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LONDON (AP) — A British financial trader, who has been described as the ringleader in the manipulation of a key interest rate before and after the global financial crisis, lost his appeal Wednesday to have his conviction quashed. At a three-day hearing in London earlier this month, the men’s lawyers argued that their convictions were “unsafe” and should be quashed. An appeal to the Supreme Court has to be made within 14 days. The scandal emerged in 2012 when some banks were accused of submitting fake numbers on purpose to have the LIBOR set at a rate that better suited them. LIBOR has been phased out in recent years, partly because it was seen by many as worsening the 2008 financial crisis.

Persons: —, Tom Hayes, Hayes, Carlo Palombo, Palombo, dishonestly, “, LIBOR Organizations: Citigroup, Switzerland's UBS, London Inter, Barclays, Deutsche Bank, of Justice, Supreme, U.S Locations: British, U.S, London, France, Germany

☆ US debt: Is America at risk of a Liz Truss-style market meltdown? The CBO thinks so
▼ + stars: | 2024-03-26 | by ( Hanna Ziady | ) edition.cnn.com time to read: +4 min

In an interview with the Financial Times, CBO director Phillip Swagel said US government debt — which the Treasury Department puts at nearly $35 trillion — is on an “unprecedented” trajectory. UK government bonds, or gilts, and the pound sold off sharply, partly in response to plans by Truss to issue more debt in order to pay for tax cuts. Mortgage rates and other borrowing costs soared as investors demanded much higher premiums for owning UK debt. He has promised to extend his 2017 tax cuts and has also spoken about reducing the corporate tax rate from the current 21% to 15%. “I will make the Trump tax cuts the largest tax cut in history,” he said last month at the Black Conservative Federation’s Honors Gala in South Carolina.

Persons: Phillip Swagel, Liz, ”, Truss, ” Swagel, Dave Ramsden, Donald Trump’s, Joe Biden, Fitch, “, Trump Organizations: London CNN, Congressional, Financial Times, Treasury Department, CNN, Bank of England, Democrats, Trump, Black Conservative, US Treasury, Federal, CBO Locations: United States, United Kingdom, South Carolina

☆ Investors 'have nervousness' around UK financial services, says Lloyds Banking Group CEO
▼ + stars: | 2024-02-22 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailInvestors 'have nervousness' around UK financial services, says Lloyds Banking Group CEOCharlie Nunn, CEO of Lloyds Banking Group, discusses its 2023 full-year results and the economic outlook.

Persons: Charlie Nunn Organizations: Lloyds Banking, Lloyds Banking Group

☆ Ex-Goldman Sachs analyst found guilty of insider dealing
▼ + stars: | 2024-02-15 | by ( ) edition.cnn.com time to read: +2 min

London — A former Goldman Sachs analyst was convicted Thursday of using inside information to buy shares in listed companies and make more than 140,000 pounds ($175,650). Mohammed Zina, 35, was employed by Goldman Sachs International, a subsidiary of the bank, in London. A Goldman Sachs spokesperson said: “Mohammed Zina betrayed the trust we placed in him, and his misuse of client information was in direct contradiction of our values. Prosecutor Peter Carter told jurors at the start of the trial that Mohammed Zina had used “private, confidential, price-sensitive information” to invest on the stock exchange. He said the internal policies of Goldman Sachs strictly forbid any use of confidential information acquired by the investment bank or its employees.

Persons: Goldman Sachs, Mohammed Zina, SoftBank, Zina, “ Mohammed Zina, Steve Smart, Suhail Zina, Clifford Chance, Peter Carter Organizations: London, Goldman, Goldman Sachs International, Prosecutors, Tesco Bank, UK Financial, Authority, Southwark Crown Locations: London, British, Southwark

☆ Davos: A mountain of debt and a wave of elections. World leaders are hamstrung
▼ + stars: | 2024-01-14 | by ( Hanna Ziady | ) edition.cnn.com time to read: +7 min

London CNN —World leaders are flocking to Davos this week to pontificate on the planet’s most pressing problems. Even in the absence of a new crisis, soaring debt servicing costs will constrain efforts to tackle climate change and care for aging populations. Mortgage rates and other borrowing costs soared as investors demanded much higher premiums for owning UK debt. Mounting debt and political brinksmanship have already taken their toll on America’s credit rating, which typically affects borrowing costs for the government, businesses and households. And that would increase the government’s borrowing costs.

Persons: worryingly, Michael Saunders, ”, Saunders, that’s, Liz Truss, Dave Ramsden, Fitch, Moody’s, Raghuram Rajan, “ It’s, ” Rajan, Anna Cooban Organizations: London CNN —, Bank, CNN, Oxford Economics, Bank of England, AAA, States ’, Reserve Bank of India, Labour Party, Treasury Department, Federal, University of Chicago Booth School of Business Locations: Davos, Kingdom, Argentina, States, United States, Switzerland

A pedestrian carrying an umbrella walks along the River Thames in view of City of London skyline in London, Britain, July 31, 2023. Finance executives, consultants and headhunters interviewed by Reuters predict subdued deal flows, modest bonuses for most and heavy job cuts in 2024. "2023 will ultimately be one of the lowest corporate finance fee pools in modern history," said Fabrizio Campelli, head of Corporate Bank and Investment Bank at Deutsche Bank. JOB CUTSBanks have already turned to cost cuts to try to weather the downturn, which in a people-intensive business means job losses. And although some bankers expect a tough 2024, others sense an opportunity for European banks from the Basel Endgame.

Persons: Hollie Adams, Fabrizio Campelli, Banks, Ronan O'Kelly, Oliver Wyman, O'Kelly, Dominic Hook, Goldman Sachs, Vis Raghavan, JP Morgan, Morgan McKinley's, Stephane Rambosson, headhunter, Rambosson, Ana Botin, Morgan's Raghavan, there's, Oliver Wyman's O'Kelly, Deutsche's Campelli, Anousha Sakoui, Carolyn Cohn, Jesus Aguado, Alexander Smith Organizations: REUTERS, LONDON, Finance, Reuters, Corporate Bank, Investment Bank, Deutsche Bank, Organisation for Economic Cooperation, Development, Barclays, Lloyds, Challenger Metro Bank, UBS UBSG.S, Citi, Workers, Global Investment Banking, Employment, European Union, Santander, Global, Basel, Thomson Locations: City, London, Britain, Europe, Middle East, Africa, Ukraine, West, China, United States, India, Madrid

☆ IPO laggards’ race to the bottom misses the target
▼ + stars: | 2023-11-10 | by ( Lisa Jucca | ) www.reuters.com time to read: +5 min

A view shows the Milan stock exchange building, as stocks slid in the first hours of trading after fears that the collapse of Silicon Valley Bank could trigger a broader financial crisis, in Milan, Italy, March 13, 2023. REUTERS/Claudia Greco Acquire Licensing RightsMILAN, Nov 10 (Reuters Breakingviews) - Italy is scrambling to make its stock market more attractive. Over the past few years, some prominent companies have moved their listing venue abroad. Companies rushing to list in the Netherlands are no doubt attracted by its lax approach to companies with dual voting share classes. Doubts over the sustainability of Rome’s high public debt push up listed companies’ cost of capital, depressing their valuations and making the stock market less appealing.

Persons: Claudia Greco, Giorgia, Rishi, Agnelli, Neil Unmack, Oliver Taslic Organizations: REUTERS, Reuters, Ministry, Companies, Reuters Graphics Reuters, Financial, Thomson Locations: Milan, Silicon, Italy, Amsterdam, New York, Paris, Italian, Netherlands, Britain, United States, London

[1/2] People walk past a booth of ICBC Credit Suisse Asset Management Co at the 2020 China International Fair for Trade in Services (CIFTIS), in Beijing, China September 5, 2020. China's foreign ministry spokesperson Wang Wenbin said that business remained normal at ICBC head office, other branches and subsidiaries across the globe. Some market participants said trades going through ICBC were not settled due to the incident and that market liquidity had been affected. ICBC said it had successfully cleared Treasury trades executed on Wednesday and repurchase agreements (repo) financing trades done on Thursday. While market sources said on Thursday the impact of the ICBC hack appeared limited, the attack underlined how vulnerable systems at large organizations continue to be.

Persons: Tingshu Wang, ICBC, Wang Wenbin, Wang, Jerome Powell, Lockbit, Harry Robertson, Yoruk, Dhara Ranasinghe, Alexander Smith Organizations: Asset Management, Fair for Trade, Services, REUTERS, Industrial, Commercial Bank of China, Global, ICBC's, Authority, Traders, U.S . Treasury, Federal, Treasury, Cybersecurity, Infrastructure Security Agency, Thomson Locations: Beijing, China, China's, ICBC's U.S, Europe, Hong Kong, Shanghai, London, Amsterdam

☆ UK finance firms face $510 million levy to fund 2024/25 compensation claims
▼ + stars: | 2023-11-09 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Hannah McKay/File Photo Acquire Licensing RightsLONDON, Nov 9 (Reuters) - Britain's Financial Services Compensation Scheme (FSCS) has forecast imposing a levy of 415 million pounds ($510 million) against UK financial firms to fund 2024/25 claims for redress from customers suffering poor advice and insurance provider failures. This indicative figure is higher than for 2023/24, primarily due to larger surpluses that were carried over from the 2022/23 financial year which reduced the 2023/24 levy to 270 million pounds, the FSCS said. The levy is likely to include cover on self-invested personal pension (SIPP) operator failure claims and pay-outs for insurance firm failures that occurred in previous financial years, it added. "FSCS directly contributes to trust and stability in our financial services system and makes a genuine difference to consumers' lives," Martyn Beauchamp, Interim Chief Executive of FSCS said in a statement. Most of our compensation continues to be paid out for poor financial advice and for legacy insurance provider failures - both of which include some of the most complex defaults and claims we handle," he added.

Persons: Hannah McKay, Martyn Beauchamp, FSCS, Sinead Cruise, Simon Jessop Organizations: REUTERS, Britain's, Interim, Thomson Locations: Bishopsgate, London, Britain

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailUK financial regulators propose sweeping stablecoin rules: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Raj Dhamodharan of Mastercard, Stuti Pandey of Kraken Ventures and David Wells of Enclave Markets discuss the state of stablecoins and institutional crypto adoption.

Persons: explainers, Raj Dhamodharan, Stuti Pandey, David Wells Organizations: CNBC Crypto, CNBC, Mastercard, Kraken Ventures, Enclave Markets Locations: stablecoins

☆ UK financial watchdog urges banks to link bonuses with duty to clients
▼ + stars: | 2023-10-31 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022. The FCA said in a letter to chairs of banks' remuneration committees they should prioritise embedding the new Consumer Duty introduced in July, to ensure customers get fair value and appropriate products and services. "Senior managers and boards, especially those whose role is most relevant to the duty, are accountable for complying with the duty," the FCA said in the letter made public. Banks are currently deciding how to divide up the annual bonus pool as a cap limiting the size of bonuses, inherited from the European Union, expires. The watchdog said banks should ensure that there is a "clear, strong and evidenced link" between behaviours and overall pay, with "timely and transparent" adjustments when appropriate.

Persons: Toby Melville, Banks, Alasdair Steele, Huw Jones, Jan Harvey Organizations: FCA, Financial, Authority, REUTERS, Britain's, Consumer, European Union, CMS, Thomson Locations: London, Britain

☆ Jes Staley: UK FCA bans former Barclays CEO for failing to disclose Epstein ties
▼ + stars: | 2023-10-12 | by ( Olesya Dmitracova | ) edition.cnn.com time to read: +2 min

Mr Staley failed to do this,” Therese Chambers, joint executive director of enforcement and market oversight at the FCA, said in the statement. The FCA found that Staley “recklessly” approved a letter Barclays sent to the watchdog, which contained two misleading statements, the agency said. The letter, in response to an FCA request in August 2019, claimed that Staley did not have a close relationship with Epstein. “In reality, in emails between the two Mr Staley described Mr Epstein as one of his ‘deepest’ and ‘most cherished’ friends,’” the FCA said. The Barclays letter also claimed Staley had ceased contact with Epstein well before he joined the British bank in December 2015.

Persons: London CNN — James “ Jes ” Staley, Jeffrey Epstein, “, Mr Staley, ” Therese Chambers, Mr Epstein, ” Epstein, Staley “, ”, Staley, Epstein, ’ Organizations: London CNN, JPMorgan Chase, Barclays, Financial, Authority, Staley, FCA, British, JPMorgan Locations: New York

☆ UK financial watchdog censures insolvent London Capital & Finance
▼ + stars: | 2023-10-11 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville/File Photo Acquire Licensing RightsCompanies Neo London Capital AD FollowLONDON, Oct 11 (Reuters) - Britain's Financial Conduct Authority (FCA) said on Wednesday it had censured London Capital & Finance (LCF) for "unfair and misleading" promotions of minibonds, but there is no financial penalty as the firm is insolvent. LCF, which was licensed by the FCA, "may have knowingly participated in the defrauding" of bondholders, the watchdog said. "The FCA does not consider it appropriate to impose a financial penalty on the firm as it is insolvent and in administration. In 2020, the watchdog banned the mass-marketing of speculative illiquid securities, including speculative minibonds, to retail investors.

Persons: Toby Melville, Therese Chambers, Elizabeth Gloster, Huw Jones, Alison Williams, Mark Potter Organizations: FCA, Financial, Authority, REUTERS, Neo, London Capital & Finance, Thomson Locations: London, Britain, Neo London, LCF

Signage for the Financial Conduct Authority (FCA), the Britain's financial regulatory body, is seen at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville/File Photo Acquire Licensing RightsLONDON, Oct 10 (Reuters) - Britain's financial regulator on Tuesday said it was stopping peer-to-peer platform rebuildingsociety.com from approving financial promotions for Binance and other crypto asset firms, days after Binance announced it had partnered with the company. A Binance spokesperson via email on Tuesday said that the company had invested "an enormous amount of time and resources" in ensuring that it is compliant with the Financial Conduct Authority's rules. "We shared our agreement with Rebuildingsociety.com with the FCA on Oct. 2, almost a full week before the requirements of the updated Financial Promotions Regime came into effect," the Binance spokesperson said. Under the FCA's rules, a firm it has authorised can approve promotions of companies it does not regulate, a system that is being tightened from February by the watchdog.

Persons: Toby Melville, Binance, Elizabeth Howcroft, Huw Jones, Mark Porter Organizations: Financial, Authority, REUTERS, FCA, Rebuildingsociety.com, Thomson Locations: London, Britain, cryptoassets, Leeds, UK

☆ Metro Bank: Shares in UK bank just plunged over 30%
▼ + stars: | 2023-10-05 | by ( Anna Cooban | ) edition.cnn.com time to read: +4 min

London CNN —Shares in UK lender Metro Bank sank as much as 31% Thursday following a report that it was urgently seeking to raise funds to shore up its finances. Metro Bank opened in 2010 as the first challenger to Britain’s major main street banks — including Lloyds (LYG), Barclays (BCS) and HSBC (HSBC) — in more than 100 years. Metro Bank’s assurances did little to support its share price, which pared some of its earlier losses but was down by 31% again by late afternoon in London. The bank’s shares are down almost 66% since mid-September when UK regulators refused its request to change the way it calculates capital requirements on its residential mortgages book. A Metro Bank branch in the UK city of Sheffield, seen in April Mike Egerton/APThe ratings agency noted that Metro Bank had to refinance a £350 million ($425 million) bond by October 2024.

Persons: “, Fitch, ” Fitch, Mike Egerton, Chris Beauchamp, isn’t, ”, — Hanna Ziady Organizations: London CNN —, Metro Bank, Financial Times, Lloyds, Barclays, BCS, HSBC, —, Metro, Bank, UK Financial, Prudential Regulation Authority, Bank of England, IG, CNN, Financial, Metro Bank . CNN, Prudential, Banking Supervision, Valley Bank, Signature Bank, First Republic Bank, Credit Suisse — Locations: ”, London, Sheffield, United States, United Kingdom, Basel

☆ Britain to ease capital rules for retail banks to boost competition
▼ + stars: | 2023-09-28 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Sept 28 (Reuters) - Britain's finance ministry, which is seeking to boost competition in the banking sector, on Thursday proposed legislation to ease rules that require banks to "ring-fence" their retail arms with a cushion of capital. The draft legislation proposes to increase the threshold at which ring-fencing applies to banks from 25 billion pounds ($30.31 billion) to 35 billion pounds. Britain introduced the ring-fencing rule in January 2019 following the costly taxpayer bail-outs of banks during the global financial crisis over a decade ago. "It will improve outcomes for banks and their customers, increase competition and improve the competitiveness of the UK banking sector," Griffith said. Another change would allow ring-fenced banks to set up entities outside Britain to compete with international and domestic banking groups.

Persons: Keith Skeoch, Andrew Griffith, Griffith, Banks, Huw Jones, William Schomberg Organizations: Bank of England, Thomson Locations: Britain

The Viking Star cruise ship is moored at Greenwich with the City of London financial district in the distance, in London, Britain, August 29, 2023. It is absolutely the time for action over words," Alasdair Haynes, CEO of Aquis Exchange, a share trading platform, and chair of financial industry body TheCityUK's Business Council, told Reuters. The main problem for trade bodies is the vast scope of Britain's financial services industry, with each sub-sector and TheCityUK presenting their own reform priorities and ideas, often overlapping. In the meantime, top financial sector executives running global teams of bankers and traders are increasingly bewildered by Britain's inability to make faster progress on a matter of such economic significance. ELECTION LOOMINGSome senior financial industry sources say politics may hamper the City's reform agenda even further, with a general election expected next year.

Persons: Kevin Coombs, Alasdair Haynes, Jeremy Hunt, Nicholas Lyons, TheCityUK, ” Samuel Gregg, Richard Gardner, Huw Jones, Sinead Cruise, Hugh Lawson Organizations: Viking, City, REUTERS, London’s, Mayor, European Union, Aquis, Business, Reuters, Finance, stoke, of, Arm Holdings, Labour, Conservative, American Institute for Economic Research, Investment Funds Association, EU, Thomson Locations: Greenwich, London, Britain, Europe, Asia, United States, Edinburgh, of London, New York, Amsterdam, City, France

☆ UK financial data market escapes competition probe for now
▼ + stars: | 2023-08-31 | by ( ) www.reuters.com time to read: +1 min

Signage is seen for the FCA (Financial Conduct Authority), the UK's financial regulatory body, at their head offices in London, Britain March 10, 2022. REUTERS/Toby Melville/File Photo Acquire Licensing RightsLONDON, Aug 31 (Reuters) - Britain's financial watchdog has stopped short of referring parts of the financial data market to the competition authority for now despite concerns over the power of large companies, it said on Thursday. The Financial Conduct Authority (FCA) said in March that competition in some parts of the wholesale financial data market is not working as well as it should, a sector which includes information on stock prices used by investors. It also launched a study to investigate if markets for benchmarks, credit ratings data and market data vendor services are working well, setting a Sept. 1 deadline to decide whether to refer any of the three market sectors to the Competition and Markets Authority (CMA). The update report highlights emerging issues in these markets, including concerns about the market power of large and established companies, which can reduce competition.

Persons: Toby Melville, Huw Jones, David Goodman Organizations: FCA, Financial, Authority, REUTERS, Financial Conduct Authority, Competition, Markets Authority, Thomson Locations: London, Britain

☆ Abrdn’s turnaround is a work in progress
▼ + stars: | 2023-08-08 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Dado Ruvic/Illustration/File PhotoLONDON, Aug 8 (Reuters Breakingviews) - Abrdn’s (ABDN.L) machine is firing on two of its three cylinders. The latter two units are growing, but the stock-picking arm – once Abrdn’s core business – needs more attention. The 1.5 billion pound deal, which closed last year, boosted Abrdn’s exposure to the business of managing savings. Since some of that windfall will disappear when rates fall, Bird needs to speed up his turnaround of Abrdn’s core funds business. The 3.9 billion pound company’s turnaround has a long way to go.

Persons: Dado Ruvic, Stephen Bird, Hargreaves, Bird, Neil Unmack, Peter Thal Larsen, Oliver Taslic Organizations: REUTERS, Reuters, Interactive, Twitter, Siemens, Thomson

☆ Britain to create new regime to deal with insurance company failures
▼ + stars: | 2023-08-02 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

REUTERS/Hollie Adams/File PhotoLONDON, Aug 2 (Reuters) - Britain said on Wednesday it would start work on setting up new rules specially designed to prevent a big insurance company collapse from crashing the financial system. But no such specifically tailored regime currently exists in Britain to deal with failures in the country's insurance industry, which is the fourth largest in the world. The European Union is in the process of approving its own set of rules for handling insurance company failures. In Britain, insurance company collapses currently come under modified UK company insolvency arrangements, which the finance ministry said may be less effective for an industry with 2.7 trillion pounds ($3.45 trillion) in assets. The timing of the new regime is unclear given that legislation is needed and Britain is likely to face national elections next year.

Persons: Hollie Adams, Huw Jones, Jane Merriman Organizations: Bank of England, City of, REUTERS, Regulators, Bank of, European, Shareholders, Thomson Locations: City, City of London, Britain, Silicon, Gibraltar, London

☆ UK financial watchdog urges NatWest chair to stay put
▼ + stars: | 2023-07-31 | by ( ) www.reuters.com time to read: +1 min

LONDON, July 31 (Reuters) - The chairman of NatWest (NWG.L) Howard Davies should remain in office to ensure stability for the bank, a senior official at Britain's Financial Conduct Authority said on Monday. "I agree with his view that it's important to have stability at NatWest and that having a chair remain in place will help support that," Mills told reporters. Davies said he intended to stay on at the bank for now - after also facing calls to resign. "The FCA position is that ultimately it's a decision for the board and its shareholders. We urge those shareholders and board to achieve stability," Mills said.

Persons: Howard Davies, Sheldon Mills, Andrew Griffith, Davies, Alison Rose, Mills, Rose, Nigel Farage's, Huw Jones Organizations: NatWest, Britain's, Authority, FCA, BBC, Thomson

"The culture wars are coming to UK businesses, including the financial sector," said Andre Spicer, dean of City University's Bayes Business School. It also cited "risk factors including... controversial public statements which were felt to conflict with the bank's purpose". However, data from watchdog the Financial Ombudsman Service showed complaints about account closures represented a tiny fraction of a bank's overall customer base. Experts say other banks will now be scrambling to ensure their own policies and committees are behaving appropriately, to avoid further scandals. The CEO of Britain's biggest domestic bank Lloyds said on Wednesday the bank's own policies did not include looking at customers' political or personal beliefs.

Persons: Nigel Farage, Coutts, Andre Spicer, Howard Davies, Alison Rose, Rose, Peter Flavel, Charles Dickens, Queen Elizabeth II, Spicer, Harriet Baldwin, Bill Winters, Samuel Gregg, Banks, Gregg, University's Spicer, Rupert Younger, ", Sinead Cruise, Iain Withers, Lawrence White, Daniel Wallis Organizations: Brexit Party, NatWest, Bayes Business School, Coutts, Treasury, Bank of England, BBC, Standard Chartered, Farage, American Institute for Economic Research, Facebook, Financial, Service, Barclays, Lloyds, Centre, Oxford University's Said Business School, Thomson Locations: America

☆ Britain's banks slow in passing higher rates to savers -watchdog
▼ + stars: | 2023-07-19 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, July 19 (Reuters) - Britain's banks are not passing on higher interest rates to savers fast enough, though this is expected to accelerate in coming months as a new duty to provide good outcomes for consumers comes into force, UK financial regulators said on Wednesday. Interest rates in Britain have risen from record lows near zero percent during the COVID-19 pandemic to 5%, with more rises expected to quell inflation, sending borrowing costs higher. "The pace has simply not been fast enough," Financial Conduct Authority Chief Executive Nikhil Rathi told parliament's Treasury Select Committee. The duty comes into force on July 31 and Rathi told lawmakers it was the watchdog's most significant intervention across all types of firms in two decades. There is no need for a formal "savings charter" among banks on savings rates given the watchdog needed to be careful about coordinating pricing decisions in what is a "reasonably competitive market", Rathi said.

Persons: Nikhil Rathi, parliament's, Rathi, Ashley Alder, Alder, Huw Jones, Peter Graff, Bernadette Baum Organizations: FCA, Thomson Locations: Britain

[1/2] British Chancellor of the Exchequer Jeremy Hunt holds a Ministerial Statement at the House of Commons in London, Britain, June 26, 2023. The government rocked pension savers last September with a fiscal statement that drove government bond yields higher and forced pension schemes to scramble for cash, triggering a parliamentary inquiry into their investments. The government is under pressure to revitalise domestic investor interest in several industries considered key to Britain's growth, including fintech, biotech, life science and clean technology. Encouraging greater investment in growth assets will help younger savers but the reforms offer little hope to those retiring in the near term. Inflation continues to ravage Britain's economy, with rates running higher than in any other major rich country.

Persons: Jeremy Hunt, Jessica Taylor, Handout, Richard Gnodde, Becky O’Connor, Jon Hatchett, Hymans Robertson, Andrew Bailey, Hunt, Anna Anthony, Sinead Cruise, Carolyn Cohn, Nick Macfie Organizations: REUTERS, Aviva, Goldman Sachs, Public Affairs, Bank of England, Financial, Thomson Locations: London, Britain, City, PensionBee, Britain's

☆ Savers should be cheering higher interest rates. So why are they unhappy?
▼ + stars: | 2023-07-06 | by ( Anna Cooban | ) edition.cnn.com time to read: +6 min

London CNN —When central banks raise interest rates, mortgage borrowers can expect higher monthly repayments, while savers are supposed to be rewarded with bigger returns on their deposits. In Asia, the picture is less uniform: China cut its benchmark lending rate last month, adding to recent reductions in other interest rates, and Japan has kept its main interest rate negative in a bid to stimulate demand. However, rates on savings accounts there are closer to the central bank’s main rate than in other major economies. “While interest rates were ultra-low, the mortgage market was incredibly competitive, so [banks] were operating on unusually small margins between savings rates and mortgage deals… so they’re busy filling their boots,” she said. The top 100 US money market funds tracked by Crane Data are offering an average annual interest rate of 4.94%.

Persons: Nathan Howard, Jeremy Hunt, Sarah Coles, Hargreaves Lansdown, ”, Christopher Furlong, Crane, Peter Crane, they’ve Organizations: London CNN, Federal Deposit Insurance Corporation, US Federal Reserve, Bloomberg, Getty, European Central Bank, of, CNN, Getty Images Bank, Finance, Bank of England’s, HSBC, Barclays, Crane Data, Bank of England, “ Locations: Europe, United States, United Kingdom, Asia, China, Japan, South Korea

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