UBS proceeds with City office plans
by Gill Montia
Story link: UBS proceeds with City office plans
UBS is reported to be proceeding with plans to relocate its London operations and create the largest office building in the City.
The Swiss bank is understood to have agreed a £340 million project with British Land and private equity group, Blackstone, for the transformation of 4 and 6 Broadgate.
The news comes as JPMorgan’s commitment to [...]
Citigroup follows Goldman with fine for fraud charges
by Gill Montia
Story link: Citigroup follows Goldman with fine for fraud charges
Citigroup has become the second US bank in a fortnight to settle allegations of fraud, by paying a fine to the Securities and Exchange Commission (SEC).
The bank’s $75 million penalty relates to a charge of misleading investors over the company’s exposure to sub-prime mortgage-related assets.
The SEC states: “Between July and mid-October 2007, Citigroup represented that [...]
Jitters over JPMorgan Canary Wharf headquarters
by Gill Montia
Story link: Jitters over JPMorgan Canary Wharf headquarters
Fresh doubts have arisen over JPMorgan’s commitment to a new Canary Wharf headquarters, with reports that the US investment bank has been in talks with London’s mayor, Boris Johnson.
Plans for the European headquarters were confirmed in 2008 and seen as a boost to the Capital’s financial profile.
However, the investment bank’s chief executive, Jamie Dimon, is [...]
Goldman pays $550m to settle ABACUS fraud charges
by Gill Montia
Story link: Goldman pays $550m to settle ABACUS fraud charges
Goldman Sachs is to pay a $550 million penalty to the US Securities and Exchange Commission (SEC), following allegations of fraud.
In 2007, the bank structured and marketed a collateralised debt obligation (CDO) that turned sour.
In April of this year, the SEC alleged that Goldman allowed one of its clients, hedge fund Paulson & Co, to [...]
Credit Suisse raided in German tax evasion probe
by Gill Montia
Story link: Credit Suisse raided in German tax evasion probe
Credit Suisse operations in Germany were raided by police yesterday as part of a tax fraud inquiry.
Thirteen branches of the bank were visited following allegations that Credit Suisse staff have been helping clients to evade their taxes.
According to reports, German authorities already have information on around 1,100 clients who are suspected of not having paid [...]
UK banks alleged to have mis-sold mortgage-backed securities
by Gill Montia
Story link: UK banks alleged to have mis-sold mortgage-backed securities
HSBC, Barclays and Royal Bank of Scotland are among 15 banks being sued in the US for mis-selling mortgage-backed securities, The Daily Telegraph has reported.
Boston-based investment firm, Cambridge Place Investment Partners, has also named JPMorgan, Citigroup, Credit Suisse, Deutsche Bank, Merrill Lynch, UBS, Goldman Sachs and Morgan Stanley as alleged mis-sellers.
All the banks involved [...]
Barclays flags up investment banking downturn
by Gill Montia
Story link: Barclays flags up investment banking downturn
At a seminar yesterday focused on Barclays’ global retail banking businesses, the group’s finance director, Chris Lucas, commented that the trends underlying the bank’s performance in the second quarter of 2010 have been similar to Q1.
However, he noted exceptions as follows:
“As has been widely reported, investment banking market conditions
in May and June have been softer, [...]
Barclays’ president defends price of Lehman Brothers assets
by Gill Montia
Story link: Barclays’ president defends price of Lehman Brothers assets
Barclays’ president, Bob Diamond, appeared before a US bankruptcy judge yesterday to defend his bank’s $1.89 billion acquisition of certain of Lehman Brothers’ assets.
In September 2008, Barclays bought Lehman Brothers’ investment banking and capital markets businesses, two data centres and its New York headquarters, after walking away from discussions aimed at saving the bank.
Creditors of [...]
Swiss ratify UBS client account disclosure
by Gill Montia
Story link: Swiss ratify UBS client account disclosure
The Swiss parliament has passed a law that leaves UBS free to hand over details of American account holders suspected of tax evasion.
In August 2009 it emerged that US tax authorities were investigating clients of the investment bank, when a Florida court sentenced former UBS banker, Bradley Birkenfeld, for helping US clients hide their wealth.
At [...]
Ernst & Young investigated over Lehman “Repros”
by Gill Montia
Story link: Ernst & Young investigated over Lehman “Repros”
The Accountancy and Actuarial Discipline Board (AADB) has begun an investigation into the conduct of Ernst & Young LLP, in its role as auditors to Lehman Brothers International Europe.
The Wall Street bank collapsed in September 2008, since when a report ordered by a US court, published in March of this year, has severely criticised Ernst [...]
Banking Commission advocates “Safe Haven” accounts
by Gill Montia
Story link: Banking Commission advocates “Safe Haven” accounts
A report published at the weekend by The Future of Banking Commission is calling for “Safe Haven” accounts that would offer 100% protection to savers.
The commission, set up by consumer group Which? to allow the public to have a say in banking reform, suggests deposits held in such accounts could be invested in safe assets, [...]
OFT to investigate rights issue fees
by Gill Montia
Story link: OFT to investigate rights issue fees
The Office of Fair Trading (OFT) has today announced plans for a market study into equity underwriting and associated services.
In 2009, companies raised an estimated £70 billion of equity capital in the UK through rights issues and the like, paying around £2 billion in fees.
However, the OFT says it is aware of some “dissatisfaction” [...]
Swiss Assembly votes against UBS disclosure
by Gill Montia
Story link: Swiss Assembly votes against UBS disclosure
The Swiss parliament has voted against a new law that would have resulted in UBS handing over the details of American account holders suspected of tax evasion in the US.
In August 2009 it emerged that US tax authorities were investigating clients of the investment bank, when a Florida court sentenced former UBS banker, Bradley Birkenfeld, [...]
PwC called to account over JPMorgan Chase audit
by Gill Montia
Story link: PwC called to account over JPMorgan Chase audit
PricewaterhouseCoopers (PwC) could face disciplinary action over its role as auditor of investment bank, JPMorgan Chase.
Last week, the Financial Services Authority (FSA) fined JPMorgan Securities Ltd (JPMSL) £33.32 million for failing to protect client money by segregating it appropriately.
The regulator found that between November 2002 and July 2009, JPMSL deposited client funds held by its [...]
Investment banks lose out as Pru’s AIA bid fails
by Gill Montia
Story link: Investment banks lose out as Pru’s AIA bid fails
Prudential’s failure to renegotiate the price of its AIA acquisition has cast a shadow over the City with analysts suggesting that the abandonment of the deal bodes ill for the firms that earn lucrative fees through mergers and acquisitions.
Prudential agreed to acquire the pan-Asian life insurance subsidiary of US insurer AIG in March, for £24.6 [...]
Investment banking fees under scrutiny
by Gill Montia
Story link: Investment banking fees under scrutiny
The Independent has reported that the Institutional Shareholders’ Committee (ISC) is setting up an Institutional Investor Council, a new body that will investigate the fees charged by investment banks for underwriting rights issues and various advisory roles.
The ISC is a forum that allows the UK’s institutional shareholding community to exchange views and, on occasion, coordinate [...]
Goldman Sachs Q1 profit up 91%
by Gill Montia
Story link: Goldman Sachs Q1 profit up 91%
Goldman Sachs has posted net profit of $3.46 billion for the first three months of 2010, representing a 91% increase on the same period of 2009.
The group’s revenues rose 36% on a year earlier, to $12.8 billion.
However, profit fell short of the $4.9 billion recorded by the Wall Street bank in the final three months [...]
FSA commences formal investigation of Goldman Sachs
by Gill Montia
Story link: FSA commences formal investigation of Goldman Sachs
The Financial Services Authority (FSA) has announced that following preliminary investigations, it has decided to commence a formal enforcement investigation into Goldman Sachs International, in relation to recent charges brought by the Securities and Exchange Commission (SEC).
On Friday, the US regulator charged the Wall Street bank and one of its vice presidents with defrauding investors [...]
PM demands investigation into Goldman Sachs
by Gill Montia
Story link: PM demands investigation into Goldman Sachs
Weekend reports that the Financial Services Authority (FSA) has launched a probe into the London operations of Goldman Sachs were followed by public demands for an investigation by Prime Minister Gordon Brown.
Last week, the US Securities and Exchange Commission (SEC) charged Goldman and one of its vice presidents with a $1 billion fraud against investors, [...]
FSA scrutinises Goldman’s London operations
by Gill Montia
Story link: FSA scrutinises Goldman’s London operations
The Sunday Times has reported that the Financial Services Authority (FSA) is taking a close look at the London operations of Goldman Sachs.
On Friday, the US Securities and Exchange Commission (SEC) charged the Wall Street bank and one of its vice presidents with a $1 billion fraud against investors, allegedly perpetrated by “misstating and omitting [...]
