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☆ Citi fined $78 million after a European trader's fat-finger trade caused a flash crash in stocks
▼ + stars: | 2024-05-22 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

A trading mistake at Citigroup in 2022 has led to a $78 million fine against the bank. The "fat-finger" trade caused a brief flash crash in European stocks in May 2022. The brief flash crash caused by the mistaken trade briefly wiped out $322 billion in market value. A trader in Citigroup's London unit entered one too many zeros in a trade in May 2022, sparking a short-lived flash crash in European stocks. AdvertisementThe $78 million fine from UK regulators is in addition to about $50 million Citigroup lost on the trade, bringing the total cost of the fat-finger trade to about $130 million.

Persons: — Organizations: Citigroup, Service, Bloomberg, Bank of England's Prudential Regulatory Authority Locations: Citigroup's London, Stockholm

☆ HSBC fined $73 million for 'serious failings' in UK deposit protection
▼ + stars: | 2024-01-30 | by ( ) www.cnbc.com time to read: +1 min

HSBC has been fined 57.4 million pounds ($73 million) for "serious failings" in protecting some depositors over several years, in the first penalty of its kind under British rules designed to protect customers if banks fail. This is the second largest fine ever imposed by the PRA, topped only by an 87 million pound penalty on Credit Suisse in July 2023. "The serious failings in this case go to the heart of the PRA's safety and soundness objective," said Sam Woods, deputy governor of the Bank of England and CEO of the PRA. Globally systemically important banks -- such as HSBC and UBS -- are required to plan for resolution, which should allow regulators to unwind them without triggering broader systemic consequences. Britain's deposit protection rules require lenders to ensure critical information is held in order for the FSCS to compensate customers if a firm fails.

Persons: Sam Woods, BoE Organizations: HSBC, of England's Prudential, Authority, Britain's Financial, Credit Suisse, Bank of England, UBS

☆ UK pension transfer boom continues as deals worth $11 bln struck
▼ + stars: | 2023-11-24 | by ( Lawrence White | ) www.reuters.com time to read: +2 min

The logo of Legal & General insurance company is seen at their office in central London March 17, 2008. Legal & General (LGEN.L) said it had agreed a so-called full buy-in to the Boots Pension Scheme worth 4.8 billion pounds, in what it said was the largest such deal in Britain by premium size. The market has been running at around 30 billion pounds a year in Britain, but consultants expect 2023 to top that. Rising funding ratios for pension schemes are driving unprecedented demand, Legal & General (L&G) said, as funds scramble to protect schemes against the vagaries of market movements amid rising interest rates worldwide. L&G has written a total of 13.4 billion pounds worth of pension risk transfer deals this year globally, up from 9.5 billion pounds last year.

Persons: Alessia, Eva Mathews, Lawrence White, Sharon Singleton, Mark Potter Organizations: General, REUTERS, Legal, Co, Regulators, Bank of England's Prudential, Authority, Health, Thomson Locations: London, BRITAIN, Britain, Rothesay, Bengaluru

☆ Metro Bank shares jump after deal to bolster finances
▼ + stars: | 2023-10-09 | by ( Iain Withers | ) www.reuters.com time to read: +3 min

Signage is seen outside of a Metro Bank in London, Britain, May 22, 2019. REUTERS/Hannah McKay/File Photo Acquire Licensing RightsSummaryCompanies Metro Bank shares up as much as 26%Colombian billionaire Jaime Gilinski to take majority controlMetro backers face 'very painful rescue' - analystLONDON, Oct 9 (Reuters) - Shares in Metro Bank (MTRO.L) jumped in early trading on Monday, after the embattled British lender struck a fundraising deal overnight to bolster its balance sheet following urgent weekend talks in the wake of volatile trading. Metro Bank shares were up 26% at 56.9 pence by 0800 GMT. As part of the deal, Metro has agreed to a capital raise comprising 150 million pounds of new equity and a 175-million-pound issuance of bail-in debt known as "MREL". Metro shares remain around 97% down from when it first listed on the London stock exchange in 2016 at 20 pounds a share.

Persons: Hannah McKay, Jaime Gilinski, Gary Greenwood, John Cronin, Iain Withers, Louise Heavens, Clarence Fernandez Organizations: Metro Bank, REUTERS, Metro, Shore Capital, Bank of England's Prudential, Authority, Lloyds, HSBC, Metro's, Spaldy Investments, Thomson Locations: London, Britain

LONDON, Oct 8 (Reuters) - Embattled British bank Metro (MTRO.L) announced a 325 million pound ($396.5 million) capital raise and 600 million pound debt refinancing on Sunday, after a weekend of urgent talks to bolster its balance sheet after a volatile week of trading. Metro Bank had sought to shore up its finances after a string of setbacks in recent years, including accounting errors, leadership departures and delayed regulatory approval for key capital reliefs. The equity raise was led by Metro's largest shareholder, Gilinski-owned Spaldy Investments, which contributed 102 million pounds. The Bank of England's Prudential Regulation Authority said in a statement: "The Prudential Regulation Authority welcomes the steps taken by Metro Bank to strengthen its capital position." Reuters reported on Friday that Metro Bank was set to discuss funding options with its shareholders over the weekend, after a proposal from bondholders earlier in the week was seen as handing over too much control.

Persons: Jaime Gilinski, Gilinski, Iain Withers, Anousha, Huw Jones, Pablo Mayo Cerquerio, Londo, Lavanya, Lisa Shumaker Organizations: Metro, Metro Bank, Metro's, Spaldy Investments, of England's Prudential, Authority, Prudential, HSBC, Lloyds, Reuters, Thomson Locations: Colombian, London, Bengaluru

☆ Bank of England approached UK lenders to gauge interest in troubled Metro Bank, Financial Times reports
▼ + stars: | 2023-10-08 | by ( ) www.reuters.com time to read: +2 min

Signage is seen outside of a Metro Bank in London, Britain, May 22, 2019. REUTERS/Hannah McKay/File Photo Acquire Licensing RightsOct 8 (Reuters) - The Bank of England's Prudential Regulation Authority approached a number of big UK lenders this week to see if they had any interest in taking over British lender Metro Bank (MTRO.L), the Financial Times reported on Sunday. JPMorgan and Metro Bank did not immediately respond to Reuters' requests for comment. Metro Bank has recently rejected a series of takeover approaches from specialist business lender Shawbrook and on Saturday held talks with bondholders about an equity injection alongside a debt restructuring, media reports said. Metro Bank said on Thursday its options included a combination of equity and debt issuance, as well as refinancing and asset sales.

Persons: Hannah McKay, Kanjyik Ghosh, Hugh Lawson Organizations: Metro Bank, REUTERS, Bank of England's Prudential, Authority, Financial Times, Sunday, JPMorgan, HSBC, Metro, The Bank of England, Saturday, Reuters, Metro Bank's, Thomson Locations: London, Britain, Bengaluru

Metro Bank and the Bank of England declined to comment. Metro Bank's largest shareholder is Colombian billionaire Jaime Gilinski, who owns around a 9% stake through his investment vehicle Spaldy Investments. Metro Bank's customer deposits, like those of other UK banks, are backed by a government guarantee up to 85,000 pounds. Metro Bank said on Thursday its options included a combination of equity and debt issuance, as well as refinancing and asset sales. The news wiped a quarter off Metro Bank's share value on Thursday as its shares hit a record low.

Persons: Jaime Gilinski, Dorita, Iain Withers, Anousha, Kirsten Donovan, Chris Reese Organizations: Metro Bank, Metro, Bank of England's Prudential, Authority, Bank of England, Metro Bank's, Spaldy Investments, Reuters, Thomson Locations: Colombian

☆ Metro Bank plunges on talk of big fundraising to fix finances
▼ + stars: | 2023-10-05 | by ( ) www.reuters.com time to read: +2 min

Signage is seen outside of a Metro Bank in London, Britain, May 22, 2019. As of Wednesday's close, Metro Bank was valued at 87 million pounds. The fundraising could include more than 100 million pounds from selling shares to bolster capital, three sources familiar with the matter told Reuters on Wednesday. Metro Bank recently brought in Morgan Stanley as adviser, the people said. Metro Bank is subject to higher capital requirements set by the regulator if unable to use its own models, a concern that has been weighing on the stock.

Persons: Hannah McKay, Gary Greenwood, Morgan Stanley, Danilo Masoni, Iain Withers, Sinead Cruise, Mark Potter Organizations: Metro Bank, REUTERS, Reuters, Shore Capital, Bank of England's Prudential, Authority, Metro, Thomson Locations: London, Britain

☆ Metro Bank shares dip as mortgage risk model change drags
▼ + stars: | 2023-09-12 | by ( ) www.reuters.com time to read: +1 min

Sept 12 (Reuters) - Britain's Metro Bank (MTRO.L) said on Tuesday that the Bank of England's Prudential Regulation Authority (PRA) would likely not approve its application to use internal credit risk models in its residential mortgages business this year. Shares in the lender fell 7% in early trading as stock-holders reacted to the news. Without permission to use its own risk models, Metro Bank remains subject to higher capital requirements set by the regulator, which have weighed on returns for its investors. "The board retains conviction in the merits of Metro Bank's customer-centric model and strongly believes that there is a significant opportunity set that the company can capitalise on, subject to renewed balance sheet strength," Metro said. "Larger scale is needed to absorb the high, branch-centric expense base which can be achieved only if current capital constraints ... are resolved," Peel Hunt said.

Persons: Peel Hunt, Radhika Anilkumar, Sinead Cruise, Savio D'Souza, Rashmi Aich, Iain Withers Organizations: Britain's Metro Bank, Bank of England's Prudential, Authority, Metro Bank, Metro, Peel, Thomson Locations: Bengaluru, London

Media coverage of BDO's warning on March 1 prompted immediate questions from financial regulators, a March 6 letter to Reuters from Revolut shows. The letter did not address the banking licence application nor its status. "I would be astonished if the regulators go ahead with the banking licence," he added. Revolut applied for a banking licence about two years ago. With a banking licence, Revolut would become a more established player in the U.K. banking market and be able to draw more customers.

March 19 (Reuters) - Talks over rescuing Credit Suisse (CSGN.S) rolled into Sunday as UBS AG (UBSG.S) sought $6 billion from the Swiss government to cover costs if it were to buy its struggling rival, a person with knowledge of the talks said. The guarantees UBS is seeking would cover the cost of winding down parts of Credit Suisse and potential litigation charges, two people told Reuters. Credit Suisse, UBS and the Swiss government declined to comment. U.S. President Joe Biden's administration moved to backstop consumer deposits while the Swiss central bank lent billions to Credit Suisse to stabilise its shaky balance sheet. There were multiple reports of interest for Credit Suisse from other rivals.

☆ UK finance minister, Bank of England governor in contact over Credit Suisse - source
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +1 min

[1/2] Britain's Chancellor of the Exchequer Jeremy Hunt walks at Downing Street in London, Britain, November 17, 2022. REUTERS/Toby Melville/File PhotoLONDON, March 18 (Reuters) - British finance minister Jeremy Hunt and Bank of England Governor Andrew Bailey are in regular contact this weekend over the fate of Credit Suisse Group AG (CSGN.S), according to a source with knowledge of the matter. UBS Group AG (UBSG.S) is mulling a takeover of its embattled Swiss rival Credit Suisse, other sources told Reuters on Saturday, amid a crisis of confidence in the bank that risks destabilizing the global financial system. A spokesperson for the Bank of England's Prudential Regulation Authority, which oversees lenders, declined to comment. Credit Suisse's UK entity, Credit Suisse International, has $60 billion of risk weighted assets, according to the company's latest filings.

☆ UBS reportedly seeks $6 billion in government guarantees for Credit Suisse takeover
▼ + stars: | 2023-03-18 | by ( ) www.cnbc.com time to read: +2 min

The $6 billion in government guarantees UBS is seeking would cover the cost of winding down parts of Credit Suisse and potential litigation charges, two people told Reuters. One of the sources cautioned that the talks to resolve the crisis of confidence in Credit Suisse are encountering significant obstacles, and 10,000 jobs may have to be cut if the two banks combine. Credit Suisse, UBS and the Swiss government declined to comment. U.S. President Joe Biden's administration moved to backstop consumer deposits while the Swiss central bank lent billions to Credit Suisse to stabilize its shaky balance sheet. UBS was under pressure from the Swiss authorities to carry out a takeover of its local rival to get the crisis under control, two people with knowledge of the matter said.

☆ British banking damaged by slow supervisors warns industry report
▼ + stars: | 2023-01-26 | by ( Huw Jones | ) www.reuters.com time to read: +3 min

[1/2] People walk over the Millennium Bridge with the City of London financial district in the background, in London, Britain, January 13, 2023. REUTERS/Henry Nicholls/File PhotoLONDON, Jan 26 (Reuters) - Britain's regulators can be slow, inefficient and unpredictable, raising costs and slowly damaging the financial sector's global competitiveness, industry body TheCityUK said in a report. Complex, opaque and slow authorisations, such as for a new chief executive or a new product, can discourage growth and investment, the report published on Thursday said. It said The Financial Conduct Authority (FCA) and the Bank of England's Prudential Regulation Authority (PRA) were taking steps to speed up authorisations, but further action was needed. The Bank of England said it recognised the need to improve the timeliness of approving senior managers in particular and was taking steps in line with many of the recommendations.

☆ Revolut close to finalising 2021 accounts as fintech seeks U.K. licence - sources
▼ + stars: | 2023-01-13 | by ( Stefania Spezzati | ) www.reuters.com time to read: +3 min

LONDON, Jan 13 (Reuters) - Fintech firm Revolut Ltd. is close to finalising its long-overdue 2021 financial accounts, a move that could pave the way for the start-up to obtain a UK banking licence, two people with knowledge of the matter told Reuters. Revolut is set to publish financial accounts for the year ended December 2021 - which were due last summer - at the end of January after auditing firm BDO LLP’s final sign-off, the people said. The Revolut filing will likely show a rise in 2021 revenue from clients’ subscriptions and exchange rate fees, the person said. The accounts may help the entrepreneur to convince UK regulators that Revolut is ready for a banking licence after a two-year wait. Britain is a key market for Revolut, which aims to become a global financial firm.

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