Bank of England sets out UK bank stress test scenario and reveals plans to raise the countercyclical buffer rate for British banks in 2017 March 29, 2016 British banks, building societies and investment firms will need to build up their cash piles under new rules revealed today by the Bank of England. In a statement today, the Bank’s Financial Policy Committee (FPC) said that even though British banks have improved their “resilience” in spite of global and domestic headwinds, investors expect weaker [...]
Former Standard Life boss David Nish to join HSBC board March 23, 2016 Former Standard Life chief executive David Nish is to join the board of HSBC. Nish will join from 1 May, initially for a three-year term which, subject to re-election by shareholders in 2017, will expire at the conclusion of the 2020 AGM. He joins as an independent non-executive director, and will sit on the group audit committee. [...]
Credit Suisse’s share price rises as bank speeds up restructuring with 2,000 job cuts as global markets division is downsized March 23, 2016 Credit Suisse is accelerating its restructuring and cost-saving programme, with the confirmation that 2,000 jobs are being cut in its global markets division. The bank said the job cuts – which come on top of the 4,000 previously announced – would reduce costs in the troubled division from $6.6bn to $5.4bn by the end of 2018. So far 2,800 [...]
Royal Bank of Scotland pays dividend access scheme fee to the government, clearing the way for payments to ordinary shareholders March 22, 2016 Royal Bank of Scotland has paid £1.2bn to the government, clearing the way for dividend payments to ordinary shareholders and abolishing its so-called dividend access share arrangement. The bank, still 72.6 per cent owned by the taxpayer, made the deal with the government to give it priority over dividends after its £45.8b bailout during the 2007-09 financial crisis. RBS had announced it [...]
Citigroup in lengthy legal dispute with German tax authorities on allegations linked to dividend stripping March 22, 2016 Banking giant Citigroup has today confirmed that it is tied up in a lengthy legal dispute with the German tax authorities regarding accusations linked with dividend stripping. Dividend stripping, or cum-ex trading, involved using a now closed legal loophole to claim tax credits for both buyers and sellers of shares by buying shares just before their dividends [...]
Moody’s: Conduct litigation charges for Lloyds, HSBC, Barclays, RBS and Santander UK rose 40 per cent to £15bn last year March 22, 2016 Legal fees and remediation costs for conduct issues will continue to pose downside risks for Britain's biggest banks, Moody's Investors Service is warning today. In a new report out this morning, the credit rating giant said conduct charges are on the rise – and will continue to constrain profitability at the UK's five largest lenders for years [...]
Shore Capital share price rises despite scrapping its dividend as chief executive warns the outlook for markets may not improve March 22, 2016 Shore Capital's share price has risen in trading today, despite the company axing its dividend and warning challenging markets could continue. The company reported strong profit growth in its preliminary results for its year ended December 2015, mostly due to the sale of a number of radio spectrum licences in Germany to Deutsche Telekom AG. The sale of six [...]
30% Club founder Helena Morrissey warns plans to link bonuses to gender equality targets may backfire as Virgin Money boss Jayne-Anne Gadhia publishes women in finance review March 22, 2016 Proposals for bonuses to be tied to the number of senior women at financial institutions have been criticised by top City figures, who say the move threatens to deter women from working in the Square Mile. In a government-backed review out today, Virgin Money chief exec Jayne-Anne Gadhia recommends financial services firms “connect parts of [...]
Senior PRA official in the running to take over top spot after Andrew Bailey departs March 21, 2016 Lyndon Nelson, a senior official at the prudential regulation authority (PRA), is among a small number of candidates being interviewed to take over as governor of the banking watchdog. Nelson is a contender to replace Andrew Bailey, who was recently appointed as the next chief executive of the Financial Conduct Authority (FCA), according to Sky News. He [...]
Moody’s places Deutsche Bank on review ahead of possible downgrade and forecasts delay in improving profitability March 21, 2016 Ratings agency Moody's has placed Deutsche Bank on review and may downgrade the company and some of its affiliates. Moody's said the move was "prompted by the rising execution hurdles facing Deutsche Bank in its efforts to strengthen and stabilise profitability over the next three years" and cited Deutsche's recent weak performance within its capital market operations. [...]