Compliance In Trade Finance Due Diligence

Compliance In Trade Finance Due Diligence For many years companies have used trade finance instruments in order to manage risks when exporting and importing goods internationally. Trade finance ensures that cross-border business is protected against late payments, delayed delivery, geopolitical instability, currency fluctuations and other known and unknown risk factors. Given continuing risks to trade caused by, for example, turmoil in the Ukraine, the eurozone crisis, and tensions in the Middle East and South America, compliance in trade finance due diligence is a must for multinational corporations (MNCs). But today, being prudent is about more than just managing operational and market risks – it’s about compliance. Compliance in trade finance […]

Shortage Of Trade Finance Reaches $1.6 Trillion US

Trade Finance Shortage Pressuring Small Businesses The worldwide shortage of trade finance has reached $1.6 trillion US according to a recent study by the Asian Development Bank. The International Chamber of Commerce ICC 2016 Global Survey on Trade Finance, which reflects the issues and trends of the trade finance industry, reveals that 61% of national, regional and global banks that provide trade financing reported a worldwide trade finance shortage. While the worldwide shortage of trade finance impacts businesses across the globe, small to medium-sized enterprises (SMEs) are being squeezed the hardest. According to the survey, a disproportionate 58% of rejected trade finance proposals are from SMEs, even though only 40% of […]

China fines GM venture $29 million for monopolistic pricing: state TV

BEIJING China will fine U.S. automaker General Motors Co’s (GM.N) joint venture 201 million yuan ($29 million) for monopolistic pricing, state television reported on Friday, ending speculation after an official forewarned of penalties against a U.S. automaker. Shanghai’s pricing regulator said that it would fine GM’s venture with China’s largest automaker SAIC Motor Corp Ltd (600104.SS) for setting minimum prices on certain Cadillac, Chevy and Buick models, according to China Central Television. “GM fully respects local laws and regulations wherever we operate,” the U.S. automaker said in an emailed statement. “We will provide full support to our joint venture in China to ensure that all responsive and appropriate actions are […]

US Penalizes Credit Suisse, Deutsche Bank $12 Billion For Toxic Debt

ZURICH/FRANKFURT Credit Suisse and Deutsche Bank have been hit with a combined penalty of more than $12 billion over the sale of U.S. toxic debt, further hampering two of Europe’s leading investment banks as they grapple with falling profits. The penalty puts them at a further disadvantage to larger U.S. rivals. Credit Suisse (CSGN.S) agreed in principle to pay U.S. authorities $2.48 billion to settle claims it misled investors in residential mortgage-backed securities it sold in the run-up to the 2008 financial crisis, the Swiss bank said on Friday. Credit Suisse will also provide $2.8 billion from the settlement over five years to offset the impact on consumers, it said […]

Credit Suisse agrees $5.3 billion U.S. mortgage settlement

ZURICH Credit Suisse (CSGN.S) had agreed in principle to pay US authorities $2.48 billion to settle claims it misled investors in residential mortgage-backed securities it sold in the run-up to the 2008 financial crisis, the Swiss bank said on Friday. Credit Suisse will also provide $2.8 billion in consumer relief over five years from the settlement, it said in a statement, adding the deal was subject to negotiation of final documentation and approval by its board of directors. “Credit Suisse will take a pre-tax charge of approximately $2 billion in addition to its existing reserves against these matters. This will be taken in our 4Q 2016 financial results,” it added. […]

Deutsche Bank agrees to $7.2 billion mortgage settlement with U.S.

NEW YORK/FRANKFURT Deutsche Bank has agreed to a $7.2 billion settlement with the U.S. Department of Justice over its sale and pooling of toxic mortgage securities in the run-up to the 2008 financial crisis. The agreement in principle, announced by Deutsche Bank’s Frankfurt headquarters early Friday morning, offers some relief to the German lender, whose stock was hit hard in September after it acknowledged the Justice Department had been seeking nearly twice as much. It also highlights the Justice Department’s recent efforts to hold European banks accountable for shoddy securities that contributed to the U.S. housing market collapse. The department sued Barclays PLC on Thursday over similar claims, after having […]

Banks lift stocks, dollar holds near 14-year peak

LONDON European stocks edged higher on Friday helped by banks after two regional bellwethers settled U.S. mortgage securities probes, while oil and the dollar were on the back foot in light trading ahead of the Christmas break. In another boost to European financials, a bailout for Italy’s oldest bank Monte dei Paschi was approved as the country’s government looks to end a protracted banking crisis that has gummed up the economy. European shares were up 0.1 percent with euro zone banks .SX7E up 0.7 percent and comfortably outperforming broader markets. An index of Italian lenders .FTIT8300 was up 1.3 percent. While Monte dei Paschi shares were suspended from trading, Italian […]

Volkswagen reaches deal with 80,000 U.S. 3.0-liter vehicle owners

WASHINGTON A federal judge said on Thursday that Volkswagen AG (VOWG_p.DE) has reached an agreement in principle to provide “substantial compensation” to the owners of about 80,000 3.0-liter polluting diesel vehicles, a key hurdle to resolve the German automaker’s emissions scandal. U.S. District Judge Charles Breyer did not disclose the amount of owner compensation, which is not included in a $1 billion settlement announced earlier this week between VW and U.S. regulators. Half of the compensation will be paid at the time Breyer gives final approval of the settlement. Some fixes for the 3.0 liters may not approved until 2018, Breyer said. Earlier this week, Volkswagen reached the $1 billion […]

U.S. sues Barclays, ex-executives for mortgage securities fraud

NEW YORK The U.S. Department of Justice on Thursday sued Barclays Plc (BARC.L) and two former executives on civil charges of fraud in the sale of mortgage-backed securities during the run-up to the 2008-09 financial crisis. The lawsuit was filed after Barclays resisted a penalty the U.S. government had sought in settlement negotiations, a person familiar with the matter said. The person would not disclose the government’s demand. Major U.S. banks, including JPMorgan Chase & Co (JPM.N) and Bank of America Corp (BAC.N), have paid tens of millions of dollars to settle similar claims over misconduct in the sale and pooling of mortgage securities, which helped to cause the financial […]

Citi and Mercuria reach settlement over Qingdao

Citi and Mercuria have reached a settlement over the metals financing fraud in Qingdao which took place in 2014. The amount is undisclosed, but Citi confirmed the news in a statement that read: “Citi and Mercuria are pleased to confirm that they have reached a commercial resolution in respect of all issues between them relating to the historic base metal transactions in Qingdao and Penglai. This brings to an end the legal dispute between them.” Commodity trading house Mercuria confirmed the arrangement, publishing the same statement over social media. The pair had been embroiled in a legal battle over a repurchasing agreement (repo) worth $270 million US, which saw them slug […]

AIIB to fund Philippines projects

The Asian Infrastructure Investment Bank (AIIB) is to co-finance two infrastructure projects in the Philippines. The China-backed development bank is to contribute loans to a flood management project on the Manila metro system and a rapid transit bus system in the Filipino capital. The loan amounts are yet to be revealed, but the AIIB’s participation has been confirmed by the Filipino government. The metro project is running at a total cost of 23.46bn pesos (about US$470mn), while the bus network is to cost around 37.6bn pesos (approximately US$754mn). The Asian Development Bank (ADB) is to partner on the transit system, while the World Bank is to co-finance the flood management […]

China Launches Satellite To Monitor Global Carbon Dioxide Emissions

As part of its effort to monitor and curb greenhouse gas emissions, China on Thursday launched an atmospheric carbon dioxide monitoring satellite from the Jiuquan Satellite Launch Center in the Gobi Desert. The TanSat satellite, launched on board a Long March-2D rocket, was sent to a sun synchronous orbit roughly 435 miles from the surface of Earth. The 1,400-pound satellite will measure global carbon dioxide levels every 16 days over the next three years. China hopes doing so would help policy makers and scientists gather “independent” climate change data. “Since only the United States and Japan have carbon-monitoring satellites, it is hard for us to see first-hand data,” Xinhua quoted […]

Scientists Create Artificial Leaves That Can Serve As ‘Mini-Factory’ For Drugs

A garden filled with “plants” that manufacture medicines on demand might sound like an idea straight out of the fevered imagination of a science fiction writer, but a team of Dutch researchers has now taken the first step toward making it real. In a study, published Thursday in the journal Angewandte Chemie, researchers from the Eindhoven University of Technology described the creation of a “mini-factory” of drugs contained within artificial leaves. These structures, which don’t necessarily need to be shaped like leaves, utilize the unique characteristics of luminescent solar concentrators (LSCs) — materials capable of capturing sunlight much like real leaves, converting it to a specific color, and guiding it to […]

Ford Truck Recall 2016: Full List Of Models At Risk Of Catching Fire

Ford Motor Co. issued a recall Wednesday for 9,300 vehicles that are at risk of catching fire due to leakage of fuel.  The company said that it is not aware of any fires, accidents or injuries related to the problem. Approximately 8,000 2017 Ford Super Duty vehicles and 1,300 2016 Ford Taurus, 2016-17 Flex, 2017 Explorer and Police Interceptor Utility and 2016-17 Lincoln MKT vehicles with 3.5-liter GTDI engines have been recalled. While the company said it will inspect and install fuel tank strap reinforcement on the Super Duty vehicles, the other affected models will have their leaking turbocharger oil supply tubes replaced. “Over time, a missing reinforcement could lead to […]

Services bring new opportunities for banks

As the dollar value of global merchandise reduces, the value of cross-border services is rising, creating new opportunities for banks to innovative by embracing the change. In an analysis of bilateral trade between 25 key trading nations, Global Trade Forecast, HSBC and research partner Oxford Economics found that growth in services exports has outstripped growth in goods trade since the global financial crisis. Services’ share of total world trade rose from 20% in 2011 to 23% in 2015, with outsourcing of intermediate business services to specialized suppliers driving much of this growth. In 2016, the dollar value of goods is expected to contract by about 3%, while cross-border sales of […]

Dollar basks in yield glow, Nikkei at one-year peak

SYDNEY The U.S. dollar held near 14-year peaks on Wednesday as global yield spreads moved inexorably in its favor, while a falling yen lifted Japanese shares to a one-year top. The Nikkei .N225 added 0.3 percent in thin trade, while Australia’s main index climbed 0.6 percent to its highest in 17 months after Wall Street racked up more records. Japan’s government upgraded its overall assessment of the economy on Wednesday, echoing a more upbeat view from the Bank of Japan’s delivered the day before. The dollar reveled in its rapidly widening yield premium, with the Federal Reserve set on a tightening course even as its peers in Europe and Japan […]

How Do Banks Use Your Money? Morgan Stanley Fined $7.5M For Mishandling Depositors’ Funds

Morgan Stanley faces a $7.5 million fine from the Securities and Exchange Commission, the SEC announced Tuesday, for using illegal levels of customers’ cash and securities in swap trading. From March 2013 to May 2015, the megabank used its affiliate, Morgan Stanley Equity Financing Ltd., to serve as a client to its U.S. securities brokerage, the SEC said. In doing so, the affiliate could use funds from the brokerage, or broker-dealer, to finance its trades. The only problem: The broker-dealer’s customer deposit reserves are required to be maintained at a certain level, in case customers want to pull out their money — in, say, the case of bank failure — and […]

Chinese Yuan Headed For Biggest Annual Drop In 20 Years As Capital Outflows Accelerate

China’s capital outflow could accelerate further in coming months as the yuan depreciates and investors gain concerns about a strengthening dollar. The warning from Banny Lam, head of research at CEB International Investment Ltd. in Hong Kong, came Monday, just days after Goldman Sachs Group warned China’s capital outflows are accelerating, with $69.2 billion reported leaving the country in November, nearly 20 percent more than in preceding months. “Capital outflows and yuan depreciation will continue or even worsen by the end of this year and the first quarter of 2017, as investors are getting increasingly concerned about a stronger dollar and China’s economic conditions,” Lam told Bloomberg. Goldman said the […]

Exclusive: U.S. proposed $5 billion – 7 billion penalty on Credit Suisse on toxic debt – source

ZURICH/NEW YORK The U.S. Department of Justice has asked Credit Suisse to pay between $5 billion and $7 billion to settle a probe over its sale of toxic mortgage securities in the run-up to the 2008 financial crisis, a source with knowledge of the matter said, but the bank has resisted settling for that amount. The size of the suggested settlement indicates that the cost to the bank may be higher than analysts had expected and explains why Credit Suisse management, according to a second source, has been seeking a smaller penalty. “Credit Suisse is confident of reaching a better solution,” said the second person. Should talks break down, U.S. legal […]

U.S. charges Platinum Partners execs with $1 billion fraud

NEW YORK Top executives of New York-based hedge fund manager Platinum Partners were arrested on Monday and charged with running a $1 billion fraud that federal prosecutors said became “like a Ponzi scheme” as its largest investments lost much of their value. Led by Mark Nordlicht, Platinum was known for years for producing exceptionally high returns — about 17 percent annually in its largest fund — by taking an unusually aggressive approach to investing and fund management, as detailed by a Reuters Special Report in April. (reut.rs/1TRovwx) Nordlicht, Platinum’s founding partner and chief investment officer, was arrested at his home in New Rochelle, New York. Federal prosecutors accused him and […]