GE Capital and AIG jump on too small to be too big to fail bandwagon after MetLife win March 31, 2016 GE Capital has petitioned the US regulator to remove it from the list of financial institutions that are deemed too big to fail following a judge ruling in MetLife's favour yesterday. GE claims that reducing its balance sheet by half and scaling back its links to other firms mean it should no longer qualify for the tag [...]
Fintech growth and approaching “Uber moment” will see 30 per cent staff reduction in a decade across banks in Europe and United States, Citigroup report predicts March 31, 2016 The banking industry in Europe and the US is approaching an "automation tipping point" – or "Uber moment" – according to a new report by Citigroup. In a "digital disruption" note, Citi said the rise of fintech companies will mean these traditional banks reduce employee numbers by 30 per cent in the next decade. Read more: Fintech revolution? Banks will [...]
New Barclays/Opinium report finds millennials are most worried about being shown up by tech-savvy younger colleagues March 31, 2016 One in three workers between the ages of 18 and 34 are worried about being shown up by even younger colleagues, according to a new report out today from Barclays on digital skills. According to the report, including surveys conducted by Opinium,18-34 year-olds are the age group that is most worried about whether they are [...]
Bank of England stress tests: Berenberg warns Lloyds Banking Group could be hit hard by 2016 stress tests while Standard Chartered and HSBC could fare better than in recent years March 30, 2016 Lloyds Banking Group is "particularly vulnerable to larger stress test losses" in 2016 compared to Britain's other big banks, analysts at Berenberg have warned. The Bank published its plans yesterday for this year’s stress test of Britain’s biggest banks, saying it would test to see how lenders would fare in a scenario where global growth falls 1.9 [...]
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 [...]