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 […]

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 […]

U.S. consumer spending slows; business investment perking up

WASHINGTON U.S. consumer spending increased modestly in November as household income failed to rise for the first time in nine months, suggesting the economy slowed in the fourth quarter after growing briskly in the prior period. The economy, however, remains on solid footing as other data on Thursday showed new orders for capital goods rising last month amid demand for machinery, indicating that some of the oil-related drag on business spending was fading. And while the number of Americans applying for unemployment aid hit a six-month high last week, it remained below a level that is associated with labor market strength. The slowdown in growth is likely to be temporary […]

Poll: As 2016 ends, ‘Trumponomics’ tempts investors back to equities

LONDON Global investors’ equity holdings rose to six-month highs in December on bets that U.S. President-elect Donald Trump’s promised fiscal splurge would spur higher growth and inflation, a Reuters monthly poll showed on Thursday. Trump’s plans to cut taxes and boost spending have sent Wall Street to record highs in December as investors pile into everything from banks, to energy and materials and other infrastructure-related names. The last Reuters asset allocation poll of 2016 surveyed 45 fund managers and chief investment officers in mainland Europe, the United States, Britain and Japan. It showed equity holdings at 45.3 percent, the highest since June, capping an eventful year that saw a significant […]

‘Regtech’ startups see more business in Trump era

NEW YORK President elect Donald Trump is pro-business and anti-red tape. But what if your business is red tape? Companies whose technology helps banks and investors cope with the welter of post financial crisis regulations and avoid increasingly hefty fines – a sector known as “regtech” – are sanguine about Trump’s pledge to dismantle some of those reforms. Their equanimity is based on a belief that if regulations are replaced rather than scrapped and the overall system of rules becomes more fragmented, financial firms will need their systems to navigate the new landscape. “Change is itself a driver of regtech adoption,” said David Buxton, the chief executive of compliance startup […]

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 […]

Will Republicans Keep Obamacare Taxes? Repeal and Replace Needs Funding

Maybe not all of the Affordable Care Act needs to be repealed. Congressional Republicans may hold off repealing some of the taxes associated with the measure to provide funding for whatever replacement legislation is developed, sources told the Hill Wednesday. “Members are still reviewing all options on the table and no decisions have been finalized about how we will smoothly transition away from this failing law and toward reforms that deliver affordable, quality, health care choices based on what patients and families need,” a House GOP aide said. More than 6.4 million Americans have signed up for ACA coverage beginning Jan. 1, 400,000 more than signed up for policies last […]

Top Mergers Of 2016: Linde And Praxair Would Be Second On The List By Dollar Value

‘Tis the season of shopping, and Praxair Inc. appeared to be feeling the holiday spirit early this week. The Danbury, Connecticut-based industrial gas company announced its intentions to buy German competitor Linde for at least $35 billion on Tuesday, a move that would place it among the most valuable mergers of 2016. The deal isn’t likely to reach completion by year’s end: The companies expect to seal the deal “in the coming months,” according to a Praxair news release. Read on for the biggest mergers of 2016, in which companies cleared regulatory hurdles and finished the job for a combined estimated worth of about $208 billion in deals.  Bayer AG […]

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 […]

Whippocalypse? U.S. ready-made whipped cream in short supply

NEW YORK American sweet tooths may suffer this holiday season as a ready-made whipped cream shortage could leave such favorites as apple pie or a mug of hot chocolate without a little extra on top. The creamy dessert topping is in short supply after an August explosion at an Airgas Inc facility in Florida disrupted the supply of nitrous oxide, the gas used to keep whipped cream airy and light, industry officials said. “The timing is really unfortunate,” said Stephanie McVaugh, vice president of Delaware-based Natural Dairy Products Corporation, the maker of Natural by Nature whipped cream. Demand usually picks up in November as the holidays approach, she said, but […]

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 […]