05272016Fri
Last update: Fri, 27 May 2016 07pm

Banking & Finance

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 by the former Countrywide Financial Corp. The Justice Department claimed Countrywide, which Bank of America bought in July 2008, defrauded government-sponsored mortgage finance giants Fannie Mae and Freddie Mac by selling them thousands of toxic loans. But US Circuit Judge Richard Wesley said the evidence at most showed Countrywide breached contracts to sell Fannie and Freddie loans of a specified quality, but that no proof existed to show it intended to deceive the buyers when ...

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 ...

Business & Finance - Banking & Finance

UniCredit directors alerted for extraordinary meeting on May 24: sources MILAN: The directors of Italy's UniCredit have been alerted for a possible extraordinary board meeting on governance issues on May 24, two sources close to the matter said on Friday. If confirmed, the gathering would be the first board meeting after Monday, when major shareholders at Italy's biggest bank discussed options to strengthen the lender's governance, including replacing Chief Executive Federico Ghizzoni.Copyright Reuters, 2016 ...

Business & Finance - Banking & Finance

Credit Suisse labours to spin misfortune into gold LONDON: A bond that wipes out if the Swiss bank encounters big operational losses, from rogue trades to cyber crime, has not been an easy sell. Even for investors who specialise in natural catastrophes, this product is esoteric. Such cleverness is impressive, but unlikely to catch on.Copyright Reuters, 2016 ...