10012016Sat
Last update: Sat, 01 Oct 2016 08pm

Banking & Finance

Business & Finance - Banking & Finance

Fed may change stress tests, capital buffers for US banks: Yellen WASHINGTON: The Federal Reserve is considering changes to the annual stress tests it gives US banks to move to a more risk-sensitive, firm-specific approach that would raise capital requirements for big banks based on their test results, according to its chair, Janet Yellen. Testifying at a House of Representatives Financial Services Committee hearing on Wednesday, Yellen said the Fed is "now considering making several changes to our stress testing methodology and process."The stress tests aim to prove that individual banks can withstand a massive financial crisis. Under the changes the Fed is considering, banks would set capital requirements, called capital buffers, that banks must maintain to blunt the effects of a downturn based on the results. "The existing capital conservation buffer would be replaced with a risk-sensitive, firm-specific buffer that is sized based on stress test results," she said. For the eight US banks that are large and considered important ...

Business & Finance - Banking & Finance

US fines RBS bank $1.1bn over pre-crisis mortgages LONDON: Royal Bank of Scotland on Wednesday said it had agreed a fine of $1.1 billion (982 million euros) with US authorities over the alleged mis-selling of mortgage securities ahead of the 2008 financial crisis.It comes a week after US authorities said they would seek $14 billion from Deutsche Bank over similar allegations."The Royal Bank of Scotland Group has reached a final settlement with the National Credit Union Administration Board to resolve two outstanding civil ...

Business & Finance - Banking & Finance

France reviews Societe Generale tax break over rogue trading losses PARIS: France's finance minister said Wednesday that authorities were re-examining a 2.2-billion-euro ($2.5 billion) tax break Societe Generale took, after a court found it partly responsible for losses in a 2008 rogue trading scandal.Michel Sapin said he hoped for a quick review following the appeals court ruling last week in the eight-year case of "rogue trader" Jerome Kerviel.The lender, one of France's top three banks, had claimed, under tax rules, the writedown as it maintained ...

Business & Finance - Banking & Finance

More UK stimulus probably needed 'at some point' LONDON: Bank of England Deputy Governor Minouche Shafik played down the likelihood of a further cut in interest rates this year as the British central bank grapples with how aggressively to respond to a slowdown following June's Brexit vote. The BoE said earlier this month that most of its officials still thought more stimulus was likely before the end of 2016 if the economy slows as it expects, although it acknowledged that the immediate hit ...

Business & Finance - Banking & Finance

Credit Suisse CEO says bank relatively well positioned for brexit LONDON: Credit Suisse chief executive Tidjane Thiam said on Thursday that his bank is relatively well-placed to deal with the impact of Britain's vote to leave the European Union. Credit Suisse's EU investment banking business is run out of London but Thiam said the Swiss lender had already been scaling back its presence in the city."We had since last year, announced a plan to reduce our footprint in London. We have around 2,000 people in ...

Business & Finance - Banking & Finance

Any ECB scheme to buy stocks could total 200bn euros LONDON: Any stock-buying scheme by the European Central Bank could total around 200 billion euros ($224 billion), much larger than its programme to buy top-rated corporate bonds, Dutch bank ABN AMRO said on Wednesday The ECB is widely expected to extend its 1.7 trillion euro ($1.9 trillion) asset purchase programme given still low inflation and tepid economic growth, both of which the programme is designed to combat. A scarcity of eligible bonds for purchase, however, ...

Business & Finance - Banking & Finance

Germany denies preparing Deutsche Bank rescue plan FRANKFURT: The German government denied it was working on a rescue of Deutsche Bank as Germany's biggest lender boosted its balance sheet by selling its British insurance business on Wednesday. Deutsche is facing a $14 billion fine from the US Department of Justice and concerns over its funding pushed its shares to a record low on Tuesday and heightened concerns about the health of the financial sector in Europe's largest economy.The finance ministry dismissed a ...