The Bank of America has today announced it is planning to cut back on its investment banking operation in the wake of disastrous results over the third quarter, performance it has attributed to the impact of the credit crunch environment and its knock on effect on market trading. The second biggest US bank after Citi, [...]
HSBC has seen a strengthening of its shareholder revolt led by Knight Vinke, the asset management firm. The latter, which has accused the bank of poor governance and strategy, has secured the support of New Star Asset Management, which owns around £300 million HSBC shares and has responded positively to Knight Vinke’s role as a [...]
Morgan Stanley is reducing staff by 300 worldwide, with jobs set to go in the bank’s credit-related operations, in London. The staff involved work in the areas of bonds backed by mortgage payments and loans made to finance leveraged buyouts. Earlier this month Morgan Stanley shed 600 post from its mortgage origination business and the [...]
Certain banking institutions are tricking customers by using unrelated legislation to account for non payment in reclaimed bank charge cases, according to campaign website MoneySavingExpert.com today. Allegedly the banks involved are taking a freeze on claims from overdraft fees and applying that erroneously to the situation of bank charges, which is putting customers off trying [...]
JPMorgan Chase has today released its third quarter earnings figures, showing a better performance than rival Citigroup in the wake of the credit crunch and sub-prime fallout of the early summer months. In its third quarter reports released today, revenues had increased to $3.4 billion over the period, showing a growth of over 2% on [...]
Italian investment banking group Mediobanca have today announced they intend to establish a London based branch in a bid to gain access to derivatives and capital markets within the UK, according to sources from within the bank itself. The move will see the Italian investment banking giant take its first steps into the UK investment [...]
Moneysavingexpert.com, the financial advice website, has accused some High Street banks of deceiving customers who are attempting to reclaim default charges on their credit card bills. Currently large numbers of claims by consumers for fees for unauthorised overdrafts have been put on hold, pending the outcome of a case in the High Court, which should [...]
Wall Street investment firm Bear Stearns is under proposal from Chinese investment group Citic Bank, which is looking to acquire a substantial holding in the company and a foothold in the US investment market according to reports from officials within the company. The move follows widespread investment in recent months from Chinese companies into the [...]
Offshore investors have significantly reduced their holdings in US based assets as a result of the prolonged effect of the sub-prime credit crunch, according to figures released today by the US treasury which reflect the ongoing impact of US uncertainty on its wider economy. With banks less willing, and indeed less able, to freely offer [...]
The China Investment Corporation will know no geographic boundaries when it comes to investing its $200 billion reserves, according to announcements made at its official launch today at the Communist Party Congress. The news comes after studies revealed over the course of this week reflected a growing protectionist sentiment against investment from foreign backed funds, [...]
Citigroup, the world’s largest financial services group, recorded a 57% decrease in profit, to $2.38 billion, in the third quarter of 2007. The result represents the biggest decline in net income in three years. The group’s investment banking division recorded a 74% fall in third-quarter profit, to $446 million, as compared with the third quarter [...]
Lloyds TSB has responded strongly to the news that US prosecutors have filed a £64 million lawsuit against the bank, accusing it of being instrumental in helping to launder the proceeds from a major securities fraud. The bank has promised to defend itself vigorously, saying: “We do not believe there is any basis for this [...]
A group of disillusioned HSBC shareholders are involved in a campaign challenging the bank’s strategy and governance. Full-page advertisements have appeared in the national press accusing HSBC of mis-allocating capital in its retail banking operations and mis-managing its investment banking business. The campaign, headed by Eric Knight, founder of asset management firm Knight Vinke, also [...]
Swiss asset management firm Julius Baer has today announced it is looking to tighten up its private banking operation after welcoming certain significant acquisitions from Swiss investment bank UBS. The move is part of a wider commitment to slim down the company’s banking operation, with a view to improving efficiency within that sector. It is [...]
A report released today has suggested that foreign government-backed investment portfolios could give rise to an increase in protectionist sentiment across world governments with individual authorities looking to protect the interests of domestic companies. Emerging Asian economies like China and India have initiated substantial investment in offshore companies in order to provide long term, sustainable [...]
Investment banking giant Citigroup has today announced the extent of its heavy losses over the third quarter, quantifying a 57% downturn in profits over the period as a result of significant exposure to credit markets in light of the credit crunch. Revenues net of direct costs were down over the quarter to $2.4 billion, having [...]
Oracle has offered about $6.65bn for BEA Systems, which provides application software and middleware to software developers establishing systems on which financial services software operate. Oracle is offering £17 per share for BEA, a twenty five percent premium on the 11 October closing price. This offer, according to Oracle President Charles Darwin, is the result [...]
Legal & General (L&G) has published the results of a survey into attitudes to the Government’s plan to introduce “personal accounts” to enable people to make better provision for a pension in old age. Legislation to introduce the accounts is set to become effective in 2012 and L&G has reported an encouraging level of interest [...]
A consortium led by Virgin Group is working on plans to rescue Northern Rock, the stricken mortgage bank, and is expected to hold discussions with Northern Rock’s board in the coming days. The bidders, which include Virgin, AIG (the insurer) and Wilbur Ross (the US restructuring specialist), are in the process of compiling a short-list [...]
Leading global banks are reported to be discussing a scheme that would guarantee $100 billion in sub-prime mortgage investments, in a move aimed at preventing further turmoil in the credit markets. Both Citigroup and HSBC are rumoured to have been approached about the proposal, which is believed to have the support of the US Treasury [...]
