Category: Banking

Deutsche Bank Loses Ground in Trading as JPMorgan Thrives

Deutsche Bank’s negotiations with U.S. prosecutors last year over alleged mortgage misdeeds rattled investors, leading many of the German lender’s trading partners to defect — apparently to American rivals. Deutsche Bank , the German lender hit last year by a $7.2 billion settlement with U.S. authorities over alleged mortgage misdeeds, is losing ground to American rivals in the highly profitable arena of bond and currency trading, a new report shows.

Barclays Posts Full Year Profit Increase, Trims Bonus Pool

Barclays posted weaker-than-expected full year earnings Thursday and reduced its bonus pool as the U.K. lender came to the end of its ongoing restructuring program. Barclays plc posted weaker-than-expected full year earnings Thursday and reduced its bonus pool as the U.K. lender came to the end of its ongoing restructuring program.

Prudential May Press Wells Fargo as Fake-Account Fallout Spreads

Prudential Financial Inc., facing regulatory scrutiny and lawsuits over a sales relationship with Wells Fargo & Co., said it may press its partner to cover costs after halting the offering — another sign the bank has yet to contain the full fallout of its bogus-account scandal. Prudential “has provided notice to Wells Fargo that it may seek indemnification,” the Newark, New Jersey-based insurer said in a Feb. 17 regulatory filing, referring to their agreement to sell MyTerm life coverage to Wells Fargo customers.

Citigroup Sets Up D.C. Team as Trump’s Regulatory Overhaul Looms

Citigroup Inc. is establishing a global regulatory affairs team in Washington as Wall Street firms prepare for the possibility of widespread changes to financial rules under the Trump administration. The new group, which will work alongside the bank’s lobbyists and focus on policy at U.S. and overseas regulators, is being run by Kevin Bailey, a former longtime official at the Office of the Comptroller of the Currency.

Citigroup Sets Up D.C. Team as Trump’s Regulatory Overhaul Looms

Citigroup Inc. is establishing a global regulatory affairs team in Washington as Wall Street firms prepare for the possibility of widespread changes to financial rules under the Trump administration. The new group, which will work alongside the bank’s lobbyists and focus on policy at U.S. and overseas regulators, is being run by Kevin Bailey, a former longtime official at the Office of the Comptroller of the Currency.

HSBC’s 2016 Pre-Tax Profit Slumps 62%

HSBC Holdings reported a 62 percent slump in annual pre-tax profit that fell way short of analysts’ estimates due to one-time charges related to some businesses, and announced a new $1 billion share buy-back. Europe’s biggest bank by assets said on Tuesday profit before tax for 2016 fell to $7.1 billion from $18.87 billion in the previous year.

President Trump Will Be Able to Recast the Fed by Filling Vacancies

President Donald Trump will be able to recast the Federal Reserve by filling three or more vacancies on its seven-member board of governors, and is leaning toward candidates with banking and financial world experience rather than academic economists. After his campaign criticism of the central bank’s low-interest-rate policies, many observers speculated he would seek more “hawkish” candidates who would favor higher borrowing costs.

Citigroup Pays $5.4 Million in Rand-Rigging Probe Settlement

Citigroup Inc. agreed to pay a penalty of almost 70 million rand to settle a South African antitrust investigation that said the U.S. bank participated in an alleged cartel to manipulate the value of the rand. “There could well be other settlements now that it seems the parties are prepared to come forward,” Patrice Rassou, head of equities at Sanlam Investment Management in Cape Town, said in an e-mailed response to questions on Monday.

Kenya Said to Be Near $800 Million Loan With Citibank, StanChart

Kenya is close to signing an $800 million syndicated loan with four banks to help fund infrastructure projects and support the shilling, according to a person familiar with the matter. East Africa’s biggest economy is expected to sign the three-year facility with Citigroup Inc., Standard Bank Group Ltd., Standard Chartered Plc and Rand Merchant Bank by tomorrow, the person said, declining to be identified because he isn’t authorized to speak on the matter.

Citigroup Cuts CEO Corbat’s Compensation 6.1% to $15.5 Million

Citigroup Inc. cut Chief Executive Officer Mike Corbat’s compensation 6.1 percent for 2016 to $15.5 million after the firm’s profit declined. Corbat, 56, got a $4.2 million cash award and $9.8 million in shares that vest and pay out over a number of years depending on the bank’s performance, according to a regulatory filing Friday.

BofA Boosts CEO Moynihan’s Pay 25% as Citigroup Pares Corbat’s

Bank of America Corp. awarded Chief Executive Officer Brian T. Moynihan $20 million for his work last year, raising his compensation 25 percent, while Citigroup Inc. cut CEO Mike Corbat’s by 6.1 percent to $15.5 million. Moynihan received $18.5 million in stock grants for 2016, according to a regulatory filing Friday, up from the $14.5 million he received for 2015.

How Low Can You Go? Deposit Rates Hit 0.00% at Japan’s Banks

The average rate that Mitsubishi UFJ Financial Group Inc. and Mizuho Financial Group Inc.’s main banking units pay depositors fell to 0.00 percent for the first time in the nine months ended December, from 0.03 percent a year earlier, their latest earnings statements show. The numbers aren’t exactly zero: the banks round the figures to two decimal places by simply cutting the third digit.

The History of the Credit Card

When New York businessman Frank McNamara started Diners Club in 1950, he had big dreams for his new company and the credit card it would issue. “‘Someday,’ he predicted, ‘restaurants all over New York will honor this card,'” former Diners Club executive Matty Simmons recalled McNamara telling him early on.

HSBC Said to Seek Wealth Management Asset Acquisitions This Year

HSBC Holdings Plc is planning to pursue deals to expand in asset and wealth management as the lender seeks to capitalize on the growing funds of the middle class in Asia and diversify its business away from traditional lending, according to two people with knowledge of the plans. Europe’s largest bank aims to make three or four acquisitions globally this year, with a particular focus on China, said the people, who asked not to be identified because the strategy isn’t public.

HSBC Said to Seek Wealth Management Asset Acquisitions This Year

HSBC Holdings Plc is planning to pursue deals to expand in asset and wealth management as the lender seeks to capitalize on the growing funds of the middle class in Asia and diversify its business away from traditional lending, according to two people with knowledge of the plans. Europe’s largest bank aims to make three or four acquisitions globally this year, with a particular focus on China, said the people, who asked not to be identified because the strategy isn’t public.

Seattle to cut ties with Wells Fargo over oil pipeline

Paul Cheoketen, of the Wagner Saanich First Nations tribe, raises his arms as he ends his comments in favor of divestiture before a Seattle City Council meeting Tuesday, Feb. 7, 2017, in Seattle. The City Council is scheduled to vote on whether to … divest $3 billion in city funds from Wells Fargo over its funding of the Dakota Access Pipeline.

European Central Bank head Draghi says stimulus still needed

The head of the European Central Bank says that its monetary stimulus efforts are still very much needed despite the recent spike in inflation in the 19 countries that use the euro currency. Mario Draghi told members of the European Parliament ‘s economic and monetary affairs committee Monday that the uptick in annual inflation to 1.8 percent was mainly due to higher oil prices, not to fundamental price pressures in the economy from rising wages.

Deutsche Bank Purchases Ads to Apologize for – Serious Errors’

Deutsche Bank AG bought full-page ads in all major German newspapers over the weekend to apologize for “serious errors” after two years of losses that cost the lender billions of euros. Legal cases that date back many years cost the Frankfurt-based company “reputation and trust” in addition to about 5 billion euros since John Cryan took over as chief executive officer in 2015, the ad said, blaming the “misconduct of a few” employees.

The Top Stock You Should Consider for Your IRA

To be clear, there are dozens, if not hundreds of stocks that could make great IRA investments, depending on your risk tolerance and portfolio diversification. One stock in particular that I have my eye on for my own IRA right now is New York Community Bancorp — more specifically, I already own it but am considering adding to my position now that the stock has declined.

BofA’s Merrill to Tell Clients How They’re Paying Their Brokers

Bank of America Corp., which has said it will stop offering commission-based retirement accounts as it prepares for new regulations, also plans to more clearly disclose fees that clients pay to the firm’s 14,000 financial advisers. The Merrill Lynch business will break out fees for asset management services and products including mutual funds, alternative investments and commodities when it mails January account statements later this week.

Deutsche Bank’s Bill for Russia Trades Reaches $629 Million

Deutsche Bank AG was fined $629 million by U.K. and U.S. authorities for compliance failures that saw the bank help wealthy Russians move about $10 billion out of the country using transactions that were likely thinly veiled attempts to cover up financial crime. The U.K. Financial Conduct Authority issued a 163 million-pound fine Tuesday, hours after New York’s Department of Financial Services fined the bank $425 million, for failures over the so-called “mirror-trades.”

Deutsche Bank to pay $425M to settle New York probe

Deutsche Bank will pay $425 million to settle an investigation by a New York state regulator into a $10 billion money laundering scheme. The Department of Financial Services said Monday Deutsche also must hire an independent monitor as part of a consent order for violations of laws involving a “mirror trading” scheme.

Deutsche Bank Ends N.Y. Mirror-Trade Probe for $425 Million

Deutsche Bank AG has taken the first step to resolve allegations that it helped wealthy Russians launder billions of dollars, reaching a deal with New York’s Department of Financial Services that requires it to pay a $425 million penalty, the regulator said. The New York settlement, approved by the bank on Monday, resolves allegations that Deutsche Bank employees used a “mirror-trading scheme” to help wealthy Russians move $10 billion out of that country from 2011 through 2014.

Donald Trump Just Gave Wells Fargo a Break

But the tide has already begun to turn for the nation’s third biggest bank by assets, thanks in no small part to the new presidential administration. Earlier this week, the U.S. Labor Department removed a website it had created to log complaints from Wells Fargo employees who claimed to have been retaliated against by supervisors for blowing the whistle on a massive fake-account scandal that look place at the bank from at least 2011 through 2015.

Trump Win Pushes Recession Back Five Months, Says Deutsche Bank

According to Deutsche Bank AG Chief International Economist Torsten Slok, at least one important barometer shows the election of Donald Trump pushed the odds of a recession back an additional five months, to more than two years from now. Interest rates should continue to climb while expansion continues-though once things cool off, that’s when the market would expect the Fed to start loosening policy again.

Sumitomo Mitsui Hiring Barclays Private Bankers as Ties End

Sumitomo Mitsui Financial Group Inc. will hire about 20 private bankers from Barclays Plc in Japan as the two companies end a six-year alliance and the U.K. bank scales back its wealth-management business in the country. The bankers will join the lender’s brokerage unit in April, said Kouichi Shibata, a spokesman for SMBC Nikko Securities Inc. in Tokyo.