Shadow banks: UBS chair tells Davos how regulators have ‘taken their eye off the ball’ January 18, 2023 Colm Kelleher, chair of banking giant UBS, has warned of the need for regulators to spend more time policing so-called shadow banks, or non banks. He made the stark warning during a panel discussion on the risks facing the financial system at the World Economic Forum in Davos. He said regulators had “taken their eye [...]
Davos round-up: Citi’s lazy homeworkers, Credit Suisse’s ‘horrifying year’ and ESG investing gets political January 17, 2023 As some of the world’s most important bankers gather at the World Economic Forum in Davos to discuss an array of economic, political and social challenges, City A.M. wraps up some of the top lines from the day. Credit Suisse’s “horrifying year” Credit Suisse’s own chair, Axel Lehmann, described 2022 as “a horrifying year for [...]
Morgan Stanley profits nearly halve as US bank earnings season ends without cooling recession fears January 17, 2023 Wall Street banking giant Morgan Stanley’s profits have nearly halved due to intense US recession fears and rising interest rates chilling deal making activity, the firm announced today. The lender has become the latest casualty of businesses and investors parking their money in safer places to ride out the worldwide economic slowdown. Morgan Stanley’s profits [...]
Goldman Sachs income slides by £2bn with investment banking bearing brunt of a drop in dealmaking January 17, 2023 Goldman Sachs underperformed analyst estimates as a near halving in investment banking revenue and an expansion in loss provisions led to a steep drop in income. Profit dropped to 44% in the quarter ending 31 December 2022 compared to the same period last year. Goldman’s earnings per share slumped to $3.32, down from $10.81 last [...]
Which senior bankers have made the trip to Davos? January 16, 2023 The world’s rich and powerful return to Davos this week as the world grapples with a challenging set of economic issues. The topic for this year’s meeting – which has returned to its normal January timeslot – is Cooperation in a Fragmented World. The basic tenet guiding the meeting is that “the current crises, [...]
Andrew Bailey says ‘no deal’ was done between government and BoE on post-Brexit rules shake-up January 16, 2023 Andrew Bailey, the governor of the Bank of England, said today there was no backhand deal done between the central bank and the government over a post-Brexit shake up of the UK’s financial rules regime. Responding to questions from MPs during a Treasury Committee meeting today, Bailey, 63, said the Bank “did not trade Solvency [...]
Barclays’ staff shortages force it to turn away new business January 16, 2023 Barclays has been turning away companies with more than one director apply for new bank accounts as staff shortages have left the lender unable to complete anything but the most basic background checks. Barclays has struggled to open new business accounts for more than four months, and will probably continue to reject companies with more [...]
Saving: Reforms needed to extend benefits of UK tax breaks beyond wealthier ‘top 10 per cent’ January 16, 2023 A shake-up of incentives to help people save is needed to help more households build resilience against financial shocks, according to a think tank. The struggle to save is a particular problem for low to middle-income households, with those in the bottom half of the income distribution typically having £3,000 of savings per adult, the [...]
Credit Suisse preparing to cut 10 per cent of European investment bankers – report January 15, 2023 Credit Suisse is preparing to lay off more than 10 per cent of its European investment bankers after issuing redundancies to hundreds of staff last month. The Swiss bank is planning to make widespread layoffs, as it pushes forwards with plans to sack thousands of workers, the Financial Times reported. Credit Suisse declined to comment [...]
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 [...]