HSBC agrees $101.5 million settlement in US action

HSBC has agreed a $101.5 million settlement over US federal fraud charges.

The £72.75 million settlement with the US Department Of Justice (DOJ) brought to an end a criminal probe into the rigging of foreign currency transactions.Read More

£252 billion – staggering total of banks’ conduct costs

£252 billion – staggering total of banks’ conduct costs

New research has revealed the staggering total of banks’ conduct costs over the last five years – £252 billion, racked up by the world’s largest 20 banks.

The total for the UK has been calculated at £66.5 billion in payments for fines, customer compensation and legal costs.  This figure is almost 28% up on the previous 2008 to 2012 total.Read More

Acting FCA boss to leave in July

Leaving in July

Acting chief executive of the Financial Conduct Authority (FCA), Tracey McDermott, is to leave the regulator in July when new boss Andrew Bailey takes over.

Ms McDermott has been with the UK’s financial regulator since 2001 – first with the Financial Services Authority (FSA), where she held various roles, and then with the FCA when the new body took over supervising the UK’s financial stability in April 2014.Read More

Ten scandals have cost Britain’s banks £53 billion

Ten scandals have cost Britain’s banks £53 billion

New research claims that 10 misconduct scandals have cost the UK’s banks £53 billion in fines and other penalties since the turn of the century.

Think tank New City Agenda says the biggest of the lot has been the cost of mis-selling PPI for which the banks have set aside a total of £37.3 billion to pay out past and future successful claims – more than four times the cost of staging the London 2012 Olympics.

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PPI will hit banks’ profitability for at least another two years

PPI to afect banks for another two years

Mis-sold PPI and other legacy issues will hit UK banks’ profitability for at least another two years claims a new report.

Ratings agency Moody’s says misconduct fines, compensation and related legal costs will continue to affect the balance sheets of the UK’s biggest banks in the aftermath of a series of scandals ranging from PPI to Libor to attempts to rig the foreign exchange rate.Read More

SFO drop FOREX investigation

SFO drop FOREX investigation

The Serious Fraud Office (SFO) has dropped its two year investigation into the rigging for foreign exchange rates for lack of evidence.

It has confirmed that no charges will be brought against any individual or organisation over allegations that UK banks and others conspired to rig the world’s foreign exchange market.Read More

UK banking ethics under scrutiny

Bankers under scrutiny

A new report on UK banking ethics will be delivered this week from a little known body known as BSB.

The Banking Standards Board is set to produce its first annual review of the behaviour of the UK’s bankers at a special conference.Read More

FCA helps US regulator to investigate British based bankers

FCA helps American regulator

The Financial Conduct Authority (FCA) has been helping the American Department of Justice (DoJ) to investigate three British based bankers over a possible new rate rigging scandal.

This time it’s the complex worldwide debt market which is the subject of the inquiry.  All three traders, plus another from the Bank Of America, have been placed on leave until the investigation is resolved.Read More

UK banks face a costly 2016

UK banks face a costly 2016

Britain’s banks are facing a costly 2016, which will see them hit with billions of pounds more in fines and lawsuits, as well as continuing to pay out on thousands of new PPI claims.

Top analysts at Investec asset management are warning that legacy issues like PPI mis-selling, rigging of interest and foreign exchange rates and the bribing of Middle East investors are likely to cost them dear in the coming year.Read More

MPs call on FCA to explain dropped inquiry

FCA summoned to explain dropped inquiry

MPs have summoned top executives from the Financial Conduct Authority (FCA) to explain why they dropped an inquiry into banking culture in the UK.

The decision has been branded as ‘shocking’ and ‘a dangerous and costly mistake’ by Shadow Chancellor John McDonnell.Read More