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☆ Former Chinese central banker took ‘extraordinarily massive’ bribes, state media says
▼ + stars: | 2024-01-11 | by ( Michelle Toh | ) edition.cnn.com time to read: +4 min

Hong Kong CNN —Fan Yifei, a disgraced former Chinese central banker, has admitted making a “huge mistake” in comments aired as part of a documentary by state broadcaster CCTV that alleges he accepted massive bribes from the beginning of his tenure. It described how he had received “extraordinarily massive” payments from executives of various companies in exchange for favors after taking up the PBOC’s second-highest position. “I wanted to possess great power, and at the same time, to be rich,” Fan said in the documentary. “I made a huge mistake.”According to CCTV, Fan accepted payments from businesspeople through his brother’s investment company. In addition to Fan’s case, the CCTV documentary exposed graft at a state-owned energy investment group and at the highest levels of Chinese sport.

Persons: Fan, Xi Jinping, “, Qian Long, Liu Liange, Wang Bin, Tang Shuangning, Tang, Wang Yongsheng, Wang, Li, China’s Organizations: Hong Kong CNN, People’s Bank of China’s, Central Commission, Xinhua, Communist Party, National Supervisory Commission, of China, China Life Insurance, China Everbright, China Development Bank, China Daily, soccer team, China’s Twitter Locations: China, Hong Kong, Xinhua, Weibo

☆ Deutsche Bank to review Postbank tech migration - Handelsblatt
▼ + stars: | 2023-12-04 | by ( ) www.reuters.com time to read: 1 min

The logo of Deutsche Bank is seen in Brussels, Belgium December 6, 2022. REUTERS/Yves Herman/File Photo Acquire Licensing RightsBERLIN, Dec 4 (Reuters) - Deutsche Bank's supervisory board has tasked its auditor EY with reviewing the Postbank IT integration, which has caused numerous customer complaints due to disruptions, Handelsblatt reported on Monday. The result could result in cuts to bonuses, the newspaper said, citing people familiar with the matter. A Deutsche Bank spokesperson declined to comment on the story. Reporting by Kirsti Knolle; Editing by Linda Pasquini and Jan HarveyOur Standards: The Thomson Reuters Trust Principles.

Persons: Yves Herman, Handelsblatt, Kirsti Knolle, Linda Pasquini, Jan Harvey Organizations: Deutsche Bank, REUTERS, Rights, Deutsche, Thomson Locations: Brussels, Belgium

☆ Central banks of India, England resolve trade settlement stand-off
▼ + stars: | 2023-12-01 | by ( ) www.reuters.com time to read: +1 min

[1/2] FILE PHOTO: A Reserve Bank of India (RBI) logo is seen inside its headquarters in Mumbai, India, April 6, 2023. REUTERS/Francis Mascarenhas//o/File Photo Acquire Licensing RightsMUMBAI, Dec 1 (Reuters) - The central banks of India and England on Friday signed an agreement on information exchange for settlement of bond trades, the Reserve Bank of India (RBI) said. In India, bonds are settled through the Clearing Corporation of India (CCIL). The two central banks have also established a framework for the BoE to rely on the Indian central bank's regulatory and supervisory activities, while safeguarding the United Kingdom's financial stability, the RBI said. This meant that European banks had to settle their India-based trades through banks based in other jurisdictions.

Persons: Francis Mascarenhas, BoE, CCIL, Siddhi Nayak, Jayshree, Nivedita Bhattacharjee, Sohini Organizations: Bank of India, REUTERS, Rights, Reserve Bank of India, Clearing Corporation of India, Bank of England, United, European Securities and Markets Authority, Siddhi, Thomson Locations: Mumbai, India, England

☆ ECB raises minimum capital requirements for Spanish banks
▼ + stars: | 2023-12-01 | by ( ) www.reuters.com time to read: +1 min

A view shows the logo of the European Central Bank (ECB) outside its headquarters in Frankfurt, Germany March 16, 2023. REUTERS/Heiko Becker/File Photo Acquire Licensing RightsMADRID, Dec 1 (Reuters) - The European Central Bank has raised the minimum capital requirements for Spanish lenders BBVA (BBVA.MC), Caixabank (CABK.MC), Sabadell (SABE.MC) and Bankinter (BKT.MC) as part of a supervisory review and evaluation process (SREP). The process provides an overall assessment of the challenges that face significant institutions, together with the corresponding solvency requirements and other supervisory measures that banks are expected to comply with for the year ahead. BBVA's capital threshold was also raised to 9.09% for next year from 8.72%. For Unicaja (UNI.MC), the supervisor however maintained its solvency threshold for 2024 unchanged at 8.27% compared to 2023.

Persons: Heiko Becker, Caixabank, Jesús, Emma Pinedo, Sharon Singleton Organizations: European Central Bank, REUTERS, Rights, BBVA, ECB, Spain's Santander, Thomson Locations: Frankfurt, Germany, Sabadell

☆ Brazil set to join OPEC+ from January, delegate says
▼ + stars: | 2023-11-30 | by ( ) www.reuters.com time to read: 1 min

A U.S. regulator said on Thursday it fined Bank of America $24 million for engaging in more than 700 instances of "spoofing" through two former traders in U.S. Treasuries, and for related supervisory failures over more than six years.

Organizations: of America Locations: U.S

CNN —A fire that ripped through a train as it travelled along a strategic rail tunnel in eastern Russia was the work of the Ukrainian Security Service (SBU), a Ukrainian defense source has claimed. “Four explosive devices were detonated while the freight train was in motion,” a source with knowledge of SBU operations told CNN. The explosion occurred on the Baikal-Amur railway, in the Bessolov Severomuyskiy tunnel in Buryatia, in the eastern Siberia region of Russia bordering Mongolia, according to the source. “The explosion is yet another successful special operation by the SBU,” the source said. Train traffic has been rerouted, according to the Russian Railway.

Persons: ”, “ Organizations: CNN, Ukrainian Security Service, Russian Railway, East Siberian Transport Prosecutor’s, East Siberian Railway Locations: Russia, Buryatia, Siberia, Mongolia, Ukraine, China

Here's what you need to know:WHAT ARE CARBON OFFSETS? Supporters of carbon offsets see them as key means to help meet these goals. At the COP26 climate summit in Glasgow, negotiators reached a breakthrough agreement to regulate trading of carbon credits, in schemes first envisioned in Article 6 of the 2015 Paris Agreement. Separate from the offsets trading envisioned under the Paris Agreement, there are two existing types of carbon markets – compliance and voluntary. It is not yet clear how various existing carbon markets might play into the U.N.-run trading scheme, which also would depend on national laws.

Persons: Chris Pryor, Elizabeth Frantz, WHAT'S, Marco Berg, Gilles Dufrasne, IETA, Jake Spring, Kate Abnett, Susanna Twidale, Katy Daigle, Josie Kao Organizations: New England Forestry Foundation, REUTERS, KliK Foundation, BE, Carbon Market Watch, Compliance, European Union, London Stock Exchange Group, Thomson Locations: New, Hersey, New Hampton , New Hampshire, U.S, Glasgow, Paris, U.S ., California

☆ Vitesco says new Schaeffler offer for EV merger 'inadequate'
▼ + stars: | 2023-11-27 | by ( ) www.reuters.com time to read: +1 min

The Vitesco company logo is seen at Continental's pilot location for industry 4.0 applications in Regensburg, Germany, February 28, 2020. REUTERS/Michael Dalder/File Photo Acquire Licensing RightsNov 27 (Reuters) - German automotive supplier Schaeffler (SHA_p.DE) raised its offer price for shares in Vitesco Technologies (VTSCn.DE) on Monday, as a goodwill gesture, but Vitesco management said the new offer was "inadequate". Germany's billionaire Schaeffler family holds all voting rights and 75% of shares in its namesake supplier of electric vehicle components. It also owns close to 50% of Vitesco, making the likelihood the merger will be agreed all but certain. However, under pressure from some investors, who said the original offer of 91 euros per share was too low, it increased its offer price to 94 euros ($102.53) per share in Vitesco.

Persons: Michael Dalder, Schaeffler, Vitesco, Amir Orusov, Christina Amann, Rachel More, Barbara Lewis Organizations: REUTERS, Vitesco Technologies, Continental AG, Thomson Locations: Regensburg, Germany, Vitesco

Many countries are working on them — and neither China, Russia, Iran, India or Pakistan have signed a U.S.-initiated pledge to use military AI responsibly. Another AI project at Space Force analyzes radar data to detect imminent adversary missile launches, he said. One urgent challenge, says Jane Pinelis, chief AI engineer at Johns Hopkins University’s Applied Physics Lab and former chief of AI assurance in Martell’s office, is recruiting and retaining the talent needed to test AI tech. Testing and evaluation standards are also immature, a recent National Academy of Sciences report on Air Force AI highlighted. Might that mean the U.S. one day fielding under duress autonomous weapons that don’t fully pass muster?

Persons: —, Replicator —, Kathleen Hicks, ”, Gregory Allen, we’ve, Missy Cummings, George Mason, Lisa Costa, Wallace ‘ Rhet ’ Turnbull, Tom Siebel, Matt Visser, Palantir, Jack Shanahan, Maven, Mark Milley, Christian Brose, Paul Scharre, ” Anduril, Nathan Michael, Michael, Shanahan, Craig Martell, Martell, Jane Pinelis, “ Organizations: U.S ., Russia, Air Force, China, Pentagon, Department of Defense, Center for Strategic, International Studies, Navy, ” U.S . Space Force, Space Force, Space Systems Command, Blackhawk, ., U.S . Missile Defense Agency, Defense Counterintelligence, Security Agency, Third Infantry Division, NATO, Maven, National Geospatial - Intelligence Agency, U.S . Special Operations, ISIS, Command, Control, Chiefs, Armed Services Committee, U.S, Marines, Special Forces, Industry, BAT, Marine Expeditionary, Pentagon AI, LinkedIn, Johns Hopkins, Lab, National Academy of Sciences Locations: Md, Ukraine, U.S, China, Russia, Iran, India, Pakistan, ” U.S, Silicon Valley

☆ Shanghai Industrial Investment: Another executive in China being investigated by corruption watchdog
▼ + stars: | 2023-11-21 | by ( Michelle Toh | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —Another business leader in China is being probed by the country’s anti-graft watchdog, in a sign of an ongoing crackdown in the world’s second largest economy. Zhou Jun, president of state-owned Shanghai Industrial Investment, is under investigation by the Shanghai Municipal Commission for Discipline Inspection, a branch of the Central Commission for Discipline Inspection (CCDI), according to a CCDI statement Monday. Shanghai Industrial Investment’s business spans infrastructure, property and pharmaceuticals. Just this month, the CCDI said it was investigating Zhang Hongli, a former senior executive vice president at the Industrial and Commercial Bank of China. That was followed by a report by Chinese state-owned media outlet Cover News that tech entrepreneur Chen Shaojie had become unreachable, citing unconfirmed reports that he was being investigated.

Persons: Zhou Jun, CCDI, Zhou, ”, Zhang Hongli, Chen Shaojie, Chen, Tencent, Fred Hu Organizations: Hong Kong CNN, Shanghai Industrial Investment, Shanghai Municipal Commission, Central Commission, Shanghai Industrial, Industrial, Commercial Bank of China, CNN, International, Bloomberg, Primavera Capital Locations: China, Hong Kong, Shanghai

☆ Canada financial regulator seeks feedback on crypto disclosures
▼ + stars: | 2023-11-20 | by ( ) www.reuters.com time to read: +1 min

Representations of cryptocurrencies are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing RightsNov 20 (Reuters) - Canada's financial watchdog said on Monday it was seeking feedback on the public disclosure of cryptocurrency assets by federally regulated financial institutions, joining global regulators in ramping up scrutiny on the volatile sector. The consultation by Canada's Office of the Superintendent of Financial Institutions (OSFI) comes after the agency in July proposed new guidelines for crypto assets citing a risky environment. The OSFI's consultation will be running alongside another from the Basel Committee on Banking Supervision (BCBS), a global supervisory body which has also sought feedback from internationally active banks on the disclosure of crypto-asset exposures. Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

Persons: Dado Ruvic, Arasu Kannagi Basil, Devika Organizations: REUTERS, Canada's Office, Banking, Thomson Locations: Basel, Bengaluru

☆ Euro zone banks lose millions of euros to poor IT outsourcing
▼ + stars: | 2023-11-15 | by ( ) www.reuters.com time to read: +2 min

This last area in particular cost banks 148 million euros ($160.59 million) in 2022, a 360% increase from the year before, as a result of the "unavailability or poor quality of outsourced services". While the ECB cautioned these losses were "concentrated within a few significant institutions and therefore not indicating a sectoral trend", it also found that banks' "outsourcing arrangements often failed to sufficiently address IT security requirements". Banks are making ever greater use of outsourcing as they switch to cloud-based services from storing information on their own servers. Their cloud expenses surged by 56% in 2022 to account for 3.1% of all money spent by banks on IT, the ECB said. More broadly, the ECB found fundamental shortcomings that were "more severe and widespread than expected" in how banks tackle cybersecurity.

Persons: Dado Ruvic, Banks, Francesco Canepa, Angus MacSwan Organizations: REUTERS, Rights, European Central Bank, ECB, Thomson

☆ EU loophole lets banks dodge ECB's crypto supervision, needs fixing -Enria
▼ + stars: | 2023-11-14 | by ( ) www.reuters.com time to read: +3 min

He warned the EU's framework placed banks' activity as a 'crypto-asset service provider' -- such as acting as a custodian for customer wallets, exchanging tokens or managing crypto portfolios -- outside of the ECB's purview as a banking supervisor. "In fact, if crypto-asset service providers controlled by banks are not within the scope of their prudential consolidation, the BCBS standard and especially the exposure limit may become ineffective." He added crypto asset service providers should be added "as a matter of urgency" to the list of financial institutions that the ECB supervises under EU rules. MiCAR entered into force at the end of June and will take full effect by the end of next year. The Basel Committee's global standards on exposures to crypto assets are due to be transposed into EU law by Jan. 1, 2025.

Persons: Dado Ruvic, Andrea Enria, Enria, MiCAR, Jan, Claudia Buch, Francesco Canepa, Susan Fenton Organizations: REUTERS, Rights, Central Bank's, Banking, ECB, prudential, EU, Thomson Locations: EU, Venice, Basel

The logo of Swiss Financial Market Supervisory Authority FINMA is seen outside their headquarters in Bern, Switzerland April 5, 2016. We want reform so that we don't end up in the same mess again as we had with Credit Suisse." Earlier this year, Switzerland's financial regulator deflected blame for the collapse of the country's second-biggest bank saying it had been quick to respond, calling instead for more powers to take lenders to task. The regulator, however, has enjoyed little support among Swiss politicians, many of whom long sought to keep it weak. In the run up to the collapse of Credit Suisse, FINMA saw a string of key departures.

Persons: Ruben Sprich, Eva Herzog, Herzog, FINMA, Noele Illien, Sharon Singleton Organizations: Swiss Financial Market, Authority, REUTERS, UBS Group, Credit Suisse, Swiss, UBS, International Monetary Fund, Thomson Locations: Bern, Switzerland, Europe, Swiss

☆ A boomer on short-term disability isn't required to make student-loan payments right now. Her servicer took out $200 from her bank anyway.
▼ + stars: | 2023-11-12 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +6 min

Amy, 59, is not required to make any student loan payments while pursuing her teaching certificate. It comes as the Education Department is working to strengthen oversight over servicers. AdvertisementAdvertisementWhile federal student-loan payments resumed for most borrowers in October, Amy, 59, knew she was not expected to make any payments. "But that's not the case with student loans. "It's ridiculous these companies get contracts for federal student loans," Amy said.

Persons: Amy, servicer, —, MOHELA, Joe Biden's, servicers, Amy —, she's, that's, it's, Harris, Education Miguel Cardona Organizations: Education Department, Service, Joe Biden's Education Department, The Education Department, Aid, Biden, Harris Administration, Education

☆ Detained, missing or under investigation: Business leaders in China face an ‘aggressive’ crackdown
▼ + stars: | 2023-11-10 | by ( Laura He | ) edition.cnn.com time to read: +7 min

Hong Kong CNN —Business leaders in China are under immense pressure, as the country’s leader Xi Jinping intensifies a regulatory crackdown on companies and strengthens its control of the economy. They face rising risks, including the possibility of police raids and detentions of staff, in the world’s second largest economy. A former banker, he has invested in a series of Chinese companies since 2000 and brought their shares to the public markets in mainland China and Hong Kong. No end in sightThe crackdown this year has spooked the business community in China, but it is not unfamiliar. Xi launched a sweeping regulatory crackdown on the private sector in 2020, which wiped trillions of dollars off the market value of Chinese companies worldwide.

Persons: Xi Jinping, ”, Doug Guthrie, ” Guthrie, Tencent, Chen, Zhao Bingxian, “ China’s Warren Buffett, Zhao, Guthrie, “, Zhou Zheng, Zhou, watchdogs, Zhang Hongli, Bao Fan, Bao, Xi, Kevin Frayer, Mauro Guillen, ” Guillen Organizations: Hong Kong CNN — Business, China Initiatives, Arizona State University’s Thunderbird School of Global Management, CNN, Cyberspace Administration of China, Wohua Pharmaceutical, Central Commission, National Supervisory Commission, COFCO, Industrial, Commercial Bank of, Wharton School, University of Pennsylvania Locations: China, Hong Kong, Communist, Beijing, Arizona, Shenzhen, “ Beijing, DouYu, Shandong, Commercial Bank of China

☆ Billionaire FBI informant Peter Thiel dished about two Kremlin invites to private Putin meetings
▼ + stars: | 2023-11-10 | by ( Mattathias Schwartz | Hans-Martin Tillack | ) www.businessinsider.com time to read: +18 min

It was Angermayer who introduced Bisslinger to Thiel at the party, Thiel would later tell the FBI. After some small talk, Bisslinger made a pitch to Thiel: Thiel should travel to Russia to attend the St. Petersburg International Economic Forum. If Thiel chose to attend, Bisslinger said, Bisslinger would arrange for him to meet privately with Putin. "Even if Mr. Angermayer did introduce Mr. Thiel and Mr. Bisslinger," the lawyers wrote in another letter, "Mr. Angermayer is not—and cannot be—responsible for whatever Mr. Bisslinger and Mr. Thiel may or may not have discussed." At his 40th birthday, he connected Peter Thiel with a Russian diplomat, Thiel later told the FBI.

Persons: Peter Thiel, Christian Angermayer, Thiel, Daniil Bisslinger, Bisslinger, Vladimir Putin's, Angermayer, Putin, Maksim Konstantinov, —, Frank Figliuzzi, Vladimir Putin, — Charles Johnson —, Johnathan Buma, Johnson, Welt, Dmitry Peskov, John Lamparski, Donald Trump, — Thiel, Der Spiegel, he'd, Elon Musk, Musk, Thiel —, he's, Palantir, He's, Uma Thurman, Robbie Williams, Queen Latifah, Paul Kagame, Dan McCrum, John Kerry, Richard Grenell, Kerry, Sensei Biotherapeutics, Trump, Dmitry Medvedev, Medvedev, Maureen Dowd, Alexander Schütz, Eva Schütz, Schütz, — Heinz, Christian Strache, Markus Braun, Jan Marsalek, Marsalek, Caroline Haskins, Katherine Long, Jack Newsham, Mattathias Schwartz, Hans, Martin Tillack Organizations: Kremlin, Tech, Pentagon, CIA, Facebook, SpaceX, Kremlin's Ministry of Foreign Affairs, Russian Embassy, Thiel, St ., Economic, Getty, FBI, Atlantic, Bisslinger, Germany, Elon, Russia, NSA, US Special Operations Command, National Health Service, Apeiron Investment, Munich Security, intel, Trump, State Department, Angermayer's, PayPal, Nasdaq, Sciences, The New York Times, Deutsche Bank, Welt Locations: Silicon Valley, Schloss Neuwaldegg, Vienna, Silicon, Moscow, Russian, Berlin, Russia, St, St . Petersburg, Petersburg, Ukraine, Europe, Germany, NATO, Crimea, Ukrainian, Sevastopol, Palantir, Washington, Rwanda, Baltic, Belarus, Iran, Angermayer's Malta, Munich, China, China's, Austrian, Austria, Exxpress, Wirecard, schwartz79@protonmail.com

[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

China's foreign ministry said on Friday the lender is striving to minimise risk impact and losses after the attack. "We don't often see a bank this large get hit with this disruptive of a ransomware attack," said Allan Liska, a ransomware expert at the cybersecurity firm Recorded Future. TRADES CLEAREDICBC said it had successfully cleared Treasury trades executed on Wednesday and repurchase agreements (repo) financing trades done on Thursday. Some market participants said trades going through ICBC were not settled due to the attack and affected market liquidity. The Treasury market appeared to be functioning normally on Thursday, according to LSEG data.

Persons: Kim Kyung, ICBC, Wang Wenbin, Wang, Lockbit, Allan Liska, Scott Skrym, Michael Gladchun, Loomis Sayles, SIFMA, Urvi, Pete Schroder, Gertrude Chavez, Davide Barbuscia, Carolina Mandl, Paritosh Bansal, Joe Cash, Stephen Coates, Tomasz Janowski Organizations: Commercial Bank of China Ltd, REUTERS, Industrial, Commercial Bank of China, Commercial Bank of China's, U.S . Treasury, ICBC Financial Services, Cybersecurity, Infrastructure Security Agency, Boeing, U.S . Treasury Department, Treasury, Securities, Financial Times, U.S . Securities Industry, Financial Markets Association, Thomson Locations: Beijing, China, U.S, Bengaluru, Washington, Carolina

☆ South Korea Finance Chief Defends Short-Sell Ban Ahead of Elections
▼ + stars: | 2023-11-07 | by ( Nov. | At A.M. | ) www.usnews.com time to read: +3 min

By Cynthia Kim and Jihoon LeeSEOUL (Reuters) - South Korea's finance minister defended the government's ban on short-selling of stocks, an announcement that comes ahead of general elections next year and has drawn criticism from market players who say the move could hurt the country's global credibility. The financial regulator on Sunday reimposed a full ban on short-selling until the end of June 2024 to create a "level playing field" for retail and institutional investors. "The move completely thwarted Korea's plans to convince MSCI that it deserves a spot in the developed market status. The number of retail stock trading accounts has roughly doubled since 2017 to about 14 million, with about one in every five Koreans having an account. South Korea's Financial Supervisory Service in October said it would likely fine two Hong Kong-based investment banks it determined had engaged in naked short-selling transactions worth 40 billion won ($29.58 million) and 16 billion won respectively.

Persons: Cynthia Kim, Jihoon Lee SEOUL, Choo, Korea's, we're, Cho Jun, kee, Jihoon Lee, Tom Hogue, Navaratnam Organizations: MSCI Inc, SK Securities, Financial, Service, Credit Suisse Locations: Philippines, Korea, South Korea, Portugal, Hong Kong

☆ ECB tells banks to factor in further drop in property prices
▼ + stars: | 2023-11-07 | by ( ) www.reuters.com time to read: +2 min

A view shows the logo of the European Central Bank (ECB) outside its headquarters in Frankfurt, Germany March 16, 2023. REUTERS/Heiko Becker/File Photo Acquire Licensing RightsFRANKFURT, Nov 7 (Reuters) - Euro zone banks should factor in the risk of a further fall in property prices when they make provisions and plans about their capital, the European Central Bank's chief supervisor Andrea Enria said on Tuesday. The European property market has come under pressure from the ECB's steepest and longest streak of increases in interest rates, which are now at record highs. Fuelled by low interest rates and massive ECB cash injections, billions were funnelled into property in the last decade, particularly in richer European countries such as Germany, France and the Netherlands. Euro zone banks have been curbing access to credit, particularly mortgages, and demand from households and companies is also falling, ECB data shows.

Persons: Heiko Becker, Andrea Enria, Enria, Banks, Germany's Claudia Buch, Francesco Canepa, Kirsten Donovan, Jan Harvey Organizations: European Central Bank, REUTERS, Rights, Central Bank's, ECB, Thomson Locations: Frankfurt, Germany, France, Netherlands

☆ Consumer Bureau Seeks to Supervise Digital Payment Apps
▼ + stars: | 2023-11-07 | by ( Stacy Cowley | More About Stacy Cowley | ) www.nytimes.com time to read: +1 min

The Consumer Financial Protection Bureau wants to extend its watchdog powers to cover digital wallets and payment apps run by companies like Apple, Google, PayPal and Block, which do not have traditional banking operations. The bureau proposed a rule on Tuesday that would subject large companies — those that process more than five million financial transactions per year — to the same supervisory examinations the bureau conducts on banks and credit unions. “Payment systems are critical infrastructure for our economy,” said Rohit Chopra, the bureau’s director. “Today’s rule would crack down on one avenue for regulatory arbitrage by ensuring large technology firms and other nonbank payments companies are subjected to appropriate oversight.”The proposed rule could take effect as soon as next year. One of the payment industry’s largest trade groups, the Electronic Transactions Association, had a fairly mild response to the proposal.

Persons: ”, Rohit Chopra, “ Organizations: Consumer Financial, Apple, Google, PayPal, Electronic Transactions Locations: United States

☆ South Korea to re-impose stock short-selling ban through June to 'level playing field'
▼ + stars: | 2023-11-05 | by ( Jack Kim | ) www.reuters.com time to read: +2 min

A journalist walks past an electronic board of the Korea Composite Stock Price Index (KOSPI) at the Korea Exchange (KRX) in Seoul, South Korea, January 20, 2016 REUTERS/Kim Hong-Ji/File Photo Acquire Licensing RightsSEOUL, Nov 5 (Reuters) - South Korea from Monday will re-impose a ban on short-selling shares at least until June to promote a "level playing field" for retail and institutional investors, financial authorities said on Sunday. The regulator last week said it would establish a team of investigators to probe short-selling by foreign investment banks for illegal activity including so-called naked short-selling. Naked short-selling - in which an investor short-sells shares without first borrowing them or determining they can be borrowed - is banned in South Korea. Earlier in the year, the regulator fined five foreign firms including Credit Suisse for naked short-selling. Officials and market watchers alike have cited uncertainty around short-selling regulation as among factors needing to be resolved for influential index provider MSCI to upgrade South Korea to developed-market status.

Persons: Kim Hong, Kim Joo, Kim, Jack Kim, Michael Perry, Christopher Cushing Organizations: Korea, Korea Exchange, REUTERS, Rights, Monday, Financial Services Commission, Financial Supervisory Service, Credit Suisse, Thomson Locations: Seoul, South Korea, Rights SEOUL, Hong Kong

☆ Kakao faces growing regulatory risks as political scrutiny rises
▼ + stars: | 2023-11-03 | by ( Joyce Lee | ) www.reuters.com time to read: +4 min

The Kakao messaging application and the Kakao T taxi booking application are seen on a mobile phone in this illustration photo March 13, 2018. South Korean President Yoon Suk Yeol told a public meeting on Wednesday that the market behaviour of Kakao Mobility's taxi-hailing service was monopolistic and required a review. Its regulatory troubles escalated last month when one of its executives was arrested for suspected stock market manipulation during its acquisition of K-Pop agency SM Entertainment (041510.KQ). Last week, regulator Financial Supervisory Service (FSS) said it will refer Kakao, its affiliate Kakao Entertainment and executives involved in the SM Entertainment acquisition to public prosecutors for suspected violation of the Capital Markets Act. "It is necessary to pay attention to legal risks, as problems may arise in the status of KakaoBank depending on the probes' results."

Persons: Thomas White, Yoon Suk Yeol, Kakao, Oh Dong, hwan, Joyce Lee, Miyoung Kim, Sam Holmes Organizations: REUTERS, Kakao Corp, Naver Corp, Reuters, Mobility, SM Entertainment, Financial Supervisory Service, Kakao Entertainment, Pension Service, NPS, Samsung Securities, Thomson Locations: SEOUL, Korean, Kakao

☆ Student-loan borrowers could take legal action against their servicers or the Biden administration if repayment mistakes aren't fully fixed, a new federal memo says
▼ + stars: | 2023-11-02 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +5 min

The Education Department released a memo detailing mistakes it found student-loan servicers are making with repayment. It pushed for the mistakes to be remedied for borrowers to avoid legal action. AdvertisementAdvertisementPresident Joe Biden's Education Department is concerned student-loan borrowers could turn to legal action if issues with their accounts aren't fully resolved. The Education Department said it will continue enforcing oversight over servicers to ensure borrowers are not further harmed by mistakes to no fault of their own. "We are committed to making things right for borrowers and holding our contractors accountable for errors when they do occur."

Persons: MOHELA, —, Joe Biden's, Education James Kvaal, servicers, I've, it's, Richard Cordray Organizations: Education Department, Service, Joe Biden's Education Department, Wednesday, Federal Student Aid, Education, MOHELA, Department, The Education Department Locations: forbearance

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