Libor scandal: Financial Conduct Authority pushes to ban former UBS trader over Libor-rigging accusations April 14, 2016 A former UBS trader is facing a ban from working in financial services after the Financial Conduct Authority (FCA) issued a decision notice today claiming that he was not a "fit and proper person". The FCA alleges that Arif Hussein played a role in manipulating Libor while working as head of UBS’s GBP Rates Desk. The FCA claims that Hussein was [...]
Wells Fargo has beaten expectations sending its share price higher, though profit fell seven per cent April 14, 2016 US bank Wells Fargo has reported that its profits dropped by seven per cent over the last three months compared to last year. The bank, the third-largest bank by assets in the US, posted profits of $5.5bn (£3.9bn), compared with $5.8bn in first quarter 2015. Revenue tracked upwards however, rising four per cent to $22.2bn. JP Morgan and [...]
EU referendum: Lloyds Banking Group warns of Brexit creating “economic uncertainty” April 14, 2016 Lloyds is the latest bank to issue a warning over Brexit. The banking group warned of economic uncertainty and short term volatility, while the long term impact was unclear. The group which runs Lloyds, Halifax, Bank of Scotland and Scottish Widows and is the UK's biggest retail bank with 30m customers said in a statement: "The board [...]
Bank of America’s profits fall as it misses analyst expectations on revenue April 14, 2016 Bank of America's first quarter net profit slumped by 13 per cent to $2.68bn from $3.1bn last year. It did though managed to match analysts expectations with earnings per share at $0.21, according to a Bloomberg poll. Revenue came in under expectations at $19.5bn, down from $20.9bn in the same period last year. Watchers had forecast revenue of $20.09bn. Shares climbed nearly four per cent [...]
RBS is axing 600 jobs and shuttering 32 NatWest branches, according to the Unite union April 14, 2016 Royal Bank of Scotland has told staff it will be making 600 job cuts and closing 32 branches in its NatWest subsidiary, according to the Unite union. The closures are broken down to 18 branch closures in the bank's northern region, and up to 217 job losses. A total of 220 branches will change their opening hours. In the Midlands [...]
London’s biggest banks will struggle to reach sustained profitability due to bad debts and regulatory fines, IMF and KPMG warn April 14, 2016 A toxic mix of bad debts and regulatory fines will see some of London’s biggest banks struggle to reach sustained profitability, according to two major new reports from the International Monetary Fund (IMF) and KPMG. The hard-hitting reports have prompted city analysts to predict looming job cuts in the Square Mile and Canary Wharf, while [...]
Now Goldman Sachs has told staff not to campaign on EU referendum, although the bank itself has previously donated to the “in” campaign April 13, 2016 Goldman Sachs has become the latest big name to tell staff to play their cards close to their chest when it comes to the EU referendum, it was revealed today. In a memo sent to 6,000 staff, most of whom are based in London, the bank advised that it had chosen not to register with the Electoral [...]
The S&P 500 and Dow Jones indices have hit a new high for 2016 as investors pile into banking stocks: JP Morgan, Bank of America, Morgan Stanley, Citigroup all climb April 13, 2016 US stocks have risen to highs for the year in New York, pushed on by investors piling into banking shares. Both the S&P 500 and the the Dow Jones Industrial Average reached fresh highs for 2016. The S&P 500 was up 0.7 per cent in early morning trading at 2,075.21 in early trading, while the Dow Jones Industrial [...]
One-third of Europe’s banks are struggling to make money as IMF calls for urgent reforms to their business models April 13, 2016 European banks are set to be hit by a profitability crisis, according to the International Monetary Fund (IMF), as stock market volatility, negative interest rates and low growth have shattered the financial services industry’s ability to make money. One-third of all Europe’s lenders – calculated by their share of total assets – are facing “significant challenges to [...]
What to expect from the big US bank results this week – JP Morgan, Wells Fargo, Bank of America, Citigroup, Morgan Stanley, and Goldman Sachs April 13, 2016 Investors will get their first look this week at just how bad 2016 is expected to be for some of the worlds biggest banks. JP Morgan Chase has already released results for its first quarter, managing to beat analyst expectations, though profits still bombed by seven per cent. A Reuters poll revealed that analysts are [...]