Banking

BLOOMBERG  Goldman Sachs Group Inc has started cutting managing directors (MD) across the globe as the firm reduces its headcount amid a deals slump, according to people familiar with the matter. About 125 MDs, including some in investment banking, will lose their jobs, said one of the people, who asked not be identified because the cuts aren’t public. Not all ...

BLOOMBERG Australia’s central bank weighed the risk of upside surprises to inflation from a tight labour market and rising home prices when it decided to deliver a surprise interest-rate increase this month. The Reserve Bank’s board discussed the case to pause but concluded the “finely balanced” arguments were in favour of raising the cash rate to 4.1% — a level ...

BLOOMBERG UBS Group AG faces hundreds of millions of dollars in regulatory fines over Credit Suisse Group AG’s dealings with Archegos Capital, as the Swiss bank inherits its former rival’s entire litigation portfolio, according to a person familiar with the matter. The US Federal Reserve’s fine over Archegos may be as high as $300 million, while the UK’s Prudential Regulation ...

BLOOMBERG New Zealand’s government announced an inquiry into its banking sector amid concerns that lenders are making excessive profits. Cabinet has agreed to a market study into competition in the sector for personal banking services to ensure the market is working well for New Zealanders, Finance Minister Grant Robertson said in Wellington. It will be conducted by the antitrust watchdog ...

BLOOMBERG Chinese banks followed the central bank by lowering their benchmark lending rates, although a relatively modest reduction to the mortgage reference rate disappointed investors. The one-year and five-year loan prime rates were reduced by 10 basis points each, according to a statement by the People’s Bank of China (PBOC). While that was in line with the reduction in the ...

BLOOMBERG Jerome Powell will be in the Capitol Hill spotlight a week after the Federal Reserve paused its most aggressive tightening campaign in decades, with investors watching for clues on whether central bankers are indeed leaning toward further interest-rate hikes. The Fed chair will deliver the central bank’s semi-annual monetary policy report to the House on Wednesday and the Senate ...

BLOOMBERG The bull-market rally in US stocks is about to run out of steam, according to Citigroup. Strategists at the bank led by Scott Chronert reiterated their call for the S&P 500 Index to tumble to 4,000 by year-end, and initiated a new target of 4,400 by mid-2024, or just below June 16’s 4,410 close. A lack of concrete earnings ...

BLOOMBERG Customers Bancorp Inc purchased $631 million of loans that belonged to Signature Bank, the latest example of a financial firm snapping up at a steep discount assets associated with a failed US lender. The purchase from the Federal Deposit Insurance Corp (FDIC) was at 85% of the portfolio’s book value, the West Reading, Pennsylvania-based bank said in a statement. ...

BLOOMBERG Nationwide Building Society and Atom Bank Plc announced increases in mortgage rates, joining a flurry of UK lenders who are raising prices in response to inflation. Nationwide said in an email that it would raise fixed rates by as much as 0.7%, while Atom Bank announced increases from 0.25% to 0.6%  on certain products due that same day. “With ...

BLOOMBERG Bangladesh’s central bank raised interest rates and said it will allow the currency to float freely, pledging to keep monetary policy tight to rein in inflation at a decade high. The repurchase agreement rate will increase 50 basis points to 6.5%, Governor Abdur Rouf Talukder said at a briefing in Dhaka. The reverse repo rate was renamed the standing ...