Bloomberg Danske Bank A/S isn’t expecting to see financial losses as a result of the client flight triggered by its money laundering scandal, according to its interim chief executive officer, Jesper Nielsen. The bank said it lost about 11,000 retail customers in Denmark, net, last year. It also pointed to “negative impact†of the laundering case on its corporate clients ...
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ECB’s Visco warns of weaker growth
Bloomberg Bank of Italy Governor Ignazio Visco joined his European counterparts in signalling that economic growth will be much weaker than predicted, warning of the implications for euro-area inflation. “The prospects for the Italian economy are less favourable today than they were a year ago,†Visco, who sits on the European Central Bank’s Governing Council, said in a speech to ...
Read More »Natixis seeks sale of Korean derivatives
Bloomberg Natixis SA, the French bank that had sought growth in risky trading businesses, is looking to sell the portfolio of complex Korean derivatives that blew up in the fourth quarter, losing almost $300 million, according to people familiar with the matter. The firm has approached potential buyers including JPMorgan Chase & Co. and BNP Paribas SA to gauge their ...
Read More »Powell marks one year as Federal Reserve chairman
Bloomberg Jerome Powell this week marks his first year as chairman as the Federal Reserve under pressure to deliver on the commitment of his opening day to explain “what we are doing and why we are doing it.†Powell hosts a town hall meeting with educators in Washington on Wednesday, a day after he celebrates his anniversary. He does so ...
Read More »Australian banks set for biggest upheaval from probe
Bloomberg Australia’s scandal-plagued banks are set for their biggest upheaval in decades as a wide-ranging inquiry into misconduct recommends how the nation’s financial industry should atone for wrongdoings. In its final report to be released in Canberra, the government-appointed Royal Commi- ssion could propose financial firms be broken up to avoid conflicts of interest, push for changes to pay and ...
Read More »Fed doves delight as Kaplan, Bullard laud policy patience
Bloomberg Federal Reserve Bank of St. Louis President James Bullard and Dallas Fed chief Robert Kaplan applauded the central bank’s decision to take a pause on interest-rate increases in separate appearances and said patience was the right approach for the US economy. “I think it set us up for a very good couple of years here,†Bullard said in a ...
Read More »DWS says clients withdrew $8bn in fourth quarter
Bloomberg DWS Group, the German asset manager taken public by Deutsche Bank AG in March, is wrestling with withdrawals, though its executives say the worst is behind them. Investors pulled 7 billion euros ($8 billion) in the fourth quarter of 2018, taking total redemptions last year to more than 22 billion euros. To make matters worse, the volatility that roiled ...
Read More »Deutsche Bank sees Commerzbank merger by mid-year
Bloomberg Deutsche Bank AG’s top ranks are bracing for a potential government-brokered merger with rival Commerzbank AG by mid-year as they run out of time to turn Germany’s largest bank around. Executives are concerned such a deal may become their only option if there’s no clear improvement in the first three months of 2019, people briefed on their thinking say. ...
Read More »Barclays to shift $217bn assets to Dublin
Bloomberg Barclays Plc won permission to transfer large parts of its business from Britain to its Dublin-based subsidiary if needed, with a judge disclosing that the Brexit-driven move could affect thousands of the bank’s corporate clients. The London-based bank had requested court approval for the potential move, which was granted by High Court Judge Richard Snowden. Snowden described the move ...
Read More »Now, India shadow banks face Essel risk
Bloomberg India’s shadow lenders are facing a fresh threat, just as they were starting to recover from the fallout of landmark defaults last year by one of their own. The lenders could come up against a new cash shortage, if concerns about debt at conglomerate Essel Group ricochet through India’s money markets, according to Citibank and Credit Suisse. There’s reason ...
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