Global Banking Directory 2.0
Press Release Distribution Service
Add Bank | Banking Forum Online
BankDEP Crypto Bank
BanksDaily on Twitter BanksDaily on LinkedIn BanksDaily on Instagram

Financial and Banking News

Citigroup in $7.6bn settlement over auction-rate bonds

Financial newsCitigroup agreed to a $7.6 billion landmark deal with regulators yesterday to settle charges that it mis-sold bonds to customers. Merrill Lynch announced its own plans to buy back from clients up to $10 billion of the same asset class, known as auction-rate securities (ARS).

Analysts described the moves as "another body blow" to the banking industry. Citigroup agreed to buy back $7.5 billion in illiquid bonds that it was alleged to have mis-sold to investors and pay a $100 million civil fine to settle allegations that it had fraudulently marketed the securities. Merrill Lynch, which had been charged by state regulators for allegedly pushing ARS with misleading sales tactics, said that it would buy them back to help clients who had been "caught in an unprecedented liquidity crisis".

Other significant ARS providers include Royal Bank of Scotland, HSBC and UBS. State regulators have also charged UBS. However, a spokesman said that UBS was nonetheless "working with regulators toward a comprehensive solution for all ARS investors". A 12-state task force, led by Texas, is investigating 12 Wall Street firms over their involvement in the ARS market.

RBS declined to comment. HSBC offered, at the end of June, to buy back loan-backed ARS that its clients had been unable to sell since the market froze in February. It has not disclosed how much these are worth or what the take-up has been.

Citigroup and some other market participants stood accused of telling customers that the assets were safe and almost as liquid as cash. However, trading in them has virtually evaporated in recent months. Under the settlement, Citigroup agreed to help more than 2,600 clients to sell about $12 billion of ARS that they own.

Sean Egan, of Egan Jones Ratings, said: "This might not be the killer punch, but it is another body blow for the banking industry. It is going to significantly worsen the credit crunch and will be bad for the shares and balance sheets of leading players."

Source: Times OnLine
Date: 08.08.2008 [184]
Get your content published on in just a few clicks.

Financial and Banking News
 Post-Pandemic Economic Recovery: Key Factors Driving Growth and Stability

The COVID-19 pandemic caused a global economic halt, resulting in disruption, job losses, and uncertainty. However, as vaccination efforts progress and countries adjust to the new normal, there is hope for an economic recovery.

 Wiki Finance Expo Sydney 2023 Is Coming Soon!

Regulation, Forex, Crypto, Web 3.0, Metaverse, AI, ESG Will Be in Focus. Taking place on November 16th, Wiki Finance Expo, Sydney 2023 is Aussie largest and most anticipated fintech event of the year. 30.10.2023 | Source: WikiExpo

 Blockchain Economy Dubai Summit 2023: Just Two Weeks Away and Buzzing with Anticipation

Dubai, UAE - The Blockchain Economy Dubai Summit is generating palpable excitement within the blockchain and crypto communities, with only two weeks remaining until the event. Scheduled for October 4-5, 2023, at the Le Meridien Dubai Hotel & Conference Center, this prestigious event gathers over 3,000 blockchain entrepreneurs, crypto enthusiasts, and industry leaders from 85 countries. 20.09.2023 | Source: Teklip

 📰 News Archive

2007-2024 © | All Banks in One Place | Privacy Policy