Wells Fargo chief executive forfeits millions in wake of internal investigation into fake accounts September 28, 2016 Two leading Wells Fargo executives have agreed to forfeit $60m (£46m) over the ongoing bank account scandal as Janet Yellen came under pressure to order a break-up of the lender. Chief executive John Stumpf will forego shares worth $41m and Carrie Tolstedt, the former head of the retail division, will miss out on $19m of shares after the company board [...]
RBS admits no fault but settles with US regulator over selling of toxic products September 28, 2016 The Royal Bank of Scotland (RBS) has agreed to pay $1.1bn (£845m) of penalties to US authorities in order to settle claims that it mis-sold mortgage-backed securities to corporate credit unions. The US National Credit Union Administration (NCUA) announced the settlement overnight but stressed that under the arrangement the embattled British lender did not admit [...]
Foreign exchange fraudster slapped with 20 more months in prison for failing to cough up September 27, 2016 A London foreign-exchange fraudster has had his prison sentence extended after failing to pay a court-ordered penalty. Alex Hope – dubbed King Popper for his champagne lifestyle – was jailed in January last year for seven years for duping investors out of £5.6m. His jail term was extended by nearly 20 months today after he failing to pay a court-ordered penalty. Hope [...]
Standard Chartered share price drops on US probe into alleged bribery in Indonesia September 27, 2016 Shares in emerging market-focused bank Standard Chartered were dragged lower today after news broke that the bank is the subject of a US Justice Department investigation. US authorities are investigating the London-based bank over allegations that Indonesian power company Maxpower – owned by Standard Chartered – paid bribes to win contracts between 2012 and 2015. Shares in the bank closed down by 2.5 [...]
Shareholders regain confidence as suggestions emerge Deutsche Bank might be too big to fail after all September 27, 2016 Deutsche Bank shares finished flat today after an initial three per cent dip, as murmurs surfaced that the German giant might be too big to fail after all. Shares in the lender plunged 7.5 per cent to €10.55 yesterday, after reports over the weekend suggested German Chancellor Angela Merkel would not be prepared to offer state assistance, even [...]
Even domestic banks will suffer if Britain pursues a hard Brexit September 27, 2016 During his farewell speech to the Ukip party conference, Nigel Farage identified his three key objectives for the government’s impending Brexit negotiation. In addition to his demand that the UK reclaim control of its fishing waters, Farage called for the country to leave the Single Market and for the reintroduction of blue British passports. While [...]
Wells Fargo faces two more lawsuits over bank accounts scandal September 27, 2016 Wells Fargo is facing fresh legal action from both employees and investors over the ongoing bank account scandal. The US retail bank, which agreed to pay a $185m fine for creating two million unauthorised bank accounts, is now looking at class action lawsuits from employees who were let go over the claims and investors who [...]
Banks now one of the biggest threats to the European Union, says former chancellor September 27, 2016 Europe's banks now pose one of the greatest threats to the future of the European Union, a former chancellor of the exchequer has said today. Speaking at the Institute of Directors (IoD) Annual Convention, Lord Lamont of Lerwick remarked: "There are many, many crises which are potentially very dangerous for the EU" before adding "the biggest threat to [...]
Analysts fear Deutsche Bank could become Europe’s Lehman Brothers September 27, 2016 The misery for Deutsche Bank continued this morning as shares continued to slide to fresh record lows. The German lender has seen its share price lose 30 per cent in the last three weeks and was hit by a new round of selling this morning, as shares dropped 3.3 per cent to €10.20 (£8.86). The latest slide [...]
As a beleaguered Deutsche Bank faces a $14bn fine, Angela Merkel has ruled out state aid, but could a bailout be on the cards? September 27, 2016 Recent discussion of possible European bank bailouts has focused on Italy. Saddled with €360bn of souring loans and enfeebled by a stagnant, over-regulated economy, a number of Italian lenders face a very real risk of insolvency. In July, the country’s third largest, Monte dei Paschi di Siena, failed a stress test set by the European Central [...]