{"id":12773,"date":"2016-09-30T11:41:39","date_gmt":"2016-09-30T11:41:39","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=12773"},"modified":"2016-09-30T11:41:39","modified_gmt":"2016-09-30T11:41:39","slug":"fines-withdrawals-job-cuts-ugly-day-global-banks","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/fines-withdrawals-job-cuts-ugly-day-global-banks.html","title":{"rendered":"Fines, Withdrawals, Job Cuts. It Was an Ugly Day for Global Banks"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><span style=\"font-size: 18pt; color: #000000;\"><strong><span style=\"font-family: Arial,Helvetica,sans-serif;\">Fines, Withdrawals, Job Cuts. It Was an Ugly Day for Global Banks<\/span><\/strong><\/span><\/h2>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\"><strong>Fines, Withdrawals, Job Cuts. It Was an Ugly Day for Global Banks<\/strong> : Even before the opening bell in New York, Thursday looked like a grim day for some of the giants of global banking.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">But few expected the barrage of bad news that soon hit on both sides of the Atlantic &#8212; a rat-a-tat-tat of job cuts, scandal and financial worry that sent bank shares tumbling and left many investors wondering just where or when the pain would end.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">It began in Germany, where long-struggling Commerzbank AG unveiled yet another plan to regain its footing, this time by cutting one in five of its employees. In Washington, came still more blistering attacks on John Stumpf, whose grip atop embattled Wells Fargo &amp; Co., the largest U.S. mortgage lender, remains tenuous amid the uproar over a scandal involving unauthorized accounts.<\/span><\/p>\n<p style=\"text-align: justify;\"><iframe loading=\"lazy\" src=\"https:\/\/www.bloomberg.com\/api\/embed\/iframe?id=e62dbe94-3119-47c0-8e73-b190b8a97fb5\" width=\"300\" height=\"150\" frameborder=\"0\"><\/iframe><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">And then, back in Germany, came the bombshell: revelations that some hedge funds were moving to reduce their financial exposure to Deutsche Bank, now the biggest worry in global finance. Before Stumpf left the U.S. House chambers after more than four hours of grilling, news broke his bank would be hit with more penalties after improperly repossessing cars owned by U.S. soldiers.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">\u201cWhile each has unique challenges, the overwhelming thing that has happened to the banks is they\u2019re forgetting their purpose, while complexity is increasing opportunity for errors,\u201d said Jon Lukomnik, executive director of the Investor Responsibility Research Center Institute in New York.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">Eight years after the financial crisis, the global banking industry is groping for a way forward. Global regulators have sought to make banks look more like boring utilities, but that road has proven steep. Emboldened by an international populist groundswell, they continue to dole out fines and penalties, and firms are scrambling for ways to make money as trading volumes decline and capital requirements become more stringent.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">The 38-company Bloomberg Europe Banks and Financial Services Index has tumbled 24 percent this year, while the KBW Bank Index of 24 U.S.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">lenders has slid 4.6 percent, led by Wells Fargo\u2019s 18 percent decline.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">In the past 10 days, Stumpf has agreed to forgo $41 million in compensation, and an adviser to Turkish President Recep Tayyip Erdogan glibly suggested on Twitter that Turkey buy Deutsche Bank as its market value fell by more than half this year. The German lender is now barely worth more than the $14 billion settlement the U.S. Department of Justice would like to extract in a long-running investigation of the bank\u2019s mortgage securities business.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">Commerzbank Chief Executive Officer Martin Zielke announced plans Thursday to eliminate 9,600 jobs, leaving it no bigger than it was before its 2008 acquisition of Dresdner Bank. The Frankfurt-based bank has lost about 39 percent of its market value this year.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">\u201cGermany is still overbanked, and it\u2019s tough to have Germany as your home base when you want to compete with French, Spanish or American peers that operate in less fragmented home markets,\u201d said Klaus Fleischer, a professor of finance at the University of Applied Sciences in Munich.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">Wells Fargo agreed to pay more than $24 million to the Justice Department and the Office of the Comptroller of the Currency to settle allegations that it improperly repossessed cars owned by members of the military.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">\u201cI don\u2019t personally see how you survive,\u201d Representative Denny Heck, a Washington Democrat, told Stumpf Thursday as the 63-year-old CEO testified before the House Financial Services Committee.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">Lawmakers called for Stumpf to be fired, for Wells Fargo\u2019s board to be replaced and for the bank to be broken up.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">\u201cYour problem is coming,\u201d Representative Mike Capuano, a Massachusetts Democrat, told Stumpf at the hearings. \u201cYou think today is tough? It\u2019s coming. When the prosecutors get ahold of you, you\u2019re going to have a lot of fun.&#8221;<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">As the hearing was under way, news broke that some of Deutsche Bank\u2019s clients were said to be reducing their collateral on trades, sending its New York-listed shares down as much as 9.1 percent. Earlier this week, CEO John Cryan was forced to shoot down speculation the bank needs more capital and may require a bailout, as its shares touch record lows and a U.S. litigation settlement looms.<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 14pt; font-family: Arial,Helvetica,sans-serif;\">\u201cOur trading clients are amongst the world\u2019s most sophisticated investors,\u201d Michael Golden, a spokesman for Deutsche Bank, said in an e-mailed statement. \u201cWe are confident that the vast majority of them have a full understanding of our stable financial position, the current macroeconomic environment, the litigation process in the U.S. and the progress we are making with our strategy.\u201d<\/span><\/p>\n<p style=\"text-align: justify;\"><span style=\"color: #000000; font-size: 8pt; font-family: Arial,Helvetica,sans-serif;\"><strong>Source<\/strong> : http:\/\/www.bloomberg.com\/news\/articles\/2016-09-29\/from-deutsche-bank-to-wells-fargo-a-bad-run-for-giant-lenders<\/span><\/p>\n<div class=\"fb-background-color\">\n\t\t\t  <div \n\t\t\t  \tclass = \"fb-comments\" \n\t\t\t  \tdata-href = \"https:\/\/www.biphoo.com\/bipnews\/business\/fines-withdrawals-job-cuts-ugly-day-global-banks.html\"\n\t\t\t  \tdata-numposts = \"10\"\n\t\t\t  \tdata-lazy = \"true\"\n\t\t\t\tdata-colorscheme = \"light\"\n\t\t\t\tdata-order-by = \"social\"\n\t\t\t\tdata-mobile=true>\n\t\t\t  <\/div><\/div>\n\t\t  <style>\n\t\t    .fb-background-color {\n\t\t\t\tbackground: #ffffff !important;\n\t\t\t}\n\t\t\t.fb_iframe_widget_fluid_desktop iframe {\n\t\t\t    width: 630px !important;\n\t\t\t}\n\t\t  <\/style>\n\t\t  ","protected":false},"excerpt":{"rendered":"<p>Fines, Withdrawals, Job Cuts. It Was an Ugly Day for Global Banks Fines, Withdrawals, Job Cuts. It Was an Ugly Day for Global Banks : Even before the opening bell in New York, Thursday looked like a grim day for some of the giants of global banking. But few expected [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12774,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[6663,7452,7364,7690,7800,6666],"class_list":["post-12773","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-deutsche-bank-ag","tag-germany","tag-john-g-stumpf","tag-markets","tag-video-stories","tag-wells-fargo-co"],"_links":{"self":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/12773","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/comments?post=12773"}],"version-history":[{"count":0,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/posts\/12773\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media\/12774"}],"wp:attachment":[{"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/media?parent=12773"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/categories?post=12773"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biphoo.com\/bipnews\/wp-json\/wp\/v2\/tags?post=12773"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}