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☆ Subsidy cuts could derail Thyssenkrupp's green steel project -labour bosses
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +1 min

DUESSELDORF, May 17 (Reuters) - Thyssenkrupp's <TKAG.DE> labour bosses cranked up the pressure on Berlin to help fund a 2 billion euro ($2.2 billion) green steel production site, warning in a letter to Economy Minister Robert Habeck that a further cut could choke off the project. Reducing subsidies further would trigger a "massive discussion" within Thyssenkrupp's supervisory board over whether to pull the plug on the investment, the letter, dated May 17 and co-signed by the group's deputy chairman Juergen Kerner, said. Thyssenkrupp in August made the investment decision for the so-called direct reduction iron (DRI) site at its steel base in Duisburg, provided substantial subsidy commitments by the state of North Rhine-Westphalia and Berlin are being paid. Thyssenkrupp <TKAG.DE> and the economy ministry had no immediate comment. ($1 = 0.9084 euros)Reporting by Tom Kaeckenhoff; Additional reporting by Christoph Steitz and Christian Kraemer; Editing by Friederike HeineOur Standards: The Thomson Reuters Trust Principles.

FRANKFURT, May 17 (Reuters) - Deutsche Bank (DBKGn.DE) investors on Wednesday questioned the sustainability of the lender's growth plans and called for a shift of resources from the investment bank, even as they praised CEO Christian Sewing for stabilising the bank. Andreas Thomae of the Deutsche Bank investor Deka said that the bank's targets require a "tailwind" from the markets to be achievable, and rising interest rates have been "pure adrenaline" for the bank. Reuters GraphicsShe called on the bank to shift capital from its investment bank to other areas in the bank that yield higher returns. "Deutsche Bank is one of the European banks most dependent on investment banking, a poorly predictable, opaque business that is driving down its stock valuation," she said. Sewing, who won kudos from some of the investors for restoring profitability, responded that the bank was "robustly and sustainably profitable".

☆ ECB zeroes in on struggling borrowers and forex as times get tougher
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, May 17 (Reuters) - The European Central Bank on Wednesday told banks to step up how they manage struggling borrowers and their own currency trading in an environment of higher interest rates and jittery financial markets. In its quarterly newsletter, the ECB said it had found deficiencies in how banks grant forbearance to borrowers, which mostly involves changing the terms and conditions of their loan or giving them a new one. "In the current economic environment, characterised by inflationary pressures, rising interest rates and an uncertain outlook, it is essential that banks prepare their processes for a potential increase in distressed debt and refinancing risk," the ECB said. In a separate newsletter article, the ECB set good practices that banks should follow when trading foreign currencies. "Banks could also adjust the remuneration of front office staff to take failed trades into consideration," the ECB said.

☆ Silver Lake submits offer document for Software AG
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +1 min

BERLIN, May 17 (Reuters) - Silver Lake officially submitted its offer document for Software AG (SOWGn.DE) on Wednesday, almost a month after announcing a 2.4 billion euro ($2.64 billion) takeover bid. In its offer document, Silver Lake reiterated that it intends to delist Software AG as soon as practically possible after the transaction. It has secured 30.1% of the share capital through a binding agreement with company founder Peter Schnell's Software AG Foundation, a charitable foundation and longstanding anchor shareholder, and through purchases on the stock exchange. Software AG's management and supervisory boards support Silver Lake despite Bain's higher offer, drawing criticism from minority shareholders at the company's annual general meeting on Wednesday. Software AG's chairman of the board of directors, Silver Lake partner Christian Lucas, was absent from the AGM which was run by an external lawyer.

☆ Lawmakers are infuriated with Fed's inaction in its insider trading investigation
▼ + stars: | 2023-05-17 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +2 min

CNN —Congressional lawmakers grilled Federal Reserve Inspector General Mark Bialek Wednesday over possible insider trading among Fed officials in 2020, accusing the nation’s central bank of inaction. The heads of the Boston and Dallas Federal Reserve banks retired early in 2021 after trades they made before and during the pandemic came to light. Bialek told lawmakers there was no conflict of interest and that he was still able to conduct fair, independent investigations. This is not acceptable.”The Office of Inspector General declined to comment Wednesday night. A separate Fed investigation into SVB’s collapse, not involving Bialek, faulted Fed supervisors.

☆ Premarket stocks: Senators blame excessive CEO pay for regional bank failures
▼ + stars: | 2023-05-17 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Joseph DePaolo, the former CEO of Signature Bank, received about $8.6 million. Becker said his cash and stock bonuses were “predetermined” and that he wasn’t aware of when they would be paid out. “If you’d bought those hedges [against Treasuries purchased by the bank], that would have cut into your profits, wouldn’t it? “And when the banks blow up, Mr. Becker and Mr. Shay get to keep all the money. And that is just plain wrong.”ChatGPT goes to WashingtonOpenAI CEO Sam Altman also made his way to the Senate on Tuesday.

☆ IRS Employee Says He Was Removed From Hunter Biden Tax Probe
▼ + stars: | 2023-05-16 | by ( C. Ryan Barber | ) www.wsj.com time to read: 1 min

President Biden with first lady Jill Biden and children Hunter Biden and Ashley Biden in Philadelphia this week. Photo: Patrick Semansky/Associated PressWASHINGTON—An IRS supervisory agent has been removed from the tax investigation into President Biden’s son, Hunter Biden , the agent’s lawyers told lawmakers this week, after claiming to have evidence of political interference in the criminal inquiry. In a letter to House and Senate leaders, lawyers for the Internal Revenue Service supervisor said “his entire investigative team” had also been removed from the inquiry, in what they suggested was retaliation. The supervisor, who is seeking whistleblower protections, was informed that the change was made at the request of the Justice Department, according to a copy of the letter obtained by The Wall Street Journal.

☆ Failed bank execs see blame everywhere, except in the mirror
▼ + stars: | 2023-05-16 | by ( Allison Morrow | ) edition.cnn.com time to read: +4 min

New York CNN —More than two months after the collapse of Silicon Valley Bank and Signature Bank triggered a financial earthquake, three former executives spoke publicly for the first time in testimony before a Senate committee Tuesday. Here are the key takeaways from the Senate hearing:Everyone else messed upThe executives conducted a masterclass in deflecting blame for their banks’ failures. In his testimony, Becker said he was “truly sorry” for the bank’s collapse, blaming a “series of unprecedented events.”Greg Becker, former CEO of Silicon Valley Bank, left, testifies next to Scott Shay, former chairman and co-founder of Signature Bank, and Eric Howell, former president of Signature Bank, during a Senate hearing. “Rumors and misconceptions spread quickly online,” sparking the bank run, Becker told lawmakers. Spoiler alert: Becker didn’t commit to returning any money and Shay said he had no intention to do so.

☆ Italy's Intesa embraces AI to tame bank supervision "information overload"
▼ + stars: | 2023-05-16 | by ( ) www.reuters.com time to read: +1 min

MILAN, May 16 (Reuters) - Intesa Sanpaolo (ISP.MI) has introduced an artificial intelligence tool it has designed to wade through thousands of publications on banking supervision, Italy's biggest bank said on Tuesday. The machine learning tool, dubbed Lisa or Linguistic Intelligence for Supervisory Awareness, uses language processing algorithms to scan documents for correlations and patterns of meaning to help predict future trends. Intesa has a dedicated team of people who worked with Lisa, validating its results but also expanding its awareness of banking regulatory issues. "Banking supervision is an area where it is fair to speak of information overload, with truly massive and exponential content production," said Walter Chiaradonna, head of Intesa's supervisory strategic steering department. Chiaradonna listed "practices, interviews, statements, texts and in-depth studies that in turn generate a proliferation of information that is unmanageable without adequate support."

☆ Former Silicon Valley Bank CEO: ‘I am truly sorry’
▼ + stars: | 2023-05-15 | by ( Allison Morrow | ) edition.cnn.com time to read: +3 min

“I never envisioned myself or SVB being in this situation,” former CEO Greg Becker writes, adding that he is “truly sorry for how this has impacted SVB’s employees, clients, and shareholders.”Becker is scheduled to testify at 10 a.m. ET Tuesday alongside two former executives of Signature Bank, which collapsed two days after SVB. But SVB’s collapse rumbled across global financial markets and sparked a selloff that has gripped US regional banks for more than two months. In its autopsy of the bank’s collapse, the Fed, which was SVB’s primary regulator, blamed both the central bank’s supervisory shortcomings and SVB management’s missteps. “You have nobody to blame for the failure at your bank but yourself and your fellow executives,” Warren wrote in a letter to Becker in March.

☆ Stocks week ahead: SVB and Signature Bank execs are set to testify next week
▼ + stars: | 2023-05-14 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

The US Senate Committee on Banking, Housing and Urban Affairs is holding three hearings this coming week centered around the collapses of Silicon Valley Bank and Signature Bank in March. ET : Greg Becker, former chief executive, Silicon Valley Bank; Scott Shay, former chairman and co-founder, Signature Bank and Eric Howell, former president, Signature Bank. ET : Mark Bialek, inspector general, Board of Governors of the Federal Reserve System and the Consumer Financial Protection Bureau; Paul Kupiec, senior fellow, American Enterprise Institute and more. Since then, the Federal Reserve and Federal Deposit Insurance Corporation have released reports detailing management missteps at SVB and Signature Bank, as well as federal regulators’ own mistakes in properly addressing red flags preceding the banks’ demises. A separate report from the Federal Reserve Bank of New York on Friday shows that American households are becoming increasingly frugal.

While the communique made no mention of the U.S. debt ceiling stalemate, it figured constantly in discussions. "We need to remain vigilant and stay agile and flexible in our macroeconomic policy amid heightened uncertainty about the global economic outlook," they added in the communique after the meeting. G7 central bank chiefs vowed to combat "elevated" inflation and ensure expectations on future price moves remained well-anchored, a sign many of them will not let their guard down against stubbornly high inflation. CHINA AND SUPPLY CHAINSSeeking to reassure investors after recent U.S. bank failures, the G7 finance chiefs retained an April assessment that the global financial system was "resilient". In the communique, the finance leaders set a year-end deadline for launching a new scheme to diversify global supply chains.

☆ G7 agreed global financial system resilient but needs vigilance, Japan finmin says
▼ + stars: | 2023-05-13 | by ( ) www.reuters.com time to read: +3 min

[1/2] Japan's Finance Minister Shunichi Suzuki, Germany's Finance Minister Christian Lindner, Britain's Chancellor of the Exchequer Jeremy Hunt, Joachim Nagel, President of Germany's federal reserve... Read moreNIIGATA, Japan, May 13 (Reuters) - Finance ministers and central banks from the Group of Seven rich nations agreed the global financial system is resilient but the need for vigilance remains, Japan's finance minister Shunichi Suzuki said on Saturday. "We reaffirm that our financial system is resilient, supported by the financial regulatory reforms implemented after the 2008 global financial crisis, including considerable increases in the levels of bank capital and liquidity, an international framework for effectively resolving failing institutions, and strengthened cross-border regulatory and supervisory cooperation," it said. British finance minister Jeremy Hunt told reporters at a separate event that G7 finance chiefs in Japan had "very frank and open discussions" about the challenges they face, including banking regulation. The ministers have wrapped up a three-day meeting in the Japanese city of Niigata. Reporting by Tetsushi Kajimoto and Leika Kihara; Writing by David Dolan Editing by Shri NavaratnamOur Standards: The Thomson Reuters Trust Principles.

☆ G7 to vow diversifying of supply chains, filling bank regulatory gaps -draft
▼ + stars: | 2023-05-12 | by ( ) www.reuters.com time to read: +4 min

In the draft communique, the G7 central banks said they remained "strongly committed" to achieving price stability and ensuring inflation expectations stayed well-anchored. "Diversification of supply chains can contribute to safeguarding energy security and help us to maintain macroeconomic stability," the draft communique said. But it said G7 countries will work to ensure foreign investment in critical infrastructure "does not undermine the economic sovereignty of host countries." On banking-system woes, the draft communique said the financial system was resilient due to regulatory reforms implemented after the 2008 global financial crisis. "We will address data, supervisory, and regulatory gaps in the banking system," the draft communique said.

☆ German regulator warns of a 'nervous time' for banks, predicts stress in the property market
▼ + stars: | 2023-05-09 | by ( Silvia Amaro | ) www.cnbc.com time to read: +1 min

Photo: Arne Dedert/dpa (Photo by Arne Dedert/picture alliance via Getty Images)Germany's financial regulator on Tuesday warned that the country's banking system is undergoing a real-life stress test amid the current volatility, also predicting significant weakness for the commercial property sector. Pressures facing the sector have intensified as many central banks push up their benchmark rates, leading to specific market dislocations. Mark Branson, president of the German regulator BaFin (Federal Financial Supervisory Authority), told CNBC that Germany has seen the same impacts from higher rates as many other nations around the world. He said that the German banking system "has taken some pain," but highlighted that there is "no systemic danger" and the financial system has managed to absorb the impacts of higher rates well. However, problems can arise when banks take on additional risk and fail to keep up with a continued and sharp increase in rates.

☆ BaFin president: 'We don't have a global banking crisis at the moment'
▼ + stars: | 2023-05-09 | 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 EmailBaFin president: 'We don't have a global banking crisis at the moment'Mark Branson, president of the German regulator BaFin (Federal Financial Supervisory Authority), told CNBC's Annette Weisbach that Germany has seen the same impacts from higher rates as many other nations around the world.

HOUSTON, May 8 (Reuters) - A U.S. court of appeals has granted Venezuela a temporary stay preventing six companies from joining a proposed court auction of shares in a Citgo Petroleum parent to enforce judgments for past expropriation of assets. The companies had won conditional attachments to a federal case in which the judge has approved a process to auction the shares to pay a $970 million judgment won by miner Crystallex. The six hold arbitration awards or judgments that total about $2.6 billion and wanted those awards to be included in the auction. The proposed auction, which could break up the seventh largest U.S. refiner to pay creditors, took a giant step forward last month with a greenlight from the U.S. Treasury. Washington has since recognized the opposition-led congress as the entity controlling the refining subsidiary, extending protection to prevent its breakup at the hands of Venezuela creditors.

☆ A Brain Drain Is Hurting the F.D.I.C.
▼ + stars: | 2023-05-08 | by ( Alan Rappeport | ) www.nytimes.com time to read: +2 min

The March failures of Signature Bank, which was overseen by the F.D.I.C., and Silicon Valley Bank, which was regulated by the Federal Reserve, threatened to set off runs at regional banks across the country. Biden administration officials and federal regulators have described the recent bank failures as largely the result of poor management. In a report released in late April reviewing the failure of Signature Bank, the F.D.I.C. pointed to its own “persistent” staffing shortages as a problem that has hampered its ability to supervise lenders. It’s always a risk at any regulatory agency.”The F.D.I.C.

☆ VW to fire top executives at software unit Cariad, source says
▼ + stars: | 2023-05-06 | by ( Jan Schwartz | ) www.reuters.com time to read: +1 min

The unit - set up under former VW group CEO Herbert Diess -has exceeded its budget and failed to meet goals, contributing to Diess' departure and replacement by Oliver Blume last September. A VW spokesperson said the German company was analysing Cariad and its projects. A number of decisions have been made, but no decisions on personnel, the spokesperson said, adding that Cariad and vehicle software development remained integral to Volkswagen's group strategy. The problems at Cariad have delayed work on important new vehicle models Porsche e-Macan and Audi Q6 e-tron. The planned launch of company-wide structural car software, initially designed to enable the fourth of five levels of autonomous driving from 2026, has been postponed by two years.

☆ Credit Agricole has no plans to raise stake in Italy's Banco BPM
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

Credit Agricole emerged as Banco BPM's single biggest investor a year ago, shortly after UniCredit (CRDI.MI) ditched a buyout offer for the smaller rival. Credit Agricole recently increased its initial 9.2% stake, but it would need supervisory clearance to cross the 10% threshold. When asked whether Credit Agricole could help shield Banco BPM from potential takeovers, Maioli said: "We don't play that part. Credit Agricole Italy two years ago spent 855 million euros ($941.36 million) to buy regional Italian bank Creval, after agreeing to rescue three small ailing lenders in 2017. "I think the priority of all the parties involved should be that of strengthening Italian banks," he said.

☆ Inside Wells Fargo's 'chaotic' journey to transform its services for the ultrarich
▼ + stars: | 2023-05-04 | by ( Hayley Cuccinello | Reed Alexander | ) www.businessinsider.com time to read: +23 min

In late 2020, some 300 Wells Fargo employees were summoned to a conference call. "I actually welcomed that, although I did like Abbot Downing," he said of folding Abbot Downing into the private bank. One team of legacy Abbot Downing employees with $3.5 billion in assets left for Hirtle Callaghan in June 2021. Today, Ginter runs a registered investment advisor called Callan Family Office, which some former Abbot Downing employees refer to as "the new Abbot Downing." Are you a current or former client of Wells Fargo Private Bank or Abbot Downing?

☆ Former FBI Agent Charged With Egging On Jan. 6 Mob at Capitol
▼ + stars: | 2023-05-03 | by ( Sadie Gurman | ) www.wsj.com time to read: 1 min

Police body-camera footage showed former FBI agent Jared Wise, in black cap, at the Capitol on Jan. 6, 2021. Photo: Department of JusticeWASHINGTON—A former FBI agent has been arrested and accused of urging a mob of Trump supporters to kill police during the Jan. 6, 2021, attack on the U.S. Capitol, federal prosecutors said, adding to the tally of people with military or law-enforcement experience charged in the riot. Police body-camera footage showed the former supervisory agent, Jared L. Wise , tangling with officers outside the Capitol, investigators wrote in court filings filed Monday, calling them Nazis and encouraging rioters attacking the police line to “Kill ‘em!

☆ Former FBI agent charged in Jan. 6 attack on U.S. Capitol
▼ + stars: | 2023-05-03 | by ( Sarah N. Lynch | Thomson Reuters | Sarah N. Lynch Is The Lead Reporter For Reuters Covering The U.S. Justice Department Out Of Washington | ) www.reuters.com time to read: +2 min

WASHINGTON, May 3 (Reuters) - A former FBI agent has been arrested for his alleged role in the Jan. 6, 2021, attack on the U.S. Capitol and charged with four misdemeanor counts, including unlawfully entering a restricted building and disorderly conduct, according to court filings. Jared Wise, 51, who served as an FBI agent and a supervisory agent from 2004 to 2017, was taken into custody on Monday and released home with conditions, according to court filings. In body-worn camera footage captured by D.C. Metropolitan Police officers, Wise addressed them directly, saying: "“You guys are disgusting. Shame on you!”The camera footage also captured Wise's reaction as other surrounding protesters began to attack police officers trying to defend the Capitol, the filing added. A spokesperson for the FBI declined to comment beyond what is contained in public court filings.

☆ Problems are mounting in the economy, big companies say, and another Fed rate hike may be one too many
▼ + stars: | 2023-05-03 | by ( Eric Rosenbaum | ) www.cnbc.com time to read: +8 min

While that's good for them, it also means "we're definitely moving towards a slowdown," one CFO said. "They are trying to fight a problem but there's evidence around the U.S. that says the economy is slowing. One concern voiced by CFOs is that the top end of the consumer market has been masking deeper problems in the economy, with companies tracking a rise in credit delinquencies, and that is now starting to spread. But inside major corporations, executives say they see signs of mounting trouble for the economy and as another interest rate hike looms, it may be time for the Fed to stop. While traders are betting on rate cuts before year-end, the CNBC Fed Survey shows a belief from economists and money managers that the Fed will hold rates higher for eight months.

☆ JPMorgan could be the banking sector’s biggest hero — or biggest risk
▼ + stars: | 2023-05-03 | by ( Krystal Hur | ) edition.cnn.com time to read: +7 min

And as the bank swells in size, so does the potential risk it poses to the nation’s financial system. Some experts say they’re concerned that JPMorgan’s continued intervention during times of crisis has broader implications for the banking sector, the US financial system and its regulation. And with every failed bank that JPMorgan snaps up, the conundrum becomes clearer: JPMorgan is essentially the biggest risk to the financial system — and every time it expands to uphold the sector’s stability, so does its risk to the financial system. It has “that ability once again, to signal to the world that JPMorgan is a fortress, JPMorgan is the ultimate. But recent failures and the missteps that led to them indicate that deep flaws underline the financial system.

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