Wrapping up a five-year investigation, the European Commission has fined Credit Agricole (OTCPK:CRARY), HSBC (NYSE:HSBC) and JPMorgan (NYSE:JPM) a total of €485M for their part in a cartel to fix the Euribor benchmark interest rate.
Deutsche Bank, RBS, and Societe Generale admitted guilt in December 2013.
Barclays avoided a fine because it alerted the Commission.
The Swiss unit of Credit Agricole (OTCPK:CRARY -0.8%) has agreed to pay a $99M penalty to the U.S. Justice Department part of a nonprosecution agreement over its conduct toward U.S. taxpayers, WSJ reports.
Under the 2013 deal, the U.S. cracked down on Swiss banks it suspected of helping American taxpayers conceal income.
The Financial Stability Board has published new rules that aim to stop banks from becoming "too big to fail," confirming its final proposals for Total Loss Absorbing Capacity, or TLAC.
Under the plan, large lenders will have by January 2019 to hold a financial cushion of at least 16% of their risk-weighted assets in equity and debt that can be written off. That requirement will gradually increase, reaching 18% of assets weighted by risk by January 2022.
The FSB will put the rules, which will apply to the world's top 30 banks, to the G20 later this month.
Credit Agricole (OTCPK:CRARY) has agreed to pay $787M to U.S. regulators and entered into a deferred prosecution agreement with the DOJ to settle allegations over the transfer of billions of dollars on behalf of Iran and other countries.
Credit Agricole now joins 10 other global banks that have entered into similar agreements over the past six years, acknowledging conduct that violated U.S. sanctions.
Helped by a recovery in its investment banking activities and a sharp reduction in its provisions against loan losses, Credit Agricole (OTCPK:CRARY) today reported quarterly profit that beat market expectations.
Net income for Q4 came in at €697M ($795M), up 13% from the same period in 2013.
The bank also said it hopes to soon name a successor to its chief executive, Jean-Paul Chifflet, who retires in May. On Sunday, Philippe Brassac was reported to be the main candidate in the running.
Credit Agricole (OTCPK:CRARY) is poised to appoint Philippe Brassac as its new chief executive, FT reports.
Brassac, who runs one of the 39 regional mutual banks that together own a majority stake in Credit Agricole’s listed entity, CASA, has majority board support and could receive formal approval as early as this week.
More than half of the €7.5B in newly issued Santander (NYSE:SAN) stock was purchased by U.S. investors, reports the FT, with about 25% bought by U.K. owners.
The bank issued 1.214B shares at £6.18 each as new executive chairman Ana Botin quickly broke ranks with her late father's strategy just four months after replacing him atop the company.
The ADRs are lower by 4.5% premarket after yesterday's 7% decline.
Now that Santander has joined Deutsche Bank in raising capital, analysts turn their attention to the next dominoes. High on the list: BNP Paribas (OTCQX:BNPQY), Societe General (OTCPK:SCGLY), Credit Suisse (NYSE:CS), Commerzbank (OTCPK:CRZBY), and Credit Agricole (OTCPK:CRARY).