Bank of England calls for Chancellor to urgently “rethink” furlough end date

The Governor of the Bank of England is calling for a review the furlough scheme, amid new coronavirus measures that could be in place for six months.

Boss Andrew Bailey said the government must “stop and rethink” the job retentions scheme, which is due to close on October 31.

Speaking on a webinar hosted by the British Chambers of Commerce, Bailey echoed Sir Keir Starmer’s calls for more targeted support.

“We have moved from a world of generalised employment protections, to specific and focussed areas,” he said.

An estimated 3million workers are still on furlough but the Governor said that higher use of the scheme in sectors such as hospitality, retail and culture most affected by social distancing meant it was sensible to “stop and rethink”.

“Furlough has been successful and I congratulate the chancellor,” Bailey said.

“It would be completely inappropriate of me to do anything to tie the

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U.K. banks must do more to fight dirty money, Bank of England’s Sam Woods says

Pedestrians wearing face masks pass the Bank of England in London on March 11, 2020.

Matt Dunham/The Associated Press

Britain’s banks must make the fight against dirty money a “top priority” or risk facing more severe fines, Bank of England Deputy Governor Sam Woods said on Tuesday.

Global banks, including UK-based HSBC, Barclays and Standard Chartered, face a fresh scandal about dirty money after a cache of leaked documents showed they transferred more than $2 trillion in suspect funds over nearly two decades.

Woods said it was vital that banks play their part in fighting financial crime as the leaks were a good reminder of how criminals will use the financial system for their own ends.

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“If the banks get this wrong, then costs for them are very severe, as you have seen in recent years the big fines here in the UK and in the

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Bank shares slide on report of rampant money laundering

Shares of JP Morgan tumbled 4.4%.

The consortium’s investigation found the documents identify more than $2 trillion in transactions between 1999 and 2017 that were flagged by financial institutions’ internal compliance officers as possible money laundering or other criminal activity, and $1.3 trillion of that activity took place at Deutsche Bank. Shares of Deutsche Bank dropped 7.7%.

Deutsche Bank has been under scrutiny for years. The bank, based in Frankfurt, Germany, agreed to pay the state of New York $150 million to settle claims that it broke compliance rules in its dealings with the sex offender Jeffrey Epstein. Epstein killed himself last August in a Manhattan federal jail while awaiting trial on sex trafficking charges.

German newspaper Sueddeutsche Zeitung reported last year that Deutsche Bank gave expensive gifts to senior Chinese officials and hired family members of Chinese elite as it was trying to establish itself as a major player

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Negative rates haunt Virgin Money, bank investors

Worsening outlook

The BoE’s August Monetary Report notes if rates turn negative then deposit-taking institutions probably can’t take deposit rates below zero in response as customers would hoard physical cash.

As a result, the profit margins the banks make on the spreads between lending and deposit rates could narrow the most yet in the current rate-cutting cycle.

Virgin Money’s net interest margin in the UK fell 16 basis points over the June quarter to just 1.47 per cent.

Broker Bell Potter cut its valuation on the bank 10 per cent to $1.80, suggesting if UK cash rates go lower then it’ll struggle to reprice its savings rates offered to depositors.

Banks most reliant on retail deposits for funding are the most exposed to negative rates, according to the BoE. Bell Potter reported 79 per cent of Virgin Money’s funding came from retail deposits in the second half of financial 2020.

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5 directions WWE could go with Otis’ Money in the Bank briefcase

The current situation surrounding the men’s Money in the Bank briefcase is weird, to say the least. Otis, primarily a comic character, won it in the cinematic Money in the Bank Ladder Match on the roof of WWE Headquarters. However, WWE has not done much to elevate him towards a serious role.

In fact, Otis is doing even more comedy work and has been using his briefcase as a lunchbox. He, along with Tucker, has been feuding with The Miz and John Morrison lately. The two heels have tried to steal the briefcase, but Otis has outsmarted them so far.

There are several ways this storyline, and Otis as Mr. Money in the Bank, could play out. He has been successful at maintaining the physical Money in the Bank contract, but things could change soon. WWE will need to be creative with the briefcase right now, with the world title

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Take back your money, bank tells Kobia as case trashed

Paul Kobia at a Milimani court in Nairobi during a past case. [George Njunge, Standard]

It is unusual for a bank to kick out a client, return his money and declare it does not wish to continue doing business with him.

Yet, this is the situation Mr Paul Kobia, who describes himself as a businessman and politician, has found himself in.

The flamboyant man had three accounts with Barclays Bank. But this was only until December 14, 2018, when the bank informed him that after reviewing its business, it had decided to close his accounts and return all the money he’d banked with it.

“As a result of this decision, your accounts or products will be closed with effect from January 14, 2019,” Barclays premier relationship manager Joan Kiragu informed him.

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Later, Kobia sued the Central Bank of Kenya (CBK) and the Attorney General claiming the regulator’s requirement

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Dhamaka offers! HDFC Bank launches over 3000 deals on shopping, credit cards, business loans, personal, auto and home loans



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As a part of its annual financial services dhamaka, HDFC Bank has launched ‘Festive Treats’! Under these financial services dhamaka offers, customers can avail of special deals on all banking products from loans to bank accounts, with over 1000+ offers from leading players and over 2,000 hyper local offers through tie ups with local merchants across semi urban and rural locations.

“In light of the unprecedented situation due to Covid19, all deals and offers this year can also be availed of digitally from the safety customers’ homes, in addition to over the counter at branches, partner stores and dealerships. On the heels of its Summer Treats festival, the bank expects mobiles, consumer durable, and electronics categories to do well in addition to apparels, jewellery and dining-in due to the festive season,” HDFC Bank said in a statement.

Offers will be available across the entire range

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Suryoday Small Finance Bank files draft papers with SEBI for IPO



a man in a suit and tie smiling at the camera: Suryoday Small Finance Bank files draft papers with SEBI for IPO


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Suryoday Small Finance Bank files draft papers with SEBI for IPO

Suroyaday Small Finance Bank Limited (SSFBL) has filed its Draft Red Herring Prospectus for an  Initial Public Offer (IPO) of up to 20,061,796 equity shares of face value Rs 10 each.

The SFB plans to utilise the net proceeds from the fresh issue towards augmenting the bank’s Tier – 1 capital base in order to meet the bank’s future capital requirements, SSFBL said in a statement.

This issue will be made via a book-building process, with Axis Capital, ICICI Securities, SBI Capital Markets, and IIFL Securities being the merchant bankers of the issue.

Shares of the bank will be listed on BSE and NSE.

Those offering shares through the offer for sale (OFS) route include International Financial Corporation (IFC), Gaja Capital, HDFC Holdings, IDFC First Bank, Kotak Mahindra Life Insurance Company, DWM (International) Mauritius Ltd, and

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Bank of America Is Ballast in a Balanced Portfolio



a sign above a store at night: Bank of America Stock and the Buffett Effect


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Bank of America Stock and the Buffett Effect

I may have gotten into Bank of America (NYSE:BAC) stock a little early last month.



a sign above a store at night: Bank of America Stock and the Buffett Effect


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Bank of America Stock and the Buffett Effect

Bank stocks are still in bad odor because money remains free. The Federal Reserve has said it will pour money into the economy even if inflation rises. A three-month Treasury bill now yields .13%, a 30-year bond 1.45%. 

On the other hand, Bank of America’s 18 cent dividend rate, even if it seems modest, yields 2.82%. It was a nice ballast to have when Apple (NASDAQ:AAPL) fell 12% over 10 days.

It’s like the old investment adage. You don’t diversify your portfolio to make money. You diversify it to keep the money you have.

A Bank Going Nowhere

In a recent report, Bank of America

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Bank FD interest rates are falling. Where should I invest for 1-2 years?

I am 34 years old. I am a teacher by profession. I put my surplus money in bank FDs. Recently, the banks have cut interest rates for one year FDs to around 5%. As far as I understand, this much return will not even beat inflation. I looked at the returns of liquid funds which were also not great. Please suggest which is the best investment option to invest my money for around 1 to 2 years? I fall in the 10% tax bracket.

-Sunita KL

By Prashant Maurya, Partner, Citrine Financial Advisors

As we are in a soft interest rate regime environment so interest from Fixed Deposits and similar instruments have gone down in the last one year.You can opt for Low Duration, Short Term and Banking PSU mutual funds. Returns will be at par or slightly higher than Bank Fixed Deposit. If there is some more softening

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