Banks are about to get a huge cash windfall thanks to Trump

Changes in banking regulations could result in a big windfall for the industry, much of which would make its way into investors’ pockets, according to a Goldman Sachs analysis. In a best-case scenario, slashed regulations would result in as much as $218 billion in excess capital which “could either be returned to shareholders or reinvested in the business,” Goldman said ... Read More »

Expectations of Donald Trump dismantling Dodd-Frank send banking shares higher

Shares in banks and insurance groups are rallying in London, following the reports that President Donald Trump will take steps to dismantle regulations brought in to prevent another financial crisis. Mr Trump is expected to order a review of the Dodd-Frank Act on Friday, which was implemented in the aftermath of the 2008 financial crisis to prevent a repeat of ... Read More »

Lloyds Banking Group fails to meet ‘fee-free’ basic account guidelines

Lloyds Banking Group is failing to meet “fee-free” guidelines for millions of its basic bank accounts, which are typically held by people on low incomes. Data published by the Treasury showed more than 3.6 million of the group’s customers were at risk of running up bank charges because their accounts did not conform to a voluntary agreement reached between the ... Read More »

Government’s Lloyds share sale takes stake to below 7%

The British government has cut its stake in Lloyds Banking Group to below 7%, raising the amount recovered to more than £17.5bn of the £20.3bn of taxpayers’ money used to bail out the bank during the financial crisis. The sale of a further 1% of Lloyds shares on Tuesday reduced the government’s stake to 6.93%, from a peak of 43%. ... Read More »

Italian banking crisis: UniCredit to raise €13bn

Italy’s largest bank, UniCredit, plans to shed thousands of jobs and raise €13bn in the country’s biggest share issue in a bid to shore up its reserves and boost profits by the end of the decade. The bank said 14,000 posts, or 11% of the workforce, would disappear across its businesses in Europe and 1,000 bank branches in Italy would ... Read More »

GCHQ asked to step up action against cyber-attack threat to financial services

More action may be needed to protect the financial services industry from a devastating cyber-attack, the head of the Treasure select committee has suggested. Andrew Tyrie MP wrote to Ciaran Martin, head of the new cybersecurity centre of UK surveillance agency GCHQ, saying the lines of responsibility and accountability for reducing cyber-threats are opaque. Tyrie’s letter to Martin, who is ... Read More »

HSBC shutting four bank branches a week

HSBC has revealed that it is shutting more than four branches a week and that at least 57 more will be axed in the first few weeks of 2017. High-street banks have closed more than 1,000 branches in the UK during the past two years, according to consumer body Which?. It has called on banks to consult with communities before ... Read More »

HSBC launches special lending facility for start-ups in China’s Pearl River Delta

HSBC (HSBA.L) has launched a $290 million lending facility aimed at technology start-ups and other new industries in China’s Pearl River Delta region, intensifying the battle for a slice of a business that is growing despite a slowing economy. Showered with money from private investors over the last few years, the promising technology start-ups in China, the world’s second-largest economy, ... Read More »

Deutsche Bank’s staff pay stays high, come rain or shine

Deutsche Bank (DBKGn.DE) has continued to pay staff roughly the same amount as it did a decade ago, despite the financial crisis and a collapse in profits, according to a Reuters analysis of its financial reports. Germany’s biggest bank paid its staff more than 13 billion euros (11 billion pound) in total last year, including benefits and bonuses, despite making ... Read More »

Monte dei Paschi races to raise €5bn cash by end of year

Italy’s Monte dei Paschi bank has said it will try to raise €5bn (£4bn; $5.3bn) from investors by year end as it races to avoid a state rescue. In a statement, the world’s oldest bank said it would stick to the recovery plan it outlined on 25 October, which includes issuing new shares. The bank had sought a three-week extension ... Read More »