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Share Price: 202.00
Bid: 202.40
Ask: 202.50
Change: -3.15 (-1.54%)
Spread: 0.10 (0.049%)
Open: 205.75
High: 206.10
Low: 197.68
Prev. Close: 205.15
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UK struggles to supervise foreign bank branches-former watchdog

Thu, 10th Jan 2013 17:01

By Huw Jones LONDON, Jan 10 (Reuters) - Britain cannot supervise foreignbank branches properly, making it harder to spot wrongdoing likeLibor rigging, the former head of the Financial ServicesAuthority said on Thursday. Branches, unlike subsidiaries, are mainly supervised by thebank's home regulator rather than the FSA, which must take aback seat on matters like capital requirements. Hector Sants, who stepped down as FSA CEO last June, told aUK parliamentary commission on banking standards that brancheswere a "significant problem", as shown by manipulation of theLondon Interbank Offered Rate or Libor benchmark. "The vast majority of the wrongdoing was done outside of thesupervisory net of the UK," Sants said. "These big branches inthe UK pose a significant threat to effective supervision." Libor setting was overseen in London by the British Bankers'Association with many non UK banks contributing. Libor rates,compiled from estimates submitted by large banks, are used todetermine interest rates on trillions of dollars of contractsaround the world. Sants was being quizzed just after the lawmakers grilledformer top officials at Swiss bank UBS, which lastmonth paid a $1.5 billion fine for rigging Libor. UBS, which has a substantial presence in London, paid a 160million pound fine to the FSA as part of the settlement. Sants defended the FSA's role in the Libor scandal, sayingit had acted swiftly in conjunction with U.S. regulators. "We took Libor very, very seriously," Sants said. Sants is due to take up the top compliance job at Barclays, the British bank that was first to settle charges ofrigging Libor, an interest rate used to price home loans, creditcards and other products worth over $300 trillion. He said it would be difficult for any regulator to spotmisconduct if it was not visible to the firm itself. Fiveinternal audits at UBS failed to spot the Libor rigging. In another case involving a subsidiary, the London branch ofU.S. bank JPMorgan was hit by a $6.2 billion loss aftertrades in credit derivatives went wrong. Sants said he would use his insights as a regulator toimprove culture and values at Barclays, something all firmsneeded to do. "Unless the firms put in place a radically differentapproach to compliance and a radically different set ofincentives, there is a very high risk it will come back roundagain," Sants said. Regulators should be able to suspend bankers suspected ofwrongdoing and ensure they are "struck off" if misconduct isproven, steps which would help change behaviour. Anyone who presided over a major failure at a bank shouldhave to prove they are "fit and proper" to stay in the industry,rather than the regulator having to do this, Sants said. Some of the traders mentioned in the Barclays and UBSsettlements were still "approved persons" under FSA rules -meaning they could work in the industry - the watchdog's head ofenforcement, Tracey McDermott confirmed to the hearing. Criminal investigations into individuals are continuing, shesaid, declining to elborate. The parliamentary commission is due to report around Marchand is expected to recommend changes to the law to help restoretrust in the tarnished banking sector.
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27 Mar 2024 13:44

Libor trader Hayes loses appeal against rate-rigging conviction

LONDON, March 27 (Reuters) - Tom Hayes, the first trader in the world to be jailed for interest rate rigging, lost his appeal against his conviction on Wednesday, a decision he said he would seek to challenge at the UK's Supreme Court.

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27 Mar 2024 13:17

UK dividends calendar - next 7 days

Thursday 28 March 
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Wednesday 3 April 
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Copyright 2024 Alliance News Ltd. All Rights Reserved.

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27 Mar 2024 11:45

UK Libor trader Hayes loses appeal against rate-rigging conviction

LONDON, March 27 (Reuters) - Tom Hayes, the first trader jailed worldwide for interest rate rigging, lost his appeal against his conviction in a London court on Wednesday.

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26 Mar 2024 09:40

LONDON BROKER RATINGS: Dr Martens cut to 'sell'; BofA likes Tullow

(Alliance News) - The following London-listed shares received analyst recommendations Tuesday morning and Monday:

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21 Mar 2024 11:45

Citi, Barclays set to trim investment banking headcounts

(Sharecast News) - Banking giants Barclays and Citigroup were reportedly gearing up to trim their investment banking workforce, it emerged on Thursday, amid a slowdown in dealmaking activity within the sector.

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14 Mar 2024 09:51

LONDON BROKER RATINGS: Kepler Cheuvreux likes Diageo; BofA lifts Man

(Alliance News) - The following London-listed shares received analyst recommendations Thursday morning and Wednesday:

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12 Mar 2024 08:42

UPDATE: York consortium sells call options over 10 million LSEG shares

London Stock Exchange Group PLC - London-based stock market operator and data provider - JP Morgan Securities PLC on Tuesday confirms that BCP York Holdings LP sold call options over around 10 million voting shares in LSEG, having announced plans to do so after the London market close on Monday. The call options were sold to Barclays Bank PLC, Merrill Lynch International, Citigroup Global Markets Ltd, Goldman Sachs International, JP Morgan Securities PLC and Morgan Stanley & Co International PLC. The call option shares represent around a 1.9% economic and voting interest in LSEG. BCP York is an entity owned by a consortium of certain investment funds affiliated with Blackstone Inc, and including an affiliate of Canada Pension Plan Investment Board, an affiliate of GIC Special Investments Pte Ltd, Thomson Reuters Corp and certain other minority holders. Thomson Reuters didn't participate in the call option transaction.

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11 Mar 2024 19:21

IN BRIEF: Consortium to sell call options over 10 million LSEG shares

London Stock Exchange Group PLC - London-based stock market operator and data provider - JP Morgan Securities PLC says BCP York Holdings LP intends to sell call options over around 10 million voting shares in LSEG. Shares to be sold to Barclays Bank PLC, Merrill Lynch International, Citigroup Global Markets Ltd, Goldman Sachs International, JP Morgan Securities PLC and Morgan Stanley & Co International PLC. The call option shares represent around a 1.9% economic and voting interest in LSEG. BCP York is an entity owned by a consortium of certain investment funds affiliated with Blackstone Inc, and including an affiliate of Canada Pension Plan Investment Board, an affiliate of GIC Special Investments Pte Ltd, Thomson Reuters Corp and certain other minority holders. Thomson Reuters will not participate in the call option transaction.

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1 Mar 2024 15:06

London close: Stocks start the month with positive close

(Sharecast News) - London's financial markets finished in positive territory on Friday, with investor sentiment buoyed by the recent easing of inflation in the United States, as market participants mulled the latest manufacturing data from the UK.

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1 Mar 2024 10:08

IN BRIEF: AB Foods appoints Barclays to run GBP250 million buyback

Associated British Foods PLC - London-based food and ingredient company and owner of fast-fashion retailer Primark - Enters agreement with Barclays Capital Securities Ltd to run the second tranche of AB Food's GBP500 million share buyback programme. The second tranche will be for up to GBP250 million and commence following the completion of the first tranche of the programme, expected before May 1. The first tranche, conducted by UBS Group AG, commenced on November 14. All shares repurchased will be cancelled.

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29 Feb 2024 16:05

London close: Stocks finish positive as US inflation moderates

(Sharecast News) - London's stock markets finished with moderate gains on Thursday, buoyed by a combination of factors including a slowdown in US inflation, robust UK earnings reports, and encouraging mortgage approvals figures.

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27 Feb 2024 16:08

Barclays to sell $1.1bn of card debt to Blackstone - report

(Sharecast News) - Barclays has agreed to sell around $1.1bn of credit-card receivables in the US to Blackstone as it looks to reduce its risk-weighted assets and create additional lending capacity.

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27 Feb 2024 11:33

IN BRIEF: Faruqui of Barclays named new Takeover Panel head

Barclays PLC - London-based bank - Omar Faruqui, "one of Barclays' most experienced advisory practitioners," is named as next director general of the UK's Takeover Panel, effective from May 1. Faruqui is Barclays' co-head of Europe, Middle East & Africa Mergers & Acquisitions; co-head of UK Advisory; and on the management team of EMEA Investment Banking. After taking up the director general post, he will be on a two-year secondment from Barclays.

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27 Feb 2024 09:23

LONDON BROKER RATINGS: Barclays raises Flutter to 'overweight'

(Alliance News) - The following London-listed shares received analyst recommendations Tuesday morning and Monday:

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26 Feb 2024 09:07

LONDON BROKER RATINGS: Jefferies raises ITM Power to 'buy'

(Alliance News) - The following London-listed shares received analyst recommendations Monday morning and Friday:

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