Tue, Feb. 3, 1:20 PM
- The EU last year put into place a new bank-resolution law which would force losses on bondholders - 8% of a failing bank's liabilities would have to be wiped out before a bailout could be discussed.
- Without the systemic support, S&P cuts ratings on Credit Suisse (CS +1.9%), HSBC (HSBC +1.5%), Barclays (BCS +6.2%), Lloyds (LYG +3.6%), RBS (RBS +3.6%), and Standard Chartered (OTCPK:SCBFF +2.4%).
- Among those on watch for a cut, says S&P, is Deutshce Bank (DB +3.5%).
Wed, Jan. 28, 11:40 AM
- Lloyds (LYG -1%) CEO Antonio Horta-Osorio has presided over a doubling in the stock's market value over the past three years, and a reduction in the government's stake in the lender, and he's now among the front-runners for the CEO slot at StanChart (OTCPK:SCBFF -5.3%), reports Bloomberg.
- Also being considered is HSBC's U.K. CEO Antonio Simoes.
- Standard Chartered is coming under pressure from large shareholders to replace current CEO Peter Sands amid poor recent results and a slide in the stock price.
- Maybe making it tough to poach Horta-Osorio: He "absolutely" committed to Lloyds for the duration of its three-year restructuring plan announced three months ago.
Dec. 10, 2014, 8:12 AM
- Stuart Scott joined HSBC in 2007, and was let go yesterday, reports the WSJ, amid investigations which so far have cost the bank $620M in fines.
- Scott was under particular scrutiny for allegations he leaked confidential client information to a major hedge fund in a deal that netted the fund and the bank large profits. Scott was also part f a group of senior traders which met under the auspices of the Bank of England to oversee the functioning of the forex market.
Dec. 8, 2014, 10:28 AM
- A combination of new regulations and near-zero interest rates has some banks - including JPMorgan (NYSE:JPM), Citigroup (NYSE:C), HSBC, Deutsche Bank (NYSE:DB), and Bank of America (NYSE:BAC) - privately telling larger clients to take their deposits elsewhere or face fees on accounts which have long been free.
- “Ultimately my balances aren’t as profitable for the banks, and that’s going to impact my business,” says an executive with a title insurance company, complaining of sleepless nights amid negotiations with his bankers.
- BNY Mellon (NYSE:BK) has begun charging institutional clients money to park money in euros, and State Street (NYSE:STT) says itwill soon begin doing so.
- Some bankers are advising large clients to break up large deposits across a number of lenders (including smaller banks not subject to the new regulations), and other corporations are going to find themselves needing to build more sophisticated (and riskier) portfolios likely including vehicles like short-term bond funds and uninsured money-market funds.
Nov. 28, 2014, 3:30 AM
- Argentina’s tax agency said it found thousands of undeclared bank accounts at HSBC’s (NYSE:HSBC) Swiss unit that helped Argentines avoid paying taxes.
- The claim is the latest hit to HSBC this month, having also faced a metals price fixing lawsuit, a fine for manipulating forex benchmarks and pleading guilty to assisting U.S. citizens evade taxes also at its Swiss unit.
Nov. 26, 2014, 6:32 PM
Nov. 26, 2014, 7:15 AM
- Units of Goldman Sachs (NYSE:GS), BASF (OTCQX:BASFY), HSBC (NYSE:HSBC) and Standard Bank (OTCPK:SGBLY) have been sued in the U.S. over conspiring since 2007 to rig the twice-daily platinum and palladium "fixings" and the prices of futures and options based on those fixings.
- The plaintiff, a Florida-based maker of jewelry and police badges named Modern Settings, is claiming that metals purchasers lost millions of dollars due to the scandal.
- Last month, the London Metal Exchange said it will take charge of platinum and palladium price fixing, and use a new electronic platform from Dec. 1.
- The Hong Kong Exchanges and Clearing unit said the platform would replace a benchmark system established in 1989, run by Goldman, BASF, HSBC and Standard.
Nov. 26, 2014, 1:54 AM
- The U.S. Justice Department is investigating whether an HSBC (NYSE:HSBC) employee leaked confidential client information to a major hedge fund.
- The alleged leak is believed to have taken place in March 2010, while the bank was advising Prudential on a huge acquisition and was working on a related multibillion-dollar currency transaction.
- The probe comes as HBSC pleads guilty to charges that its Swiss private banking unit helped Americans evade taxes. HSBC will pay $12.5M to settle those claims.
Nov. 12, 2014, 2:24 AM
- Global regulators have fined six major banks, including UBS (NYSE:UBS), HSBC (NYSE:HSBC), Citigroup (NYSE:C), Royal Bank of Scotland (NYSE:RBS), JPMorgan (NYSE:JPM) and BofA (NYSE:BAC), a total of $4.3B over allegations of price fixing and manipulating benchmarks in the $5T-a-day foreign exchange market.
- The penalties were imposed by Britain's Financial Services Authority, the U.S. Commodity Futures Trading Commission and Swiss regulator FINMA.
- Barclays (NYSE:BCS) had been expected to be part of the settlement but the FCA said its investigation into the U.K. bank was continuing.
Nov. 3, 2014, 5:38 AM
- HSBC (NYSE:HSBC) set aside $1.7B to cover one-off charges, including $378M for a possible settlement with the U.K. Financial Conduct Authority over alleged forex manipulation.
- HSBC also booked a $701M provision to compensate customers for mis-sold products and $550M for a deal with the Federal Housing Finance Authority.
- Pretax profit of $4.61B missed estimates of $5.47B.
- Adjusted revenue flat at $15.58B.
- Net profit increased to $4.53B from $3.2B as provisions for bad loans dropped.
- Costs rose 6%, with HSBC having to hire ever more risk and compliance staff.
- Share are flat premarket.
Nov. 3, 2014, 3:35 AM
- HSBC's (NYSE:HSBC) pretax profit rose 2% in Q3 to $4.61B, although underlying earnings fell 12% to $4.41B.
- EPS $0.23 vs $0.16 a year earlier.
- Revenues increased to $15.775B from $15.08B
- HSBC declared a Q4 dividend of $0.10 a share.
- "Revenue continued to grow in Commercial Banking, dominated by growth in our home markets of Hong Kong and the United Kingdom," says CEO Stuart Gulliver. "Global Banking & Markets contributed a strong revenue performance with its differentiated business model. Global Private Banking has attracted net new money of $10B in areas targeted for growth since the start of the year." (PR)
Oct. 24, 2014, 2:44 AM
- Thirty-one banks are set to participate in the Fed's 2015 stress tests, which will see how they can withstand pressures such as a spike in oil prices, a rise in the U.S. unemployment rate or an increase in risky corporate loans. The capital plans are due in January.
- Among the bank's that failed last year's tests are Citigroup (NYSE:C), and the U.S. units of HSBC (NYSE:HSBC), Santander (NYSE:SAN) and RBS (NYSE:RBS).
- Deutsche Bank (NYSE:DB) will participate for the first time, and has already felt pressure from the NY Fed, which has told it in a private letter that its regulatory reports were "low quality, inaccurate and unreliable".
- This Sunday, the ECB will release results for stress tests of 130 eurozone banks amid a deteriorating economic outlook for the region.
Oct. 17, 2014, 2:50 PM
- Among the lenders now charging clients who want to park euros with them are Bank of New York Mellon (BK +0.2%), Goldman Sachs (GS +1.8%), and JPMorgan (JPM +1.5%), reports the WSJ. The banks themselves must pay to deposit money with the ECB after it imposed a negative rate on deposits last summer (and then made it more negative last month).
- Next up is HSBC which reportedly will son begin charging customers who deposit more than about €10M, and Credit Suisse (CS +1.1%) is set to do the same.
- Clients most immediately affected are investment firms, but multinationals with sizable European operations may soon face these costs.
Oct. 10, 2014, 5:22 AM
- The U.K.'s Financial Services Authority has accused six banks, including JPMorgan (NYSE:JPM) and UBS (NYSE:UBS), of system and control failures in their forex operations, the FT reports.
- The allegations are part of the FSA's investigation into the possible manipulation of currency markets, which is one of a number of probes by authorities around the world.
- Last month, the U.K. regulator started settlement talks with the two banks, as well as with Barclays (NYSE:BCS), Citigroup (NYSE:C), HSBC (NYSE:HSBC) and RBS (NYSE:RBS). The discussions could lead to fines of £1.5B in total.
- By focusing on an inability to stop staff from engaging in misconduct rather than on actual manipulation, the FSA could help the banks limit the impact of lawsuits that have been filed in the U.S. over forex rigging.
Oct. 8, 2014, 2:18 AM
- Eighteen of the world's largest banks, ranging from Credit Suisse (NYSE:CS) to Goldman Sachs (NYSE:GS), have agreed to give up the right to "close out" deals on derivatives contracts if a financial institution runs into trouble, FT reports.
- The International Swaps and Derivatives Association is due to announce the agreement to change its “protocols”, which govern the $700T market, in the next few days. They will take effect from January 1, 2015.
- Related stocks: HSBC, JPM, OTC:BNPZY, DB, BCS, BAC, SAN, C, RBS,
Oct. 7, 2014, 11:51 AM
- New U.K. rules on the accountability of senior bank management and board members are set to be implemented by the end of the year. The "senior managers regime" will assign specific responsibilities to those within banks, and holds out the possibility of criminal liability if a decision contributes to a bank's failure.
- Maybe not wanting any part of that, HSBC Bank board member Alan Thomson has submitted his resignation after taking over a director spot about 18 months ago. Also expected to resign is Deputy Chairman John Trueman who has been on the board since 2004.
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