FILE PHOTO: A sign hangs outside of a branch of The Co-operative Bank in London, Britain, February 13, 2017. REUTERS/Hannah McKay/File Photo
March 27, 2019
By Huw Jones
LONDON (Reuters) – Banks’ capital levels should be externally checked to avoid the risk that lenders which run into trouble come close to collapse, an independent report into the near demise of Co-op Bank in 2013 said on Thursday.
The report from Mark Zelmer, a former Bank of Canada official, was commissioned by the Bank of England’s Prudential Regulation Authority to see what lessons regulators could learn from Co-op Bank, whose bondholders had to plug a 1.5 billion pound hole in its capital.
“The PRA should consider introducing more formal third-party reviews of key prudential information supplied by banking groups through their regulatory data returns,” Zelmer said.
This issue was also raised more recently when Metro Bank disclosed in January an accounting error in its capital calculations, forcing it to plan a 350 million pound cash call to bolster its capital reserves.
The Bank of England asked an accounting body in 2014 to look at how bank capital ratios could be audited, but a resulting discussion paper was not taken further.
A separate report in 2014 concluded the root of Co-op Bank’s problems lay in its 2009 takeover of the Britannia Building Society and poor management controls.
Zelmer has recommended improving how regulators consider a banking merger and to continually adapt stress tests.
There was a risk that if Britain experiences a lengthy benign economic environment, prudential oversight at the BoE could “fade into the background” in an institution heavily focused on the economy, Zelmer said.
“The PRA and BoE may wish to consider how they can best guard against this risk in the future,” Zelmer said.
Sam Woods, BoE Deputy Governor and CEO of the PRA, in response, said lessons from Co-op Bank would strengthen the PRA’s approach to prudential supervision.
RESOLUTION DOUBTS
Zelmer’s report also questioned the effectiveness of rules introduced globally since the financial crisis a decade ago to tackle failing banks and avoid taxpayer bailouts.
He said there was a question of whether the new rules aimed at making it easier to “resolve” or close mainly large, failing banks would be sufficient in times of stress.
“Indeed, I think the likelihood of such systemic situations involving smaller institutions may in fact be greater in the future.”
The rules aim to avoid a repeat of taxpayer bailouts during the financial crisis and force banks to issue debt that can absorb losses.
The PRA said its work continued on identifying further ways in which to maintain the effectiveness of resolution tools.
Zelmer said that between 2008 and 2013 the then Financial Services Authority was “busy fighting many fires on a number of fronts” during and after the global financial crisis.
The FSA approved the merger of Co-Op bank and Britannia, knowing there was a risk that more capital would be needed, Zelmer said.
“I believe the FSA acted reasonably in not intervening to halt the bid,” Zelmer said.
(The story refiles to fix typographical error in spelling of Zelmer in paragraph 11)
(Reporting by Huw Jones. Editing by Jane Merriman)
Samantha Rodriguez, 20, who became the caretaker for her five younger siblings after the tragic deaths of both parents, was gifted a new car.
A story that captured the hearts of many back in December has gone viral again after a Florida community raised money to buy a new car for 20-year-old Samantha Rodriguez, who became the caretaker for her five younger siblings after the tragic deaths of both parents.
Samantha and her five siblings, ages 6 to 15, lost both parents to cancer over the last few years. When the the Orange County Sheriff's Office heard that Samantha became the caretaker for her younger siblings, they wanted to ensure that the family had a special Christmas.
Officers with the OCSO Aviation Unit invited the Rodriguez children to the station, where they thought they were receiving a tour of the facility, but when they arrived they were met with a room full of gifts.
The initial story touched the community so much so that over the months that followed, several donors reached out to the sheriff’s office with a way to help the family.
On April 4, the Orange County Sheriff’s Office presented Samantha with a new 2018 Nissan Versa sedan.
“You don’t know how much this means to us and it’s such a big help, really,” she said with total shock. “Doing everything on my own is very hard but I’m so glad to have people like you guys in my life.”
A video posted to the OCSO Facebook page showed the moment Samantha surprised her siblings with generous gift.
PARIS – The Latest on the fire at Notre Dame Cathedral in Paris and its aftermath (all times local):
1 p.m.
The chaplain of the Paris fire brigade credits saving the crown of thorns from fire that gutted Notre Dame to a team of rescuers who broke the relic's protective covering and an official who had the secret code to unlock the protection.
Fire chaplain Jean-Marc Fournier told France Info on Thursday that his own team arrived on the heels of the salvaging, and praised the action "to preserve this extraordinary relic, this patrimony of humanity."
Others had earlier credited Fournier with saving the crown of thorns.
Fournier told daily Le Parisian that he himself was able to save the most precious thing for Catholics from the fires, the concentrated hosts. The paper said he climbed on altars to remove large paintings, but that he felt especially proud of another personal salvaging operation: "to have removed Jesus" from the Cathedral.
He was referring to the chalice containing consecrated hosts that for Catholics are the body of Christ.
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12:20 p.m.
Workers are securing the support structure above one of Notre Dame's famed rose windows with wooden planks after this week's devastating fire.
A huge crane and renovation teams worked at the site Thursday, after authorities warned that some of the structure remains at risk. Firefighters walked on what the remains of the roof to inspect damage.
The island housing Notre Dame at the heart of the French capital remained largely empty Thursday and closed to everyone but residents. Businesses were shuttered and the usual tourist throngs were nowhere to be seen.
Passersby praised the French firefighters who helped save the overall structure of the cathedral, although its spire collapsed and its roof was destroyed in Monday's devastating fire.
Benedicte Contamin, who came to see the cathedral Thursday, said she's sad but grateful it's still there. She said this is "a chance for France to bounce back, a chance to realize what unites us, because we have been too much divided over the past years."
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9 a.m.
France is paying a daylong tribute Thursday to the Paris firefighters who saved the internationally revered Notre Dame Cathedral from collapse and rescued its treasures from encroaching flames.
French President Emmanuel Macron will host the firefighters for a special gathering to share "words of thanks." Top government ministers will also take part in the event at the presidential palace in Paris.
Later, Paris City Hall will hold a ceremony in the firefighters' honor, with a Bach violin concert, two giant banners strung from the monumental city headquarters and readings from Victor Hugo's "The Hunchback of Notre Dame."
More than 400 firefighters took part in the nine-hour battle to save the 12th-century Notre Dame on Monday evening. Its spire collapsed and roof was destroyed, but its iconic towers, rose windows, famed organ and precious artworks were saved.
Remarkably, no one was killed in the fire, which occurred during a Mass, after firefighters and church officials speedily evacuated those inside.
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Read and watch all AP coverage of the Notre Dame fire at https://apnews.com/NotreDameCathedral
President Trump weighed in on the Jussie Smollett saga Thursday, calling his comments a ‘racist’ slur against supporters, hours after the Empire actor was arrested and charged with disorderly conduct.
In a previous interview on “Good Morning America,” Smollett claimed that his alleged attacker said “Make America Great Again” while pouring bleach on him and putting a noose around his neck.
The President tagged Smollett in a tweet and asked “what about MAGA and the tens of millions of people you insulted with your racist and dangerous comments!?”
.@JussieSmollett – what about MAGA and the tens of millions of people you insulted with your racist and dangerous comments!? #MAGA
Smollett turned himself over to police in Chicago at around 5 am Thursday morning, according to reports, without making any statement.
Chicago police said Smollett set up a hate crime hoax because he was “dissatisfied with his salary” on the Fox show.
Chicago police Superintendent Eddie Johnson said that Smollett orchestrated a “phony attack” in order to take “advantage of the pain and anger of racism to promote his career.”
Smollett’s attorneys had previously vehemently denied the attack was a hoax.
“As a victim of a hate crime who has cooperated with the police investigation, Jussie Smollett is angered and devastated by recent reports that the perpetrators are individuals he is familiar with,” the lawyers said in a weekend statement.
“He has now been further victimized by claims attributed to these alleged perpetrators that Jussie played a role in his own attack. Nothing is further from the truth and anyone claiming otherwise is lying.” the statement continued.
In a further statement to Fox News on Wednesday, Smollett’s attorneys said the actor “enjoys the presumption of innocence, particularly when there has been an investigation like this one where information, both true and false, has been repeatedly leaked.”
If Smollett is found guilty of falsifying a police report, he could go to prison.
FILE PHOTO: Mar 8, 2019; Phoenix, AZ, USA; Los Angeles Dodgers starting pitcher Clayton Kershaw (22) signs autographs for fans before the game against the Kansas City Royals at Camelback Ranch. Mandatory Credit: Orlando Ramirez-USA TODAY Sports
April 2, 2019
Clayton Kershaw’s run of eight straight Opening Day starts ended due to left shoulder inflammation.
However, the Los Angeles Dodgers ace will have a different type of Opening Day assignment when he makes a rehab start at Oklahoma City on Thursday night.
Kershaw was cleared to make the start after throwing a bullpen session on Monday, and the rehab appearance just happens to be the Triple-A club’s season opener against San Antonio.
Dodgers manager Dave Roberts joked about the irony and told reporters that Kershaw’s streak of Opening Day starts should remain intact.
On a serious note, Los Angeles will see how Kershaw performs on Thursday before deciding the next move. Considering normal rest, the three-time Cy Young winner possibly could make his first major league start of the year on April 9 against the Cardinals in St. Louis.
Kershaw, a 31-year-old left-hander, threw a three-inning simulated game on Saturday without issues.
Roberts also said that left-hander Rich Hill (knee) played catch Monday and will throw off the mound either Tuesday or Wednesday.
The former acting director of Immigration and Customs Enforcement (ICE), Thomas Homan, told Fox News on Sunday that President Trump made the right move replacing Homeland Security Secretary Kirstjen Nielsen with U.S. Customs and Border Protection Commissioner Kevin McAleenan.
Homan, a Fox News contributor, called McAleenan one of the smartest men with whom he has worked.
“He knows border issues, and he can hit the ground running,” Homan told Jon Scott on “Fox Report.” “He knows the border... he will start day one.”
Nielsen resigned on Sunday amid the administration’s growing frustration over migrants approaching the Mexico border.
Trump thanked her for her work in a tweet and announced McAleenan would be taking over as acting head of the department. McAleenan is a longtime border official who is well-respected by members of Congress and within the administration. The decision to name an immigration officer to the post reflects Trump’s priority for a sprawling department founded to combat terrorism following the Sept. 11 attacks.
Homan said he blamed Congress and current U.S. law for the border crisis: “We are enticing people to come.”
FILE PHOTO: UFC lightweight champion Conor McGregor of Ireland raises a cup of Irish whiskey during post-fight news conference at T-Mobile Arena in Las Vegas, Nevada, U.S. August 27, 2017. REUTERS/Steve Marcus/File Photo
April 4, 2019
(Reuters) – Conor McGregor has hinted his “retirement” from mixed martial arts may be over already after the Irishman said in a post on Twitter: ” … see you in the Octagon”.
“I want to move forward, with my fans of all faiths and all backgrounds,” he Tweeted.
“All faiths challenge us to be our best selves. It is one world and one for all. Now see you in the Octagon.”
Two weeks ago, the twice Ultimate Fighting Championship title-holder sent shockwaves around the sporting world by saying he was retiring on Twitter.
The announcement drew plenty of scepticism, given a previous “retirement” in 2016 lasted a matter of days.
(Reporting by Ian Ransom; Editing by Peter Rutherford)
FILE PHOTO: The Credit Suisse logo is pictured on a bank in Geneva, Switzerland, October 17, 2017. REUTERS/Denis Balibouse/File Photo
April 26, 2019
ZURICH (Reuters) – Shareholders approved Credit Suisse’s 2018 compensation report with an 82 percent majority on Friday, overriding frustrations expressed at its annual general meeting over jumps in executive pay during a year its share price plummeted.
Three shareholder advisers had recommended investors vote against Switzerland’s second-biggest bank’s remuneration report, while a fourth backed the report but expressed reservations about whether management pay matched performance.
The approval marked a slight increase over the 80.8 percent support garnered for the bank’s 2017 compensation report.
(Reporting by Brenna Hughes Neghaiwi; Editing by Michael Shields)
FILE PHOTO: Traders work on the trading floor of Barclays Bank at Canary Wharf in London, Britain December 7, 2018. REUTERS/Simon Dawson/File Photo
April 26, 2019
By Simon Jessop and Sinead Cruise
LONDON (Reuters) – Activist investor Edward Bramson is likely to fail in his attempt to get a board seat at Barclays’ annual meeting next week, even though shareholders are dissatisfied with performance of the group’s investment bank.
New York-based Bramson’s Sherborne Investors and the board of the British bank have been sparring for months over Barclays’ strategy.
Bramson wants to scale back Barclays’ investment bank to reduce risk and boost shareholder returns. Barclays Chief Executive Jes Staley remains staunchly committed to growing the business out of trouble.
After failing to persuade Staley to change course since he began building a 5.5 percent stake in the bank in March last year, Bramson hopes a board seat will rachet up the pressure.
Both sides have written to shareholders pitching their case and Bramson has courted investors in one-on-one meetings, although none have publicly backed him yet.
Interviews by Reuters with five institutional investors in Barclays suggest Bramson has failed to persuade them.
Sherborne declined to comment.
Mirza Baig, head of investment stewardship at top-40 shareholder Aviva Investors, said Bramson was welcome on the bank’s register but the boardroom was a step too far.
“He has created a lot of value at other businesses, but, generally, when he has come in as executive chair and taken full control. This would be a different case where he would just be one lone voice on the board,” he said.
A second Barclays shareholder said he backed Bramson’s goal of improving returns but via an “evolutionary” approach.
“If you look at banks that have tried to restructure their operations in investment banking – you look at Natwest Markets, Deutsche Bank – I struggle to think of an example where a roughshod restructuring has been accretive to shareholder value.”
A third, top-30 investor said he had been impressed by incoming Chairman Nigel Higgins’ grasp of the challenge in hand, and felt investors would give him time.
“Management know they have to execute and deliver improved returns… [Higgins] will continue to re-shape the board but obviously he didn’t feel that having someone with a diametrically opposed view on it would be helpful.”
A fourth, top-30 investor agreed: “We voted for the chairman to come in and it would be crazy to allow an activist to join the board (at this time).”
Jupiter Fund Management, the 24th largest investor, said it also planned to vote against Bramson.
Barclays has nearly 500 institutional shareholders, Refinitiv data showed.
Since Staley joined Barclays in 2015, the investment bank returns relative to capital invested have increased but are still underperforming the overall business.
Barclays’ first-quarter figures showed the investment bank posted a 6 percent drop in income from its markets business and a 17 percent fall in banking advisory fees.
Returns in the investment bank fell to 9.5 percent from 13.2 percent a year ago.
Famed for successful campaigns against smaller British companies in sectors from chemicals to advertising, Bramson’s board seat pitch has been rebuffed by shareholder advisory firms.
Institutional Shareholder Services, the world’s biggest, said Bramson’s proposal “falls short of what can reasonably be expected from a shareholder trying to address issues at a 28 billion pounds, systemically important bank”.
Glass Lewis also flagged concern about Bramson’s lack of banking experience and “questionable” shareholding structure, referring to Sherborne’s use of derivative contracts to hedge losses should its strategy fail.
Critics said the arrangement meant his interests are not truly aligned with those of other long-term shareholders.
British advisory firm Pirc, however, said it recommended that investors abstain in the vote on Bramson’s proposal as a challenge to the board to do better in the year ahead – or face a similar contest in 2020.
After an over 15-month pregnancy, “Akuti,” a 7-year-old Greater One Horned Indian Rhinoceros, gave birth as a result of induced ovulation and artificial insemination at Zoo Miami, April 23, 2019.
FILE PHOTO: A Chevron gas station sign is seen in Del Mar, California, in this April 25, 2013 file photo. REUTERS/Mike Blake/File Photo
April 26, 2019
(Reuters) – U.S. oil and natural gas producer Chevron Corp reported a 27 percent fall in quarterly earnings on Friday, hit by lower crude prices and weaker margins in its refining and chemicals businesses.
Net income attributable to the company fell to $2.65 billion, or $1.39 per share, for the first quarter ended March 31, from $3.64 billion, or $1.90 per share, a year earlier.
Earlier in the day, larger rival Exxon Mobil Corp reported earnings well below analysts’ estimates, as margins in its refining business were hurt by higher Canadian prices and heavy scheduled maintenance.
(Reporting by Arathy S Nair in Bengaluru; Editing by Saumyadeb Chakrabarty)
FILE PHOTO: The Ford logo is seen at the North American International Auto Show in Detroit, Michigan, U.S., January 15, 2019. REUTERS/Brendan McDermid/File Photo
April 26, 2019
(Reuters) – Ford Motor Co said on Friday the U.S. Department of Justice had opened a criminal investigation into the automaker’s emissions certification process in the United States.
The potential concern does not involve the use of defeat devices, the company said in a regulatory filing. (https://bit.ly/2VqjHpl)
Ford had voluntarily disclosed the matter to the U.S. Environmental Protection Agency and the California Air Resources Board in February.
(Reporting by Ankit Ajmera in Bengaluru; Editing by James Emmanuel)
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