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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

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 […]

Theresa May Pushes For New Trade Relations At G-20 Summit Post Brexit

Following Britain’s decision to leave the European Union, Prime Minister Theresa said Sunday that she intends to seize new trading opportunities for the post-Brexit Britain. During the ongoing Group of 20 summit in Hangzhou, China, May met U.S. President Barack Obama where both leaders reaffirmed that the “special relationship” between the U.S. and U.K. would not be affected by Britain’s decision to leave the EU. However, Obama maintained that the U.K. would have to wait for fresh negotiations for trade relations between the two countries as the U.S.’s current focus was to finish trade deals with Asia-Pacific and the European Union. Meanwhile, he said Britain was “figuring out what Brexit means […]