New proposals could cause banks to pocket up to £23bn in unpaid PPI compensation, a group said December 19, 2016 Banks stand to pocket up to £23bn in unpaid payment protection insurance (PPI) compensation when new deadlines come in, a new campaign group has warned. The group Payback Time was launched today to warn how new proposals to be announced in early 2017 are expected to limit what companies can do to expose the PPI [...]
Deutsche Bank mega fine could be sorted by Wednesday December 19, 2016 Deutsche Bank could enter 2017 with one less item to tick off its to-do list, as it has emerged that a potential mega fine from the US Department of Justice (DoJ) could be settled on Wednesday. In September, it was revealed the German banking giant was facing a penalty of $14bn (£11.3bn) for mis-selling mortgage-backed securities. [...]
Monte dei Paschi share price drops nine per cent on reports rescue plan is floundering December 19, 2016 Shares in troubled Italian bank Monte dei Paschi dropped by more than nine per cent this afternoon, on reports that a rescue plan could be about to fall apart. The bank is trying to resolve its differences with a key investor over its €5bn (£4.2bn) rescue plan so as to avoid a state bailout, Reuters reported. [...]
It’s not you, it’s us: Why Barclays is preparing to break up with 7,000 clients December 19, 2016 Barclays is preparing to tell 7,000 low-return clients to either boost their trading or move to another bank in a continued effort to reshape its offering to keep pace with tighter capital rules. The bank is aiming to get at least a 10 per cent return on capital from its markets clients and has recently launched a [...]
Anti-money laundering rules need a rethink to protect ailing correspondent banking sector, says Financial Stability Board December 19, 2016 The international body responsible for keeping an eye on financial stability has today warned anti-money laundering rules need a rethink to help support a significant but shrinking sub-sector of the banking industry. In its latest progress report on the decline in correspondent banking – essentially the middlemen who can provide services, such as wire transfers or on [...]
Tyrie calls for national cyber centre to ensure finance is “high priority “ December 19, 2016 An influential MP has called on the government's intelligence agencies to ensure cyber security within the financial services industry is a top priority in the wake of several high profile banking data breaches and failing legacy IT systems. Andrew Tyrie, the chair of the Treasury Select Committee, has written to the chief executive of the National Cyber Security [...]
Record levels of IT investment in 2017? You can bank on it, says report December 19, 2016 The banking sector will up its IT spend to an all-time high in 2017 as the gap between tech-savvy and Luddite lenders widens, according to a report released today. Embracing data and open banking are top priorities for banks the report by consultants Temenos and Capgemini revealed. The focus on technology comes a week after it was [...]
City firms are preparing for the worst from Brexit – but hoping for the best December 19, 2016 Well, what a year 2016 has proven to be. The UK is preparing to leave the European Union; the US – one of the world’s largest importers – is preparing to welcome a protectionist President; while impending elections in France and Germany could potentially deliver political earthquakes. It will certainly go down in the history [...]
UK banks still vulnerable to a “toxic cocktail” of taxpayer bailout risks says Treasury Select Committee chair December 19, 2016 The UK’s banks are still vulnerable to a “toxic cocktail” of risks for which the taxpayer may have to foot the bill, according to the head of the Treasury Select Committee (TSC). TSC chair and Conservative MP Andrew Tyrie is launching a new inquiry into the sector, stating that the public has a right to know [...]
RBS drawing up contingency plans for Williams & Glyn as sale stalls December 18, 2016 Royal Bank of Scotland (RBS) is having to rethink plans to offload its 314-branch strong Williams & Glyn unit as it struggles with the European Commission’s deadline for a sale. The bank, which is still 73 per cent owned by the taxpayer, is supposed to announce a buyer for its Williams & Glyn network by [...]