A banking group in the United States that represents executives at some of the country's largest banks has concluded in a paper that the Federal Reserve probably acted illegally in adopting key aspects of its annual stress tests, according to the Wall Street Journal.
"We find that the Federal Reserve has likely not complied with the [Administrative Procedure Act's] procedural requirements in adopting key aspects of its Comprehensive Capital Analysis and Review stress tests," the paper from the Committee on Capital Markets Regulation says. It adds that complying with those requirements "would result in better public policy outcomes and reduce the threat of a legal challenge to the Fed's actions".
It is extremely rare for banks to sue their regulators but there has been increasing speculation in the United States that banks there are considering doing so.
Also in the US, Deutsche Bank has revealed that the Department of Justice is asking it to pay $14 billion to settle an investigation into its selling of mortgage-backed securities, a far higher figure than the bank had anticipated. However, a final settlement figure will be negotiated between the two parties over several months.
"Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited. The negotiations are only just beginning. The bank expects that they will lead to an outcome similar to those of peer banks which have settled at materially lower amounts", Deutsche Bank said in a statement.
In India, the Finance Ministry has said that it is looking into media reports of bankers depositing small amounts into the Jan Dhan Yojana accounts in order to reduce the number of zero balance accounts. The ministry said it would ascertain the facts but observed that there was no requirement for the accounts, intended to boost financial inclusion, to have even a small balance.
South African telco MTN SA has finally shut down its mobile money service after concluding that it is not commercially viable. Earlier this month the company stopped signing up new customers to the service. "The operating cost of providing a mobile money platform has become prohibitive," MTN SA chief consumer officer Larry Annetts said.
U.S. lawmakers ask Wells about taking back bonuses linked to scam case
Vietnam PM says may allow bigger foreign stakes in banks
Card industry initiates European Cards Stakeholders Group for card standardisation
South Africa: 'Bad' bank pays back loan two years early
Ripple raises $55M as client list grows to 15 top global banks
India: RBI Adhere to timeline on EMV chip based cards: RBI to banks
Subscribe to the Lafferty Daily BriefingSIGN UP
© 1981-2018 Lafferty Group
Toll-free: +44(0) 800 772 3849
T: +44 (0) 203 633 1630
1-6 Yarmouth Place