The banks involved in the investigation include Santander, BNP Paribas, Deutsche Bank, Intesa Sanpaolo, Société Générale, UniCredit and the European branches of Bank of America, HSBC and JPMorgan.
The European Central Bank is delaying the outcome of a comprehensive investigation into high-risk loans after several banks filed complaints about the way the investigation was conducted.
The final results of the leveraged loan review were originally scheduled to be released this month, but are now expected in September, according to a Bloomberg News report citing people familiar with the matter.
Bloomberg News reported last month that the ECB’s investigation had drawn criticism from banks, with several banks using a standard feedback process to write letters formally complaining about the ECB’s handling of the investigation.- One point of criticism was the use of external consultants and ECB staff who were not familiar with the banks’ business activities.
- The supervisory authorities also criticized the design of the review.
According to Bloomberg, sources said the ECB is likely to reduce its requirements for banks to set aside additional provisions for loan losses compared to its initial findings earlier this year.The banks involved in the investigation include Santander, BNP Paribas, Deutsche Bank, Intesa Sanpaolo, Société Générale, UniCredit and the European branches of Bank of America, HSBC and JPMorgan. —
Investors who suffered heavy losses in the bankruptcy of Greensill Capital have filed an objection with the Luxembourg financial regulator against a compensation offer from UBS.
According to a report in the Financial Times, the investors claim they were denied access to key documents related to their investments in Luxembourg-domiciled funds. Without these documents, they argue, they would not be able to accept UBS’s offer, which expires at the end of July.
UBS offered to pay investors 90 percent of their money but required them to waive other legal claims. Although the offer was generally well received, a group of former Credit Suisse clients who invested $80 million argue that under Luxembourg law, fund managers must pay full compensation if the fund’s net asset value was incorrectly calculated or investment rules were not followed.
- The challenge is complicating UBS’s efforts to resolve long-running legal disputes related to Credit Suisse, which it rescued from collapse last year through a Swiss state-backed takeover.
- Credit Suisse had advised around a thousand wealthy clients to invest in Greensill-linked funds that collapsed three years ago, holding onto $10 billion worth of assets.
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India’s central bank on Monday directed the country’s lenders to give defaulting borrowers sufficient time to respond before their accounts are classified as “fraud accounts.”after a Supreme Court ruling mandated that borrowers be given the opportunity to defend themselves.
The Reserve Bank of India has announced that banks must send a detailed notice to suspected fraudsters, giving them at least 21 days to respond.
- This change in the current rules takes into account a Supreme Court ruling in March last year that said banks cannot classify an account as fraudulent without giving the defaulter the right to be heard.
In addition, the RBI requires lenders to review their fraud risk management policies at least every three years. Banks must also form a special committee to monitor fraudulent cases and create an “early warning signal” framework to detect and flag accounts when fraudulent activity is suspected based on one or more indicators.
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Goldman Sachs plans to launch its first Asia-Pacific-focused private equity fund, aiming to raise $2 billion to expand its presence in the region’s high-growth economies.
As Reuters reported, citing people familiar with the matter, the fund is targeting sovereign wealth funds, pension funds and private investors, with an initial closing planned by the fourth quarter.
> Japan will receive about half of the fund’s capital
> India, South Korea and Australia to receive further investments
Over the past five years, Goldman Sachs has invested in over 60 companies across Asia.
Most notably, the bank was one of the first investors in Chinese e-commerce giant Alibaba Group in 1999, long before it became the country’s leading online shopping platform.
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