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☆ Former investor questions Barclays vetting of ex-CEO over Epstein
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +2 min

LONDON, April 21 (Reuters) - Former Barclays (BARC.L) investor Edward Bramson on Friday questioned how the British bank and its chairman Nigel Higgins vetted its ex-CEO Jes Staley over his earlier business ties to sex trafficker Jeffrey Epstein. Staley has acknowledged having been friendly with Epstein, expressed regret for their relationship and denied knowing about his crimes. Staley, who joined Barclays 2015 and left in November 2021, is contesting the findings of an investigation by UK regulators into how he characterised his relationship with Epstein. Staley, who joined Barclays after more than 30 years at JP Morgan, has been named in two civil lawsuits against the U.S. bank for enabling and concealing Epstein's network. JP Morgan, in turn, has sued Staley over "outrageous" alleged conduct and breaching his duty of loyalty to the bank.

☆ Guest view: Why bank investors have it the hardest
▼ + stars: | 2023-04-21 | by ( Rupak Ghose | ) www.reuters.com time to read: +6 min

But what matters at least as much for shareholders is the risk of near or total wipe-out, as demonstrated by Silicon Valley Bank and Credit Suisse. No investor could have known that Credit Suisse allowed Archegos to fund its trades with insufficient cash collateral. More recently, U.S. authorities seemed to flip-flop on whether uninsured depositors at other banks would enjoy the same protection offered to Silicon Valley Bank’s customers. The upshot for bank investors is that seemingly low valuations might not be low enough. Previously, he was head of corporate strategy at UK-based brokers ICAP and NEX, and an equity research analyst at Credit Suisse focused on the financial sector.

NEW YORK, April 14 (Reuters) - Societe Generale SA (SOGN.PA) agreed to pay $105 million to settle U.S. investor litigation accusing the French bank of violating antitrust law by conspiring with rivals to rig Euribor, a key European interest rate benchmark. A preliminary settlement was filed late Friday with the U.S. District Court in Manhattan, and requires a judge's approval. Societe Generale denied wrongdoing in agreeing to settle, court papers show. The case is Sullivan et al v. Barclays Plc et al, U.S. District Court, Southern District of New York, No. Reporting by Jonathan Stempel in New York, Editing by Rosalba O'BrienOur Standards: The Thomson Reuters Trust Principles.

☆ European banks surge on strong Q1 results from U.S. peers
▼ + stars: | 2023-04-14 | by ( Joice Alves | ) www.reuters.com time to read: +1 min

[1/3] The logo of Deutsche Bank is seen in Brussels, Belgium December 6, 2022. REUTERS/Yves HermanLONDON, April 14 (Reuters) - European banks surged on Friday, rising to a one-month high, gaining support from U.S. lenders, which reported better-than-expected results in the first quarter. The STOXX 600 index of European banks (.SX7P) gained as much as 3% to reach its highest since mid-March after JPMorgan (JPM.N), Citigroup (C.N) and Wells Fargo WFC.N beat estimates. Banks largely outperformed the broader market, with the STOXX 600 (.STOXX) index climbing 0.6% as risk assets gained support from expectations the U.S. Federal Reserve may soon finish raising interest rates. In London, Standard Chartered (STAN.L) shares rose 4.3% to three-week highs, Barclays (BARC.L) shares were up 3%, touching a five-week high, while HSBC (HSBA.L) shares up 3.1% to one month highs.

NEW YORK, April 14 (Reuters) - Societe Generale SA (SOGN.PA) agreed to pay $105 million to settle U.S. investor litigation accusing the French bank of violating antitrust law by conspiring with rivals to rig Euribor, a key European interest rate benchmark. A preliminary settlement was filed late Friday with the U.S. District Court in Manhattan, and requires a judge's approval. If approved, the accord would mean investors have obtained $651.5 million of settlements with seven banks. Societe Generale denied wrongdoing in agreeing to settle, court papers show. The case is Sullivan et al v. Barclays Plc et al, U.S. District Court, Southern District of New York, No.

NEW YORK, April 12 (Reuters) - A new version of a lawsuit accusing JPMorgan Chase & Co (JPM.N) of aiding in Jeffrey Epstein's sex trafficking includes claims that the bank ignored pleas to cut ties with the financier, and that someone joked about whether Epstein knew Miley Cyrus. In a complaint made public on Wednesday, the U.S. Virgin Islands said JPMorgan compliance officials urged the bank to sever ties with Epstein years before it did so in 2013. The cases in the U.S. District Court, Southern District of New York are: Jane Doe 1 v JPMorgan Chase & Co, No. 22-10019; Government of the U.S. Virgin Islands v JPMorgan Chase Bank NA, No. 22-10904; and JPMorgan Chase Bank NA v Staley, in Nos.

JPMorgan sued Staley last month to have him cover its losses in both lawsuits and forfeit eight years of compensation. Epstein killed himself at age 66 in August 2019 in a Manhattan jail while awaiting trial for sex trafficking. The cases in the U.S. District Court, Southern District of New York are: Jane Doe 1 v JPMorgan Chase & Co, No. 22-10019; Government of the U.S. Virgin Islands v JPMorgan Chase Bank NA, No. 22-10904; and JPMorgan Chase Bank NA v Staley, in Nos.

☆ Barclays investors urged to reject bonuses for ex-CFO
▼ + stars: | 2023-04-06 | by ( Iain Withers | ) www.reuters.com time to read: +4 min

SECURITIES BLUNDERBarclays docked the pay of its ex-CFO Tushar Morzaria and its current top executives by a combined 1 million pounds ($1.25 million) in February over the securities blunder. STALEY SCRUTINYBarclays said in a notice last week that recent allegations against Staley regarding his relationship with Epstein were "serious and new". He left Barclays in 2021 after a dispute with British financial regulators over how he described his ties with Epstein. Barclays has said Staley received 2 million pounds in fixed pay during his 12-month notice period, and the bank paid his moving expenses back to the United States. Glass Lewis said investors could be "reasonably satisfied" with the company's disclosures on Staley and welcomed the suspension of his awards.

"Jane Doe herself has directly accused him of horrific sexual misconduct and, if true, he must be held accountable." In a separate letter, lawyers for the Epstein accusers also supported severing the Staley case, but for a different reason. 22-10018; Jane Doe 1 v JPMorgan Chase & Co, No. 22-10019; Government of the U.S. Virgin Islands v JPMorgan Chase Bank NA, No. 22-10904; and JPMorgan Chase Bank NA v Staley, in Nos.

☆ Barclays investors urged to reject bonuses for ex-CFO - Glass Lewis
▼ + stars: | 2023-04-06 | by ( Iain Withers | ) www.reuters.com time to read: +1 min

LONDON, April 6 (Reuters) - Investor advisory firm Glass Lewis has recommended shareholders in Barclays (BARC.L) vote against its pay for top bosses because of long-term bonuses awarded to its former finance chief at a time the bank sold billions of pounds of securities in error. Barclays docked the pay of its ex-CFO Tushar Morzaria and its current top executives by a combined 1 million pounds ($1.25 million) in February over the blunder, but Glass Lewis said the deductions for Morzaria did not go far enough. The proxy adviser said it objected to long-term awards that vested last year for 2020, under which Morzaria was awarded nearly 3 million pounds after the deductions, representing 70% of the potential total pot. Reuters attempted to contact Morzaria via Legal & General, who were not immediately available. ($1 = 0.8020 pounds)Reporting by Iain Withers Editing by Tommy Reggiori Wilkes, Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

☆ Adani trumpets stable ties to global banks in bid to ease investor worries, document shows
▼ + stars: | 2023-04-05 | by ( Aditya Kalra | ) www.reuters.com time to read: +3 min

The document, which was reviewed by Reuters, did not elaborate on how the lenders reaffirmed their commitment to the Adani group. Adani group did not respond to a request for comment. Mitsubishi UFJ Financial Group Inc (MUFG) (8306.T), Sumitomo Mitsui Financial Group Inc's (8316.T) SMBC unit, Mizuho Financial Group (8411.T), Standard Chartered (STAN.L) and Deutsche Bank (DBKGn.DE) did not immediately respond. CONCERNS ABOUT DEBTThe Hindenburg report had sparked concern among investors about banks' exposures to the Adani group. Now, 39% of Adani's debt is currently in the form of bonds, 29% is from global banks and 32% comes from public or private banks in India, the Adani document added.

☆ U.S. airline loyalty programs can provide buffer from possible recession
▼ + stars: | 2023-04-04 | by ( Rajesh Kumar Singh | ) www.reuters.com time to read: +3 min

[1/3] A United Airlines Boeing 737-900ER plane takes off from Los Angeles International airport (LAX) in Los Angeles, California, U.S. March 28, 2018. REUTERS/Mike BlakeCHICAGO, April 4 (Reuters) - U.S. airlines relied on loyalty programs for revenue during the pandemic, and industry executives and experts said income from them should hold up if the economy slips into a recession. Non-flying activities now account for more than half of all miles earned in major loyalty programs, noted Evert de Boer, managing partner at consulting firm On Point Loyalty, making airlines more resilient to economic swings. People curtailed flying during the pandemic, but still spent on airline loyalty credit cards, said JetBlue (JBLU.O) vice president Chris Buckner. Airline loyalty programs are also highly profitable.

Despite a rebound in fundraising and block trading activity, year-to-date IPO volumes came in at their lowest level since 2019. Equity capital markets (ECM) advisers, however, are optimistic of a recovery in listing activity in the latter part of the year. In the United States, IPO volumes jumped more than 50% from the fourth quarter of 2022, but were still 11% down from the same period last year. IPOs briefly flickered back to life in February, as companies including solar tech firm Nextracker (NXT.O) and Chinese sensor maker Hesai Group (HSAI.O) pushed ahead with their listings. RECOVERY DELAYEDIn Europe, investment bankers said the market volatility spurred by the banking crisis is likely to affect the pipeline of deals.

☆ Bank rescue real estate turns from dowry to downer
▼ + stars: | 2023-03-30 | by ( Aimee Donnellan | ) www.reuters.com time to read: +3 min

Unlike many banks which got into trouble back in 2008, the Swiss lender has flogged much of its prime real estate. In the last financial crisis prime real estate played a big part of bank rescues. When Barclays (BARC.L) bought Lehman Brothers’ U.S. capital markets business in September 2008 the deal included the bankrupt investment bank’s headquarters. Today there is less real estate underpinning bank values. For buyers preparing to rescue embattled banks, real estate has turned from a dowry to a downer.

March 28 (Reuters) - Jamie Dimon, the chief executive of JPMorgan Chase & Co (JPM.N), will be interviewed under oath over the bank's relationship with late sex offender and former client Jeffrey Epstein, a lawyer involved in the case said on Tuesday. Epstein had been a JPMorgan client from 2000 to 2013 - five years after he pleaded guilty to a Florida prostitution charge. He had been friendly with Epstein but expressed regret for the relationship and has denied any involvement in Epstein's illegal activity. Deutsche Bank AG (DBKGn.DE), where Epstein was a client from 2013 to 2018, is also being sued by the financier's accusers. Epstein killed himself in a Manhattan jail cell at age 66 in August 2019 while awaiting trial for sex trafficking.

Epstein had been a JPMorgan client from 2000 to 2013, with the last five years coming after he had pleaded guilty to a Florida prostitution charge. The bank is also suing Jes Staley, a former private banking chief and later Barclays Plc (BARC.L) chief executive who had been friendly with Epstein. JPMorgan wants Staley to reimburse it for eight years of compensation and damages it might incur in the other lawsuits. Deutsche Bank AG (DBKGn.DE), where Epstein was a client from 2013 to 2018, is also being sued by the financier's accusers. Epstein killed himself in a Manhattan jail cell at age 66 in August 2019 while awaiting trial for sex trafficking.

☆ Barclays calls allegations against former CEO Staley 'serious and new'
▼ + stars: | 2023-03-27 | by ( Iain Withers | ) www.reuters.com time to read: +3 min

LONDON, March 27 (Reuters) - Barclays (BARC.L) has said recent allegations against its former Chief Executive Jes Staley are "serious and new", after U.S. lawsuits alleged he had a close relationship with Jeffrey Epstein and alleged involvement in his sex-trafficking operation. "The Board's original review, conducted in February 2020, was based on the information it had at the time and representations made by Mr Staley," the notice added. The comments are Barclays' most substantive remarks on Staley since he left the bank in November 2021. Epstein was a former client of Staley's when he previously worked at U.S. bank JPMorgan (JPM.N). Staley has acknowledged having been friendly with Epstein, but expressed regret for their relationship and denied knowing about the financier's alleged crimes.

☆ London stocks fall as fears of a banking crisis linger
▼ + stars: | 2023-03-24 | by ( Shashwat Chauhan | ) www.reuters.com time to read: +2 min

SummarySummary Companies Banks fall as fears of a banking crisis spikeEnergy down tracking lower oil pricesUK Feb retail sales rise unexpectedlyFTSE 100 down 1.4%, FTSE 250 off 1.0%March 24 (Reuters) - London stocks fell on Friday, dragged by energy shares that tracked oil prices lower, while banks extended declines at the end of a turbulent week as fears of a global banking crisis lingered. The blue-chip FTSE 100 (.FTSE) fell 1.4%, extending losses after a near 1% drop on Thursday. British banks (.FTNMX301010) lost 2.7%, falling for a third straight session, joining their European peers in Friday's slide. Energy majors Shell (SHEL.L) and BP (BP.L) fell 2.5% and 2.5%, respectively, dragging the broader energy sector (.FTNMX601010) down 2.5%, as oil prices extended losses on worries about a potential oversupply. Reporting by Shashwat Chauhan in Bengaluru; Editing by Subhranshu Sahu and Savio D'SouzaOur Standards: The Thomson Reuters Trust Principles.

☆ Swiss CoCo shakeout may yet help bank regulators
▼ + stars: | 2023-03-22 | by ( Neil Unmack | ) www.reuters.com time to read: +3 min

LONDON, March 22 (Reuters Breakingviews) - Switzerland’s forced merger of Credit Suisse (CSGN.S) with UBS (UBSG.S) has caused a real stink. European regulators on Monday mobilised to calm debt investors after Swiss authorities chose to write off 16 billion Swiss francs of Credit Suisse’s Additional Tier 1 CoCos. Both the Bank of England and European regulators pledged on Monday to respect the bank rescue hierarchy that says shareholders should lose money before debt. A case in point: only last year the already creaking Credit Suisse chose to redeem a bond. Follow @Unmack1 on TwitterCONTEXT NEWSPrices of contingent capital securities, a kind of junior ranking loss-absorbing bank debt, fell after bonds issued by Credit Suisse were wiped out following its takeover by UBS.

☆ Saudi is far from the last Western bank bagholder
▼ + stars: | 2023-03-21 | by ( George Hay | ) www.reuters.com time to read: +5 min

LONDON, March 21 (Reuters Breakingviews) - Saudi Arabia has joined the Western bank bagholder club. The bank only made its play in November, when client money was already flowing out of Credit Suisse. Saudi National Bank bought 307.6 million Credit Suisse shares for 3.82 Swiss francs ($4.11) per share. The UBS offer of 3 billion Swiss francs ($3.23 billion) values Credit Suisse shares at 0.76 francs each, more than 80% lower than the price paid by the Saudi bank. Saudi National Bank's statement added that the potential impact to its capital adequacy ratio is about 35 basis points, with no impact on profitability.

[1/2] A J.P. Morgan logo is seen outside the JPMorgan bank offices in Paris, France, January 27, 2023. REUTERS/Sarah MeyssonnierNEW YORK, March 20 (Reuters) - A U.S. judge said on Monday JPMorgan Chase & Co (JPM.N) and Deutsche Bank AG (DBKGn.DE) must face lawsuits accusing them of enabling Jeffrey Epstein's sex trafficking. Rakoff's decision gives the plaintiffs a chance to prove that JPMorgan and Deutsche Bank knowingly benefited from involvement in Epstein's sex trafficking. Epstein had been a client of JPMorgan from 2000 to 2013, and Deutsche Bank from 2013 to 2018. The cases in the U.S. District Court, Southern District of New York are: Jane Doe 1 v Deutsche Bank AG et al, No.

Virgin Money (VMUK.L), Britain's sixth largest bank, said in a statement it had also seen "net business deposit inflows in recent days". That means SVB UK's customer deposits are safe and their loans supported, HSBC's top bosses have said. Franklin told Reuters a number of CEOs and startup execs had started researching other banks with which to park cash in addition to SVB UK this week, citing Barclays as a favourite among some. But the collapse of SVB has intensified scrutiny of the business models of all lenders, including specialists with smaller balance sheets to fall back on. "The UK banking system remains safe and continues to operate as normal."

☆ Former JPMorgan executive, ex-Barclays CEO Staley to be deposed next week
▼ + stars: | 2023-03-17 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +2 min

Lawyers for the bank said during a hearing on Thursday they would depose Staley, who also served as Barclays Plc's (BARC.L) chief executive, on March 23 and 24. JPMorgan has accused Staley, its former head of private banking, of "intentional and outrageous conduct" in concealing information about Epstein, with whom he had been friends. The lawsuit seeks to force Staley to return eight years of compensation and reimburse JPMorgan for damages the company might incur in the other lawsuits. Last week, Rakoff had ordered the bank to hand over more documents concerning its CEO Jamie Dimon. A separate trial involving an Epstein victim suing Deutsche Bank AG (DBKGn.DE) may also be rescheduled.

☆ FTSE 100 gains as British banks bounce back; Rentokil rises
▼ + stars: | 2023-03-16 | by ( Shashwat Chauhan | ) www.reuters.com time to read: +2 min

UK's blue-chip FTSE 100 (.FTSE) gained 0.4%, rebounding from its steepest fall in over a year on Wednesday. British banks (.FTNMX301010) gained 1.8%, after falling 5.6% in the previous session. Rentokil Initial (RTO.L) jumped 6.1% to the top of the FTSE 100 after the pest control services provider lifted its medium-term outlook after posting a better-than-expected annual profit. The more domestically-focussed FTSE 250 midcap index (.FTMC) were subdued, though asset manager Bridgepoint Group (BPTB.L) rose 2.9% after reporting a higher revenue for 2022. Reporting by Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza and Uttaresh VenkateshwaranOur Standards: The Thomson Reuters Trust Principles.

☆ UK markets shrug off Hunt's budget; bank turmoil in focus
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

LONDON, March 15 (Reuters) - British markets, roiled by concerns about European banks after shares in Credit Suisse fell 30%, showed little reaction to Chancellor Jeremy Hunt's budget on Wednesday. The pound picked up slightly against the euro as Hunt delivered the budget, in which he said Britain's official forecaster expected the economy to avoid recession this year. The euro fell to a session low of 87.25 pence as Hunt talked. However, the euro had already fallen sharply, with a big drop in European bank stocks spooking investors that were already on edge since the collapse of U.S. lender Silicon Valley Bank late last week. Britain's FTSE 100 (.FTSE) stock index was down 3.05%, with financial companies leading the falls.

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