05242016Tue
Last update: Tue, 24 May 2016 11am

Banking & Finance

Business & Finance - Banking & Finance

Deutsche Bank takes 450mn euro charge for equities fraud LONDON: Germany's Deutsche Bank said it took a charge of around 450 million euros last year in relation to share trading fraud, but declined to give any details on Monday. The bank increased its provisions for "external fraud" to 475 million euros in 2015 from 20 million euros in 2014, according to its annual report. "The increase in the event type 'External Fraud' is caused by a provision for equity trading fraud," the bank said in the report, which was published in March. A spokesman declined to say what event or events the charge related to or when it occurred. The previously unreported charge was included in Deutsche Bank's operational risk disclosures. Under Bank for International Settlement operational risk definitions, "external fraud" relates to "Losses due to acts of a type intended to defraud, misappropriate property or circumvent the law, by a third party". Most other big banks do not ...

Business & Finance - Banking & Finance

Deutsche Bank needs BASF to spare its M&A blushes LONDON: Deutsche Bank's recent failings in mergers and acquisitions could do with some BASF fertilisation. Germany's biggest lender has so far failed to win a role on potentially the country's largest deal - the $62 billion offer by national champion Bayer for agrochemicals peer Monsanto . To spare its blushes, Deutsche sorely needs to advise BASF on a successful counterbid. The decline of Deutsche's corporate finance franchise is evident in the league tables.The bank is ...

Business & Finance - Banking & Finance

Bank of America wins reversal of $1.27 billion penalty in US mortgage case NEW YORK: A US appeals court on Monday overturned a jury's finding that Bank of America Corp was liable for mortgage fraud leading up to the 2008 financial crisis, tossing a $1.27 billion penalty and dealing the US Justice Department a major setback. The 2nd US Circuit Court of Appeals in New York ruled that the proof was insufficient under federal fraud statutes to establish liability in connection with a mortgage program called "Hustle" run ...

Business & Finance - Banking & Finance

US Fed awards $78.11 billion in reverse repos NEW YORK: The US Federal Reserve on Monday awarded $78.11 billion of one-day, fixed-rate reverse repurchase agreements to 38 bidders at an interest rate of 0.25 percent, the New York Fed said on its website. It was the biggest award since $89.12 billion to 44 bidders on April 1. On Friday, the Fed allotted $60.34 billion in three-day reverse repos to 28 bidders, including Wall Street dealers, money market mutual funds and mortgage finance agencies, ...

Business & Finance - Banking & Finance

Fed's Williams sees US rate hikes despite Brexit risk, more in 2017 NEW YORK: The Federal Reserve is on track to hike interest rates in June or July despite risks such as a "Brexit" vote, and will continue with even more hikes next year given U.S. economic strength, a top Fed official said on Monday.San Francisco Fed President John Williams reinforced the view both within the U.S. central bank and in financial markets that overseas risks, even the Brexit vote he said would loom over next month's ...

Business & Finance - Banking & Finance

Legal costs burn one-third of Europe bank profits since '08: ECB FRANKFURT: European banks have spent a third of their net profits on provisions to cover expected legal costs since the start of the economic crisis in 2008, European Central Bank data showed on Monday. Between 2008 and 2015, European banks have set aside $160 billion in provisions for legal costs, equal to almost half of their net income over that period.This means their profits could have been almost one-third higher were it not for these ...

Business & Finance - Banking & Finance

Colombia central bank expected to raise interest rate to 7.25pc BOGOTA: Colombia's central bank is likely to increase its lending rate by a quarter point to 7.25 percent, the last increase in a 9-month tightening cycle as inflation expectations begin to ease, a Reuters survey showed on Friday. Fourteen of 18 analysts polled said the seven-member board would raise the key interest rate by 25 basis points at its meeting next week, while another predicted a 50-point rise and the remaining three expected the rate ...