, in a move that will lower costs at the German bank and give global heft to a system created to speed up cross-border payments. The JPMorgan Chase-led Interbank Information Network (IIN) will this week announce Deutsche as a new recruit to a network of 320 banks which have agreed to swap information on global payments over blockchain, the mutually distributed ledger technology behind cryptocurrencies. Most of IIN’s existing members are banks who use JPMorgan as a correspondent bank to process dollar payments on behalf of their clients.
(Bloomberg Opinion) -- Mario Draghi’s public scolding of Europe’s lenders this week matters more than what he did for them.Banks in the region have long complained of the squeeze negative interest rates are putting on their profits — upending their traditional business model of borrowing money for the short term to lend to clients in the long run. But there’s little they can do to ease the pain: Charging ordinary citizens to hold their deposits, for example, is controversial and may even be illegal. As he cut rates deeper into negative territory this week, the president of the European ...
(Bloomberg) -- Austria’s new central-bank governor said that the European Central Bank’s latest easing package was possibly a mistake and can be changed after incoming President Christine Lagarde takes over from Mario Draghi.“As things change -- also this forward guidance and the policy may change -- not tomorrow, not the day after tomorrow, but I wouldn’t think it’s there for the next decades,” Robert Holzmann said in an interview with Bloomberg Television on Friday in Helsinki. Lagarde is not “a weak person who’ll say I’m locked in one or the other way.”Holzmann participated in his first ...
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. Mario Draghi is leaving the European Central Bank with a final stimulus package that has divided colleagues and drawn doubts over its economic effectiveness, putting governments under renewed pressure to step up with fiscal policy.His successor Christine Lagarde will inherit the presidency on Nov. 1 unsure how much more the institution can do to revive growth and inflation. Not only did Draghi’s plan to resume bond purchases and cut interest rates further below zero face ...
A surge in banks, miners and automakers galvanised European stocks on Friday, as continued rotation into the cyclical sectors amid signs of progress in U.S.-China trade talks drove the STOXX 600 to its fourth straight week of gains. In a week that saw trade tensions between Washington and Beijing thaw and the European Central Bank cut rates deeper into negative territory and relaunch bond purchases with no scheduled end-date, banking shares were the star performers. Euro zone banks, which wavered after the ECB decision on Thursday, rallied 2.4%, with analysts citing the central bank's ...
Deutsche Bank AG will pay $15 million to resolve claims it conspired to rig prices of bonds issued by Fannie Mae and Freddie Mac , becoming the first of 16 financial services companies to settle litigation by investors. The German bank did not admit wrongdoing in agreeing to the settlement, which also requires that it bolster its antitrust compliance procedures and cooperate with the investors. The settlement was disclosed in filings late Wednesday in Manhattan federal court.
(Bloomberg) -- Deutsche Bank AG is cooperating with the Justice Department’s antitrust investigation into whether several of the largest global banks conspired to rig trading in unsecured bonds issued by Fannie Mae and Freddie Mac.The bank earned leniency by providing information about other banks accused of rigging trading in the bonds. The cooperation deal emerged Thursday when Pennsylvania’s Treasurer, Joe Torsella, announced that Deutsche Bank had agreed to pay $15 million to resolve allegations in a civil lawsuit filed in federal court in Manhattan, that accuses traders at about a dozen ...
Deutsche Bank AG will pay $15 million to resolve claims it conspired to rig prices of bonds issued by Fannie Mae and Freddie Mac , becoming the first of 16 financial services companies to settle litigation by investors. The German bank did not admit wrongdoing in agreeing to the settlement, which also requires that it bolster its antitrust compliance procedures and cooperate with the investors. Investors including Pennsylvania Treasurer Joe Torsella accused several of the world's largest banks of exploiting their market dominance to overcharge for Fannie Mae and Freddie Mac bonds from Jan. ...
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. European Central Bank governors representing the core of the euro-area economy resisted President Mario Draghi’s ultimately successful bid to restart quantitative easing, according to officials with knowledge of the matter.The unprecedented revolt took place during a fractious meeting where Bank of France Governor Francois Villeroy de Galhau joined more traditional hawks including his Dutch colleague Klaas Knot and Bundesbank President Jens Weidmann in pressing against an ...
Deutsche Bank has become the first lender to settle civil claims of allegedly rigging US mortgage bond markets, resolving one of the lender’s many legal headaches for $15m. Deutsche was one of 16 financial institutions sued for breaking antitrust laws by allegedly using their dominant position to inflate prices and overcharge investors for mortgage bonds issued by the government-sponsored Fannie Mae and Freddie Mac. The Pennsylvania Treasurer, which brought the case against Deutsche along with other civil plaintiffs, said the bank’s speedy settlement “reflects Deutsche Bank’s early ...
The European Central Bank has announced its biggest package of rate cuts and economic stimulus in three years as President Mario Draghi warned governments that they needed to act quickly to revive flagging eurozone growth. The ECB cut interest rates further into negative territory and revived its contentious €2.6tn programme of buying bonds for an unlimited period, in the latest sign of concern over the health of the global economy. It also eased lending terms for eurozone banks and offered them tiered interest rates in a bid to ease the pressure on their lending margins.
(Bloomberg Opinion) -- There are times when the fundamentals get thrown out the window and greater forces take over the market. The first part of this week was a prime example as investors decided en masse to do some rebalancing by shifting out of stocks that have outperformed largely because of sheer momentum into those that have lagged, namely deeply discounted value stocks. This shift did little to overall valuations, with the MSCI All-Country World Index gaining a grand total of 0.01% on both Monday and Tuesday. Markets returned to some sense of normalcy on Wednesday, with the MSCI ...
(Bloomberg) -- Barclays Plc is making cuts to its Japanese fixed income business as Chief Executive Officer Jes Staley slashes costs globally to counter weak profits at its markets unit.The British bank is parting ways with several salespeople and traders in Tokyo, according to people familiar with the matter who asked not to be named discussing information that isn’t public. The reductions were made in the last week, the people said.Barclays joins Societe Generale SA and Deutsche Bank AG in cutting their fixed income divisions, which are in the business of trading bonds. Banks are contending ...
(Bloomberg) -- DWS Group GmbH & Co. plans to relocate to new offices in London by the end of the year, as it builds up an identity distinct from majority owner Deutsche Bank AG.The asset manager will leave the Zig Zag building near Westminster Cathedral and relocate to the Willis building in the capital’s financial district, according to an internal DWS memo seen by Bloomberg.A DWS spokesman confirmed the contents of the memo and declined to comment further.Deutsche Bank spun off DWS last year, though it still owns nearly 80% of the asset manager’s shares. Moving to the Willis Building at 30 ...
Cologne prosecutors have raided Commerzbank’s Frankfurt headquarters as part of a criminal investigation into a decade-long tax fraud that cost the country billions of euros. , described as the worst tax scam in German history, whereby financial groups and their clients allegedly exploited a design flaw in the tax code to trick authorities into refunding dividend tax that had never actually been paid. In a statement, the prosecutor’s office said that “investigative measures” were carried out on Tuesday “within the framework of the procedure complex around the cum-ex transactions”.
EDF of France has discovered flaws in the manufacture of nuclear reactor parts . Details are scant. It looks like a significant setback for a nuclear-focused energy utility plagued by cost overruns and ...
(Bloomberg Opinion) -- A type of financial engineering that proved to be toxic during the financial crisis is slowly making a comeback as banks try to offset the risk of their borrowers not repaying their loans.Capital relief trades, or synthetic deals, are making a comeback — and Europe is about to refine the rules of the game. Getting those right will be crucial if we are to avoid a repeat of history.The products all have one thing in common: They provide a cosmetic improvement to a lender’s balance sheet. They shunt the risk of a borrower defaulting away from the lender to other players in ...
(Bloomberg) -- Oil posted the biggest weekly gain since July as Federal Reserve Chairman Jerome Powell sought to calm fears of a possible recession following a lackluster jobs report that was seen as dimming the demand outlook.Futures in New York rose 0.4% Friday, erasing earlier losses. Powell said the most likely outlook for the U.S. and world economy is continued moderate growth, but the central bank was monitoring “significant risks.” The market also drew support from a U.S. report that showed the rig count had declined for the third week, implying a slowdown in domestic oil ...
(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here. German Chancellor Angela Merkel told Chinese Premier Li Keqiang that Germany remained open to business even as her government raises barriers to investments in sensitive areas.Germany’s tightened investment rules are meant to vet outside investors in strategic sectors, Merkel told reporters at a joint press conference with her Chinese counterpart in Beijing on Friday at the start of a two-day visit to China. Li pledged that China would further open its economy.“Not every ...
