Cashed-up banks ready to buy UK fintech firms on the cheap in 2023, says VC chief January 15, 2023 The UK’s fintech sector will see a wave of acquisitions this year as cashed-up banks and investment firms will swoop in to buy struggling firms on the cheap, a top venture capital chief has predicted. Tim Levene, chief of London-listed venture vehicle Augmentum Fintech, said that banks had failed to properly digitally transform over the [...]
Why UK banks are not going to cause another financial crisis January 15, 2023 UK banks are better prepared to withstand a jump in home loan defaults, cooling fears of a repeat of the financial crisis, analysts have told City A.M. Strict affordability rules implemented after the 2008 banking crash have strengthened lenders’ loan books, meaning they are well insulated from a potential rise in defaults caused by last [...]
Exclusive: The WhatsApp scandal in banking and its place in the City January 15, 2023 The unprecedented fine from the SEC, exacted on 16 Wall Street banking giants in 2022, caused ripples on both sides of the pond last year. The collective $1.8bn in punishments doled out to a group consisting of names such as Barclays, Citigroup, Goldman Sachs, and Morgan Stanley, was executed as staff were found to have discussed deals [...]
Exclusive: CybSafe’s CEO on tackling VC pattern matching as a black business founder January 14, 2023 When CybSafe CEO Oz Alashe MBE raised his Series B funding round last year, the ambitious London entrepreneur was one of only ten black British founders to have ever done so, or so he was told. While Alashe has not been able to validate that claim, it gives an insight into the stark reality of [...]
Goldman Sachs’ new fintech unit racked up staggering £2.5bn loss since 2020 January 13, 2023 Goldman Sachs’s new fintech unit, Platform Solutions, lost $3bn (£2.5bn) since 2020 according to earnings reports republished by the bank on Friday. Platform Solutions – a new unit housing fintech and many of Goldman’s consumer banking products such as the Apple Card and Greensky – was announced as part of restructuring plans in October. To [...]
Blackrock’s profit and AUM down but world’s largest fund manager reports net inflows of $146bn January 13, 2023 Blackrock reported an 18 per cent drop in its fourth-quarter profit blaming an ‘operating environment unlike anything we’ve seen in decades’. The world’s largest fund manager still managed to net increase inflows, which totalled $146bn during the three months ending 31 December. Blackrock’s net income income fell 23 per cent to $1.3bn (£1.1bn) from $1.6bn [...]
Bank of America reports one of ‘best years ever’ while income at Wells Fargo and Citi falls January 13, 2023 Bank of America, Wells Fargo and Citigroup all beat consensus estimates in their quarterly earnings reports, despite substantial falls in income at the latter two. Bank of America had an excellent quarter, making 2022 “one of the best years ever for the bank”. In the fourth quarter Bank of America’s net income increased slightly to [...]
Dimon heralds ‘fortress balance sheet’: JP Morgan revenue up 17 per cent as interest rate boon continues January 13, 2023 JP Morgan beat expectations in its quarterly results, reporting increases in both income and revenue as higher interest rates continued to benefit the Wall Street giant. In the three months to December 31, JP Morgan reported net income of $11.0bn (£9.0bn), up from $10.4bn in the same period last year. The bank’s earnings per share [...]
Diaries of a fund manager: Jack Hsiao on running a multi-billion pound investment giant January 13, 2023 As 2023 gets under way, the spotlight is firmly on the City and on its fund managers. What will be their next move? How and where do they find inflation-busting assets? Are they opting for more risk or playing it safe? City A.M. checked in with fund manager Jack Hsiao, he is a managing director [...]
PPI scandal: Supreme Court case could ‘open door’ for hundreds-of-thousands of new claims for UK banks January 12, 2023 British banks could face a new wave of payment protection insurance (PPI) claims following a hearing at the UK’s Supreme Court. The Supreme Court will decide whether to expand the reach of a six-year time limit to let thousands more PPI claims be heard in UK courts. PPI policies cover the costs of debt repayments [...]