BRITAIN: Osbourne to Court Bankers at Mansion House with #Brexit on the Cards

#AceFinanceNews – Featured Report:BRITAIN:June.10: Despite a spate of record fines of bankers rigging international rates, miss-selling people insurance policies and bagging huge bonuses, UK Chancellor George Osborne is set to use his annual Mansion House event in the City of London to keep his friends happy.

Against the growing lack of trust in the City, Osborne is set to keep his banking friends sweet. The theme of the chancellor’s speech is the need for a new settlement with the EU, with the City, and in the way the public finances are managed. 

Having won electoral success in May, the Conservative government is keen to use its majority to press on with traditional Tory financial policies, which often means fawning to its City backers and friends. 

The annual Mansion House speech is given by the chancellor to black-tied bankers, the City elite and other grandees – many of whom are Conservative Party donors. Osborne himself has an estimated personal fortune of around $6 million, as the beneficiary of a trust fund that owns a 15 percent stake in Osborne & Little, the wallpaper-and-fabrics company co-founded by his father, Sir Peter Osborne. 

However, the City has been rocked in recent years by rows over huge bankers’ bonuses, despite the global economic crash caused by toxic debt flying around and the credit crunch. In the UK the taxpayer had to bail out both Lloyds and RBS in 2008 in order to keep them afloat. 

The government also had to support Northern Rock and Northern Rock (Asset Management), as well as Bradford & Bingley. The total support package for the ban bailout during 2008-9, according to the National Audit Office, came to an eye-watering $1.85 trillion. 

Bonuses and Record Fines

Not content with having had to bail out the bankers, taxpayers have been angered at their bonuses. This year it was reported that bankers were set to be awarded $7.7 billion in bonuses. Bailed bank RBS handed over $770 million, and Lloyds paid $580. 

In the latest scandal, London-based HSBC is being investigated in several countries for operating a secret bank in Switzerland used by rich people and companies to avoid tax in other states in an ‘aggravated money laundering’ operation. 

Meanwhile record fines have been handed over by banks who admitted rigging international rate systems. In 2012, Barclays Bank was fined $200 million by the Commodity Futures Trading Commission, $160 million by the United States Department of Justice and £59.5 million by the UK Financial Services Authority for attempted manipulation of the Libor and Euribor rates.

All eyes will be on whether George Osborne cuts the bank levy, which has been used to swell the government coffers by taking a charge on the financial sector. Stuart Gulliver, chief executive of HSBC, will be listening very carefully, having threatened to move his headquarters out of London and move back to Hong Kong.

Osborne, however, is unlikely to do anything that will upset his City mates too much. He has too much to lose.

@acenewsservices

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#barclays, #citigroup, #commodity-futures-trading-commission, #deutsche-bank, #federal-reserve-system, #financial-conduct-authority, #foreign-exchange-market, #the-royal-bank-of-scotland, #ubs, #united-states-department-of-justice

GERMANY: ‘ Deutsche Bank Exec’s Resign over Financial Mismanagement’

#AceBreakingNews – Featured Update:GERMANY:June.07: Deutsche Bank’s two co-chief executives resign in the wake of a series of missteps, the Wall Street Journal reported Sunday citing people familiar with the matter.

' Deutsche Bank Scandal '
‘ Deutsche Bank Scandal ‘

 Juergen Fitschen and Anshuman Jain’s resignations announced by France24 on Sunday, the outlet cites one person as saying. It adds Jain will stay with the banking giant as a consultant after June, while Fitschen will retain his post until next May.

The co-CEOs are thought to be quitting in the wake of a series of pratfalls, including a $2.5 billion fine for attempted interest rate manipulation, according to the publication.

The anticipated announcement also follows Friday’s launch of an investigation into money laundering of about $6 billion from 2011 to 2015 through Deutsche Bank’s Russian clients.

The bank was one of many financial institutions implicated in the 2008 real estate bubble that gave way to a global financial crisis. Deutsche Bank reached a settlement with shareholders early last year.

It is unclear yet who will succeed Fitschen and Anshuman as Deutsche Bank’s next chief executives.

@AceFinanceNews

#citigroup, #cocaine, #diosdado-cabello, #grupo-financiero-banamex, #illegal-drug-trade, #lawsuit, #money-laundering, #the-wall-street-journal, #united-states, #venezuela

ARGENTINA: US Court rules they must pay $5.4 billion to bondholders before creditors ‘

#AceFinanceReport – Featured Update: ARGENTINA:This is a situation l have followed for sometime, left time-line of events at bottom of post. As US apply strangle-hold to get money for themselves and fellow bondholders.  

A US court has ruled that before it can pay the majority of its creditors Argentina must pay $5.4 billion to its bondholders in addition to the $1.33 billion that it is already required to pay to a group of hedge funds, the Buenos Aires Herald reports.

The decision was made by US District Judge Thomas Griesa in New York who said that the creditors held bonds that were similar to those held by the hedge funds and thus should be treated in the same way, the newspaper said on Friday.

Dollars

The creditors have sought full repayment on Argentina’s bonds since the country was hit by a major default in 2002. According to the Buenos Aires Herald, they hold about 92 percent of Argentina’s defaulted debt.

In 2001, Argentina was acutely feeling the impact of an economic crisis that began in 1998 and lasted until 2002. At the time, the country experienced high unemployment rates and defaulted on its foreign debt.

Ace Related News:

Argentina Strangled by Bond Holders Time-line

@AceFinanceNews

#argentina, #bondholders, #buenos-aires, #citigroup, #cristina-fernandez-de-kirchner, #daniel-pollack, #debt-management, #hedge-funds, #new-york, #thomas-p-griesa, #united-states, #united-states-federal-judge

One little known secret of the global economic…

One little known secret of the global economic collapse of 2008 is that the same six individuals who caused it, just happened to be the same six individuals who were arrested and convicted for the same crime 20 years earlier. Surprised? They were the brains behind the financial firm of Charles H. Keating, best known for controlling five US Senators notoriously known as the Keating 5. After the scandal, those six evil geniuses went to banks like Goldman Sachs, JP Morgan and Citigroup, where they invented the financial instruments that destroyed the world in 2008. And just as the banks simply recommitted a brilliant crime invented by someone else, today they’re doing the exact same thing.
http://www.whiteoutpress.com/articles/q32013/goldman-sachs-and-jp-morgan-repeating-enron-crimes/

#acefinancenews, #economic-collapse-2008, #citigroup, #enron, #goldman-sachs, #jpmorgan-chase, #keating, #us-senators

Using A Sledge Hammer To Crack Credit Card Debt

American Express

American Express (Photo credit: Wikipedia)

Of all the bad practices of the mortgage boom and collapse, robo-signing was among the worst. Unsubstantiated and at times fraudulent foreclosure documents submitted by banks affected more than a 138,000 US homeowners. Following the great series by the American Banker’s Jeff Horwitz, the NYT‘s Jessica Silver-Greenberg reports that some of the same tactics are being employed collecting credit card debt:

As they work through a glut of bad loans, companies like American Express, Citigroup and Discover Financial are going to court to recoup their money. But many of the lawsuits rely on erroneous documents, incomplete records and generic testimony from witnesses, according to judges who oversee the cases.

Lenders, the judges said, are churning out lawsuits without regard for accuracy, and improperly collecting debts from consumers…

I would say that roughly 90 percent of the credit card lawsuits are flawed and can’t prove the person owes the debt,” said Noach Dear, a civil court judge in Brooklyn, who said he presided over as many as 100 such cases a day.

Americans may be reducing their outstanding credit card debt, but an overhang of unpaid loans remains. And lenders are looking for ways to maximize the value of those loans: JP Morgan is settling claims that it improperly raised minimum credit card payments, and then charged borrowers a fee if they couldn’t pay the new, larger amount. The Consumer Financial Protection Bureau may force American Express to refund customers who paid for “identity-theft protection services” without actually receiving the services. It has already won $140 million in refunds from Capital One for selling add-on products customers “didn’t understand, didn’t want, or in some cases, couldn’t even use”. That money fully compensated customers for their losses, which is a far better deal than penalizing a firm $4.8 million after costing customers $300 million. – Ben Walsh

#american-express, #brooklyn, #citigroup, #discover-financial, #jeff-horwitz, #lawsuit, #new-york-times, #noach-dear, #united-states