings launched by the EU over the Northern Ireland protocol (see 11.54am), the UK government has said that it has unilaterally decided to continue suspending border checks on farm produce and other goods entering NI from Great Britain, my colleague Lisa O’Carroll reports.

The European Union is considering its next steps after receiving the UK’s response to legal threats over the failure to comply with the post-Brexit Northern Ireland protocol, PA Media reports. PA says:

Despite politics as normal being paused while the nation mourns the Queen’s death, the government responded to the action ahead of today’s deadline.

The bloc had requested a response to its raft of infringement proceedings over the UK’s failure to comply with the rules before the end of the day.

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China tells banks to check exposure to debt-laden Fosun conglomerate

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Sprawling group owns assets including Thomas Cook, Club Med and Wolverhampton Wanderers

China’s biggest banks and state-owned companies have been told to check their financial exposure to Fosun, the sprawling conglomerate that owns assets including the Premier League football club Wolverhampton Wanderers, as the heavily debt-laden group struggles from the impact of downturn in the property sector in its home market.

The financial strength of the Shanghai-based group, co-founded in 1992 by the billionaire Guo Guangchang and built into one of China’s largest non-state-owned conglomerates, has come under scrutiny after a huge sell-off in property bonds that began in June.

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More ‘banking hubs’ to open across UK to tackle branch and ATM closures

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Additional 13 hubs will bring total to 25, where customers of almost any bank can carry out transactions

More shared “banking hubs” are to be rolled out across the UK to help communities hit by branch and ATM closures to get continued access to cash.

A banking hub is a shared service that operates in a similar way to a standard branch, with a counter service run by Post Office staff where customers of almost any bank can withdraw and deposit cash, make bill payments and carry out regular transactions.

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Bank Australia to ditch fossil fuel car loans in push for EV future

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Announcement at national electric vehicle summit comes as climate change minister seeks input on national EV strategy

An Australian bank will stop offering loans for new fossil fuel cars from 2025 in a step it says will encourage more people to buy electric vehicles.

The customer-owned Bank Australia will announce the self-imposed ban at a national EV summit in Canberra on Friday, arguing it is a responsible step to ensure its lending practices did not “lock our customers into higher carbon emissions and increasingly expensive running costs”.

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Commonwealth Bank and ANZ raise variable home loan interest rates by half a point to match RBA rise

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Increase puts the banks’ variable interest rates at highest in three years with Westpac and NAB yet to respond to official cash rate hike

The Commonwealth Bank and ANZ have matched this week’s move by the central bank and raised their variable home loan rates.

CBA’s rates for owner-occupier and investor mortgages will rise by half a percentage point on 12 August.

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Taxpayers left with £421m bill after one in 12 firms default on Covid loans

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About 8% of borrowers – 130,000 firms – have so far failed to repay government-backed emergency loans

Taxpayers have been left to foot a £421m bill to cover soured Covid debts, after one in 12 businesses defaulted on state-backed emergency loans distributed at the height of the pandemic, official figures reveal.

In the first set of figures detailing the performance of government-backed loans offered to struggling firms during the outbreak, the Department for Business, Energy and Industrial Strategy said about 8% of 1.6m borrowers – roughly 130,000 – failed to repay their debts as of March this year.

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Lloyds profits take hit after more money put aside for defaults

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Bank says number of customers in arrears at ‘low levels’ despite soaring inflation

Lloyds Banking Group has revealed it is struggling to boost profits, amid fears that soaring inflation could lead to a jump in defaults on loans and mortgages.

The country’s largest mortgage lender, which is considered a bellwether for the British economy, took a £200m charge between April and June as it put aside more money to protect the bank from potential defaults. That compares with the £374m it released during the same period last year.

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ANZ buys Suncorp’s banking arm for $4.9bn to boost Queensland presence

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Queensland jobs and bank branches to be protected for at least three years under terms of the takeover

ANZ has agreed to buy Suncorp’s banking business for $4.9bn in a deal the big-four lender described as a vote of confidence in Queensland.

Under the deal, ANZ will continue operating under the Suncorp Bank brand for five years as it takes on an additional $47bn in home loans and $45bn in deposits.

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City donations worth £15m raise concerns over influence on UK politics

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Total donated to parties by financial firms and individuals tied to the sector over two years, report says

Concerns have been raised over the City’s influence on Westminster, after a report found financial firms and individuals tied to the sector donated £15m to political parties and gave £2m to MPs during the pandemic.

The campaign group Positive Money tallied the gifts, expenses and donations handed to MPs, peers and their parties, as well as the value of income from politicians’ second jobs, saying it contributed to finance’s “oversized influence” on policymaking.

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The Russian bank, the Bruce Willis ad and the $900m sanctions battle

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Ministers warned that millions owed after alleged fraud by ex bosses of National Bank Trust could help fund Putin’s war effort

In one of Russia’s most high-profile marketing campaigns, film star Bruce Willis appeared in cinematic advertisements with a car chase and a rooftop rescue, ending with the slogan, “Trust is just like me, but a bank.”

The campaign for National Bank Trust in 2011 – which included cardboard cutouts of Willis popping up in 400 branches across Russia – was credited with raising the bank’s profile and boosting business.

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HSBC faces pressure to split after push from one of its largest shareholders

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Chinese insurer Ping An discusses listing bank’s Asian operations separately in Hong Kong

HSBC is facing pressure to break up after one of its largest shareholders told the UK-headquartered bank to consider spinning off its profitable Asian operations centred on Hong Kong.

Chinese insurer Ping An has discussed listing the Asian operations separately in Hong Kong, Bloomberg first reported. Ping An owns 8.3% of the bank, according to the latest public filings, a stake worth £8.2bn.

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Fraud in Covid bounceback loan scheme not being addressed, say MPs

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Public accounts committee say government must devote more resources to recovering nearly £5bn

MPs have criticised the government for its “unacceptable” failure to draw up plans to recover nearly £5bn taken from the coronavirus emergency bounceback loan scheme by fraudsters.

The government must give more resources to counter-fraud agencies and account properly for how much of the money will be lost forever, according to a report published on Wednesday by parliament’s influential public accounts committee.

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Scilly residents face paying hundreds to visit the bank as last branch closes

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Lloyds is to close the Isles’ last branch meaning the nearest bank will be 44 miles and a ferry ride away

For many, the ferry ride between Cornwall and the Isles of Scilly marks the beginning of a relaxing weekend away. For residents of the islands wanting to visit their nearest bank, it’s about to become an expensive necessity.

Lloyds, which ran the Isles’ last remaining branch, is about to close the site on the island of St Mary’s because of a persistent fall in customer numbers.

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Westpac fined $40m for charging fees to the dead

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Judge says bank ‘utterly failed to address the issues systematically’ as its total penalties for misconduct rise to $130m

Westpac has been fined $40m for charging fees to more than 11,800 dead people, bringing the total the federal court has ordered the bank to pay in a string of misconduct cases brought by the corporate regulator to $130m.

The Australian Securities and Investments Commission launched the six cases against Westpac in November, accusing the bank of charging financial advice service fees to the dead, double-charging for insurance, collecting and paying illegal commissions, failing to properly disclose fees, allowing company accounts that should have been closed to stay open and selling personal debts to collectors at an interest rate higher than allowed.

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Vote down executive pay at Barclays and Standard Chartered, investors told

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Rebellions loom as Glass Lewis advises banks’ shareholders to reject higher base pay and excessive pensions

Barclays and Standard Chartered face the prospect of rebellions over executive pay after an influential adviser said investors should vote down pay and pensions packages for executives at the FTSE 100 banks.

Investors should defy directors and reject higher base pay for Barclays’ new chief executive and potentially “excessive” pension awards at Standard Chartered, according to Glass Lewis, which advises investors such as pension funds on how to vote at annual meetings.

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ABN Amro apologises for historical links to slavery

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Dutch bank says sorry for ‘pain and suffering’ caused by past actions and activities of its predecessor firms

The Dutch bank ABN Amro has apologised for its predecessors’ role in the slave trade, after it commissioned an investigation into the “untold suffering” it caused.

The investigation, by academics at the International Institute of Social History (IISH), an Amsterdam archive, found that two of ABN Amro’s predecessor companies were involved in either financing the operation of slave plantations directly, or underwriting the trade in products produced by slaves.

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Ex-Goldman banker Roger Ng found guilty in billion-dollar 1MDB scandal

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Ng, 49, found guilty of helping to embezzle money earmarked for development in one of biggest frauds in financial history

The former Goldman Sachs executive Roger Ng has been found guilty of helping to steal billions of dollars from Malaysia’s 1MDB sovereign wealth fund after a lengthy trial brought by US prosecutors, who described the fraud as one the largest financial scandals in history and who hoped to show that individuals are always at the center of corporate wrongdoing.

A New York jury found Ng, 49, once Goldman’s top investment banker in Malaysia, guilty of helping his former boss Tim Leissner embezzle money intended for development to benefit Malaysia’s poor from a fund connected to Malaysia’s then prime minister, Najib Razak, and then to launder the proceeds while bribing officials in Malaysia and Abu Dhabi.

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HSBC cuts references to Ukraine ‘war’ from its analyst reports

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Bank has softened language in research documents, according to report, amid pressure to exit Russia

HSBC has reportedly removed references to a “war” in Ukraine from research reports, amid calls for the British bank to close its operations in Russia.

Russia’s government refers only to a “special military operation” in Ukraine, and Vladimir Putin’s regime has criminalised reporting on its invasion that contains any information from non-official sources, with prison sentences of up to 15 years.

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NatWest returns to majority private control as it buys back £1.2bn in shares

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UK government sells more of stake in group formerly known as Royal Bank of Scotland at a loss over 2008 price

NatWest Group has returned to majority private ownership after it agreed to buy back £1.2bn of shares from the UK government, more than 13 years after the company was bailed out by taxpayers at the height of the financial crisis.

The company, formerly known as Royal Bank of Scotland Group (RBS), said it had agreed to make an off-market purchase of 550m shares, or 4.91% of its share capital, from HM Treasury at Friday’s closing price of 220.5p, in a statement to the stock market on Monday.

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