Financial Services and Banking

Reuters | |

A U.S. regulator on Monday fined Citigroup Inc $4.5 million for deleting millions of audio files, including recordings it had subpoenaed, after failing to fix a known design flaw in its audio preservation system.

The U.S. Commodity Futures Trading Commission said the Nov. 2018 deletion of 2.77 million audio files included recordings of traders subpoenaed in Dec. 2017 for a probe, which Citigroup had promised would be preserved. ...

Reuters | |

Pension funds for truckers, teachers and subway workers have lodged lawsuits in the United States against Germany’s Allianz, one of the world’s top asset managers, for failing to safeguard their investments during the coronavirus market meltdown.

Market panic around the virus that resulted in billions in losses earlier this year scarred many investors, but no other top-tier asset manager is facing such a large number of lawsuits in the United States connected to the turbulence...

Reuters | |

The nomination of Manfred Knof as chief executive of Germany’s Commerzbank paves the way for an overhaul that could close hundreds of branches and shrink its foreign operations, though any major changes may still take months to formalize.

Germany’s No. 2 lender, partially-owned by the state, has been in turmoil following the sudden resignation of its CEO and its chairman in early July. Remaining board members’ hands were tied from moving forward even as the bank’s outlook darkened.

That hurdle was removed after the bank’s new chairman, appointed in August, unexpectedly convened the supervisory board with less than 24 hours notice on Saturday to inform it of his CEO candidate. Knof, a top manager at rival Deutsche Bank, won its endorsement.

AP News | |

Wells Fargo CEO Charles Scharf apologized Wednesday for comments he made about the difficulty of finding qualified Black executives.

Scharf said that “there is a very limited pool of black talent to recruit from” in corporate America. The memo to employees was written in June, but became public this week.

The comments and similar statements made in a Zoom meeting, reported by Reuters, led to an intense backlash in Washington and...

Reuters | |

Citigroup Inc said on Wednesday it would set aside more than $1 billion to support initiatives that help close the racial wealth gap and increase economic mobility for people of color.

The Wall Street bank said the three-year initiative will include programs that would provide greater access to banking and credit in communities of color, increase investment in Black-owned businesses and expand home ownership among Black Americans.

“We are in th...

Reuters | |

JPMorgan Chase & Co is moving about €200 billion ($234 billion) of assets from the United Kingdom to Germany as a result of Britain’s exit from the European Union, a source familiar with the matter said on Wednesday.

In January, the bank had also announced it would significantly expand its Paris hub as part of plans to relocate some services from London after Brexit.

The shift sees JPMorgan foll...

Reuters | |

Several global banks moved large sums of allegedly illicit funds over a period of nearly two decades, despite red flags about the origins of the money, BuzzFeed and other media reported on Sunday, citing confidential documents submitted by banks to the U.S. government.

The media reports were based on leaked suspicious activity reports (SARs) filed by banks and other financial firms with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinC...

AP News | |

Two of Spain’s biggest banks are poised to merge and create the largest lender in the country, with assets of more than 600 billion euros ($708 billion), bringing the prospect of more job losses amid difficult times for the financial sector.

The boards of CaixaBank and Bankia were due to meet Thursday to iron out the final details of a deal, an official at CaixaBank said. The person spoke only on condition of anonymity because the negotiations are confide...

Reuters | |

Morgan Stanley Chief Financial Officer Jonathan Pruzan said on Wednesday the bank doesn't expect its sales and trading and investment banking business to perform as well in the third quarter as it had in the second.

Pruzan, at a virtual conference hosted by Barclays, said that August activity levels had still been good and the bank had seen “no real slowdown”.

“From an Institutional Securities Group (ISG) perspecti...

Reuters | |

Exchange group Nasdaq said on Wednesday that it is launching AI technology to help retail and commercial banks automate anti-money laundering (AML) investigations, as it expands into the financial crime software market.

The company hopes the system can make it quicker and cheaper for banks and other financial institutions to sift through the deluge of alerts flagging possible cases of money laundering generated by bank transaction monitoring systems.