Banking

Bloomberg The head of Bank of Montreal’s (BMO) investment-banking and markets business said capital markets are at the “end of the robust phase” that powered them through the pandemic and are shifting towards a more uncertain future. Capital markets have been in a boom period marked by heightened merger activity, strong equity markets, low interest rates and subdued fears among ...

Bloomberg HSBC Holdings Plc, Citigroup Inc and other lenders are moving rapidly to tap a new program that will allow investments between Hong Kong and mega-cities in southern China. HSBC has put up 60 centres in the Chinese mainland and Hong Kong after the long-awaited program, called Wealth Management Connect, was given the green-light last month as banks received final ...

Bloomberg Goldman Sachs Group Inc economists say they no longer expect China to cut the amount of cash banks must hold in reserve this year after the central bank pledged to keep overall liquidity conditions relatively stable. The probability of a cut in the reserve requirement ratio is lowered, and the People’s Bank of China (PBOC) might rely on open ...

Bloomberg The European Central Bank (ECB) said lenders in the region will have to estimate the risk they could face from climate change in both their lending and trading operations when they undergo a stress test next year. Banks will have to predict how their balance sheets will evolve over 30 years as well as any related losses they could ...

Bloomberg UK traders ramped up bets on higher interest rates after a hawkish signal from Bank of England (BOE) Governor Andrew Bailey, putting two-year yields on course for the biggest increase in more than six years. Bailey said the central bank will “have to act” to curb inflationary forces and warned that higher energy costs mean price pressures will linger. ...

Bloomberg Bank of America (BofA) Corp’s largest philanthropic initiative is reaching into new neighbourhoods with programs dedicated to community building and leadership training. The company gave another $22.1 million to its Neighborhood Builders and Champions programs that support nonprofits, according to a statement. Since 2004, the bank has invested more than $285 million through the programs, which have served 92 ...

Bloomberg MicroStrategy Inc appears to be one of the bigger beneficiaries from the euphoria surrounding the likely launch of Bitcoin ETFs, with the overall value of the company’s holding of the cryptocurrency doubling. The enterprise software firm held approximately 114,042 Bitcoin as of September 12, acquired at an aggregate purchase price of $3.16 billion and an average price of $27,713 ...

Bloomberg As an example of why investment banks should listen to their risk managers, CS Venkatakrishnan’s experience at JPMorgan Chase & Co is hard to top. Back in 2012, just weeks into a senior risk job at the Wall Street giant, his team flagged the potential for $6.3 billion of losses from a murky derivatives trade in London. The analysis ...

Bloomberg Bank of America Corp (BofA) beat analysts’ earnings estimates as fees climbed at the company’s dealmaking unit, boosted by a record-breaking period for mergers and acquisitions. Investment-banking advisory fees rises 65% to a record $654 million in the third quarter as a combination of cheap financing for buyers and attractive valuations for sellers spurred a wave of takeovers. Overall ...

Bloomberg China’s inflation risks are “controllable” and while rising costs may hurt small businesses, authorities have increased support for those types of firms, central bank officials said. Sun Guofeng, head of the monetary policy department, said at the briefing in Beijing on Friday that producer price inflation will remain elevated in the short term before falling toward the end of ...