Is China’s toxic debt pile the greatest threat the global economy faces? September 26, 2016 Mike Jakeman, global analyst at the Economist Intelligence Unit, says Yes. The Chinese government has already performed one economic miracle – in the 30 years from 1980, it pulled almost 700m people out of extreme poverty. Now it requires another – to wean its fattened economy off a diet of public investment and onto helpings of household [...]
Banks warned over fintech payment firms September 26, 2016 The world's biggest banks risk losing control of digital payments to small fintech startups and global tech giants, the Boston Consulting Group (BCG) has warned. Banks have been told they have to “maximize security, minimise complexity, and add value beyond pure payments” if they want to survive in transactional banking. The BCG has slammed banks’ poor [...]
People still trust brick-and-mortar branches more than digital banks September 26, 2016 Digital banking has surged in popularity over the last few years, but research out today also shows many still won't trust a lender without a brick-and-mortar presence. Just less than half (48 per cent) of UK banking customers would not be comfortable sorting out their finances solely online or by mobile, while a third (33 [...]
Credit Suisse banker to found independent advisory firm September 25, 2016 One of the top European bankers at Credit Suisse is quitting the bank to launch his own advisory firm. Sebastian Grigg, a vice-chairman at Credit Suisse’s investment bank, resigned from his post late last week. Grigg’s ESG Corporate Finance will advise UK companies on mergers, takeovers and capital-raising, it was first reported by Sky News. [...]
Miriam Gonzalez Durantez takes up new job at UBS September 25, 2016 Some of UBS' London staff might be feeling one of the bank's new joiners has a very familiar face. Miriam Gonzalez Durantez, a highly-regarded lawyer and wife of former deputy prime minister Nick Clegg, is joining the Swiss bank giant's London unit as a non-executive director. Gonzalez Durantez, who is a partner at City law firm Dechert, will [...]
Thousands of City jobs at risk as US banks issue Brexit relocation warning September 24, 2016 Thousands of City jobs are at risk after a string of US investment banks reportedly warned Prime Minister Theresa May that they could preemptively move their operations out of the UK. The bank bosses are said to have delivered the warning at a round-table with the Prime Minister and a host of key US investors in New York [...]
Court orders disgraced former Societe Generale trader Jerome Kerviel to pay €1m in damages September 23, 2016 A French appeals court on Friday ordered former Societe Generale trader Jerome Kerviel pay €1m (£866,000) in damages to the bank following losses he made that totalled €4.9bn. Kerviel was initially ordered to repay the whole sum, but subsequent rulings had struck down that decision. In June, a public prosecutor said the bank "had left the door open" [...]
Co-operative Group posts increased revenue but profit dips in first half of the year September 23, 2016 The Co-operative Group reported an increase in revenue but decline in profits for the 26 weeks to 2 July this morning. The figures Revenue was up 2.2 per cent on a like-for-like basis to £4.7bn from £4.6bn in the same period of last year. Operating profit dropped to £72m from £95m, while pre-tax profit was down to £17m from [...]
Wells Fargo CEO quits role as adviser to Federal Reserve September 23, 2016 The head of Wells Fargo has stepped down from his role as an adviser to the US Federal Reserve amid the ongoing scandal over its creation of unauthorised bank accounts. Chief executive John Stumpf resigned his position on the advisory council of the San Francisco Fed, which consists of banking chiefs and is designed to guide policymakers, [...]
Consumer interest group calls on watchdogs to tackle bank transfer scams September 23, 2016 A consumer interest group has today turned up the pressure on financial watchdogs by launching a super complaint into bank transfer scams. Research from Which? has found three out of five (60 per cent) of people don't realise there is no consumer protection from their bank if they are fraudulently tricked into making a bank transfer. Meanwhile, [...]