Major Banks Settle $12 Bln Settlement, Corruption Unravelled
Deutsche Bank AG, Germany’s largest lender with over $1.7 trillion in assets, agreed to a $7.2 bln settlement with the United States government this past week for allegations of loan modifications. Swiss-based Credit Suisse also agreed to a penalty of $5.28 bln for virulent mortgage-based securities. In total, the two major financial institutions have agreed to a $12 bln settlement, an amount far less than the initial proposal of $14 bln for Deutsche Bank and $7 bln for Credit Suisse. In an official statement, Deutsche Bank stated: “The financial consequences, if any, of the consumer....
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A group of major banks; UBS, Deutsche Bank, Santander and BNY Mellon, as well as the broker ICAP, have teamed up to develop a new form of digital cash that will help to set an industry standard to clear and settle financial trades over a distributed ledger. In September 2015, Bitcoin Magazine reported that UBS was working on a prototype virtual currency to be used by banks and financial institutions as a basis to settle mainstream financial markets transactions. UBS, a Swiss global financial services company with its headquarters in Basel and Zürich, is the biggest Swiss bank and is....
Goldman Sachs has reportedly agreed to settle with the U.S. government over its role in a corrupt Malaysian government investment fund, which is one of the firm’s worst scandals since the financial crisis. In addition, Goldman Sachs previously agreed to pay the Malaysian government billions of dollars to end a criminal probe. Goldman Sachs’ Billions of Dollars in Settlement Goldman Sachs Group Inc. has agreed to pay about $2.8 billion to the U.S. Department of Justice (DOJ) to settle a case involving a corrupt Malaysian government investment fund, the Wall Street Journal....
Four banks have reportedly partnered on a blockchain project aimed at creating a means to clear and settle transactions worldwide. BNY Mellon, Deutsche Bank, Santander and UBS – the latter of which first disclosed its work on a so-called "settlement coin" last year – are hoping to launch a commercial-grade blockchain system by 2018, according to The Financial Times. The banks are working with blockchain startup Clearmatics, based in London. A formal announcement will reportedly be made tomorrow, FT's Martin Arnold reports. He explained in the article: "The utility settlement....
Over the past few years, banks have destroyed the precarious trust relation they had established with their customer base. Ever since the latest financial crisis hit in 2008, banks have been facing a lot of scrutiny from the general population and government officials alike. The latest anti-corruption campaign in Beijing has claimed three more victims, one of whom is the president of one of China’s largest banks. Company executives and government officials have been targeted by China’s massive anti-corruption probe since 2013 when President Xi Jinping was put in charge. Over the course of....
Since the beginning of 2015, an increasing number of banks and financial institutions have focused on the development of unique blockchain networks and distributed ledgers to create "decentralized" transaction and asset settlement systems. Despite their interest in the blockchain technology, these banks have demonstrated a hostile view toward bitcoin, claiming that bitcoin is not viable as a currency or a medium of exchange. "Governments like to control (currencies). They have central banks. They like to control the supply. They also generally like to know where it (currency) is and where....