New regulatory breach revealed as HSBC profits slide 29%

HSBC has admitted it is breaching a US regulator’s order to bolster its defences against financial crime, as the UK’s biggest bank announced a slump in first-half profits in “turbulent” markets hit by Brexit. The bank announced its first share buyback of $2.5bn (£1.8bn) – following the sale of its Brazilian business – which buoyed its shares despite the 29% ... Read More »

RBS posts £2bn half-year loss and drops Williams & Glyn flotation

Royal Bank of Scotland has slumped to a £2bn half-year loss after taking a fresh hit for legal disputes, as it admitted costs will have to be cut to tackle the economic impact of the Brexit vote and the dwindling popularity of high street branches. The bank, which is 73% owned by the taxpayer and is on track for its ... Read More »

RBS accedes to Bank of England call to pass rate cut to customers

Royal Bank of Scotland has cut its lending rates for homebuyers, leaving Lloyds Banking Group as the last major lender holding out against the Bank of England’s call to pass on Thursday’s interest rate cut to borrowers. The sudden announcement by RBS came on Friday just hours after the bank, which is 73% owned by the taxpayer, had insisted that ... Read More »

Bank spells out chance of further rate cut this year

The Bank of England deputy governor, Ben Broadbent, has told the BBC’s Today programme there could be a further interest rate cut this year if needed. His comments highlight the Bank of England’s signal on Thursday that rates could go lower if the economy worsens. On Thursday, the Bank cut interest rates from 0.5% to 0.25% – a record low ... Read More »

Bank of England to cut key rate August 4, hold off on QE for now – Reuters poll

The Bank of England is almost certain to cut benchmark borrowing costs when it sets policy on Aug. 4, but a slim majority of economists in a Reuters poll said it would hold off for now on restarting its asset purchase programme. Britons voted in a June 23 referendum to leave the European Union, a shock outcome that roiled financial ... Read More »

Bank of England prepares to cut rates into uncharted territory

The Bank of England looks ready to cut interest rates for the first time since 2009 on Thursday, seeking to stop Britain’s vote to leave the European Union from kicking the country into recession. It may even go a step further and pump billions of pounds into financial markets. Economic surveys have pointed to a sharp slowdown since the BoE ... Read More »

Lawsuit accusing 16 big banks of Libor manipulation reinstated by US court

A US appeals court on Monday reinstated a civil lawsuit accusing 16 major banks of conspiring to manipulate the Libor benchmark interest rate. The ruling, which overturns a 2013 decision, could bankrupt the institutions, the judges warned. A lower court judge erred in dismissing the antitrust portion of private litigation against Barclays, Bank of America, Deutsche Bank, HSBC, UBS and ... Read More »

MPs to scrutinise Sir Philip Green’s link with influential banker

The relationship between one of Britain’s most influential bankers and Sir Philip Green will be thrown into the spotlight this week as MPs deepen their investigation into the collapse of BHS. Michael Sherwood, the vice-chairman of Goldman Sachs, will appear before a parliamentary committee on Wednesday to answer questions about his ties with Green. Sherwood is the co-head of Goldman’s ... Read More »

RBS slumps 25% as Brexit puts bank shares under severe strain

Bank shares are under severe pressure after the Brexit vote, with bailed-out Royal Bank of Scotland shedding a quarter of its stock market value at one point. The 25% slump in RBS shares on Monday took the bank, still 73%-owned by the taxpayer, back to levels last seen in February 2009. They later regained some ground, but by mid-afternoon were ... Read More »

Britain must repair ties with Europe after Brexit, says Barclays chairman

Britain needs to retain its ties with Europe after Brexit while building a new international model for financial services, the chairman of Barclays said on Thursday. John McFarlane, who is also chairman of TheCityUK, which promotes Britain’s financial services, said it was important not to lose sight of Europe as a market as businesses sought to build broader international links. ... Read More »