International Banking News
BofA profit beats estimates on higher interest rates, loan growth

By Sweta Singh and Elizabeth Dilts (Reuters) – Bank of America (BAC.N) reported a 34 percent rise in first-quarter profit on Monday, topping Wall Street estimates, as the lender benefited from higher interest rates and growth in loans and deposits. Revenue rose at three of BofA’s four major businesses. In consumer banking, its biggest business, revenue increased 9 percent as higher interest rates helped BofA charge more for loans while keeping deposit rates low. Profit also got a boost from Chief… (Continua a leggere)

ECB Asks Deutsche Bank to Model Wind Down of Trading Book

By Steven Arons and Nicholas Comfort Source: Bloomberg.com Deutsche Bank AG has been asked by the European Central Bank to simulate an orderly wind-down of its trading book, Chief Financial Officer James von Moltke told Bloomberg Monday. “There’s no novelty about the exercise per se; the novelty is that we’re doing this with the ECB,” von Moltke said. The exercise will take several months, being “broader in scope” than previous ones done for U.K. and U.S. supervisors, he said. Modeling the wind-down of… (Continua a leggere)

UCO Bank Falls to 11-Year Low as India Probes Former Chairman

By Anto Antony Source: Bloomberg.com Former chairman, others allegedly cheated bank of $95 million Bank reported losses for nine straight quarters through Dec. UCO Bank dropped to its lowest in 11 years after India’s federal investigative agency registered a case against UCO’s former chairman for cheating the state-run lender. Shares of the Kolkata-based bank fell about 6 percent to 20.90 rupees in Mumbai on Monday, the lowest close since April 12, 2007. The 10-member Bankex index rose 0.3 percent. The Central… (Continua a leggere)

Goldman Sachs Says Emerging Markets Now Look Like Rich Countries

By Selcuk Gokoluk Source: Bloomberg.com Many emerging market economies have begun to resemble developed markets as inflation rates fall and the risk of currency crises recedes, according to Goldman Sachs Group Inc. The weakening relationship between emerging-market policy and U.S. rates suggests that Federal Reserve normalization is unlikely to result in a sharp hiking cycle by developing nations, Goldman Sachs analysts including Jan Hatzius and Jari Stehn wrote in a report. Emerging-market policy makers face a quandary as growth has picked… (Continua a leggere)

Bank of America’s Cost-Cutting Drive Pushes Profit to Record

By Laura J Keller Source: Bloomberg.com Lender posts best efficiency ratio in more than five years Net income jumps 30%, surpassing analysts’ estimates Bank of America Corp. hit a new milestone in its years-long effort to get costs under control. First-quarter expenses totaled about 60 percent of revenue, the best ratio in more than five years. That helped push profit above analysts’ estimates, and corporate tax cuts spurred earnings to a record. Net interest income got a bigger boost than expected… (Continua a leggere)

If Fed Moves Unlock Billions at Banks, Here’s Who Might Win Most

By Jesse Hamilton With assistance by Yalman Onaran Source: Bloomberg.com Last week’s propsals likely to help custody and regional firms As rules revamp takes shape, post-crisis changes here to stay How much Wall Street might actually benefit from President Donald Trump’s deregulatory agenda is coming into focus. Last week, federal agencies rolled out plans for overhauling some of the most significant constraints imposed on banks after the 2008 financial crisis: capital requirements that are meant to make lenders better equipped to… (Continua a leggere)

Betway Suspends BOE Governor Wagers After Influx of Bailey Bets

By David Goodman Source: Bloomberg.com An online oddsmaker has stopped taking bets on who will be the next Bank of England Governor after an influx of money on Andrew Bailey. Bailey, currently head of the Financial Conduct Authority, has long been considered a leading candidate to replace Mark Carney when he departs in June 2019. Betway had him placed at 9-to-1, before “huge support” in the past few days forced them to stop accepting new bets. The the head of the… (Continua a leggere)

Deutsche Bank COO’s Future Is Now in Doubt

By Steven Arons and William Canny With assistance by Eyk Henning Source: Bloomberg.com Board Members Lose Faith After Slow Reduction of IT Costs Hammonds’s Internal Standing Hurt by Negative Comments Deutsche Bank AG Chief Operating Officer Kim Hammonds’s future at the lender is uncertain, a little over a week after the dismissal of the chief executive, according to people with knowledge of the matter. Concerns about slow progress in upgrading the bank’s information technology systems — together with unhappiness at controversial statements… (Continua a leggere)

Goldman Says Tech Stocks Were Unfairly Dragged Down by Facebook

By Arie Shapira With assistance by Lu Wang Source: Bloomberg.com Most technology companies are nothing like Facebook Inc. So why are their stocks being influenced so strongly by a social network firm? The question is posed by Goldman Sachs. Strategists led by David Kostin have observed elevated correlations between Facebook and the rest of the industry since mid-March, when Mark Zuckerberg’s company sold off on the Cambridge Analytica scandal. That adds up if the stock in question is Alphabet and Twitter,… (Continua a leggere)

Fed's Rosengren optimistic on economy, wary of U.S. trade risks

By Svea Herbst-Bayliss BOSTON (Reuters) – The Federal Reserve will probably need to raise interest rates at least three more times this year in the face of a robust U.S. economy, even while possible trade disruptions pose risks, a top Fed policymaker said on Friday. Boston Fed President Eric Rosengren, in a speech at the Greater Boston Chamber Economic Outlook Breakfast, painted an optimistic picture of strong U.S. job growth, a small rise in inflation, and above-average economic growth. But… (Continua a leggere)