Banking

  Bloomberg Deutsche Bank AG and Credit Suisse Group AG may have to raise more capital because of the need to resolve US claims over the sale of mortgage-backed securities before the financial crisis, Barclays said as it downgraded the two banks. Deutsche Bank may face settlement payments of as much as US$4.5 billion, while Credit Suisse may have to ...

  Bloomberg Even in Asia’s cutthroat world of wealth management, the news of a mass defection at RBS Coutts, venerable bankers to the British royals, came as a shock. Lenders battered by the financial crisis were fighting for Asia veterans who could bring the lucrative accounts of the region’s growing ranks of millionaires, and Coutts rainmaker, Hanspeter Brunner, had jumped ...

  Bloomberg Japanese banks, known for the risk-aversion that spared them the worst of the credit crisis, have quietly grown into some of the world’s largest energy lenders. Mitsubishi UFJ Financial Group Inc., Japan’s largest bank, disclosed last month it has become one of the biggest oil and gas lenders with 9.2 trillion yen, or about US$85 billion, in exposure ...

  Bloomberg Since a surprise interest-rate cut at his first meeting as European Central Bank President, Mario Draghi has shown a penchant for pushing the envelope. The bank’s entry into the corporate bond market was no exception: buying bonds with junk ratings. Purchases on the first day included notes from Telecom Italia SpA, according to people familiar with the matter, ...

  Bloomberg John Cryan’s plan to revamp Deutsche Bank AG risks unraveling as the departure of the chief executive officer’s most senior hire presents one more false start to a strategy he laid out last year. Quintin Price, hired in October to oversee growth in the bank’s asset-management business, is leaving the bank after going on medical leave in mid-April, ...

  Bloomberg Citigroup Inc’s sale of its Brazilian unit should face tougher scrutiny from the nation’s antitrust office because the local banking industry is already highly concentrated, one of the agency’s regulators said. Any banking mergers should immediately be deemed ‘complex,’ Cristiane Alkmin Junqueira Schmidt, a member of the agency, said. “I am really uncomfortable approving any transaction in the ...

  Bloomberg Changes to the capital treatment of sovereign bonds discussed in Brussels and Basel may force European banks to raise as much as 171 billion euros (US$195 billion) in new capital or sell 492 billion euros of the securities, according to research published. European banks own about 2.3 trillion euros of sovereign debt, of which about 1.5 trillion euros, ...

  AP French bank Societe Generale has been ordered to pay about 450,000 euros ($510,000) to former trader Jerome Kerviel for unfair dismissal, after he was accused of one of the biggest trading frauds in history. Kerviel has become an icon for critics of the banking world, and his supporters hailed decision in his favour by a labour arbitration court. ...

  Bloomberg From Washington to Mumbai, central bankers are finding their policy decisions gummed up by a potential British exit from the European union. Federal Reserve Chair Janet Yellen became the highest-profile monetary policy maker to speak out this week, when she warned a so-called Brexit would have “significant economic repercussions,” a concern echoed by counterparts including Reserve Bank of ...

  Bloomberg Australia & New Zealand Banking Group Ltd raised US$1 billion with the first offshore sale by an Aussie bank of hybrid bonds that qualify as additional tier 1 capital under the current regulatory regime. The perpetual contingent convertible securities, which can be called by the issuer from June 2026 onward, were priced in the US currency market at ...