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Feb 24, 2014

HSBC’s potential Brazil bill adds to legal headache

LONDON (Reuters) – HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) may end up paying as much as $600 million to compensate customers in Brazil who lost savings a quarter of a century ago, another in a long list of possible payouts that banks face for past transgressions.

Thousands of Brazilian savers have taken legal action against local banks, including HSBC’s unit, alleging they were short-changed when hyperinflation led the government to peg rates paid on savings to a number of indexes. Brazil’s Supreme Court began reviewing the case in November.

Feb 24, 2014

HSBC warns of choppy markets as profit misses forecasts

LONDON (Reuters) – HSBC (HSBA.L: Quote, Profile, Research, Stock Buzz) missed market expectations with a 9 percent increase in annual pretax profit and warned of greater volatility in emerging markets this year, sending its shares down 4 percent.

Europe’s largest bank has axed more than 40,000 jobs and sold or closed 60 businesses over the past three years to cut costs, but still missed targets for cost efficiency and return on equity last year.

Feb 23, 2014

HSBC cost cuts set to lift profits as CEO faces growth challenge

LONDON (Reuters) – HSBC’s (HSBA.L: Quote, Profile, Research, Stock Buzz) profits are expected to rise by almost a fifth to $24 billion for 2013 as it benefits from a cost-cutting drive that spans managing its documents more efficiently to telling staff to use business class air travel less.

Chief Executive Stuart Gulliver has sold or closed 60 businesses, axed 40,000 jobs and taken a knife to costs since taking over three years ago, and last year’s operating costs are expected to tumble $5 billion from 2012 and lift profits.

Feb 20, 2014

Lloyds retail bondholders ready for a fight

LONDON, Feb 20 (Reuters) – Lloyds Banking Group
risks a revolt among retail investors and also hedge funds and
institutions after warning it may buy back on the cheap
high-interest bonds that helped rescue the bank in the financial
crisis.

Lloyds, 33 percent owned by the UK taxpayer, told investors
last week the 7.5 billion pounds ($12.5 billion) of bonds it
issued to strengthen its capital in 2009 are now unlikely to
count towards its capital buffers under new European rules,
potentially making them worthless.

Feb 17, 2014

UK fraud agency charges three ex-Barclays bankers over Libor

LONDON (Reuters) – Britain’s fraud agency started criminal proceedings against three former bankers at Britain’s Barclays Plc on Monday for the alleged manipulation of Libor interest rates.

The Serious Fraud Office (SFO) said it has charged Peter Charles Johnson, Jonathan James Mathew and Stylianos Contogoulas with conspiracy to defraud between June 2005 and August 2007.

Feb 17, 2014

SFO charges three ex-Barclays bankers over Libor

LONDON (Reuters) – Britain’s fraud agency started criminal proceedings against three former bankers at Britain’s Barclays Plc (BARC.L: Quote, Profile, Research) on Monday for the alleged manipulation of Libor interest rates.

The Serious Fraud Office (SFO) said it has charged Peter Charles Johnson, Jonathan James Mathew and Stylianos Contogoulas with conspiracy to defraud between June 2005 and August 2007.

Feb 13, 2014

Lloyds Bank looks to sell further $500 mln in shipping loans -sources

LONDON, Feb 13 (Reuters) – Lloyds Banking Group is
looking to sell $500 million of shipping loans as the British
bank accelerates its exit from the sector, trade finance and
banking sources familiar with the matter said on Thursday.

The sale is likely to be the final large divestment of loans
from its ship finance portfolio as the British bank cuts the
size of its balance sheet to reduce risk.

Feb 13, 2014

Lean times for investment banks put rates desks under fire

LONDON, Feb 13 (Reuters) – Have the mega-buck years of bond
and interest rate trading gone for good, or will normal service
resume after an ugly 2013?

That’s the question facing investment bank chiefs as they
try to squeeze costs and improve returns. Some are clinging to
the hope that diving revenue from a “complex, messy business”
will be temporary, and they need to keep trading teams together
for when the market recovers.

Feb 13, 2014

Lloyds Bank ready for share sale after return to profit

LONDON (Reuters) – State-backed Lloyds Banking Group (LLOY.L: Quote, Profile, Research, Stock Buzz) said it was ready to return to private ownership after reporting a pretax profit for the first time in three years.

Lloyds’ Chief Executive Antonio Horta-Osorio has turned around the bank’s fortunes since taking the helm in March 2011, slimming it down to focus on lending to UK households and businesses and meet tougher regulatory requirements on capital.

Feb 12, 2014

RBS will adapt if Scots vote for independence-CEO

LONDON, Feb 12 (Reuters) – Royal Bank of Scotland (RBS)
will adapt its business in the event of Scots voting for
independence from the rest of the United Kingdom, its Chief
Executive Ross McEwan said on Wednesday.

However, McEwan played down comments from UK Business
Minister Vince Cable suggesting it was inevitable the bank would
relocate its headquarters from Edinburgh to London in the event
of a “yes” vote.

    • 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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