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Home » Cards & Digital Payments Insights » Morning Briefing: US authorities probe banks regarding Fifa funds

Morning Briefing: US authorities probe banks regarding Fifa funds

Morning News

At least six banks, including HSBC, Standard Chartered and Delta National Bank, have been contacted by US authorities investigating the manner in which banks handled Fifa funds. The banks have been contacted as part of two separate probes by the Brooklyn US Attorney's office and New York's financial regulator.

Visa profit hike, in talks with Visa Europe

Visa reported that profit jumped 25 percent in its third quarter, fueled by double-digit growth in payment volume.

The company acknowledged that some of the boost came from a $280 million tax benefit that was supposed to come later in the year.

Company CEO Charles Scharf also confirmed that discussions about uniting with Visa Europe were ongoing, with the aim of resolving the issue before the end of October. The banks that own Visa Europe have a put option that could require Visa to purchase it; however, they have not exercised the option.

As a major sponsor of Fifa, Scharf also used Visa's results as an opportunity to call for an independent board to clean up football's governing body. "We view the stewardship of our company, our brands and our clients with the utmost importance and try to hold ourselves to the highest standards," Scharf said. "We seek to partner with those who think and act like us. I don't believe that FIFA is living up to these standards."

Call for full investigation of 'improper behaviour' among Irish banking inquiry staff

According to the Irish Times a whistleblower has called for a full independent investigation into allegations of improper behaviour among staff of the Irish banking inquiry and said the investigation should not be under the control of the Houses of the Oireachtas service. The service, which provides administrative support to the Irish parliament and employs the banking inquiry staff, has been accused by the whistleblower of "repeated acts of penalisation" against them.

Allegations of improper behaviour by members of the investigations team were first made by the whistleblower on 25 April. The allegations, including a claim that some participants received favourable treatment, are being investigated, but the whistleblower claims the investigation will not give due consideration to allegations that include "off-the-record telephone calls and meetings" and "improper pressure on certain investigators to exclude certain relevant witnesses".

Bank bosses warn new surcharge will stifle competition

The bosses of challenger bank TSB and Yorkshire Building Society have added their voices to the campaign to get the UK government to row back on plans for a new surcharge on bank profits that they say will stifle their ability to compete with larger banks. TSB boss Paul Pester and Yorkshire Building Society chief executive Chris Pilling used their latest results as a platform to oppose plans to charge UK banks 8 percent on profits over £25 million.

Banks lag manufacturers and telcos is race to build innovation centres

Financial services trail other industries when it comes to setting up innovation centres in technology hubs, according to a report by CapGemini and Altimeter Group.

The report says that 38 percent of the biggest 200 companies in the world have taken such an initiative, but only 28 percent of financial services companies have done so. Manufacturing tops the list with 58 percent.


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