City firms made plans in Brexit run-up to move assets worth £100bn to EU – survey

Data from EY highlights last-minute transfers in order to hold on to European business

City firms revealed in the final months of 2020 that they planned to shift nearly £100bn in assets to the EU, taking the total value of assets lost to the bloc since the Brexit vote to £1.3 trillion, according to a new survey.

The data from consulting group EY pointed to a last-minute push by firms before 31 December after the UK-EU trade deal did not offer concessions for the UK’s dominant financial services sector. It forced companies to move staff and assets to the continent in order to continue serving EU customers.

Continue reading...

Lloyds and HSBC are shedding office space … did they have too much to begin with?

Why there may be more to the announcement of Covid-inspired cuts than meets the eye

Here comes another bank that has decided, apparently definitively, that working practices will not return to their pre-pandemic norms. Lloyds Banking Group says it plans to shed 20% of its office space. Earlier this week, HSBC said it would get rid of 40%.

These figures are so dramatic that they invite suspicion. Have managements really come to the firm view that working from home is so popular that employees’ demands for flexibility must be granted? Or did these banks have too much office space in the first place and now wish to save a few quid?

Continue reading...

HSBC looks to Asia after profits plunge 34%

More executive roles are expected to relocate to home base of Hong Kong as part of Asia shift, where most of its earnings come from

HSBC, Britain’s biggest bank, has recorded a 34% drop in profit for 2020 as it prepares to double down on its operations in Hong Kong and China despite concern about the political crackdown in the former UK colony.

The bank said on Tuesday that pre-tax profit was down from $13.3bn (£9.4bn) in 2019 to $8.8bn in the 12 months to 31 December, while the adjusted profit before tax of $12.1bn (£8.6bn) fell 76% on the year before.

Continue reading...

Human rights and climate crisis give HSBC an image problem

The bank, which is due to reveal its annual results this week, faces more challenges than the impact of Covid-19 on profits

HSBC’s chief executive Noel Quinn has had an unenviable first year on the job. In 2020 alone, Quinn rolled out a major restructuring plan that will involve at least 35,000 job cuts, battled the financial impact of Covid in both Asia and Europe, and steered the bank through a geopolitical storm over its response to democracy clashes in Hong Kong.

Now he is set to preside over the bank’s second straight year of declining annual profits.

Continue reading...

Former NAB executive Rosemary Rogers jailed for defrauding bank of millions of dollars

The former chief of staff to the CEO was motivated by greed, personal gain and self-gratification, prosecutors argued

A former NAB executive who fraudulently enjoyed $5.4m worth of benefits unwittingly paid for by the bank has been jailed for at least four years and nine months.

Rosemary Rogers, 45, became so used to “enjoying the benefits of her fraud” she was unable to stop over a four-year period, acting judge Paul Conlon told the New South Wales district court on Wednesday.

Continue reading...

HSBC denies taking political stance over China’s crackdown in Hong Kong

Bank’s chief executive, Noel Quinn, claims business not in position to question police requests

HSBC’s chief executive has denied taking a political stance on China’s crackdown in Hong Kong, claiming the bank was not in a position to question police requests when it agreed to freeze accounts of pro-democracy activists.

Questioned by MPs on the foreign affairs committee on Tuesday, Noel Quinn ruled out exiting the Hong Kong market in light of Beijing’s controversial new security laws, saying it “would only harm” local customers.

Continue reading...

Bitcoin hits record high on 12th anniversary of its creation

Cryptocurrency passes $30,000 as financial institutions express growing interest

Bitcoin has surged to a record high amid rising interest from investors and claims that the volatile cryptocurrency is on the way to becoming a mainstream payment method.

Having quadrupled in value during 2020, bitcoin began 2021 strongly by breaking through the $30,000 (£22,000) mark for the first time, less than three weeks after first trading above $20,000.

Continue reading...

British banks under pressure over £45m loans to firm with links to Myanmar military

Campaigners say the deals revealed in new report are a breach of firms’ human rights responsibilities

Human rights groups are demanding that two of Britain’s biggest banks explain why they have lent tens of millions of pounds to a technology company building a telecoms network that is part-owned and used by the Myanmar military.

HSBC and Standard Chartered have loaned $60m (£44.5m) to Vietnamese telecom giant Viettel in the last four years, a period when the Myanmar military has been accused of committing war crimes, genocide and crimes against humanity. Viettel is a major investor in Mytel, a Myanmar mobile network that, since its launch in June 2018, has grown to become the second-biggest operator in the country with over 10 million users.

Continue reading...

‘There’s nobody here’: Covid turns Wall Street into a ghost town

Exodus that started after 9/11 has accelerated — and many fear New York’s financial district will not recover

“They used to stand at the bar three deep,” says John Moran, surveying the long, empty counter at Killarney Rose, a Wall Street bar that would, in another era, have been stuffed with early-shift construction workers and, at lunch and late into the evening, suited bankers.

The world’s pre-eminent financial thoroughfare – at least throughout the 20th century – is a ghost of what it once was. The New York Stock Exchange and Nasdaq are still located here, but dozens of financial institutions have emptied out from New York’s financial district in an exodus that started in the wake of 9/11 and has been hastened by Covid.

Continue reading...

Kremlin critic says UK bank account shut because of Russian ‘black PR’

NatWest denies accusation made by Bill Browder in thinktank report into practice of ruining reputations

A longstanding critic of Kremlin corruption has accused NatWest of closing his bank account in the UK because it had been influenced by an intense and pervasive “black PR” campaign mounted against him by Russian actors in their home country.

“Black PR” is a term referring to a series of connected practices used by Russian state and non-state actors seeking to discredit individuals as part of political or business disputes, and can involve trying to create or obtain kompromat (compromising material) or generating fake media reports.

Continue reading...

‘People are suffering’: G20 to call on private lenders to suspend debt repayments

At this weekend’s meeting in Riyadh, leaders will urge action to free up resources to help stricken developing countries combat Covid-19

From his house in Nairobi, banker turned financial vlogger James Mumo contemplated the state of Kenya’s post-pandemic economy. “It’s hopeless for a normal businessperson just trying to make a living for their family,” he says.

The economic crisis caused by the pandemic and ensuing lockdowns has left many struggling: 1.7 million Kenyans lost their jobs between April and June 2020, while 20.8 million borrowed funds using a programme provided by popular mobile carrier Safaricom, double last year’s number. One financial services conglomerate headquartered in Nairobi bought a yard to store all the cars it had repossessed after customers couldn’t repay their loans.

Continue reading...

Banking and slavery: Switzerland examines its colonial conscience

BLM protests and fresh historical evidence are raising questions over the legacy of the founder of modern Switzerland, Alfred Escher

Alfred Escher wielded so much power and influence during his lifetime that he was nicknamed King Alfred I. An immense bronze statue of modern Switzerland’s founding father stands, fittingly, in front of Zurich’s main train station. Escher was a politician, but he was also an entrepreneur who founded the country’s railway network along with its leading university and the banking giant Credit Suisse.

The statue in Zurich has memorialised Escher for more than 100 years, but it may not be there much longer. A recently published study on Zurich’s involvement in slavery details problematic connections to Escher. The Escher dynasty owned a coffee plantation in Cuba with more than 80 slaves and Escher himself was involved in its sale.

Continue reading...

Belarus tells banks to seize money raised to help out protesters

Money frozen in accounts of people who were hoping to use it for treatment or to pay fines

Authorities in Belarus have ordered banks to seize money raised in small donations and paid out as compensation to victims of a police crackdown on protesters.

The funds were transferred to people who were beaten or fined after taking part in ongoing demonstrations against the regime of Alexander Lukashenko.

Continue reading...

Banks around world in joint pledge on ‘green recovery’ after Covid

Climate finance goals declared but campaigners highlight omissions over fossil fuels and poor nations’ support

The world’s publicly financed development banks have pledged to tie together their efforts to rescue the global economy from the Covid-19 crisis and the climate emergency, using their financial muscle to assist a green recovery for poor countries.

But the banks stopped short of pledging an end to fossil fuel finance, and did not set out firm targets for how much funding they would devote to a green recovery in a declaration signed on Thursday by 450 development banks worldwide.

Continue reading...

Qatari officials intimidated claimants in terror case, high court told

Met police counter-terror unit has been asked to investigate allegations, court hears

Counter-terrorism police have been asked to investigate claims that witnesses and claimants in a terror-funding case were intimidated by officials working for the state of Qatar, the high court has been told.

Allegations of perverting the course of justice emerged at the hearing in London on Wednesday in a case involving compensation claims submitted originally by eight Syrian refugees against Doha Bank, the headquarters of which are in the Gulf state.

Continue reading...

EU bank supports projects linked to human rights violations, NGOs claim

European Investment Bank accused of failure to properly assess impacts of supported projects in Africa and Asia

The EU-funded European Investment Bank has been using taxpayer cash to support infrastructure projects linked to alleged human rights violations, an investigation by NGOs shows.

The report – led by campaign groups Counter Balance and the CEE Bankwatch Network – has accused the EIB of a lack of transparency and a failure to properly assess the impact of its funding as it extends its role beyond Europe to former Soviet republics, Africa and Asia.

Continue reading...

‘It’s crazy, but I started my own bank’: the story behind Starling

Fed up with modern finance and Britain’s broken banking system, Anne Boden decided there was only one thing to do: set up a bank that ran in the way she wanted it to

The first time I met Anne Boden was last December at a glitzy awards ceremony where I knew no one, felt out of place and was skulking in the loos. In she bustled – she’s smaller than me (I’m 5ft 1in), older than me (she’s 60), a little eccentric and perhaps the friendliest person in the place. She didn’t stop talking. She ushered me out, remained by my side until the ceremony started (think Disney’s Fairy Godmother) and, along the way, mentioned that she was the founder and CEO of Starling Bank, the event’s main sponsor.

I couldn’t have been more surprised – or picture a less likely “banking mogul”. When she explained that Starling was an app-based bank, I rewarded her with the worst response possible. “You mean like Monzo?” (My daughter had signed up to Monzo, the trendy “no branches” bank, to acquire its distinctive coral-coloured card, which now gathers dust on her bookshelf.) Boden was gracious but flustered. I ascertained that Monzo had been founded by her former business partner Tom Blomfield. He was considerably younger, more hip, more Hoxton – and he’d left her, taking the other directors with him.

Continue reading...

Goldman Sachs reaches $2.9bn deal to settle US-led 1MDB inquiry

Bank’s Malaysia division agrees to plead guilty to violating foreign bribery laws

Goldman Sachs has agreed to pay $2.9bn (£2.2bn) to settle a US-led investigation into its role in the 1MDB corruption scandal.

The settlement is expected to draw a line under a years-long saga that has cast a shadow over one of the most recognisable names on Wall Street. Goldman Sachs’ Malaysia division also agreed to plead guilty to violating foreign bribery laws linked to the alleged looting of the country’s sovereign wealth fund, 1MDB.

Continue reading...

Nearly 75% of City firms reviewing office space provision

Rise in home working during the pandemic means many companies are assessing their needs

Nearly three-quarters of City firms are reviewing how much office space they really need following a boom in home working during the pandemic, new research shows.

The latest CBI/PwC financial services survey found 74% of companies – particularly banks and insurance firms – have been taking stock of their office requirements in the hope of either using the space differently, or reducing it.

Continue reading...

Credit Suisse apologises over black janitor act at chairman’s party

Bank’s former chief executive reportedly walked out of room during act at party last year

A leading investment bank has apologised for “any offence caused” after it was reported that its black former chief executive left his chairman’s birthday party when a black performer dressed as a janitor danced on stage.

The New York Times reported that Tidjane Thiam, who ran Credit Suisse between 2015 and February this year, walked out of the room during the act at Urs Rohner’s 6oth birthday celebration.

Continue reading...