How to Combat Money Laundering in Europe
Jesper Berg, 24 May 2021
Good luck finding a major bank in Europe that hasn’t breached money laundering regulations.
In Denmark, the two largest banks, Danske Bank and Nordea, are both currently subject to criminal investigations. BNP Paribas received the highest-ever fine in 2014, when it settled with U.S. authorities and had to pay $9 billion for sanctions violations. Many others — from HSBC and Standard Chartered in the U.K. to Deutsche Bank and UBS and Credit Suisse — have had to answer for offenses.
These cases show that living up to money laundering regulations is difficult, but not doing so is one of the biggest risks to a bank’s reputation. Banks and authorities share the same goal — to stop the bad guys — but both are struggling to find a way forward. While the European Union has proposed establishing a dedicated authority on the crime, company expenses to combat laundering are ballooning. Continue reading “Article: How to Combat Money Laundering in Europe”
Morgan Stanley, 4 others settle forex-rigging case for $111.2M
Katherine Dela Cruz
S&P Global, 30 July 2017
Morgan Stanley, Standard Chartered Plc, Bank of Tokyo-Mitsubishi UFJ Ltd., Société Générale SA and RBC Capital Markets LLC agreed to pay a total of $111.2 million to settle a U.S. lawsuit accusing them of manipulating prices in the foreign exchange market, pending court approval.
The lawsuit was filed in 2014 against 12 companies, including Morgan Stanley, for allegedly conspiring to fix artificial prices on foreign exchange markets. In 2015, Standard Chartered, Bank of Tokyo-Mitsubishi, Société Générale and RBC Capital Markets were added as defendants in the case.
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Nine banks to pay $2 billion to US investors in rate-rigging case
Pinsent Masons, 18 August 2015
Nine of the world’s largest banks have agreed to pay a total of $2 billion in compensation to investors in the US over the manipulation of exchange rates, and to cooperate in litigation against 12 other defendants.
Law firm Hausfeld announced that settlements have been reached with Bank of America, Barclays, BNP Paribas, Citi, Goldman Sachs, HSBC, JPMorgan, RBS, and UBS on behalf of investors.
The banks will now work with the investors in continuing litigation against Credit Suisse Group, Credit Suisse, Credit Suisse Securities, Deutsche Bank, Deutsche Bank Securities, Morgan Stanley, Morgan Stanley & Co, Morgan Stanley & Co. International, Bank of Tokyo-Mitsubishi., RBC Capital Markets, Société Générale and Standard Chartered. Several of these banks were added to the action last month based on facts found during the investigation, Hausfeld said.
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Why I Will Never Buy Royal Bank of Scotland Group plc, HSBC Holdings plc And Standard Chartered PLC
Rupert Hargreaves, 10 November 2014
The godfather of value investing, Benjamin Graham, made it quite clear that the process of investing is nothing like speculation: “An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return.” On the other hand, speculation is more akin to gambling, with no return guaranteed.
With this in mind, it’s easy to arrive at the conclusion that banks, which rely on leverage and trading to make a living, can never be deemed true ‘investments’ due to the speculative nature of their businesses. And this is the reason why I’m staying away from banks like Royal Bank of Scotland (LSE: RBS), HSBC (LSE: HSBA) and Standard Chartered (LSE: STAN). Continue reading “Article: Why I Will Never Buy Royal Bank of Scotland Group plc, HSBC Holdings plc And Standard Chartered PLC”