Figures showing more than 4,000 City financiers were paid more than €1m in 2015 come as UK prepares for Brexit talks.
More than 4,000 City-based financiers were paid more than €1m (£850,000) in 2015 – including one who received nearly €34m.
The latest data from regulator the European Banking Authority shows that 80% of the financiers across the EU who were classified as high earners – receiving more than €1m – were based in the UK.
Across the EU, 5,124 of financiers – bankers, fund managers and compliance experts – received €1m, of which 4,133 were based in the UK, the EU’s biggest financial centre.
See more at: https://www.theguardian.com/business/2017/feb/02/european-bankers-uk-city-brexit-talks
The City’s top lobby group has performed a dramatic u-turn on Brexit, scrapping its previous campaign to remain in the EU and instead hailing the vote to leave as “unprecedented opportunity” for the UK to develop a powerful new set of trade and investment policies.
The group, which represents banks, finance firms and the professional services industry, now believes that Britain’s departure from the EU represents “a once-in-a-generation opportunity” for a strategic re-think of commercial relationships with the rest of the globe.
Before the EU referendum the organisation had planned for a way to cope with Brexit just in case voters chose to leave the group of 28 nations.
But the new proposals are more than just an effort to make the best out of Brexit – in an apparently major conversion, the group actively points out the ways in which EU membership has proved to be a “straitjacket” in terms of global trade, holding Britain back from building relationships with non-EU nations.
See more at: http://www.telegraph.co.uk/business/2017/01/31/city-lobby-group-comes-fighting-global-brexit-dramatic-u-turn/
The UK economy continued to power ahead over the final three months of last year, showing no signs yet of the slowdown that many economists had predicted since the country voted to leave the EU in June.
The economy grew by 0.6 per cent in the fourth quarter of 2016, according to the Office for National Statistics. Growth for the year as a whole was 2 per cent, slightly slower than the 2.2 per cent figure for 2015 but still leaving the UK as the fastest growing economy in the G7 last year.
The preliminary estimate for the fourth quarter was above the consensus forecast of 0.5 per cent growth and the figure as was recorded in the second and third quarters.
See more at: http://www.msn.com/en-gb/money/news/uk-shrugs-off-brexit-fears-to-become-fastest-growing-economy-in-2016/ar-AAmfW2o?ocid=spartanntp
New international rules put in place since the financial crisis will help maintain the City of London’s status as a financial centre following Brexit, according to one of the most senior bankers attending the World Economic Forum in Davos.
Jes Staley, the chief executive of Barclays, said that a silver lining of the credit crunch was the global rules drawn up by the G20 group of rich nations which recognised that the free flow of capital was the “oxygen of commerce”.
He said that both the UK and the European Union recognised the importance of these rules and would not seek to fragment or shut off capital flows for a short-term boost in employment in the financial sector of a given country.
See more at:http://www.telegraph.co.uk/business/2017/01/20/barclays-boss-backs-city-saying-london-will-remain-major-finance/
Is the UK witnessing a sudden exodus of bankers in the wake of Theresa May’s confirmation that the UK will be leaving the European single market?
In a word, no. At least not yet.
Yes, HSBC has confirmed it wasn’t bluffing about moving 1,000 jobs to Paris. Yes, the chief executive of UBS has said it will “definitely” move up to 1,000 bankers. Yes, Goldman Sachs has slowed planned investment in London from New York.
So, Paris, Frankfurt and New York will all benefit from these firm commitments. But to describe the news of the last few days as an exodus is overdoing it. Some 360,000 people in Greater London work in financial services, for the whole of the UK, that number rises to over a million. So far we have seen definite plans to move up to 2,000 jobs. A trickle, so far, rather than a flood.
See more at: http://www.bbc.co.uk/news/business-38677504
HIGH street banking has suffered a fresh blow after it emerged 43 branches in Scotland are earmarked for closure and the UK’s last independent bank is going out of business.
In a sombre day for the beleaguered sector, Clydesdale Bank announced it will shut more than a third of its 111 remaining offices while 182-year-old Airdrie Savings Bank revealed it was preparing for a “phased end to all business activities”.
The combined number of jobs under threat total around 270 as Clydesdale pull down the curtain on 40 branches with Airdrie set to close three offices.
Holding company CYBG, which owns Clydesdale, also announced that 39 branches and 200 jobs are also at risk at its sister group Yorkshire Bank as the firm moves to save £100 million in a bid to counteract the impact of lower interest rates and the potential for a post-Brexit slowdown of the economy.
See more at: http://www.heraldscotland.com/news/15032228.Black_day_for_Scottish_banking_
The EU’s chief negotiator in the Brexit talks has shown the first signs of backing away from his hardline, no-compromise approach after admitting he wants a deal with Britain that will guarantee the other 27 member states continued easy access to the City.
Michel Barnier wants a “special” relationship with the City of London after Britain has left the bloc, according to unpublished minutes seen by the Guardian that hint at unease about the costs of Brexit on continental Europe.
Barnier told a private meeting of MEPs this week that special work was needed to avoid financial instability, according to a European parliament summary of the session. “Some very specific work has to be done in this area,” he said, according to the minutes. “There will be a special/specific relationship. There will need to be work outside of the negotiation box … in order to avoid financial instability.”
Barnier later moved to clarify his comments, claiming on Twitter that he referred to a “special vigilance” required to ensure the EU remained financially stable after Brexit.
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The banking sector is to face fresh scrutiny from MPs, who are embarking on a new inquiry to examine rules put in place after the financial crisis in 2008 to prevent further billion-pound taxpayer bailouts.
Andrew Tyrie, the Conservative MP who chairs the Treasury select committee, said the public had a right to know if they were protected from a repeat of the financial crisis, when £65bn was pumped into Royal Bank of Scotland and Lloyds Banking Group.
“The public was forced to foot the bill – and a large one – when the banks got into trouble during the crisis. They are still footing the bill now, with the profitable disposal of RBS looking like an ever more distant prospect,” said Tyrie.
Last month, RBS failed the Bank of England’s stress test – an annual health check of the sector introduced after the crisis – in a move exacerbating the problems facing Philip Hammond in reducing the taxpayer stake below 73%. The chancellor said in October that a sale of any more shares in RBS was not practical after his predecessor George Osborne sold off a 5% stake at a £1bn loss in August 2015.
See more at: https://www.theguardian.com/business/2016/dec/19/mps-test-rules-uk-bank-bailouts-andrew-tyrie
Crowdfunding platforms need tougher rules and restrictions in order to protect investors, the Financial Conduct Authority has said.
The financial watchdog has raised concerns about loan-based businesses, which allow borrowers and lenders to join up without involving banks, and investment platforms, through which members of the public invest in a business or campaign directly.
The FCA said it was difficult for investors to compare crowdfunding investments with other assets given it was often unclear exactly what was being offered.
As a result, investors struggle to assess the risk and returns of giving their money to crowdfunding platforms, and there were some conflicts of interest that were not being managed properly.
Additionally, crowdfunding schemes did not always meet the FCA’s requirements to be “clear, fair and not misleading”, it said.
See more at: http://www.telegraph.co.uk/business/2016/12/09/watchdog-launches-crackdown-crowdfunding/
The Bank of England is due to provide a snapshot of the strength of Britain’s biggest lenders after assessing their resilience to a dramatic economic downturn and sharp fall in house prices.
Threadneedle Street will announce the outcome of its annual health check of the six biggest banks – and one building society, Nationwide – on Wednesday, alongside its assessment of the major risks to the financial system in the wake of the Brexit result.
The Bank will also scrutinise the effectiveness of measures aimed at limiting the risks in the housing market. It has previously said it is concerned about the ability of some households to keep paying their debts if unemployment rises and wage growth stalls.
See more at: https://www.theguardian.com/business/2016/nov/27/bank-of-england-announce-stress-tests-uk-banks-fpc-fsr
The German government and financial authorities are working on a rescue plan for Deutsche Bank in case it cannot pay fines in the US, according to Die Zeit newspaper.
Germany’s biggest lender is facing a $14bn (£10.8bn; €12.5bn) bill for mis-selling mortgage-backed bonds before the financial crisis of 2008.
In the worst-case scenario, the government would even take a 25% stake in the bank, according to the article.
Deutsche Bank has denied the report.
In a statement, the German finance ministry stressed: “This report is false. The federal government is preparing no rescue plans. There is no reason for such speculation. The bank has said that clearly.”
Die Zeit wrote that “despite earlier denials”, the rescue plans were being prepared and would come into force if the bank needed additional capital to pay the fine and could not raise the money from the markets.
The record fine was imposed by the US Department of Justice earlier this month and is nearly triple the amount Deutsche had put aside to cover the payout.
See more at: http://www.bbc.co.uk/news/business-37496268
A new advertising campaign is being launched to persuade more people to switch bank accounts – because not enough people are doing so.
The Switch Guarantee service was launched exactly three years ago, but the numbers using it have fallen consistently.
In the year to the end of June 2016, the number of switches averaged 88,031 a month.
That compares with a monthly average of 92,448 in the previous year.
Most account holders have steadfastly refused to move, despite incentives worth up to £220 being offered by banks and building societies.
Bacs, the organisation responsible for the switching service, will launch the new advertising campaign in newspapers, social media and online this weekend.
See more at: http://www.bbc.co.uk/news/business-37383259