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.
Category: Financial Services
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.
For Asset Managers Battling Index Funds, It’s Hunt or Be Hunted
Janus Capital Group Inc. and U.K.-based Henderson Group Plc are merging to reduce costs, broaden their product mix and expand geographically. Last week, Japan’s SoftBank Group Corp. struck a $3.3 billion agreement to buy alternative-asset manager Fortress Investment Group LLC, whose shares had lost two-thirds of their value since the company went public in 2007.
For Asset Managers Battling Index Funds, It’s Hunt or Be Hunted
Janus Capital Group Inc. and U.K.-based Henderson Group Plc are merging to reduce costs, broaden their product mix and expand geographically. Last week, Japan’s SoftBank Group Corp. struck a $3.3 billion agreement to buy alternative-asset manager Fortress Investment Group LLC, whose shares had lost two-thirds of their value since the company went public in 2007.
UK’s Lloyds bank turning corner after years of crisis
Lloyds Banking Group says its underlying profits rose slightly in the fourth quarter as it began to move beyond past scandals and a government rescue during the financial crisis. The bank says underlying profit, which excludes one-time items like restructuring costs, increased to 1.79 billion pounds from 1.76 billion pounds a year earlier.
Lloyds Swings to Fourth-Quarter Profit as It Boosts Dividend
Lloyds Banking Group Plc, Britain’s largest mortgage lender, swung to a fourth-quarter profit even as it faced more than 700 million pounds of conduct and restructuring charges. Pretax profit was 973 million pounds, compared to a loss of 507 million pounds a year earlier, the London-based bank said in a statement Wednesday, falling short of analysts’ estimates for 1.38 billion pounds.
Lloyds Boosts Dividend as Full Year Profits Surge on Lower PPI Provisions
Lloyds Banking Group posted its strongest full year profits since the global financial crisis Wednesday and boosted it annual dividend to around 2.2 billion. Lloyds Banking Group plc LYG posted its strongest full year profits since the global financial crisis Wednesday and boosted it annual dividend to around A 2.2 billion.
Lloyds boosted by lower PPI payments
Lloyds Banking Group has reported a 158% increase in annual pre-tax profits to A 4.24bn as a result of a reduction in payment protection insurance provisions. The UK government’s stake in Lloyds has now fallen below 5% and it has said it wants to return the bank to full private ownership this year.
Ex-Forex Traders in Singapore Get Jail Time for Cheating Banks
Two former currency traders from Deutsche Bank AG and HSBC Holdings Plc were sentenced to jail terms of as long as 15 weeks for cheating the banks by making false trades. Former HSBC senior dealer Ivan Chng was sentenced to 15 weeks in jail, Singapore High Court Justice See Kee Oon said on Wednesday.
Hedge Funds Lose Bid to Quash Fannie, Freddie Profit Grab
Hedge funds largely failed in their legal challenge to the U.S. government’s capture of billions of dollars in profits generated by Fannie Mae and Freddie Mac after their bailout, sending shares of the mortgage guarantors plunging. Perry Capital LLC, the Fairholme Funds and other big investors lost a bid to overturn a judge’s ruling that said they can’t sue the government over the dividend change.
Hedge Funds Can’t Sue Over Investments in Fannie or Freddie
A federal appeals court upheld a ruling that barred hedge funds from suing to overturn the U.S. government’s 2012 decision to capture billions of dollars in the profits generated by the mortgage guarantors Fannie Mae and Freddie Mac after their bailout, sending shares plunging. Some Fannie Mae and Freddie Mac investors still have a shot at money damages, based on when they acquired their shares and whether they did so before or after the Federal Housing Finance Agency was created and then imposed its control over Fannie Mae and Freddie Mac.
Legg Mason Stock Spikes on Takeover Speculation
Legg Mason , a Baltimore-based asset manager, reportedly received a takeover bid from an anonymous party, according to StreetInsider.com, citing sources. Legg Mason currently has $710 billion under management.
Earnings Preview: What To Expect From Barclays, RBS and Lloyds
Britain’s four major lenders will publish earnings this week, with investors now focused on potential downside surprises following a a show-stopping disappointment from HSBC’s full-year report Tuesday. Next up are Lloyds , Barclays and Royal Bank of Scotland , which are also due to report over the next three days.
HSBC Misses Profit Estimates on Revenue Drop, Deepens Cost Cuts
HSBC Holdings Plc’s fourth-quarter profit missed estimates on a surprise drop in revenue as the bank said it will boost cost-cutting measures and extend a stock buyback. Adjusted pretax profit, which excludes one-time items, jumped 39 percent to $2.62 billion, Europe’s largest bank said in a statement on Tuesday.
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.
HSBC’s Profit Misses Estimates as Lender Extends Stock Buyback
HSBC Holdings Plc’s fourth-quarter profit missed estimates amid lower revenue, as the lender extended a stock buyback that has driven its London shares to a three-year high. Adjusted pretax profit, which excludes one-time items, jumped 39 percent to $2.62 billion, Europe’s largest bank said in a statement on Tuesday.
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.
T-Mobile stock climbs on report SoftBank open to Sprint combination
The stock of Bellevue-based T-Mobile US rose 5.5 percent Friday following a report that SoftBank would be willing to give up control of Sprint if it would help cement a potential merger of the two mobile-phone carriers. The stock of Bellevue-based T-Mobile US rose 5.5 percent Friday following a report that SoftBank Group would be willing to give up control of Sprint if it would help cement a potential merger of the two mobile-phone carriers.
Americans have $12.58 trillion of debt – here’s what it…
Americans’ debt balances rose “substantially” in the final quarter of 2016, according to the Federal Reserve Bank of New York. Household debt totaled $12.58 trillion as of December 31, 2016, according to the New York Fed’s latest quarterly report on credit.
T-Mobile Has a Lot of Negotiating Power in Any Merger Talks with Sprint
Since then, T-Mobile has punched a giant hole in that argument by steadily delivering profitable growth and share gains, and forcing its rivals to respond with major discounts. In addition to giving deal opponents a big talking point, the self-proclaimed “Un-Carrier’s” financial success gives it a lot of bargaining power should it choose to pursue a tie-up with a rival that still faces its share of issues.
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.
Exclusive: SoftBank willing to cede control of Sprint to entice T-Mobile – sources
Japan’s SoftBank Group Corp is prepared to give up control of Sprint Corp to Deutsche Telekom AG’s T-Mobile US Inc to clinch a merger of the two U.S. wireless carriers, according to people familiar with the matter. The logo of U.S. mobile network operator Sprint Corp is seen at a Sprint store in San Marcos, California August 3, 2015.
Apple CFO Maestri Says U.S. Border Tax Would Be Bad for Economy
Apple Inc. Chief Financial Officer Luca Maestri said a U.S. border tax would harm the world’s largest economy by raising costs for consumers and making it harder for companies to compete overseas. A border tax also would increase the value of the U.S. dollar, which is already too strong, and reduce the competitiveness of the country’s economy, the CFO said Tuesday at a technology conference in San Francisco sponsored by Goldman Sachs Group Inc. President Donald Trump and a Republican-controlled Congress want to rewrite U.S. taxes in ways that may help and hurt Apple, the world’s most valuable public company.
Pepsi Blows It Out of the Water, but …
PepsiCo notched some impressive wins during the fourth quarter, but initial profit guidance for 2017 may leave some bulls thirsty for more. The soda and snacks giant reported fourth-quarter adjusted earnings of $1.20 a share on Wednesday, solidly beating analysts’ forecasts of $1.16.
SoftBank to Buy Fortress Investment Group for $3.3 Billion
SoftBank Group Corp. is buying alternative-asset manager Fortress Investment Group LLC for $3.3 billion in cash to operate alongside the Japanese company’s soon-to-be-established technology investment fund. Japan’s SoftBank will pay $8.08 a share for New York-based Fortress, a 39 percent premium to the company’s Feb. 13 closing price, according to a statement Tuesday.
Bank of America Begins Its Next Powerful Move Higher
Bank of America is breaking out of a 10-week consolidation Tuesday. The stock is up just shy of 3% and is beginning to put some distance on a very heavy resistance zone near $23.50.
How Safe Is Ford Motor Company’s 4.8% Dividend?
The Blue Oval paid shareholders a dividend every year from its IPO in 1956 until 2006, when then-CEO Alan Mulally cut spending as far as he dared in a last-ditch effort to save the deeply troubled automaker. That effort was a great success, of course.
Billionaire Co-Founder Calls Off Battle With Infosys’ Board
Billionaire Narayana Murthy is calling off his fight with the board of Infosys Ltd., saying he’s confident the IT giant he co-founded will deal with the concerns raised about corporate governance. The conciliatory comments came after an intense confrontation that pitted the board, Chairman R. Seshasayee and Chief Executive Officer Vishal Sikka against a clutch of high-profile co-founders led by Murthy.
Oil Holds Gains Near $54 as IEA Sees Record OPEC-Cut Compliance
Oil held gains near $54 a barrel after the International Energy Agency said OPEC achieved a record 90 percent initial compliance with its output-cut deal while demand grew faster than expected. Futures were little changed in New York after advancing 3.2 percent over the previous three sessions.
Billionaire Real Estate Mogul Sam Zell Sees Staggering Economic Opportunity Under Trump
Amid extraordinary political developments for the U.S., Chicago-based business mogul Sam Zell tells TheStreet he sees “staggering economic opportunity” for the nation under the presidential authority of Donald Trump. Trump’s vow to cut government regulation that he calls “excessive” could lead to “a $1 trillion of stimulus without spending anything, while Obama added $1 trillion to U.S. debt” to prop up the U.S. economy, Zell said.
You’ll Be Surprised at the Size of Ford Motor Company’s War Chest
I’ll say that again: Twenty-seven point five billion dollars. That’s the cash Ford Motor Company had stashed as of December 31 .
Gary Cohn Has Emerged as an Economic-Policy Powerhouse in Trump Administration
At Donald Trump’s first meeting with Gary Cohn in late November, he appeared so impressed with the then-president of Goldman Sachs Group Inc. that he joked about offering him the post of Treasury secretary, said a person who recalled the moment. Sitting nearby was the odds-on favorite for the job, Steven Mnuchin, who got the nod.
CSX Said to Hit Roadblock in CEO Negotiations With Harrison
CSX Corp. and Hunter Harrison have discussed a three-year contract for the railroad veteran to take over as chief executive officer, but the deal has bogged down over details on how to support his plan to turn around the company, according to a person familiar with the situation. CSX on Friday extended the deadline to nominate directors as it negotiates with activist investor Paul Hilal, who is working with Harrison and seeking six seats on the company’s board, the person said.
At $60,000 an Acre, Permian May Be Too Ritzy as Crude Rises
Record prices for drilling rights in the Permian Basin, the most fertile U.S. shale field, are prompting oil companies and private equity investors to look elsewhere for the next big gushers. Explorers eager to tap the basin’s mile-thick stack of oil-soaked rock layers have paid as much as $60,000 an acre.
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.