European banking correspondent
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May 15, 2014

UK’s RBS cash call claims seen near 4 bln pounds

LONDON, May 15 (Reuters) – Hundreds more investors have
jumped aboard an unprecedented group action against Royal Bank
of Scotland, alleging they were misled during a record
rescue cash call in 2008, and are claiming damages of roughly 4
billion pounds ($6.7 billion).

As Thursday’s deadline loomed for lawyers to coral
claimants, four groups issued proceedings on behalf of both top
institutions and thousands of small investors in the first
American-style class action set to hit English courts.

May 14, 2014

HSBC says bonus for chairman capped at 1 million pounds

LONDON, May 14 (Reuters) – Banking group HSBC Holdings Plc
has attempted to head off investor criticism over a new
pay plan, capping any share bonus for its Chairman Douglas Flint
this year at 1 million pounds ($1.7 million) and saying it would
be a one off.

Under new pay proposals set out in March, HSBC said it could
have awarded Flint up to 2.25 million pounds worth of shares as
an annual bonus in exceptional circumstances.

May 13, 2014

Old Mutual considers Nedbank executive as finance chief -source

LONDON, May 13 (Reuters) – Insurer Old Mutual is
considering picking Nedbank executive Ingrid Johnson as its new
finance director, a person familiar with the matter said, which
would see her join a small group of FTSE 100 firms with
a female finance chief.

Johnson would become the 10th female finance director among
Britain’s top 100 firms if appointed. She is currently managing
executive of retail and business banking for Nedbank,
one of South Africa’s four largest banks. Nedbank is 52 percent
owned by Old Mutual.

May 13, 2014

RBS’s former U.S. boss paid $7.5 million last year

LONDON (Reuters) – The former boss of state-backed Royal Bank of Scotland’s (RBS.L: Quote, Profile, Research, Stock Buzz) U.S. arm Citizens was paid $7.5 million last year, including $500,000 in consultancy fees for three months after she left.

Ellen Alemany was in charge of RBS Citizens for five years until she was replaced by Bruce van Saun at the start of October. Her pay was not always disclosed, but she was known to be one of the bank’s top earners and sources have said she received more than 5 million pounds ($8.4 million) in 2012.

May 9, 2014

Barclays sees generational shift, rivals smell blood

LONDON (Reuters) – Where Barclays (BARC.L: Quote, Profile, Research) sees a “generational shift”, its investment bank rivals are smelling blood.

The British bank, which under former chief Bob Diamond poached top staff and customers from competitors in trouble after the financial crisis, now risks suffering the same fate as it radically shrinks its investment banking business.

May 8, 2014

StanChart investors rebel over pay plan after profit falls

HONG KONG/LONDON (Reuters) – Asia-focused bank Standard Chartered saw more than 40 percent of its shareholders oppose its pay plan on Thursday, hours after the bank posted a drop in profits due to lower investment bank revenues and problems in South Korea.

The London-based bank said its remuneration policy for directors was approved, but 40.8 percent of votes cast were opposed to the remuneration policy for its directors.

May 8, 2014

Barclays axes 19,000 jobs, reins in Wall Street ambitions

LONDON (Reuters) – Britain’s Barclays (BARC.L: Quote, Profile, Research, Stock Buzz) reined in its ambitions to be a Wall Street powerhouse on Thursday and signaled a return to its retail banking roots with a plan to hive off much of its investment bank and axe one in four jobs at the division.

Chief Executive Antony Jenkins, in his second strategic review since taking over as CEO in 2012, will cut 19,000 jobs in the next three years, 7,000 of them at the investment bank, and park 115 billion euros worth of risk-weighted assets in a new “bad bank”.

May 8, 2014

StanChart says weak first-quarter continued in April and May

HONG KONG/LONDON (Reuters) – Asia-focused bank Standard Chartered (STAN.L: Quote, Profile, Research, Stock Buzz) posted a drop in first-quarter profit, hurt by lower investment bank revenues, weaker Asian currencies and ongoing problems at its South Korean business.

The London-based bank, which earns about four-fifths of its income from Asia, said on Thursday the weak first-quarter conditions had continued in April and so far in May.

May 8, 2014

StanChart says weak Q1 continued in April and May

HONG KONG/LONDON, May 8 (Reuters) – Asia-focused bank
Standard Chartered posted a drop in first-quarter
profit, hurt by lower investment bank revenues, weaker Asian
currencies and ongoing problems at its South Korean business.

The London-based bank, which earns about four-fifths of its
income from Asia, said on Thursday the weak first-quarter
conditions had continued in April and so far in May.

May 7, 2014

Day of reckoning looms for Barclays’ investment bank

LONDON, May 7 (Reuters) – Barclays Plc is set to
announce plans to cut thousands of jobs and shrink its
investment bank as Chief Executive Antony Jenkins tries to get
his turnaround plan for the British bank back on track after a
bad 10 months.

Jenkins, who took the CEO hot seat in August 2012 after
investment banker Bob Diamond was ousted following a scandal
over the rigging of benchmark interest rates, will lay out a
revised strategy for Barclays on Thursday.

    • About Steve

      "Responsible for overseeing coverage of the European bank sector and direct coverage of the international UK-based banks, based in London. Have been in current role for three years, and for previous three years was UK banking reporter. Have over 15 years experience as a financial newswire journalist in London and New York."
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