Morgan Stanley hikes risk of global recession to 30 per cent amid low growth and lack of faith in central banks March 14, 2016 Economists at Morgan Stanley are becoming increasingly worried the global economy is teetering on the brink of recession. They've placed the likelihood of the world economy falling back into recession at 30 per cent in 2016, blaming low oil prices and decreasing effects of central banks' extraordinary monetary stimulus measures to support economies. Experts at the US investment bank [...]
Cambridge & Counties bank reports fourfold increase in profit March 13, 2016 Small business lender Cambridge & Counties Bank has reported profit before tax of £10.2m, up fourfold on the £2.5m posted the year before. The bank’s loan book grew by 66 per cent to reach £416m, while deposits increased by 21 per cent to £472m. The bank, owned by the University of Cambridge’s Trinity Hall and [...]
The rise of the robots means job losses at Royal Bank of Scotland March 13, 2016 Royal Bank of Scotland is axing 550 jobs and replacing them with so-called robo-advisers, in the company's latest move to cut costs. The axe is set to fall on RBS's investment advice division as well as its protection advice team, with the bank blaming falling demand for face-to-face services for the job losses. Robo-advice, popularised [...]
Interim Financial Conduct Authority (FCA) chief executive Tracey McDermott says she is worried British banks will “stop caring” and “begin to turn a blind eye to bad behaviour” March 13, 2016 The interim boss of the City watchdog has warned that it would be "very, very easy" for Britain's biggest banks to stop caring about standards of conduct and behaviour. "It would be very, very easy for change to be reversed," Financial Conduct Authority (FCA) acting chief executive Tracey McDermott said in an interview with the Sunday Times [...]
UK bank bonus rounds 2016: Boss’ bonuses hit as banks reward junior staff instead – while Citigroup awarded the best bonuses this year March 13, 2016 Looking for a job in banking? You could do a lot worse than heading to Citigroup, which awarded the biggest rise in bonuses this year, according to new research. In fact, Citi was the only bank to increase bonuses for mid-ranking managers, according to salary benchmarking site Emolument. The bank increased its VPs’ bonuses four per [...]
EU referendum: Housebuilders, mid-caps, banks and retail will be the sectors worst-hit by a Brexit, says UBS March 11, 2016 The Brexit debate continues apace – and now UBS Wealth Management has waded in on the argument, pointing out some of the sectors most at risk if the UK votes in favour of leaving the European Union. The good news is fears around Brexit have already been priced into the market, said Caroline Simmons, deputy [...]
Hacker’s typo foiled a billion dollar bank heist involving the Bangladesh central bank and the New York Fed March 11, 2016 A spelling mistake in an online bank transfer helped halt a nearly $1bn heist last month, sparing the Bangladesh central bank and the New York Fed from an embarrassing episode. But the unknown cyber criminals still managed to get away with a hefty $80m, meaning it was still one of the largest bank thefts in [...]
Deutsche Bank bonus pool shrinks to €2.4bn in 2015 after losses March 11, 2016 Deutsche Bank employees' bonus pool shrank to €2.4bn in 2015 after the bank was hit by the double whammy of massive losses and market volatility. The bank's annual report, published this morning, showed variable compensation fell from €2.7bn last year. Meanwhile, the number of full-time staff at the lender rose from 98,138 to 101,104 – [...]
European Central Bank boss Mario Draghi is not blind to the circling sharks March 11, 2016 There is a point in Team America, Trey Parker’s epic puppet parody, when UN inspector Hans Blix is trying to convince Kim Jong Il to let him conduct a thorough search for nuclear weapons. “Let me see your whole palace – or else!” says Blix, to which the North Korean despot replies: “Or else…what?” “Or [...]
Euro rebounds: Mario Draghi warns euro inflation will stay negative for “several months” and European Central Bank cuts deposit rate and expands quantitative easing March 10, 2016 European Central Bank (ECB) chief Mario Draghi has suggested inflation in the Eurozone will stay negative for "several months" – but added that the bank is "not short of ammunition" to bring it back up to target. At a press conference after the bank announced it was slashing key rates, Draghi said he expected inflation to pick up to 0.1 per cent in [...]