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25th December 2018 The Big Short might be a good film to watch at this moment of time
What direction are the financial markets going? Could the debt socked economy be prelude to the next financial crisis. Stock markets around the world are falling. Has the bubble burst? Will it deflate more in 2019?
What do you think? CLICK HERE to share your thoughts
18th December 2018 Santander Fined More Than 30 Million Pounds For Probate Management Failures
The Financial Conduct Authority FCA says Santander failed to transfer funds worth more than £183 million to beneficiaries. In addition Santander did not disclose information about the probate issues to the FCA after it became aware of them. 40428 customers were directly affected.
These failings took too long to be identified and then far too long to be fixed Mark Steward executive director of enforcement and market oversight at the FCA
Firms must be able to identify and respond to problems more quickly especially when they are causing harm to customers.
Santander banks probate and bereavement processes had a limited ability to identify all the funds it held of a dead customers estate and suffered from failings to follow up with representatives of the dead customer which increased the likelihood of the cases not being closed
There was also ineffective monitoring of open cases to determine if they should be closed. This means a dead customers case would remain incomplete and funds would not be transferred to those who were entitled to them.
Furthermore some funds belonging to dead customers would not be identified and transferred to those who were entitled to it. These people would have been unaware the funds existed.
17th December 2018 Goldman Sachs Charged In Malaysia
Malaysias attorney general has filed criminal charges against Goldman Sachs related to the theft of billions of dollars from the countrys development fund.
Charges were bought against Goldman Sachs investment bank and its former employees Tim Leissner and Roger Ng. Jasmine Loo Ai Swan and Jho Low two former employees of Malaysias sovereign fund 1MDB were also charged.
The charges relate to the long running scandal centring around 1MDB. Authorities around the world have been investigating claims that billions were stolen from 1MDB for several years. Earlier this year former Malaysian prime minister Najib Razak was arrested on anti corruption charges as part of a probe into 1MDB.
Malaysian authorities accused Goldman Sachs of helping to facilitate the stealing of 2.7bn dollars from government backed bond issues that raised 6.5bn dollars. The three bonds were issued by 1MDB a government owned strategic development fund in 2012 and 2013. Goldman Sachs helped arrange the issues.
Malaysias attorney general accused two Goldman employees involved in the deal of conspiring with 1MDB employees to bribe Malaysian public officials in order to procure the selection involvement and participation of Goldman Sachs in these Bond issuances.
Goldman received 600 million dollars for helping to underwrite and arrange the bond issues which the attorney general said was several times higher than the prevailing market rates and industry norms.
14th November 2018 UK Banks Failing To Assess Risks According To FCA Review of Whistleblowing Procedures
According to the regulator the Financial Conduct Authority FCA most banks in Britain are not assessing and escalating whistleblower concerns consistently and some need to improve arrangements to protect those who lift lid on wrongdoing from victimisation.
The FCA says UK banks need to document whistleblowing investigations and should differentiate training programmes for staff managers and internal investigators.
A new All Party Parliamentary Group on Whistleblowing was registered in August 2018 to propose best practice whistleblower legislation to UK parliament to enact
Banking leaders still need to do more to cultivate and communicating risk management culture so that whistleblowers come forward to identify wrongdoing early. Banking leaders need to do more to assess how whistleblowing arrangements are working in practice.
14th November 2018 Former UK UBS Trader Deported From UK
Former UBS trader Kweku Adoboli who was jailed for causing Swiss Bank more than 2 billion dollars in losses via fraudulent trading is being deported from UK to Ghana.
He had served half of his 7 year sentence for fraud before being released in 2015. As a foreign national given a custodial sentence he was in line for deportation back in 2015 but he lodged several appeals against deportation which all failed.
Born in Ghana he left when 4 and came to UK aged 12
It was alleged that UBS senior managers were fully aware of his activities and encouraged him to take risks to make profits for the bank. However prosecutors argued he exceeded his trading limits failed to hedge trades and faked records to cover his tracks between 2008 and 2011. When he was arrested UBS share price fell 10 percent.
14th November 2018 Banking Whistleblower Compensated By Lloyds Bank
Lloyds Banking Group said it had settled with an ex employee who accused former bosses of concealing a massive fraud at its HBOS Reading unit prior to a record breaking cash call needed to keep the combined group afloat in 2009.
The bank apologised to Sally Masterton a former senior manager at Lloyds and that it had agreed to pay her financial compensation.
1st November 2018 Former Goldman Sachs Bankers Charged
One Goldman banker admitted to conspiring to launder money and violate a US anti-bribery law according to Department of Justice
The other banker has been arrested while Mr Low remains at large.
It is alleged that corrupt officials stole billions from the Malaysian state fund. Former Malaysian prime minister Najib Razak has also been charged with corruption.
USA authorities have also filed civil suits aimed at recovering luxury goods cash and other items purchased with money fraudulently extracted from the fund.
Goldman Sachs is cooperating with the investigation into the fraud.
9th October 2018 HSBC Settles Claims For Compensation Selling Mortgage Backed Securities
HSBC has agreed to pay 765 million dollars to settle claims connected to residential mortgage backed securities sold prior to the financial crisis.
HSBC chose to use a due diligence process it knew from the start did not work
HSBC settled the claims for compensation without admitting liability or wrongdoing.
Others have paid to settle claims against them
- Wells Fargo 2 billion dollars
- RBS 5 billion dollars
- JPMorgan Chase 13 billion dollars
- Bank of America 17 billion dollars
12th July 2018 Two Former Senior Bankers Convicted of Manipulating Euro Interbank Offered Rate Euribor Between 2005 to 2009
Phillipe Moryoussef was a trader with Barclays Bank and Christian Bittar was principal trader at Deutsche Bank.
The Serious Fraud Office SFO says the two convicted traders conspired together to submit false or misleading Euribor submissions to benefit their positions and change the published rate
— Risk Management (@HolisticRiskMgt) June 25, 2018
21st June 2018 TSB Bank May Not Have Tested Its Technology Properly
TSB may not have carried out proper tests before transferring five million customers to a new IT system.
IBMs reported into the PR disaster suggests TSB Bank may have failed to understand the risks involved or to carry out proper tests. TSB Bank said IBMs report was not a fair reflection of what happened. IBMs report has now been published by MPs on the Treasury Committee.
IBM has not seen evidence of the application of a rigorous set of go live criteria to prove production readiness IBM Report
Consumer group Which? said that TSB had clearly been unprepared for IT changes.
Hundreds of TSB Bank customers to lost money from their accounts as a result of fraud.
MPs on the Treasury Committee have previously called on Paul Pester the chief executive of TSB to resign.
20th June 2018 Ex CEO Anglo Irish Bank Jailed For 6 Years
The former chief executive of Anglo Irish Bank has been jailed for 6 years for inflating the banks balance sheet. David Drumm was convicted of conspiracy to defraud and false accounting. His sentence took into account the 5 months he spent in custody in the USA before being extradited to Ireland to face trial.
— Risk Manager (@ERMuk) June 14, 2018
— Risk Manager (@ERMuk) June 7, 2018
5th June 2018 Australia Charges Former Citi Deutsche and ANZ Senior Executives
Australian regulators the Australian Competition and Consumer Commission ACCC charged former local bosses of Citigroup Inc Deutsche Bank with criminal cartel offences over a 2.3 billion dollar stock issue in 2015.
The regulator charged Citis former Australia chairman Stephen Roberts its current local head of capital markets John McLean and its London-based head of foreign exchange trading Itay Tuchman. In addition it charged Deutsches former local chief Michael Ormaechea and former local capital markets head Michael Richardson.
It said charges were also laid against ANZ treasurer Rick Moscati. ANZ Citi and Deutsche are defending charges.
If successfully convicted large fines can be imposed and guilty people face prison terms of up to 10 years. Those charged will appear in court on 3rd July 2018.
4th June 2018 French Banking Giant Agrees Fine
Societe Generale has agreed with USA and French regulators to a settlement on poor banking practices surrounding Libya and on its handling of the ‘IBOR’ money market rates.
Societe Generale agreed to pay a 250 million euro fine to french treasury as part of its settlement linked to Libya. It as accounted for 2.3 billion euros regarding those various probes.
SocGen has already agreed to pay 1 billion euros to settle dispute with the Libyan Investment Authority.
— Risk Manager (@ERMuk) April 20, 2018
— Risk Manager (@ERMuk) April 16, 2018
12th April 2018 Should Bank Of England BoE Panels Be Kept Apart
There are calls to merge the monetary and financial policy committees due to roles overlapping. However the BoE Deputy Governor Ben Broadbent thinks this would overload policymakers and raise the risk of the kind of mistakes that helped lead to the financial crisis in 2007-08.
31st March 2018 Barclays To Pay $2 Billion Penalty
Barclays bank has agreed to pay American government $2 billion over the sale of mortgage backed securities which is part of the financial crisis.
The USA justice department has been investigating allegations that Barclays bank caused billions of dollars of losses to investors with an alleged fraudulent scheme.
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