On 23 June, the European Central Bank (ECB) determined that Veneto Banca S.p.A. and Banca Popolare di Vicenza S.p.A. were failing or likely to fail as the two banks repeatedly breached supervisory capital requirements. The determination was made in accordance with Articles 18(1a) and 18(4a) of the Single Resolution Mechanism Regulation. The ECB had given the banks time to present capital plans, but the banks had been unable to offer credible solutions going forward.
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Building resilient growth requires international cooperation

The current economic upswing provides an opportunity to build greater economic resilience, the Bank for International Settlements (BIS) writes in its 87th Annual Report, released on Sunday 25 June 2017. This involves shoring up the global economy’s ability to withstand shocks and adapt to new trends, and preventing the emergence of imbalances.

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This is a volatile, uncertain, complex and ambiguous (VUCA) world that demands new strategic approaches from organisations, according to James Moncrieff, professor of practice in strategy at Ashridge Executive Education. Continue reading…

British and European Union banks need a new system to let them do business with each other after Brexit to avoid splitting markets, Britain’s finance minister Philip Hammond said on Tuesday. Britain, the EU’s biggest financial market, is leaving the bloc in 2019, raising the prospect of an abrupt cut in cross-border links without a new trade deal. Rival financial centers, including Frankfurt, Paris and Luxembourg, are vying to benefit.

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Sen. Elizabeth Warren is calling for the ouster of 12 board members at Wells Fargo due to the fake accounts scandal that has rocked the bank. In a letter sent Monday to Federal Reserve Chair Janet Yellen, the Massachusetts Democrat said the scandal has “revealed severe problems with the bank’s risk management practices.” Warren said the central bank has the authority under federal statute to remove the members who were on the board as the matter transpired.

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The FCA statement after Serious Fraud Office charges in Barclays Qatar capital raising case is as follows :  “We are pleased that this matter, which led to the stay of our own case, is now in the public domain. We welcome a fair and transparent hearing on the basis of the charges set out today by the SFO. We work closely with the SFO across a range of matters, in pursuit of our distinct objectives. ”

Moving transactions to rival hubs could affect much of their investment banking work

Some of the biggest US financial groups including Morgan Stanley, Bank of America and Citigroup, are examining whether to move transactions totalling hundreds of billions of dollars out of London to rival hubs because of Brexit, calling into question the City’s role as one of the world’s leading centres for investment banking.
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The former Chief Compliance Officer of MoneyGram International, Inc. reached a settlement Thursday with FinCEN and the DOJ after he was held personally responsible for his company’s anti-money laundering failures.

Thomas E. Haider agreed to pay a $250,000 penalty and be barred from working as a compliance officer for any money transmitter for three years.
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John Griffith-Jones, Chairman of the Financial Conduct Authority (FCA) and the Payment Systems Regulator (PSR), has confirmed that he will leave both organisations at the end of his term of office, on 31 March 2018.

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It’s impossible to disentangle global geopolitical risk from other macro risks, argues Thierry Malleret, economist, author and chairman of the Global Risk Network at the World Economic Forum. And that’s why we don’t always see major upheaval or disruptive events coming until it is too late. Continue reading…