Aug. 6, 2013, 3:23 AM
- HSBC (HBC) faces having to pay $1.6B in a lawsuit from the Federal Housing Finance Agency over soured mortgage bonds that the bank sold to Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB). The bank made the disclosure yesterday.
- The figure is well above the $900M that analysts at Credit Suisse had estimated.
- In total the FHFA has sued 18 banks over mortgage bonds; should HSBC's calculations for its liabilities be applied to some of the defendants with the largest exposure, including Bank of America (BAC), JPMorgan (JPM) and RBS (RBS), they would have to pay over $7B each. Should these banks make payments in proportion with a recent UBS deal, the bill would above $4B.
Aug. 5, 2013, 2:25 PM
Aug. 2, 2013, 2:46 AM
- As expected, RBS (RBS) names Ross McEwan, the head of its retail bank, as CEO to replace the outgoing Stephen Hester.
- The New Zealander, who will start on October 1, will receive a base salary of £1M ($1.5M), although he will forgo his bonus through 2014.
- H1 net profit £535M vs a loss of £2.03B a year earlier.
- Pretax profit £1.4B vs a loss of £1.7B.
- Revenue drops to £10.61B from £11.69B, excluding the value of own credit and other one-offs.
- Takes a provision of £185M for the wrongful selling of payment protection insurance, and of £385M for undisclosed legal and regulatory purposes. (PR)
Jul. 30, 2013, 11:31 AM
- An affiliate of MF Global sues, alleging 11 banks engaged in anticompetitive practices to keep the company out of the lucrative clearing business for swaps
- It's the third U.S.lawsuit making such claims (previous), and the EU has also filed suit
- Those charged: BAC, BCS, C, CS, DB, GS, MS, RBS, UBS
- JPMorgan (JPM) is named as a co-conspirator, while the ISDA and Markit are named separately as defendants
- One source suggests the 3 U.S. claims could be consolidated into one case
Jul. 24, 2013, 6:57 AMBlackRock's (BLK) top man in Asia - Mark McCombe - has turned down the top job at RBS which is searching for a CEO after Stephen Hester abruptly resigned last month. RBS is undertaking the search just as the U.K. government begins the process of unloading its stake in the bank. | Jul. 24, 2013, 6:57 AM | Comment!
Jul. 22, 2013, 11:33 AMRoyal Bank of Scotland (RBS +0.5%) faces a lawsuit from its former head of emerging markets rates claiming he wrongly had to forfeit his bonus after being taking a job at a hedge fund (after he was fired). It's a relatively small amount of money ($2.5M), but it's an important case as the bank has plans for more widespread clawbacks in conjunction with the rate-rigging scandal. | Jul. 22, 2013, 11:33 AM | Comment!
Jul. 19, 2013, 6:50 AM
Jul. 12, 2013, 3:07 PMThe usual suspects in the banking fraternity are the subject of another class-action suit over price-fixing in the CDS market, with the plaintiffs in this case being 4 Danish pension funds. The case was filed in federal court in Illinois, the same locale as a similar complaint logged in May by a labor union. Across the pond, the EU this month filed their own charges. Banks named: BAC, BCS, C, CS, DB, GS, HBC, JPM, MS, RBS, UBS, BNPQY.PK. | Jul. 12, 2013, 3:07 PM | 5 Comments
Jul. 12, 2013, 7:22 AM
Jul. 9, 2013, 12:41 PM"Could a bad bank be a good thing," asks Goldman, adding Royal Bank of Scotland (RBS +5.7%) to its Buy list amid reports the U.K. is considering splitting the lender into good and bad banks. The split, says Goldman, would pretty much turn "good" RBS into a domestic retail lender, with trading making up less than 10% of earnings and U.K. retail business generating about 75%. | Jul. 9, 2013, 12:41 PM | Comment!
Jul. 8, 2013, 5:06 AMU.K. Finance Minister George Osborne will reportedly express his support today for the overwhelming majority of recommendations of a parliamentary panel to raise standards at the country's banks. The proposals include making it a crime to manage a bank recklessly and easier to claw back bonuses, although Osborne won't back a plan for tighter limits on leverage ratios. | Jul. 8, 2013, 5:06 AM | 1 Comment
Jul. 5, 2013, 11:44 AMRoyal Bank of Scotland (RBS -0.7%) is put on review to have its A3 rating downgraded by Moody's. The move is triggered by the U.K.'s exploration into a breakup of the bank. While the risk of creditor loss remains low, says Moody's, there is a chance of capital impairment, and the government has made clear it's through putting taxpayer capital into the bank. | Jul. 5, 2013, 11:44 AM | Comment!
Jul. 1, 2013, 7:14 AMThe EU logs antitrust charges against Markit, the ISDA and 13 banks for blocking exchanges in the credit derivatives business. "The banks acted collectively to shut out exchanges from the market because they feared that exchange trading would have reduced their revenues." Banks charged: BAC, BCS, C, MS, CS, DB, GS, HBC, JPM, RBS, UBS, BNPQY.PK. | Jul. 1, 2013, 7:14 AM | 1 Comment
Jun. 28, 2013, 8:49 AMThe U.K. government's sale of its stakes in Lloyds (LYG) and RBS inches closer as it solicits investment banks to put together pitches to help sell the banks. Lloyds is likely to be first in line as its current price would allow the state to sell at a profit. The government owns 39% of it and 82% of RBS. | Jun. 28, 2013, 8:49 AM | Comment!
Jun. 24, 2013, 2:56 AMLloyds (LYG) has reportedly asked the EU for a two-year extension, until the end of 2015, to divest 631 branches. The sale is a condition of state-aid the bank received in 2008. The request comes after the collapse of a deal to offload the outlets to Co-operative Banking Group last month. RBS (RBS) is also expected to ask for extra time to sell 316 branches, with the deadline for this requirement also the end of the year. | Jun. 24, 2013, 2:56 AM | Comment!
Jun. 20, 2013, 5:01 AMThe British government "will urgently investigate" the case for splitting RBS (RBS) into "good" and "bad" banks, Finance Minister George Osborne said yesterday. The decision will depend on whether the move would support the economy, if it were in the interests of taxpayers, and if it were to speed up RBS's return to private ownership, which is some way off. However, Lloyds (LYG) is in good enough shape for the government to start selling its 39% stake in the bank within months. | Jun. 20, 2013, 5:01 AM | 3 Comments
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Royal Bank of Scotland Group (The) PLC is an international banking and financial services company. The Company through its subsidiaries provides banking products and services to personal, commercial and large corporate and institutional customers.
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