“The US Federal Reserve is highly likely to slow its asset purchases by another $10bn next week as the economy shakes off its winter torpor.” “Retail sales, industrial production and payrolls growth were all robust in recent weeks, adding to evidence of accelerating growth, after a cold winter led to fears for the economic outlook.” “The US […]
“Wall Street banks — and the trade groups and law firms that represent them — are challenging the Federal Reserve Board’s basis for restricting ties banks have to physical commodities, arguing it is fundamentally flawed. “The central bank is worried that bank holding companies could potentially face significant legal liabilities if physical commodities they are […]
“Comptroller of the Currency Thomas Curry said his agency is increasingly concerned about the cybersecurity risks from banks relying too much on certain vendors and using service providers in foreign countries. “Banks can end up becoming dependent on certain vendors because of consolidation in the service provider industry, Curry said in his prepared remarks for […]
“A year ago Anshu Jain, co-chief executive of Deutsche Bank, proudly announced that the lender’s “hunger march” for more capital was over, after a successful share issue that bolstered the bank’s equity strength and catapulted it from the sector’s laggard into the top league. “Fast forward 12 months, and Deutsche has yet again fallen behind, […]
“Deutsche Bank is facing pressure from investors to raise capital amid fears the bank is still not robust enough to cope with a tougher regulatory environment and a slump in global debt markets. “Insiders at Germany’s largest lender are understood to accept as a real threat that the European regulators will direct them to raise […]
“Sales of new U.S. single-family homes tumbled to their lowest level in eight months in March, dashing hopes for a quick turnaround for a sector that fell into a soft patch last summer. “The Commerce Department said on Wednesday sales dropped 14.5 percent to a seasonally adjusted annual rate of 384,000 units. It was the […]
“(Reuters) – Barclays (BARC.L) will quit most of its commodities trading businesses, joining a broader retreat by banks as profits tumble in the face of tougher regulation.” “The British bank’s exit means three of the top five banks in commodities have significantly reduced or shuttered their natural resource trading arms since last summer, with profits hit by regulatory demands for lenders to hold […]
“Denmark’s financial watchdog is urging banks to put in place better checks and balances to prevent excessive bonuses it says may spur greater risk-taking.” “The warning follows a decision by the Financial Supervisory Authority this month to criticize Danske Bank A/S (DANSKE) for having a remuneration policy for key staff it said encourages “more risky dispositions” by […]
“(Reuters) – The two men at the top of Citigroup Inc (C.N), the third-biggest U.S. bank and the most international, acknowledged on Tuesday that the company must do more to simplify itself.” “Asked at an annual meeting of shareholders whether Citigroup is too big to manage, Chairman Mike O’Neill said the task “is certainly harder” for its […]
“The debate over the decision to tear down the wall between commercial and investment banking in 1999 is an issue that still rages today as the financial industry and Wall Street critics spar over whether “too big to fail” banks remain. “On Friday, some potential kindling was added to the fire with the release of […]
“Reading The Times’s coverage of Bank of America’s quarterly loss last week, I almost felt sorry for the financial behemoth. It has mortgage troubles, you see. It has onerous legal costs. “The disappointing news shows how Bank of America is still paying for its mortgage problems nearly six years after the financial crisis,” the article […]
“The financial services industry this week lobbed hundreds of pages of comment letters the Federal Reserve’s way to convince the central bank that it should continue to allow the world’s largest banks to trade and invest in oil, electricity and other physical commodities. “On the flip side, critics of banks’ role in these markets told […]
“The Volcker Rule doesn’t go into effect until 2015, but that hasn’t stopped big bankers and their supporters in Washington from trying to undermine it. “The latest fight involves another complex Wall Street creation, a financial instrument known as a collateralized loan obligation. Big banks want to be allowed to own them but regulators say […]
“Since the collapse of Fannie Mae and Freddie Mac, American housing finance has essentially become a nationalised industry. The government now backs roughly 90 per cent of all new mortgages in the country, mainly through the failed mortgage finance companies that are in federal “conservatorship”. Washington therefore sets the price of mortgage finance – probably […]
“Jacques de Larosiere says he is an isolated and modest man. Yet the 84-year-old former head of the International Monetary Fund is one of the most influential voices in European and global finance. “An eminence grise as respected among France’s political elite as in the heart of the law-drafting European Commission, de Larosiere finds himself […]
“The British bank Barclays will announce on Tuesday that it plans to exit large parts of its commodities business, a move that comes as large investment banks have struggled with heightened regulatory scrutiny and falling profits, a person briefed on the bank’s plans said. “Barclays is among the top five banks in the commodities business […]
(Reuters) – Stocks rose 1 percent on Wednesday, advancing for a third straight session as Federal Reserve Chair Janet Yellen reaffirmed the central bank’s commitment to keeping interest rates low and Yahoo rallied. Data showing Chinese economic growth exceeded expectations and U.S. industrial production rose for a second straight month also improved sentiment, though Bank of America […]
“(Reuters) – Wall Street banks have mounted a massive legal defense of their physicalcommodities activities, in a last-ditch effort to convince regulators that chartering oil tankers and owning power plants pose no risk to the financial system.” “In a 54-page memo drafted by four leading law U.S. law firms and commissioned by six major financial industry groups, they […]
“Ginnie Mae has halted the transfer of mortgage servicing rights from Bank of America (BAC) to a nonbank servicer because the bank is missing documents such as recorded mortgages and title policies on the underlying home loans.” “Ted Tozer, the president of Ginnie Mae, says he has held up the transfer of servicing rights by […]
“(Reuters) – Deutsche Bank (DBKGn.DE) denied a media report that said its co-Chief Executives Anshu Jain and Juergen Fitschen could be replaced, possibly with former UBS (UBSN.VX) finance chief John Cryan.” “Germany’s Manager Magazin on Wednesday cited “insiders” saying Deutsche Bank supervisory board chairman Paul Achleitner was preparing to bring in a new chief executive.” “In a […]
WASHINGTON — “Sens. Sherrod Brown, D-Ohio, and Elizabeth Warren, D-Mass., urged regulators on Wednesday to tighten restrictions on banks involved in physical commodities markets.” “The lawmakers, who have been vocal on the issue for months, submitted comments to the Federal Reserve Board, which has been accepting responses to a January notice that the agency is […]
“One of the unsettled questions from the financial crisis is whether the big banks have paid enough to cover the mortgage abuses they committed before the market collapsed.” “A settlement announced on Wednesday that involves Bank of America indicates that, in some cases, the banks could have been made to pay more than they have.” “Bank of […]
“Bank of America Corp’s (BAC.N) mortgage pain is lasting longer than expected, leading some investors to wonder if the massive expenses being incurred have become a recurring cost of doing business instead of being dismissed as one-time items.” “The bank on Wednesday posted $6 billion of litigation expenses for its first quarter, far exceeding the $3.7 billion […]
“Anemic results underscore how little fun it is to run a big bank these days. The $276 million loss that Bank of America announced on Wednesday, however, at least provides some valuable perspective.” “The bank, led by Brian Moynihan, was already expected to report a pretty low number because of its $3.6 billion mortgage settlement […]
“The Federal Reserve’s New York office indicated to Citigroup Inc. C +0.15% that the bank would have more time to fix certain “stress test” planning problems before Fed officials in Washington last month gave it a failing grade, said people close to the company.” “The divergent messages from different parts of the Fed were a major reason why Citigroup executives […]
“Banks identified as systemically important to the global economy face tighter rules on how much business they can do with each other as part of a push to limit the chance a single failure would drag down multiple lenders.” “The Basel Committee on Banking Supervision published rules that from 2019 will cap one too-big-to-fail bank’s financial dealings […]
(Reuters) – “Barclays’ (BARC.L) Chief Executive Antony Jenkins is facing a high-wire act to overhaul the firm’s investment bank without undermining a division that contributes about half of group profits.” “Jenkins, criticized by investors and politicians for raising bonuses this year despite a big fall in earnings, has embarked on the third review of the investment […]
WASHINGTON (AP) —“ The Federal Reserve may be about to turn more aggressive in its regulation of the financial system.” “Fed Chair Janet Yellen suggested Tuesday that current regulatory rules might not be enough to prevent the kind of risk-taking that triggered the 2008 financial crisis and nearly toppled the entire banking system.” “She said […]
“The U.S. Federal Reserve is considering further steps to force big banks to hold more capital, and sees a case for other stability-enhancing measures for more shadowy areas of Wall Street as well, Fed Chair Janet Yellen said on Tuesday.” “The Fed has been pushing banks to strengthen their balance sheets since the 2007-2009 financial crisis, and last week […]
“Europe’s biggest financial rulemaking spree since the creation of its single market more than 20 years ago reached its finale on Tuesday with the adoption of a slew of landmark reforms designed to make banks safer and financial markets more transparent.” “It marks the climax of a fraught four-year drive to end the era of taxpayer bailouts and fuse […]
“No solvent government will allow its entire banking industry to collapse. Leveraged institutions whose liabilities are more liquid than their assets are inescapably vulnerable to panics. In a panic, it will be hard to distinguish illiquidity from insolvency. These three points shape my views: the state stands behind banking even though it might not stand […]
“LONDON – Credit Suisse said on Wednesday that profit fell 34 percent in the first quarter as the Swiss bank shed assets and streamlined its investment banking operations as part of an overhaul of its business.” “For the first three months of the year, Credit Suisse reported earnings of 859 million Swiss francs, or about $976 million. […]
“Bank of America swung to a first-quarter loss of $276 million, as legal expenses related to the financial crisis mounted.” “The bank said on Wednesday that its litigation expenses increased to $6 billion in the quarter, showing how Bank of America is still paying for its mortgage missteps nearly six years after the financial crisis.” […]
“The U.S. housing industry has waited three months to find out how Mel Watt will govern taxpayer-owned mortgage companies Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB), and has been frustrated by his silence. “The former 11-term congressman from North Carolina, who took over the agency that oversees the two enterprises in January, has not delivered […]
“Last week brought a tale of two banks. At one extreme is the Co-operative Bank in the UK, which reported annual losses of £1.3bn on Friday. The mutual lender is now seeking to raise £400m from shareholders to shore up its capital, which has fallen close to regulatory minimums. “At the other end of the […]
“Citigroup reported net income of $3.94bn in the first quarter, beating analysts’ estimates, but the bank suffered another setback as it disclosed a second alleged fraud linked to its Mexican business. “While the size of the latest alleged fraud is smaller, it adds to concerns about Citi’s ability to govern its sprawling global operations in […]
“Citigroup and Mexico’s bank regulator on Monday said they uncovered a second fraud at Citi’s local unit Banamex, as part of a wider investigation following the discovery in February of fraudulent loans to oil services company Oceanografia. “Mexico’s National Bank and Securities Commission (CNBV) said the investigation found another company with under $30 million in […]
“Citigroup Inc. Chief Executive Michael Corbat vowed to find an “industrial-strength” solution to the regulatory problems dogging the bank. “Speaking after Citigroup reported better-than-expected first-quarter earnings Monday, Mr. Corbat faced more than a dozen questions from analysts on the bank’s recent failure to win regulatory approval to return capital to shareholders. “Is the Fed denial […]
“The U.S. would lose its veto power on the International Monetary Fund’s executive board under a plan being considered by some emerging economies. The countries are fed up with the United States’ failure to ratify a four-year-old deal to restructure the emergency lender. “Some members of the IMF’s steering committee indicated at a series of […]
“The tens of billions of euros euro zone banks set aside for loan losses in their latest annual accounts may have substantially reduced the chance of institutions failing ECB stress tests in the next few months. “A total of 71.5 billion euros ($99.3 billion) was set aside in 2013 by the 20 biggest listed banks […]
“The US Federal Reserve’s plan to keep interest rates low even once the economy is back to normal could risk a policy mistake, a Fed policy maker has warned in an interview with the Financial Times. “James Bullard, president of the St Louis Fed, said he did not see a persuasive reason to think interest […]
“Wells Fargo showed that lending to consumers and businesses can be more lucrative than being a big name on Wall Street, upstaging J.P. Morgan Chase with its first-quarter results. “The San Francisco bank reported a 14% rise in net income, while J.P. Morgan, based in New York and the U.S.’s largest bank by assets, suffered […]
“Mario Draghi has signalled that the European Central Bank is getting ready to unleash new unconventional monetary policy in a bid to fight low inflation. “Speaking after the spring meetings of the International Monetary Fund in Washington on Saturday, the ECB president said the strengthening of the euro “requires further monetary stimulus”. “His words came […]
“At the World Bank and International Monetary Fund annual spring meetings, concerns about crisis have given way to concerns about complacency. “The euro zone has re-emerged from recession. Emerging-market jitters have quieted. The fiscal battles in the United States have abated. But the recovery remains fragile and in many cases, growth remains sluggish, leaving a […]
“Europe’s largest banks cut their staff by another 3.5 percent last year and the prospect of a return to pre-crisis employment levels seems far off, despite the region’s fledgling economic recovery. “Spurred into action by falling revenue, mounting losses and the need to convince regulators they are no longer “too big to fail”, banks across […]
“The European Union will sign off on a slew of major reforms this week to allow failing banks to be wound down without public money, clearing its desk before elections in May that may lead to a slower pace of legislation. “This week is the final plenary session of the European Parliament before it breaks […]
“For a bunch of people who just agreed the global economy is doing better, top officials from the world’s rich and poor nations sound rather worried. “For poor nations, the easy monetary policies in advanced economies are leading to big swings in capital flows that could destabilize emerging markets. For rich countries, the hoarding of […]
“The world’s top finance officials stepped up warnings about low inflation during weekend meetings of the International Monetary Fund, calling for action to combat downward price pressures that threaten consumption and stymie debt reduction. “The IMF’s policy committee highlighted stubbornly weak price increases as a key drag on the global recovery, which is approaching the […]
“A top Federal Reserve policymaker on Sunday repeated his controversial assertion that financial stability should be an aim of U.S. central bank policymaking. “Jeremy Stein, a Fed governor who is resigning next month, told an International Monetary Fund forum there is a need “in principle” to incorporate the aim of financial stability into monetary policies. […]
“Throughout its history, the U.S. Federal Reserve has faced accusations, on the left and the right, that it is the mere institutional puppet of powerful bankers who control it from within. Marriner Eccles, the liberal Fed chairman during the 1930s and 40s, called it the “instrument by which private interests alone could be served.” Ron […]
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