Fri, Mar. 13, 4:09 PM
- It's looking like $1B is the price the DOJ wants from banks to make the forex manipulation probe go away, according to Bloomberg. Banks, however, are finally starting to feel their oats and pushing back a bit more than in the mortgage probes - the final penalty could be lower, according to sources.
- Among the lenders discussing settlements: Barclays (NYSE:BCS), Citigroup (NYSE:C), JPMorgan (NYSE:JPM), RBS, and UBS. The government is also readying cases against individuals.
- In the global investigations, banks have already agreed to pay regulators about $4.3B.
Fri, Mar. 13, 2:56 PM
- Switzerland's Union Bancaire Privee looks to be the preferred bidder for Royal Bank of Scotland's (RBS -2.4%) Coutts International, reports Bloomberg, and an agreement could be announced as early as this month.
- Others being considered include Credit Suisse and a joint bid from SocGen and DBS Group.
- Standing in the way of a deal is price - at least in part thanks to the franc's recent surge - a German investigation into Coutts' private bank, and the political storm surrounding HSBC's involvement with tax evasion.
- As of the end of 2013, Coutts had CHF32.6B in AUM and reported a full-year net loss of CHF45.1M. The unit could go for $600M-$900M, according to a Bloomberg source.
Mon, Mar. 9, 3:44 AM
- Despite all thirty-one global banks passing the first round of the Fed's stress test last Thursday, a tougher second round test this week, known as the Comprehensive Capital Analysis and Review (CCAR), will either approve or disapprove the lenders' capital return plans.
- Last year, Citigroup (NYSE:C) became the only big U.S. bank to have its plans thrown out, with the Fed citing "insufficient" improvement in areas previously flagged. Other 2014 CCAR losers: Citizens (NYSE:RBS), HSBC (NYSE:HSBC) and Santander (NYSE:SAN).
- Previously: All 31 lenders pass the stress test (Mar. 05 2015)
Tue, Mar. 3, 4:58 PM
- Putting a number on the dismantling of Royal Bank of Scotland's (NYSE:RBS) investment bank, the FT reports the bank has set a target of cutting up to four out of five jobs in the unit by 2019 - a full 14K positions. A large proportion of those will be in the U.S. and Asia.
- "I am not a very patient person," said Barclays (NYSE:BCS) CEO Antony Jenkins after his bank reported a loss for 2014. "We won't hesitate to optimize the capital allocated to the investment bank." There have been long-running rumors Barclays might spin off or sell its investment bank, as analysts say it's better positioned to do so than RBS, especially as regulators are forcing it to split its U.K. and U.S. operations into separately funded entities.
Thu, Feb. 26, 10:06 AM
- "For RBS [this] marks the end of the stand-alone global investment bank model," says CEO Ross McEwan. Royal Bank of Scotland (RBS -5.9%) will "substantially reduce" its investment banking operations in the U.S. and Asia, and fully exit markets businesses in Central and Eastern Europe, the Middle East, and Africa - a full 25 countries.
- CFO Ewen Stevenson says more than half of the roughly 2K jobs on the company's vast Stamford trading floor will be cut, and a review is set for whether that base is still needed.
- All that's left in sales and trading outside of the U.K. will be operations in Stamford (for now) and Singapore. There will also be a sales office in Japan and client coverage teams in a number of European countries.
- There are plenty of sellers today, but not everyone's a bear. Some analysts note these moves should improve capital ratios, and RBS's plan to return to being just a bank isn't exactly a new one - today's announcements just point to a speeded up the process.
- Management also warns there could be more fines coming for past misconduct.
- Previously: RBS reports annual loss on Citizens writedown (Feb. 26)
Thu, Feb. 26, 6:45 AM
- Mizuho Financial Group (NYSE:MFG) has agreed to buy Royal Bank of Scotland's (NYSE:RBS) U.S. and Canadian loan commitments in a deal worth $3B.
- The deal is likely to close around the middle of the business year starting in April.
- RBS -3.5% after posting its seventh straight annual loss earlier this morning.
Thu, Feb. 26, 3:26 AM
- Posting its seventh straight annual loss, Royal Bank of Scotland (NYSE:RBS) reported a £3.47B net loss for 2014 after booking a £4B writedown on the value of U.S. offshoot Citizens.
- The bank also named Howard Davies as chairman. Davies, the former head of the now-defunct Financial Services Authority, succeeds Philip Hampton, who is to replace Christopher Gent as chairman of GlaxoSmithKline (NYSE:GSK).
- Previously: Sir Howard Davies set to take chairman's role at RBS (Feb. 23 2015)
Mon, Feb. 23, 2:25 PM
- The appointment of Sir Howard Davies as chairman of Royal Bank of Scotland (NYSE:RBS) could come as soon as Thursday's quarterly earnings report, says the FT. He's replacing Sir Philip Hampton, who exiting this summer to take the same spot at GlaxoSmithKline.
- Not a banker by trade, Sir Howard moves easily among the regulatory, academic, and consultancy crowd. "Very smart and totally inscrutable; he would work with a government of any color," is how he's described by one former co-worker.
- His start date with RBS is unclear thanks to numerous other chairmanships he holds, and investors and regulators - since the financial crisis - have pressured bank leaders to focus on banking.
Mon, Feb. 16, 8:36 AM
- Royal Bank of Scotland (NYSE:RBS) may have to set aside £10B ($15.4B) in additional conduct costs, following recent probes into the bank's dealings, Bloomberg reports quoting analysts at Keefe Bruyette & Woods.
- The £10.1B total includes settlements for toxic mortgage securities, foreign-exchange manipulation and benchmark rigging.
- RBS is scheduled to report full-year earnings on Feb. 26.
- Previously: Trouble still brewing in the forex market (Feb. 10 2015)
- Previously: RBS falls on report of hefty fine (Jan. 02 2015)
- Previously: Global banks fined $3.4B in forex probe (Nov. 12 2014)
Tue, Feb. 10, 2:56 AM
- In the final stages of a long-running investigation, the U.S. Department of Justice has recently informed Barclays (NYSE:BCS), JPMorgan (NYSE:JPM), the Royal Bank of Scotland (NYSE:RBS) and Citigroup (NYSE:C) that they must plead guilty to criminal charges that they manipulated the prices of foreign currencies, NYT reports.
- Last November, regulators fined five major banks a total of $3.4B for failing to stop traders from trying to manipulate the foreign exchange market, following a year-long global investigation.
- In a separate forex probe disclosed today, the NY Department of Financial Services sent subpoenas to several other banks, expanding its investigation of whether the banks' electronic trading platforms allowed them to front-run clients in the forex market.
- Previously: FT: Forex trading probe widens (Feb. 09 2015)
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. 14, 5:57 AM
- Royal Bank of Scotland (NYSE:RBS) has been granted a waiver by the U.S. Federal Reserve from new overseas bank laws that go into effect next year.
- The rules will require all overseas banks with over $50B of U.S. assets to set up a separate American holding company with strict capital and reporting requirements.
Mon, Jan. 12, 2:55 AM
- Just a month after it announced plans to wind down its fixed-income trading business in Japan, Royal Bank of Scotland (NYSE:RBS) is now discussing a potential retreat from Asia, where the bank currently employs about 2K people.
- The latest move is part of a drastic restructuring launched by CEO Ross McEwan last year, which is aimed at reducing the bank's non-U.K. activities to less than a quarter of its assets.
Fri, Jan. 9, 7:33 AM
- U.K. Financial Investments - the group managing the country's stakes in bailed out banks - is discussing a possible £2B capital raise with Royal Bank of Scotland (NYSE:RBS), reports Sky News.
- The U.K. holds an 80% stake in the bank.
- Talks are being complicated by a clause in the bailout agreement which prevents the government's stake from being diluted by a share sale.
- The stock's lower by 2% in London action.
Fri, Jan. 2, 4:45 AM
- Shares of Royal Bank of Scotland (NYSE:RBS) are down 2.4% in London following a report from The Times stating that the lender could face fines of more than £5B over its involvement in the sale of toxic mortgage-backed debt in the U.S.
- The figure is way above the £1.9B set aside by the bank to cover the potential fines.
Dec. 16, 2014, 4:19 AM
- Royal Bank of Scotland (NYSE:RBS) has agreed to sell £4.8B ($7.5B) of Irish property loans to an entity controlled by Cerberus for as much £1.1B ($1.7B).
- The sale is expected to be completed in the first quarter of 2015.
- U.K. banks are selling real estate loan books as they repair balance sheets damaged during the financial crisis after property prices crashed and loans soured.
RBS vs. ETF Alternatives
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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