‘We’ve signed Ronaldo’: could other banks follow Goldman Sachs to Birmingham?

As the bank hires nearly 100 staff in the city, the region’s mayor hopes to attract more big firms

Investment bankers are rarely compared to football stars. But when the West Midlands mayor, Andy Street, formally welcomed Goldman Sachs to Birmingham this month, he likened its arrival to one of the summer’s big transfer moves.

“I hope this isn’t inappropriate,” he said, addressing a crowd of Goldman staff gathered at the city’s newly refurbished Grand Hotel. “I think you probably are the Cristiano Ronaldo moment. You’re the big one to secure.”

Continue reading...

The Guardian view on Europe’s centre-left: new grounds for optimism | Editorial

There are signs that previously struggling social democratic parties are drawing the right lessons from the pandemic

In the wake of the financial crash in 2008, hopes were high on the left that a bona fide crisis of capitalism would significantly shift the political dial in its favour. Isolated victories and movements aside, it didn’t really happen. Instead, in the early 2010s, the bailout of the bankers was followed by the imposition of austerity across Europe and in America as governments sought to balance the books.

Premature predictions on the nature of post-Covid politics in the west are therefore to be avoided. But certain themes do seem to be emerging. Sketching out broadly communitarian territory, they chime with many people’s experience of how the pandemic played out and what it exposed; and there is some evidence that, in northern Europe, they might inform a revival and renewal of centre-left parties and movements.

Continue reading...

‘Eerie silence’ as Evergrande misses payment deadline

As debt-laden Chinese property giant enters 30-day grace period, officials look to limit unrest and job losses

The embattled Chinese property developer Evergrande is inching closer to the potential default that investors fear, after missing an interest payment deadline.

The company, which has total debts of about $305bn (£222bn), has run short of cash, and investors are worried that a collapse could pose systemic risks to China’s financial system and reverberate around the world.

Continue reading...

Evergrande vows to meet local debt deadline, but doubts remain over dollar bond

Embattled Chinese property giant allays some market concerns despite lack of guidance over $83.5m due on a separate offshore debt

Chinese property developer Evergrande has said it would pay some of the bond interest due on Thursday, allaying fears of an imminent and messy collapse that had spooked investors.

Markets in Taiwan and China reopened lower after a two-day break, catching up with a sharp sell-off around the world triggered by concern over Evergrande’s predicament.

Continue reading...

Shares in China’s Evergrande plunge again as fears of contagion grow

Hong Kong stock fell almost 17% amid default fears that are beginning to have a knock-on effect on other markets

Shares in the embattled Chinese property company Evergrande have plunged 17% as investors weigh up whether the group’s massive debt problems could trigger a broader sell off across all financial markets.

Related: ‘China’s Lehman Brothers moment’: Evergrande crisis rattles economy

Continue reading...

Europe’s top 25 banks failing on green pledges, campaigners warn

ShareAction says lack of plans to tackle climate crisis and biodiversity loss casts doubts on banking’s sustainability pledges

Europe’s 25 largest banks are still failing to present comprehensive plans that address both the climate crisis and biodiversity loss, putting their sustainability pledges in doubt, campaigners have warned.

While some lenders such as NatWest are demonstrating leadership on specific issues – such as net zero targets and policies restricting financing for new fossil fuel – research by investment campaign group ShareAction found none of the banks it reviewed were taking action across all key areas.

Continue reading...

European banks storing €20bn a year in tax havens

Barclays and HSBC among banks booking money equivalent to 14% of annual profits in offshore entities

Leading European banks are booking around €20bn (£17bn) a year – equivalent to 14% of their total profits – in tax havens, with Barclays, HSBC and NatWest Group among those enjoying the lowest tax rates, according to a new report.

The figures emerge from an analysis, conducted by the EU Tax Observatory, of 36 big banks required to publicly report country-by-country data on their activities.

Continue reading...

Covid and the crisis of neoliberalism | Adam Tooze

The year 2020 exposed the risks and weaknesses of the market-driven global system like never before. It’s hard to avoid the sense that a turning point has been reached

If one word could sum up the experience of 2020, it would be disbelief. Between Xi Jinping’s public acknowledgment of the coronavirus outbreak on 20 January 2020, and Joe Biden’s inauguration as the 46th president of the United States precisely a year later, the world was shaken by a disease that in the space of 12 months killed more than 2.2 million people and rendered tens of millions severely ill. Today the official death tolls stands at 4.51 million. The likely figure for excess deaths is more than twice that number. The virus disrupted the daily routine of virtually everyone on the planet, stopped much of public life, closed schools, separated families, interrupted travel and upended the world economy.

To contain the fallout, government support for households, businesses and markets took on dimensions not seen outside wartime. It was not just by far the sharpest economic recession experienced since the second world war, it was qualitatively unique. Never before had there been a collective decision, however haphazard and uneven, to shut large parts of the world’s economy down. It was, as the International Monetary Fund (IMF) put it, “a crisis like no other”.

Continue reading...

‘The Queen’s bank’ Coutts joins the ranks of ethical brands

Despite chequered history the 329-year-old private bank has secured the sought-after B Corp status

Private bank Coutts will offer carbon credits and green mortgages to its ultra-wealthy clients after becoming one of the largest UK banking brands to secure B Corp status.

Coutts, known as the Queen’s bank for having served every member of the royal family since George IV, is trying to bolster its environmental and social reputation after being dogged by a series of scandals in recent years, including sexual harassment allegations against its former star banker Harry Keogh, who was sacked in 2018. The bank was also fined by Swiss regulators in 2017 over alleged money laundering and for illegally profiting from transactions associated with the 1MDB scandal.

Continue reading...

Biden corporate tax plan could earn EU and UK billions, study shows

EU forecast to reap extra €50bn per year with UK expected to gain €200m from BP alone

A proposal to be tabled by the US president, Joe Biden, at the upcoming G7 meeting for a 15% global corporate tax rate could reap the EU €50bn (£43bn) a year, and earn the UK nearly €200m extra alone from the British multinational BP, according to research.

Should the tax rate be set higher at 25%, the lowest current rate within the seven largest world economies, the EU would earn nearly €170bn extra a year – more than 50% of current corporate tax revenue and 12% of total health spending in the bloc.

Continue reading...

Protesters call on banks to ‘drop African debt’ in wake of Covid

World’s poorest nations saddled with ‘imprisoning’ debt, hampering responses to the pandemic, say activists protesting HSBC meeting

Activists at a demonstration outside the annual general meeting of HSBC in London have demanded the bank and other financial giants provide debt relief to African countries hit hard by the coronavirus pandemic.

In an attempt to highlight the role of private creditors in the debt crises of the world’s poorest countries, campaigners with “drop the debt” banners gathered outside HSBC’s AGM at the Southbank Centre.

Continue reading...

Goldman Sachs executive quits after making millions from Dogecoin

The crypto asset is down more than 30% this week but is still up by more than 1,000% from the start of 2021

A senior manager at Goldman Sachs in London has quit the US investment bank after making millions from investing in Dogecoin, the joke crypto asset which has risen by more than 1,000% in value this year.

City sources said Aziz McMahon, a managing director and head of emerging market sales, had resigned from the bank after making money from investing in the digital currency based on the Doge internet meme.

Continue reading...

UK to come under scrutiny in Italy’s largest mafia trial in decades

Witnesses will be asked to respond to claims the ’Ndrangheta has laundered billions of euros in City of London

In a high-security, 1,000-capacity courtroom converted from a call centre, Italy’s largest mafia trial in three decades is under way in Lamezia Terme, Calabria. About 900 witnesses are set to testify against more than 350 defendants, including politicians and officials charged with being members of the ’Ndrangheta, Italy’s most powerful criminal group.

Several of the defendants will be asked to respond to charges of money laundering over establishing companies in the UK with the alleged purpose of simulating legitimate economic activity.

Continue reading...

Credit Suisse executives depart after Archegos and Greensill losses

Directors’ bonuses scrapped as chief risk officer and investment bank chief exit

Credit Suisse has cancelled the bonuses of its directors, slashed its dividend and announced the departure of two senior executives as the bank revealed £3.4bn in losses from the collapse of the Archegos investment fund.

The Swiss bank is reeling from heavy exposure to Archegos and the business bank Greensill, which suffered successive but unrelated financial blow-ups.

Continue reading...

Top banks could be investigated over $20bn fire sale of hedge fund assets

Collapse of Archegos has reportedly prompted SEC and FCA inquiries into Credit Suisse, Goldman Sachs, Nomura and others

UK and US regulators are looking into whether global investment banks breached rules by holding group discussions shortly before launching a fire sale of nearly $20bn worth of assets belonging to the distressed hedge fund Archegos Capital Management, according to reports.

The Securities Exchange Commission is said to have requested further information from major US banks Goldman Sachs, Wells Fargo and Morgan Stanley, as well as Japan’s Nomura and Swiss lender Credit Suisse about a meeting with Archegos founder Bill Hwang on Thursday.

Continue reading...

Regulators around the world monitor collapse of US hedge fund

Liquidation of Bill Hwang’s Archegos Capital Management sparked a fire sale of more than $20bn assets

Financial regulators across the world are monitoring the collapse of the New York-based billionaire Bill Hwang’s personal hedge fund.

The sudden liquidation of Hwang’s Archegos Capital Management sparked a fire sale of more than $20bn assets that has left some of the world’s biggest investment banks nursing billions of dollars of losses.

Continue reading...

Goldman Sachs junior banker speaks out over ’18-hour shifts and low pay’

Younger staff in London follow revolt in US offices over remote-working conditions

The reputation of Goldman Sachs as the most desirable employer for aspiring investment bankers is at stake. Legendary for its pulling power with the best graduates, the bank is now facing a rebellion in its lower ranks.

Junior staff who used to tolerate long working hours thanks to office camaraderie have been forced to manage burnout at home, alone, throughout the pandemic. Some have started demanding change, while others are plotting their exit. What began as a little local trouble at a US office in February has now spread to the UK.

Continue reading...

Big banks’ trillion-dollar finance for fossil fuels ‘shocking’, says report

Coal, oil and gas firms have received $3.8tn in finance since the Paris climate deal in 2015

The world’s biggest 60 banks have provided $3.8tn of financing for fossil fuel companies since the Paris climate deal in 2015, according to a report by a coalition of NGOs.

Despite the Covid-19 pandemic cutting energy use, overall funding remains on an upward trend and the finance provided in 2020 was higher than in 2016 or 2017, a fact the report’s authors and others described as “shocking”.

Continue reading...

Group of junior bankers at Goldman Sachs claim ‘inhumane’ work conditions

First-year US analysts complete internal survey, describing ‘sleep deprivation’ and workplace ‘abuse’

Junior bankers at Goldman Sachs say they are facing “inhumane” conditions at the investment bank, including 100-hour work weeks and “abuse” from colleagues which has severely affected their mental health.

The responses from the poll participants – 13 investment banking analysts in the US – have shed light on the gruelling demands on first-year analysts, a cohort that features some of the brightest recruits hired annually by Goldman.

Continue reading...