07292016Fri
Last update: Fri, 29 Jul 2016 12pm

Banking & Finance

Business & Finance - Banking & Finance

Goldman sued over 1MDB links in Malaysian bank merger NEW YORK: In a new development linked to the 1MDB corruption scandal, a former Hong Kong-based investment fund is suing Goldman Sachs for conflict of interest in advising a 2011 Malaysian bank merger.Primus Pacific Partners said Tuesday that Goldman and its then managing director in Southeast Asia, Tim Leissner, concealed its close relationship with Malaysian Prime Minister Najib Razak when the bank was recruited to advise EON Capital, partly owned by Primus, in its $1.7 billion sale to Malaysia's Hong Leong Bank (HLB).Najib "had close family and business ties with HLB" giving him an interest in the success of HLB's takeover of EON, Primus charged in a statement.At the same time that Goldman was advising EON on the merger, though, the New York investment bank was also the key advisor to 1MDB, the government investment fund established and chaired by Najib.Goldman used its role advising EON to "secretly curry favor ...

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India central bank governor defends inflation record, urges independence MUMBAI: The Reserve Bank of India's outgoing governor, Raghuram Rajan, on Tuesday staunchly defended his record in curbing inflation and cleaning up bad debt at banks, and he called on the government to protect the central bank's independence.The comments mark Rajan's latest response to his critics after the former International Monetary Fund chief economist said last month he would step down when his three-year term ends in early September.Rajan had faced withering criticism from right-wing ...

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Brazil central bank sees no rate cut, worried with high inflation BRASILIA: Brazil's central bank sees no room to cut interest rates as inflation remains persistently high and expectations have failed to drop despite a recession, according to the minutes of the bank's last rate-setting meeting released on Tuesday.The central bank's monetary policy committee, known as Copom, left its benchmark Selic rate steady at 14.25 percent for the eighth straight time last week as expected, but changed its decision statement completely to detail the risks to ...

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Turkey's central bank slams S&P over ‘hasty’ ratings downgrade ANKARA: Turkey's central bank governor pledged on Tuesday to do whatever is needed to ensure financial stability after a failed coup and criticised Standard & Poor's "hasty" move to cut the country's credit rating further into junk territory.At a news conference to present the central bank's quarterly inflation report, Murat Cetinkaya said it was too early to assess the impact of the abortive putsch on the Turkish economy. But he took pains to emphasise that ...

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Bank of England to cut key rate Aug 4, hold off on QE for now: Reuters poll LONDON: The Bank of England is almost certain to cut benchmark borrowing costs when it sets policy on Aug. 4, but a slim majority of economists in a Reuters poll said it would hold off for now on restarting its asset purchase programme.Britons voted in a June 23 referendum to leave the European Union, a shock outcome that roiled financial markets and led many economists and traders to think the Bank would cut rates at ...

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Austrian bank Raiffeisen plans to sell stake in insurer Uniqa VIENNA: Austria's Raiffeisen Zentralbank plans to sell most of its shares in insurer Uniqa , it said on Monday, moving towards bolstering its capital reserves while it considers merging with a listed unit for the same reason. Unlisted Raiffeisen Zentralbank (RZB) said it was in advanced talks to sell a 17.6 percent stake in Uniqa to Uniqa Versicherungsverein Privatstiftung, a foundation whose management board comprises Uniqa executives. RZB would retain a stake of roughly 8.6 ...

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Deutsche Bank must face US lawsuit over subprime disclosures NEW YORK: A US judge on Monday said Deutsche Bank AG must face part of a lawsuit claiming it deceived investors who bought more than $5.4 billion of preferred securities by concealing its exposure to the fast-deteriorating subprime mortgage market. US District Judge Deborah Batts in Manhattan rejected the German bank's bid to dismiss claims with respect to roughly $2.55 billion of securities sold in November 2007 and February 2008, court papers show. She also ...