Sign In
Lafferty News ServiceNews, research, analysis and opinion

Share this article

Home » Retail Banking 2020 Insights » Morning Briefing: UK starts RBS sell-off

Morning Briefing: UK starts RBS sell-off

Morning News

Seven years after bailing out Royal Bank of Scotland, the UK has sold a $3.3 billion stake in the bank as it begins to dispose of its holding.

Chancellor George Osborne described the sale as "an important first step in returning the bank to private ownership".

He maintained that selling the stake at a loss when compared to the price paid for the shares in 2008 was the right thing to do. "While the easiest thing to do would be to duck the difficult decisions and leave RBS in state hands, the right thing to do for the economy and for taxpayers is to start selling off our stake," he said.

Libor scandal: Hayes gets 14 years for rigging rates

Tom Hayes became the first person to be convicted of rigging Libor rates by a UK court and received a 14-year prison sentence which the judge said was intended to send a message to the rest of the banking world.

Mr Hayes had claimed that he only admitted dishonesty during Serious Fraud Office interviews in 2012 to avoid being extradited to the US. In December 2013, he changed his position to a plea of not guilty.

NY regulator suspends Promontory from some consulting work with banks

The New York Department of Financial Services has blocked Promontory Financial Group from carrying out some consulting work with banks, saying the firm was too close to its client, Standard Chartered PLC.

The regulator alleges that the firm watered down its compliance reports on the bank. Promontory is expected to file a court request to put a hold on the action.

Credit Agricole expects US settlement in autumn

Credit Agricole reported a 12.4 percent rise in cost of risk for the second quarter as it set aside more capital for litigation costs.

The bank said second-quarter net income rose to €920 million euros from €17 million for the same period in 2014 — when it had taken a hit because of its stake in Portugal's Banco Espirito Santo.

It said talks with US authorities (over US dollar payments involving countries or individuals that were sanctioned) had advanced and it expected a global settlement in the autumn.

China drafts rules to curb online payment services

Amid fears that the move could stifle development, China's central bank has pressed ahead with plans to curb online payment services.

Draft rules issued on Friday limit fund transfers, cap the size of daily transactions and increase proof of identity requirements. The proposed rules are intended to curb fraud and money laundering.

Hong Kong fines BNP Paribas £1.25m

Hong Kong's securities regulator has fined France's BNP Paribas £1.25 million for failures related to "dark pool" trading, saying its dark pool had failed to execute orders based on price priority for almost 18 months.

"No one should dive into dark water without knowing what is hidden," Mark Steward, the SFC's executive director of enforcement, said in a statement. "Operators must have clear rules and procedures in place for operating dark pools."

India Post looks to create new banking entity

India Post has created a short-list of consultants to advise it on floating a new bank, which, while being a new entity, will leverage India Post's infrastructure by entering into service-level agreements.

Citibank investigated over student loans

Citibank is facing a probe into its student loan services only a few weeks after Discover was hit with an $18.5 million penalty for misinformation and inflating students' monthly bills.

It is understood that the Consumer Financial Protection Bureau is conducting the investigation into aspects of Citibank's student loan practices.

HSBC sells up in Brazil

HSBC has agreed a $5.2 billion sale of its Brazil business to Banco Bradesco as part of the bank's plan to shed underperforming units.

The bank's first half profit beat expectations with a 10 percent rise on the back of a strong performance in Hong Kong.


Subscribe to the Lafferty Daily Briefing


© 1981-2019 Lafferty Group


Toll-free: +44(0) 800 772 3849
83 Victoria Street

Research    —    Bank Quality Ratings    —    Councils    —    Reports    —    Events    —    Group
LinkedIn    —    Facebook    —    Twitter