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Jamie Dimon calls bitcoin a fraud used by criminals, yet he has jumped into the blockchain with both feet.

RBC invested $24 million into Wave Technologies and now they will roll out Waves accounting, invoicing, reporting and billing platform to SMEs.

Overview of Canadian banking industry. This multi-part series looks at issues facing Canadian banks from a variety of angles. Part 1 examines the types of banks and scale using ROE and EBITDA as measures.


About

About BankNews TV: FSIM,Analytics and Research

BankNews.TV propose to help investors understand the risk of investing in African banks. Through detailed analytics, investors will be able to compare audited financial data against comparable international banks. BankNews.TV will also support banks reporting requirements and assist them in their capital outreach initiatives. In order to help investors and banks, BankNews.TV offers detailed analytics, news feeds and industry reports.

BankNews Africa Invest service is geared to African banks seeking investments. Investments can be in many forms, such as Equity Recourse Notes (ERN), stocks, bonds or other structured instruments. In order for investors to gauge the risk, investors will need to see a snapshot of each banks financial data. Click choose file for a data template that you need to upload. If you have not already downloaded the templates, please see the financial data templates tab below.

Select financial data to upload:

Please download and complete the data template that you need to upload. See financial data upload section above for details of how this data will be used.

Research

Death to bitcoin, long live the blockchain   (See full report)

Mark Sibthorpe


TD BANK INDUSTRY CONDUCT  

banknews.tv/docs/tdind2.pdf

Mark Sibthorpe

TD’s share price recently collapsed by $7 bn in one day due to CBC’s allegations of aggressive selling tactics. A huge fall from a bank that was trading at a premium as recently as January. This was even before the most recent allegation of TD attempting to avoid paying taxes on advertising.
This report chronicles the events leading up to the collapse, shows TD's performance, analyses other related issues.


Book review: Back from the Brink  

banknews.tv/docs/backbrink.pdf

Mark Sibthorpe

This is a book review of the book Back from the Brink by Paul Halpern, Caroline Cakebread, Christopher C. Nicholls and Poonam Puri.


Footnote 151  

banknews.tv/docs/footnote151.pdf

Mark Sibthorpe

Footnote 151 implies an important regulatory change related to derivative contracts. It means that US Banks will not be required to hold as much capital against commodities. If you want to understand the implications of this regulatory change in more detail, see the enclosed related article detailing the changes. For contextual purposes, I have also included two Rolling Stones Magazines reports from 2010 and 2014 that chronicle the role large US banks have played in manipulating commodities. You might question the credibility of these sources, but rest assured, these reports are based on United States Senate hearings which outline the issues in a 396 page report related to the implied risks. 


SAVE THE CANADIAN ECONOMY NOW  

banknews.tv/docs/helecopter-money.pdf

Mark Sibthorpe

Consumer debt spending appears to have insulated Canada from the worst of the credit crisis, but now the alarming magnitude of consumer debt ($1.92-trillion) could exacerbate a day of reckoning.
This report assesses the issues at hand and recommends the solution to get Canada's economy on track.


REASONS FINANCIAL SERVICE COMPANIES SHOULD CONSIDER GAMIFICATION  

banknews.tv/docs/Gamfin.pdf

Mark Sibthorpe

Gamification of business processes resulted on Mint.com growing to 10 million users within 4 years. This report explains how.


National Bank Special Report  

banknews.tv/docs/NatBSpec.pdf

Mark Sibthorpe

According to Bloomberg, National Bank of Canada will take a C$64 million ($48 million) restructuring charge in the fourth quarter and said its investment in Maple Financial Group Inc., which is being probed by German regulators, may be at risk of a “substantial loss.”


WILL CANADIAN BANKS CHARGE COMPANIES FOR DEPOSITS?  

banknews.tv/docs/depgrowthimpact2.pdf

Mark Sibthorpe

In light of today’s possible rate cut, this report discusses how a bank rate cut and capital ratio pressure could precipitate negative corporate deposit interest rates in Canada.


Canadian Tire's (CTC) - Canadian Tire Financial Services (CTFS) Scotia deal overview and risk assess  

banknews.tv/docs/ctfsfinal.pdf

Mark Sibthorpe

Review of the Canadian Tire Financial Services deal with Scotiabank, risks, opportunity and benefits.


FINANCE MINISTER SCORECARD AUGUST 26, 2015  

banknews.tv/docs/Scorejo-August-2015.pdf

Mark Sibthorpe

This report looks at Joe Oliver, minister of finance’s progress to date, and assigns a grade to his government’s performance to date.


Xtreme Branch  

banknews.tv/docs/xbranch.pdf

Mark Sibthorpe

Branches are evolving to meet the digital age. This documents tracks the evolution with real-world examples.


Canadian Nudge  

banknews.tv/docs/nudge.pdf

Mark Sibthorpe

Whether he knew it or not, Tom Reid, a senior vice-president at Sun Life, made a case for the behavior modification concept ‘Nudging’ when he recently proposed auto-enrolling Canadians in his company’s pension plans. Sun life cover 1.2 million Canadians, about 60% of the eligible employees.
According to Reid,


CWB CAUSE FOR CONCERN  

banknews.tv/docs/cwbupdate.pdf

Mark Sibthorpe

In an earlier report BankNews.TV expressed concerns about CWB. Here are 5 charts that show cause:
1. First earnings drop in years;
2. Deposits dropping which will increase cost of funds in the future.


BNTV Overview  

banknews.tv/docs/overviewpdf.pdf

BNTV

BankNews.TV Publishing Corp services overview document:

  • Analytics
  • Financial services industry monitor (FSIM) industry briefings and developments reports
  • Research


CHALLENGER BANKS NOT A THREAT TO BIG BANKS  

banknews.tv/docs/challenger.pdf

Mark Sibthorpe

This report looks at Canadian challenger banks (apart from merchant led banks) and explains why they have not threatened larger institutions. It also looks at ways in which these upstarts have achieved success.


Gamification of financial data project  

banknews.tv/docs/GamingEventProposal-printsample--en-final.pdf

Mark Sibthorpe

This document contains details on how BankNews.TV is helping kids learn programming via gamification of financial data.


THE IMPACT A RATE RISE WILL HAVE ON CANADIAN BANKS  

banknews.tv/docs/irr-f.pdf

Mark Sibthorpe

Canadian banks have made money throughout the credit crisis, but this trend may be about to reverse. The rational supporting this prediction is that revenue has grown despite a declining net interest margin (NIM). It has grown in spite of this fact because Canadian debt (loan lease volume) has risen significantly, as shown in chart 2.

This report looks at the issues facing Canadian banks in the event of a Bank Rate rise.  


FIFA: THE NEW GOLDENBALLS  

banknews.tv/docs/goldenballs.pdf

Mark Sibthorpe

Yesterday, the Attorney General of Switzerland (OAG) opened criminal proceedings related to the FIFA scandal. This report outlines some of the events related to the criminal investigation, with a particular focus on banking.


Scorecard Minister of Finance: JIm Flaherty  

banknews.tv/docs/Scorecard Min Fin Flaherty April 8 2014.pdf

Mark Sibthorpe

March 18, Finance Minister Jim Flaherty resigned from cabinet after having endured a difficult year due to health issues. This report looks at his legacy and attempts to grade his government’s performance to date.


Sample RFP for a Loyalty Program  

banknews.tv/docs/sample RFP for a loyalty program.pdf

Mark Sibthorpe


Merchants extend financial services  

banknews.tv/docs/merchantfs.pdf

Mark Sibthorpe

Merchant led financial services are growing in importance once again. This is exemplified in the ongoing UK rivalry between ASDA, Sainsbury and Tesco. Together these merchant/financial service companies provide the backstop for three different approaches for merchants looking to extend their financial services.


Hot Money: real-estate  

banknews.tv/docs/hotmoney.pdf

Mark Sibthorpe

Canadian and London real estate, like Macau, may also be a convenient means for China’s elite to move money offshore; with the deleterious effect of driving up home values. Louise Shelley`s research concurs. In a published paper written for the National Defense University, Shelley argues that money laundering in real estate (MLRE) increases prices.


Currency Cheat Sheet: a guide for the rest of us  

banknews.tv/docs/currencycheatsheet.pdf

Mark Sibthorpe

Readers of this document will be presented with monetary policy issues and facts
that show the USD will likely remain the dominant reserve currency, despite
questionable Chinese practices, record US debt levels, and a shaky economy.


Riches to Rags? Summary of possible risks for Genworth MI CANADA, INC.  

banknews.tv/docs/gq4risk.pdf

Mark Sibthorpe

Genworth had its Q4 2014 earnings call. Genworth own about 30% of the mortgage default insurance in Canada. Not surprisingly, the earnings call became focussed on Alberta; and for good reason, with 20% of its outstanding insured mortgage balance in Alberta, sensitivity to the oil shock and how Genworth plan to manage related risks were discussed in detail.


Canadian Western Bank Competitive Forecast  

banknews.tv/docs/cwbf.pdf

Mark Sibthorpe

Based on historical financial data (see detailed charts pages 5-8), the oil based recession in Alberta, and comparison against two of its peers, this document outlines my observation with respect to CWB’s future performances.


Liquid Canada: the tipping point  

banknews.tv/docs/Liquid.pdf

Mark Sibthorpe

This report examines liquidity issues in the Canadian financial service industry.


Bank Fees  

banknews.tv/docs/Bank fees.pdf

Mark Sibthorpe

Recently the CBC and The Globe and Mail both reported on what has been referred to as a consumer “bank fee outcry”. CBC compares banks to cable and phone companies, standing accused of trying to gouge customers with service fees. The backlash appears to have originated in conjunction with the NDP and the Consumers Council of Canada which argues that there is anxiety ‘among consumers about banking fees’.


Cheap Oil Report  

banknews.tv/docs/co2.pdf

Cheap oil has pushed the Bank of Canada's governor, Stephen Poloz onto a slippery slope. For some background on this, take October 22nd, when Poloz bid farewell to forward guidance, resulting in yesterday's surprise rate cut. A cut that has enraged TD and other banks, which see this as eroding profits.
 


Canada's Economy, a strategic solution  

banknews.tv/docs/ces.pdf

This report explores Canada's strategies to compete globally. The report begins with an analyses of the housing market, because housing is the canary in the coal mine; explores what happens in the event of collapse; and analyses the underlying problem causing Canada to be uncompetitive.
 


Complete loyalty RFP  

banknews.tv/docs/booksample.pdf

Merchants that want to understand loyalty, credit and mobile payments should read this book. It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives.
 


Mobile Payments Blueprint: guide to credit and loyalty transformation for merchants  

banknews.tv/docs/booksample.pdf

Merchants that want to understand loyalty, credit and mobile payments should read this book. It offers readers a step-by-step methodology for evaluating and transforming credit and loyalty programs. The strategies are based on proven examples and facts. The Nectar, Target, Canadian Tire and Walmart case studies are examples of the practical approach I have taken, written with the intent that merchants can use them as blueprints for their own initiatives.
 


Report on merchants extending financial services  

banknews.tv/docs/

Special report explaining why some merchants in the UK, U.S. and Canada are expanding their financial services. The paper discusses the structural and regulatory pressures facing merchants and explains the rational behind key decisions. This is an 8 page high level report
 


Guide to system selection  

banknews.tv/docs/gssnow.pdf

Read sample report: Guide to system selection. This sample would normally cost $99 but is available free as a sample. Click here view sample report.


News feed

BANK OF ENGLAND'S CARNEY EXPANDS INFLUENCE WITH TWO NEW GLOBAL ROLES

G&M - Huw Jones (2017-11-12)

Bank of England Governor Mark Carney is widening his influence by becoming chair of two global central bank groups which monitor risks from the economy and financial system.


MORTGAGE STRESS-TEST RULES WILL MAKE SWITCHING LENDERS HARDER, CRITICS SAY

G&M - James Bradshaw (2017-10-23)

Ottawa's new stress-test rules for mortgages will make it harder for homeowners to shop around and switch lenders when their loans come up for renewal, critics of the regulations say.


RATE HIKE PROSPECTS DWINDLE AS GROWTH COOLS

G&M - David Parkinson (2017-10-23)

If you're an economic policy junkie, you'll be in your element in Ottawa this week.


BMO WARNS NON-NAFTA NATIONS ON U.S.: THEY'RE COMING FOR YOU NEXT

G&M - Michael Babad (2017-10-23)

As negotiations over the North American free-trade agreement sour, Bank of Montreal has a warning for non-NAFTA nations: They're coming for you next.


SEXUAL HARASSMENT ALLEGATIONS SPARK REVIEW, EMERGENCY MEETING AT FIDELITY: REPORT

G&M - Charles Krupa (2017-10-23)

Fidelity Investments has hired a consulting firm to review employee behaviour amid allegations of sexual harassment at the U.S. money manager stretching back years, the Wall Street Journal reported on Sunday.


CENTRAL BANKING LEADERSHIP FLUX LOOMS AS GLOBAL ECONOMY FACING COMBUSTIBLE CHALLENGES

FP - Reuters (2017-10-23)

The leaders of the world’s top central banks who risked trillions of dollars and their reputations to rescue the global economy are now set to walk off stage at a time when the lingering effects of the crisis, evolving technology and a combustible political landscape will challenge their successors.


SCOTIABANK SAID TO BE MULLING SALE OF THE WORLD’S OLDEST GOLD TRADER

FP - Reuters (2017-10-23)

Canada’s Bank of Nova Scotia is exploring options for its gold business ScotiaMocatta, including a possible sale of the world’s oldest gold trader, three sources familiar with the matter said on Wednesday.


THE GREAT TRAILER FEE FIGHT RAGES ON, BUT THE WRITING IS ALREADY ON THE WALL

FP - Tom Bradley (2017-10-23)

The battle rages on. A small group of investment professionals is desperately trying to keep the securities regulators from banning embedded commissions. These charges, also called trailer fees, facilitate a payment from the client to an advisor by channeling part of a mutual fund’s management fee back to the investment dealer.


CANADIAN INTEREST RATES MUST BE JUST RIGHT FOR A GOLDILOCKS ECONOMY: DON PITTIS

CBC - Don Pittis (2017-10-23)

Canadians burdened by large mortgages and record consumer debt-to-income ratios can likely breathe a sigh of relief this week as they wait to see whether the Bank of Canada raises rates again.


TD INSIDER SAYS BANK DOESN'T WANT YOU TO KNOW IT'S OUTSOURCING WORK OVERSEAS

CBC - Erica Johnson (2017-10-23)

Alyson Mosher knows a lot of private information about the TD Bank customers whose fraud claims she handles — and now, she says, that information is going to offshore workers without most people's knowledge.


INFLATION RATE ROSE TO 1.6% IN SEPTEMBER, LED BY GASOLINE PRICE HIKES

CBC - CBC (2017-10-23)

Canada's annual inflation rate rose to 1.6 per cent in September, up from 1.4 per cent the previous month, as the costs of transportation and shelter went up.


IGM FINANCIAL MERGES INVESTOR GROUP’S AND MACKENZIE’S MANAGEMENT ORGANIZATIONS

Insurance Journal - IIJ (2017-10-23)

IGM Financial announced Oct. 19 that the investment management functions of Investors Groupand Mackenzie Investments are being merged to form one investment management organization for both companies.


REGULATOR HITS OUT AT WELLS FARGO OVER CAR INSURANCE SCANDAL

Insurance Business - Ryan Smith (2017-10-23)

A top regulator had stern words for Wells Fargo over reports that the bank wrongly pushed auto insurance on customers who didn’t need it.


HUGE FLOOD SETTLEMENT REACHED WITH FIRST NATIONS

Insurance Business - Lyle Adriano (2017-10-23)

The provincial government of Manitoba and the federal government have agreed to an over $90 million settlement with a number of First Nation communities affected by the 2011 flood.


CONTINUING FAST PACE FOR INSURANCE M&A IN U.S., CANADA: OPTIS

Canadian Underwriter - CU (2017-10-23)

Sellers seem to be enthusiastically responding as buyers continue the aggressive valuations of p&c and employee benefits agencies, with OPTIS Partners reporting Thursday there were 132 deals inked during 2017 Q3, bringing the year-to-date total to 457.


SWISS RE ESTIMATES LOSSES FROM RECENT HURRICANES, MEXICO EARTHQUAKES AT US$3.6 BILLION

Canadian Underwriter - CU (2017-10-23)

Of the total combined losses, claims from the two earthquakes in Mexico are expected to be approximately US$175 million, Swiss Resaid in a press release on Friday. Swiss Re estimates the total insured market losses to the industry from these events to be approximately US$95 billion.


GENERAL ELECTRIC HAS A LONG-TERM CARE PROBLEM. IT ISN’T ALONE

WSJ - WSJ (2017-10-23)

Worries about the health of the long-term-care insurance industry have nettled investors for years. General Electric Co.’s comments show the problem isn’t going away soon.


J.P. MORGAN, UNITED RENEGOTIATING CARD PARTNERSHIP

WSJ - WSJ (2017-10-23)

United Continental Holdings is in discussions with J.P. Morgan to renegotiate terms of their co-branded card partnership, a move some analysts fear could suppress revenue at the bank.


WELLS FARGO FIRES FOUR FOREIGN-EXCHANGE BANKERS AS WOES SPREAD TO INVESTMENT BANK

WSJ - WSJ (2017-10-23)

Wells Fargo has fired four foreign-exchange bankers amid an investigation into that business by both the bank and regulators.


FEMA DELAYS LEAVE HURRICANE VICTIMS FEELING ‘ABANDONED’

NY Times - MANNY FERNANDEZ, LIZETTE ALVAREZ and RON NIXON (2017-10-23)

After Harvey and Irma, residents of Texas and Florida are waiting weeks for Federal Emergency Management Agency inspections and hours on hold on the agency’s help line.


A SHOWDOWN BREWS BETWEEN AMAZON AND ALIBABA, FAR FROM HOME

NY Times - Jane A. Peterson (2017-10-23)

From this concrete warehouse perched on the edge of a potentially vast new market for online shopping, the Alibaba Group of China hopes to beat Amazon one head of lettuce at a time.


JPMORGAN REACHES BEYOND ITS BRANCHES WITH NEW MOBILE ACCOUNT APP

Reuters - Reuters (2017-10-23)

In its first offering of online bank accounts, JPMorgan Chase & Co on Monday launched a new smartphone app that it hopes will attract new depositors, many of whom are young and may live far from any of its branch offices.


VICTORY FOR ABENOMICS LIFTS WORLD STOCKS TO NEW RECORD

Reuters - Georgina Prodhan (2017-10-23)

Japanese Prime Minister Shinzo Abe’s convincing election victory lifted the Nikkei to its highest in 21 years and world stocks to an all-time high on Monday, despite an escalation of Spain’s constitutional crisis that weighed on the country’s banks.


ONTARIO SETS UP FINTECH STRATEGY PANEL

Finextra - Finextra (2017-10-23)

The Canadian province of Ontario has put together a team of financial services and technology experts to help it build a fintech strategy that boosts growth while protecting consumers.


GREAT-WEST COURTS MILLENNIALS WITH PROGRAM TO TACKLE STUDENT DEBT AND SAVE FOR RETIREMENT

G&M - Jacqueline Nelson (2017-10-23)

Saving for retirement isn't a top priority for many young professionals, but Great-West Lifeco Inc. thinks it can change that by addressing heavy student debt loads.


CANADIAN BANKS 2017 ENGLISH DOWNLOAD THE PDF FOR OFFLINE READING. FLASH PLUGIN REQUIRED

PWC - PWC (2017-10-20)

A financial overview of the big six banks showing performance and challenges for 2017. This report shows of PWC's accounting pedigree with its attention to detail that you would expect from this firm.


GOLDMAN CEO PLANNING TO SPEND ‘A LOT MORE TIME’ IN FRANKFURT POST-BREXIT

G&M - Anjuli Davies (2017-10-20)

Goldman Sachs chief executive Lloyd Blankfein is planning to spend a lot more time in Frankfurt, he said on Thursday, as the Wall Street bank pushes ahead with plans to make the German city a major base after Britain leaves the European Union.


TRUMP LEANING TOWARD POWELL FOR FED CHAIR: REPORT

G&M - Ankur Banerjee (2017-10-20)

Federal Reserve Governor Jerome Powell is the leading candidate to become the chair of the U.S. central bank after President Donald Trump concluded a series of meetings with five finalists on Thursday, Politico reported, citing three administration officials.


MORTGAGE INDUSTRY SEES AMORTIZATION LOOPHOLE IN OSFI'S NEW STRESS TEST RULES

FP - Garry Marr (2017-10-20)

New rules designed to ensure that homebuyers in the uninsured mortgage market can withstand rising interest rates contain a loophole that lenders could exploit to qualify more mortgages, according to industry sources.


ROYAL BANK OF CANADA SHARES JOIN THE $100 CLUB, DESPITE SPLITTING FOUR TIMES

FP - Barry Critchley (2017-10-20)

It may be just another number but Wednesday the share price of the Royal Bank of Canada, the country’s largest corporation with a market cap of $145 billion, reached a milestone: it traded above $100. In the same week, Onex Corp. also traded above $100 for the first time.


WHAT THE NEW MORTGAGE RULES MEAN FOR THE LENDING MARKET

FP - Doug Alexander (2017-10-20)

Borrowers who don’t meet the lending criteria of Canada’s big banks for home loans may turn to credit unions and private lenders under tougher mortgage rules released by the country’s banking regulator, according to RBC Capital Markets.


CMHC STRESS TESTS SHOW HOUSING AGENCY WOULD WITHSTAND 'SEVERE' SHOCKS

CBC - CBC (2017-10-20)

The Canada Mortgage and Housing Corporation has crunched numbers on the assumption that the economy could get rocked by any number of different calamities and come to the same conclusion: the corporation itself would be all right.


CGL INSURER HAS DUTY TO DEFEND THIRD-PARTY CLAIM ARISING FROM WORKPLACE INJURY

Canadian Underwriter - CU (2017-10-20)

Creative Door Services Ltd. had a contract in 2009 to supply and install a door for AltaSteel Ltd., Justice Doreen Sulyma of the Alberta Court of Queen’s Bench wrote. Creative’s CGL policy was written by AXA Pacific Insurance Company, now part of Intact Insurance Company.


ASSURANT TO BUY WARRANTY GROUP FOR $1.9 BILLION

WSJ - WSJ (2017-10-20)

Assurant plans to buy the Warranty Group in a $1.9 billion cash-and-stock deal that will beef up the insurance company’s international presence.


AUSTRALIA'S WESTPAC TO REFUND 200,000 CUSTOMERS FOR MISSED BENEFITS

Reuters - Reuters (2017-10-20)

Australia's Westpac Banking Corp said on Thursday it will pay refunds to about 200,000 customers who should have received cash benefits, as the country's lenders seek to ease concerns about their governance after a series of scandals.


GOLDMAN'S FLEDGLING CONSUMER BANK DRAWS QUESTIONS FROM CURIOUS ANALYSTS

Reuters - Reuters (2017-10-20)

As Goldman Sachs Group Inc has unveiled more details about its strategy and financial targets to satisfy investor demands, Wall Street's attention has turned to a business so small and new that there may not be much to disclose.


FINTECH SEEN AS THE BIGGEST DISRUPTOR FOR FINANCIAL INSTITUTIONS

Insurance Journal - IIJ (2017-10-19)

The report surveyed more than 160 financial institutions in 36 countries. It found that “banks, insurers and asset management companies believe technologies like artificial intelligence, blockchain and the internet of things are redefining the very nature of financial services,” says KPMG.


FOUR IN TEN CANADIANS FEEL THEIR FINANCIAL FUTURES ARE NOT UNDER CONTROL, SAYS NEW STUDY

Insurance Journal - IIJ (2017-10-19)

Thirty-nine per cent of Canadians feel they don’t have their financial future under control, while 29 per cent say they are overwhelmed with their financial options, according to a new study commissioned by the Financial Planning Standards Council released Oct. 17.


IS INSURTECH LOSING MOMENTUM?

Insurance Business - Ryan Smith (2017-10-19)

Is insurtech – and indeed, the whole financial technology space – losing momentum? At the very least, the pace of start-up creation seems to be slowing. More than 1,000 fintech start-ups were created in 2015 in the United States. In 2016, that number dropped to just 500, according to data-analysis company Tracxn.


CANADIAN INVESTORS EXIT AS INSURANCE CONSOLIDATOR IS ACQUIRED

Insurance Business - Lyle Adriano (2017-10-19)

Apollo Global Management has signed a definitive agreement to acquire a majority stake in Bermuda-based Catalina Holdings, as Catalina’s Canadian investors Caisse de depot et placement du Quebec and Ontario Teachers’ Pension Plan step out of the picture.


KNOWN RISKS AND NEW TECHNOLOGY SUCH AS HYPERLOOP CAN POSE CHALLENGES: MUNICH RE

Canadian Underwriter - Jason Contant (2017-10-19)

The combination of known risks with a new technology is challenging, Christian Höft, client manager with Munich Re, told Canadian Underwriter one day after the (re)insurer released a comprehensive risk analysis of the Hyperloop technology.


AIG SIGNS DEAL WITH UNITED AIRLINES FOR TRAVEL INSURANCE

WSJ - WSJ (2017-10-19)

American International Group said it reached an agreement with United Airlines to offer travel insurance to the airline’s customers.


A SHORTSIGHTED PLAN TO SCRAP DODD-FRANK’S LIQUIDATION RULES

NY Times - Gina Chon (2017-10-19)

Some Republicans see the rules on unwinding failing banks as another bailout. But a global perspective reveals some reasons to keep them in place.


US BANKS ABANDON CRISIS-ERA TABOO OF GROWTH

FT - Ben McLannahan (2017-10-19)

Marty Chavez, the bank’s chief financial officer, had trotted through some third-quarter numbers, which were mostly better than analysts had expected. Bond trading revenues were down a lot from a year earlier but many other business lines were up, including financial advisory, investment management and the private equity-like segment known as investing and lending.


CHINA’S $150BN DEBT-FOR-EQUITY SWAP STALLS

FT - Don Weinland, Gabriel Wildeau (2017-10-19)

China’s plan to swap more than $150bn in corporate debt with equity from banks and other investors has moved forward far slower than expected as banks and companies question the benefits of such deals. Of the Rmb1.04tn ($157bn) in such swaps that have been announced over the past year, banks have so far executed just Rmb142.9bn ($21.6bn), or 13.7 per cent, according to a report from UBS.


CHINA’S $150BN DEBT-FOR-EQUITY SWAP STALLS

FT - Don Weinland, Gabriel Wildeau (2017-10-19)

China’s plan to swap more than $150bn in corporate debt with equity from banks and other investors has moved forward far slower than expected as banks and companies question the benefits of such deals. Of the Rmb1.04tn ($157bn) in such swaps that have been announced over the past year, banks have so far executed just Rmb142.9bn ($21.6bn), or 13.7 per cent, according to a report from UBS.


CHINA RISKS BUBBLE WITH SURGE IN PROPERTY INVESTMENT

FT - Tom Hancock, Gabriel Wildeau (2017-10-19)

Ocean Flower Island is a vision of luxury, Chinese-style. A man-made archipelago off the coast of the tropical island of Hainan in the South China Sea, it will boast thousands of apartments, 28 museums and 58 hotels including one which is “7-star level” and another shaped like a European castle.


THE FUTURE OF CANADIAN REAL ESTATE PRICES PART 3: PRICE TARGETS AND RECOVERY

Better Dwelling - Stephen Punwasi (2017-10-19)

Quite a few people have been saying Toronto real estate has been overpriced for the past decade. That’s not what we see here. Actually, there was some prime buying opportunities in the 2000s according to this model. It’s not until 2015 that we break out of range. From there, we actually drop right down to today, where we’re nearly at the point we were in 1989. Now, this doesn’t mean people can’t afford Toronto real estate anymore. There’s tons of numbers that say otherwise, and a heck of a lot more people can support higher prices. However, this is the point where prices detach from lending conditions dramatically. This historically sparked people to question whether the risk/reward opportunity exists.


TMX, BANK OF CANADA AND PAYMENTS CANADA TO RUN BLOCKCHAIN SETTLEMENT TESTS

Finextra - Finextra (2017-10-19)

The collaborative effort marks Phase 3 of the Bank of Canda's Project Jasper initiative, to better understand how DLT could transform the future of payments in Canada. In the first two phases, the project focused on exploring the clearing and settlement of high-value interbank payments using DLT.


WHY SQUEEZING FIRST-TIME HOME BUYERS IS A SMART HOUSING POLICY

G&M - Rob Carrick (2017-10-18)

If some aspiring home buyers have to be turned away to protect the solidity of the country's real estate market, then so be it.


TRUMP’S NAFTA PLAN IS NOW CLEAR, AND CANADA HAS TO RIDE IT OUT

G&M - Andrei Sulzenko (2017-10-18)

After the latest round of NAFTA negotiations and Prime Minister Justin Trudeau's visit to Washington, the jig is up.


CRITICS SAY NEW MORTGAGE RULES WILL PUSH BORROWERS TO UNREGULATED LENDERS

G&M - Janet McFarland, James Bradshaw (2017-10-18)

Canada's banking regulator will move ahead with controversial new mortgage stress-testing rules in an effort to curb risky lending practices at banks, but critics say the changes will drive more borrowers to unregulated alternative lenders and add risk to the financial system more broadly.


“A BIG STICK UP BOEING'S TAILPIPE”: BOMBARDIER DEAL WITH AIRBUS COULD THWART U.S. DUTIES

FP - Alicja Siekierska (2017-10-18)

The blockbuster deal that will see Airbus SE acquire a majority stake in Bombardier Inc.’s CSeries division is being hailed by analysts as a positive move that provides much-needed stability for Bombardier and may bolster the company’s ability to fight off massive duties imposed by the United States.


BOND AND EQUITY CARVE-OUTS: SMALL PLAYERS NEED NOT APPLY

FP - FP (2017-10-18)

An offering of convertible debentures by Osisko Gold Royalties and an offering of bonds by the province of N.B. tapped large quantities of capital


AVIVA REVEALS MASSIVE PENSIONER BUY-IN DEAL

Insurance Business - Terry Gancuangco (2017-10-18)

Aviva has completed a bulk annuity deal with The Pearson Pension Plan amid plans to grow bulk capabilities in the UK and Irish markets.


AI GETS REAL

Canadian Underwriter - Norman Black (2017-10-18)

Not many years ago, artificial intelligence (AI) was the stuff of movies like I, Robot or 2001: A Space Odyssey, or of novels by Isaac Asimov or Philip K. Dick. It is now a reality: cognitive computing, machine learning, natural-language interfaces and related technologies allow computer systems to interact in a human fashion, make decisions and apply outcomes mechanically, to have the appearance of sentience.


UNITEDHEALTH REVENUE GROWS DESPITE ACA EXIT

WSJ - WSJ (2017-10-18)

UnitedHealth’s shares gained after it said core insurance and health-services businesses grew in its latest quarter, despite a dent in revenue caused by the company’s decision to pull out of most Affordable Care Act markets.


J.P. MORGAN TO BUY PAYMENTS FIRM WEPAY IN FIRST MAJOR FINTECH ACQUISITION

WSJ - WSJ (2017-10-18)

J.P. Morgan Chase said that it agreed to buy payments company WePay in the bank’s first sizable acquisition of a financial-technology startup.


BARCLAYS POACHES HSBC INVESTMENT BANKER FOR U.K. M&A ROLE

WSJ - WSJ (2017-10-18)

Barclays has poached a senior investment banker from HSBC to co-head its mergers and acquisitions operations, an appointment that comes at a time when the bank is involved in some of the most high-profile U.K. cross-border deals.


GOLDMAN SACHS HAD GOOD EARNINGS, BUT IT COULD LEARN FROM MORGAN STANLEY

NY Times - Antony Currie (2017-10-18)

Goldman Sachs posted strong results, but its rival on Wall Street has earnings that look more repeatable.


CHINA’S EMBRACE OF PRIVATE INVESTMENT IS GETTING TIGHTER

NY Times - Christopher Beddor (2017-10-18)

On one hand, China enjoys the job growth and efficiency of the private sector. But the government keeps inserting itself into boardrooms.


TOP CREDIT SUISSE INVESTOR SAYS ACTIVIST PLAN NEEDS BE LOOKED INTO: FT

Reuters - Reuters (2017-10-18)

ZURICH Credit Suisse's largest shareholder wants the bank's management to consider parts of the break-up plan proposed by an activist investor, including shifting the group's investment banking unit to the United States from Switzerland, the Financial Times reported on Wednesday.


WALL STREET BANKS LOOK BEYOND TRADING TO DRIVE PROFITS

Reuters - Oliva Oran (2017-10-18)

Goldman’s private equity investments helped fuel its earnings beat, while Morgan Stanley’s wealth management unit delivered record revenue and profit margins. Both reported higher investment banking revenue than the year-ago period and kept a lid on expenses relative to revenue.


U.S. CONSUMER AGENCY LAYS OUT PRINCIPLES FOR FINANCIAL DATA COLLECTION

Reuters - Pete Schroeder (2017-10-18)

“These principles express our vision for realizing an innovative market that gives consumers protection and value,” CFPB Director Richard Cordray said in a statement.


KENNETH CHENAULT TO STEP DOWN AS AMEX CEO NEXT YEAR

Reuters - Reuters (2017-10-18)

Chenault, 66, will be succeeded by Vice Chairman Stephen Squeri, 58, effective Feb. 1, the company said on Wednesday.


AFTER EQUIFAX HACK, CALLS FOR BIG CHANGES IN CREDIT REPORTING INDUSTRY

NPR - Chris Arnold (2017-10-18)

There were inquiries from Chase Bank about an application for a credit card that someone was trying to open in his name. Mifflin, who lives in San Antonio, says he called the bank and was told the identity thieves "had my Social Security number."


RECORD HIGHS FOR MAJOR US STOCK INDEXES; DOW PASSES 23,000

AP - Alex Viega (2017-10-18)

A day of modest gains on Wall Street resulted in more milestones for U.S. stocks Wednesday as the Dow Jones industrial average closed above 23,000 points for the first time.


CAISSE AIMS TO CUT PORTFOLIO'S CARBON FOOTPRINT 25% BY 2025

G&M - JACQUELINE NELSON , NICOLAS VAN PRAET AND SHAWN MCCARTHY (2017-10-18)

The Caisse de dépôt et placement du Québec is setting bold targets to shelter its portfolio against the impact of climate change.


SCOTIABANK LOOKS TO SELL GOLD TRADING UNIT IN WAKE OF SCANDAL: REPORT

G&M - Reuters (2017-10-18)

Bank of Nova Scotia has put its gold business up for sale in the aftermath of a massive money laundering scandal centred on a U.S. refinery that involved smuggled gold from South America, the Financial Times reported.


PROTECTIONISM, TARIFFS COULD SLAM HOUSING MARKET, CMHC WARNS

G&M - Sean Kilpatrick (2017-10-18)

A wave of anti-globalization that leads to widespread protectionism and increased tariffs could cause Canadian house prices to fall by more than 31 per cent in the next five years, according to the results of scenario tests by Canada's national housing agency.


TMX REVIEW THROWS MARIJUANA INDUSTRY INTO UNCERTAINTY

G&M - Christina Pellegrini (2017-10-17)

Canada's largest stock exchange operator is threatening to delist marijuana companies that are operating in violation of federal drug laws in the United States.


CANADIAN BUSINESSES STILL BULLISH DESPITE U.S. WORRIES, RISING RATES: BOC

G&M - Barrie McKenna (2017-10-17)

Businesses in Canada remain bullish about the future, shaking off concerns about U.S. protectionism, rising interest rates and the stronger Canadian dollar, according to the Bank of Canada's fall business outlook survey.


RBC CEO BACKS NEW MEASURES TO HELP COOL HOUSING MARKETS

G&M - James Bradshaw (2017-10-17)

Royal Bank of Canada's chief executive voiced support for new rules to help cool hot housing markets a day before Canada's banking regulator is expected to unveil new stress tests for uninsured mortgages.


BANK STOCKS ARE NO LONGER CHEAP, BUT THEY’RE STILL WORTH OWNING

G&M - David Berman (2017-10-17)

The great Canadian bank stock sale is over. But don't worry: There are more gains ahead.


JPMORGAN PARTNERS WITH RBC TO LAUNCH PAYMENTS NETWORK USING BLOCKCHAIN TECHNOLOGY

G&M - Dylan Martinez (2017-10-17)

JPMorgan Chase & Co said on Monday it launched a new payment processing network that uses blockchain technology, in partnership with Royal Bank of Canada and Australia and New Zealand Banking Group.


QATAR’S DOHA BANK EYES CANADIAN EXPANSION

G&M - James Bradshaw (2017-10-17)

One of Qatar's largest banks is considering expanding its presence in Canada by opening a full-scale branch in the next two years – assuming a costly economic blockade imposed by its Gulf neighbours can be resolved.


BANKING GOES ZEN WITH SPA-LIKE BRANCHES

G&M - Wallace Immen (2017-10-17)

Visiting an old branch of BlueShore Financial, there was never any doubt that it was a credit union. The fluorescent-lit offices featured tellers' cages and a decor whose highlights were posters advertising current mortgage rates.


TAX REFORMS, BLIND TRUSTS AND THE 1 PER CENT: HOW IT ALL WENT WRONG FOR BILL MORNEAU

G&M - Margaret Wente (2017-10-17)

Some blame rookie staffers. Some blame bad luck. The failure to disclose the corporation that owns the villa, according to Mr. Morneau's staff, was the result of "early administrative confusion." But the real problem is that Mr. Morneau has been hopelessly flatfooted. The public backlash took him by surprise. He allowed the opposition to gang up on him. He couldn't even explain his own tax measures to angry citizens. Worst of all, he had no idea that his wealth might work against him. As The Globe's Robert Fife said on CTV, "If you've got a finance minister who can't defend himself when it appears he's going after ordinary working people who are running small businesses, you've got trouble."


BANKING WATCHDOG SEES RISKS IN CANADA’S HIGH DEBT AND HOME PRICES — AND IS DOING SOMETHING ABOUT IT

FP - FP (2017-10-17)

OSFI has proposed stress tests for all uninsured mortgages and banning ‘bundled’ mortgages


CANADIAN CO-OPERATIVES AND MUTUALS ESTABLISH $25 MILLION INVESTMENT FUND

Insurance Journal - IIJ (2017-10-17)

Canadian co-operatives and mutuals have committed $25 million to establish the Canadian Co-operative Investment Fund (CCIF). The CCIF will provide financing for new and expanding co-operatives.


J.P. MORGAN’S JAMIE DIMON MAY HATE BITCOIN, BUT HE LOVES BLOCKCHAIN

WSJ - WSJ (2017-10-17)

CEO James Dimon recently trashed the digital currency bitcoin, but he likes the blockchain technology that underpins it. The nation’s largest bank rolled out a pilot program using the record-keeping technology.


J.P. MORGAN’S JAMIE DIMON MAY HATE BITCOIN, BUT HE LOVES BLOCKCHAIN

WSJ - WSJ (2017-10-17)

CEO James Dimon recently trashed the digital currency bitcoin, but he likes the blockchain technology that underpins it. The nation’s largest bank rolled out a pilot program using the record-keeping technology.


THE INTERNATIONALISATION OF CHINA’S CURRENCY HAS STALLED

Economist - Economist (2017-10-17)

This seems odd. Just a year ago, the yuan became the fifth currency in the basket that forms the IMF’s Special Drawing Right (SDR). This marked, in the words of Zhou Xiaochuan, China’s central-bank governor, in a recent interview with Caijing, a financial magazine, “historic progress”. Symbolically, China’s monetary system had been awarded the IMF’s seal of approval. A further boost to prestige was the announcement in June this year that some Chinese shares would be included in two stockmarket benchmarks from MSCI.


THE FINANCE INDUSTRY TEN YEARS AFTER THE CRISIS

Economist - Economist (2017-10-17)

The additional capital that regulators demanded banks should take on to their balance-sheets has had an effect. Between 2006 and 2016, the return on capital of the world’s biggest banks has fallen by a third (by more in Britain and Europe). The balance of power has shifted away from the developed world and towards China, which had four of the largest five banks by assets in 2016; that compares with just one of the biggest 20 in 2006.


ACTIVIST INVESTOR RBR LAUNCHING CAMPAIGN TO BREAK UP CREDIT SUISSE: FT

Reuters - Reuters (2017-10-17)

Activist investor RBR Capital Advisors is launching a campaign for breaking up Swiss bank Credit Suisse Group AG (CSGN.S) into three parts, the Financial Times reported on Monday.


75,000 MANUFACTURING JOBS LOST — THAT’S THE PRICE OF ONTARIO’S ELECTRICITY DISASTER

FP - Ross McKitrick and Elmira Aliakbari (2017-10-17)

Between 2005 and 2015, Ontario’s manufacturing output fell by 18 per cent and manufacturing employment fell by 28 per cent.


75,000 MANUFACTURING JOBS LOST — THAT’S THE PRICE OF ONTARIO’S ELECTRICITY DISASTER

FP - Ross McKitrick and Elmira Aliakbari (2017-10-17)

Between 2005 and 2015, Ontario’s manufacturing output fell by 18 per cent and manufacturing employment fell by 28 per cent.


MCKINSEY APOLOGIZES FOR ERRORS IN SOUTH AFRICA CORRUPTION SCANDAL

G&M - Geoffrey York (2017-10-17)

Global consulting firm McKinsey & Co., headed by a top adviser to Finance Minister Bill Morneau, has apologized for "errors of judgment" in its business dealings with corruption-tainted firms in South Africa.


FORMER GOVERNOR-GENERAL DAVID JOHNSTON TAKES SECOND PRIVATE-SECTOR ROLE AT FAIRFAX

G&M - Jacqueline Nelson (2017-10-17)

Former governor-general David Johnston is expanding his private-sector reach with plans to offer guidance to two major Canadian companies.


GET TO KNOW AI, OR THE CANADIAN ECONOMY WON'T WITHSTAND ITS ONSLAUGHT: COMMENT

FP - Victoria Lennox (2017-10-17)

Countries around the world are vying to be at the centre of AI breakthroughs, and 2017 trends show that governments, industry corporations, and investors are banking on Canada. AI investment reached a five-year high by July, and reports estimate that AI-related job opportunities in Canada have increased by 500 per cent since 2015. With a potential AI boom on the horizon in Canada, we must balance technology innovations with entrepreneurship to ensure those who are displaced are not left behind.


'REAL CONCERNS' WITH BITCOIN, BUT 'FRAUD' NOT ONE OF THEM: RBC'S MCKAY

FP - Doug Alexander (2017-10-17)

“I would never call it a fraud because it’s not misrepresenting what it is,” McKay, the lender’s chief executive officer, said Monday in an interview in Toronto after announcing a blockchain partnership with the U.S. bank. “People have placed value on what it is in different ways — and they’re fine to do that — but it’s not fraudulent in its misrepresentation.”


BOMBARDIER SHARES JUMP AS MUCH AS 26% ON CSERIES DEAL WITH AIRBUS

CBC - Pete Evans (2017-10-17)

Bombardier shares jumped as much as 26 per cent in Toronto on Tuesday, the first trading window since news emerged Monday evening that the company had signed a partnership with rival Airbus to make and market its CSeries jets.


OSFI FINALIZES NEW MORTGAGE RULES, INCLUDING STRESS TEST FOR EVEN UNINSURED BORROWERS

CBC - Pete Evans (2017-10-17)

Canada's top banking regulator has published the final version of its new mortgage rules, which include a requirement to "stress test" borrowers with uninsured loans to ensure they could withstand higher interest rates.


TRUMP LIKELY TO NAME FED CHAIR BY EARLY NOVEMBER: REPORT

CBC - Reuters (2017-10-17)

U.S. President Donald Trump has a pool of five candidates to choose from for the next chair of the Federal Reserve and is likely to announce his choice before going to Asia in early November, a source familiar with the situation said on Tuesday.


STRESS TESTING VANCOUVER REAL ESTATE UNDER OSFI’S NEW B-20 GUIDELINES

Better Dwelling - Daniel Wong (2017-10-17)

Vancouver real estate buyers could be in for a rough ride. The Office of the Superintendent of Financial Institutions (OSFI) has published draft guidelines around the regulations of mortgage lending. The mortgage industry is up in arms about it, and we wanted to run some numbers to see why. If passed in its current form, Vancouver would see the already low number of households that could buy, drop even further.


THE FUTURE OF CANADIAN REAL ESTATE PRICES PART 1: FILTERING NOISE

Better Dwelling - Stephen Punwasi (2017-10-17)

First, we need a brief introduction to a very basic money concept that’s little known outside of equities market – support levels. When commodities make an unprecedented rise, traders look for when buyers will establish support. That sounds a little technical, but basically all they’re looking for the lowest price that would trigger buying. This isn’t based on fundamental performance, it’s based on buyer psychology. Buyers and sellers leave marks on a chart, that are very often very clear to traders that understand technical analysis.


IBM USES BLOCKCHAIN TO IMPROVE CROSS-BORDER PAYMENTS PROCESSING

Finextra - Finextra (2017-10-16)

Big Blue is working with KlickEx, a cross-border payments system delivering financial infrastructure for emerging markets, and Stellar, a non-profit building an open source blockchain network for financial services on the new system, which uses IBM DLT technology to provide clearing and settlement of trades on a single network in real time. 


BILL MORNEAU DIDN’T PLACE ASSETS IN BLIND TRUST, RAISING CONFLICT-OF-INTEREST RISK

G&M - Robert Fife (2017-10-16)

Finance Minister Bill Morneau has not placed his substantial personal holdings into a blind trust as Justin Trudeau did for his family fortune – a move that the Prime Minister holds up as the gold standard for avoiding conflicts of interest in federal politics.


CANADIAN STOCKS CATCHING UP TO RISING PROFITS

G&M - Tim Shuffelt (2017-10-16)

Canadian stocks and their underlying earnings are getting reacquainted after spending most of the year drifting apart.


THE HARDER SIDE OF SEARS: THE GRIM JOBS NUMBERS BEHIND ITS COLLAPSE IN CANADA

G&M - Michael Babad (2017-10-16)

The collapse of Sears Canada Inc. is expected to kill about 0.6 per cent of the jobs across the retail industry. Looked at another way, Bank of Montreal chief economist Douglas Porter calculates, that's "almost a year's worth of typical gains in the sector."


LEAGUE'S EXPANSION TO OFFERING INSURANCE WAS A 'BET-THE-COMPANY' MOMENT

G&M - Paul Attfield (2017-10-16)

Initially, Mike Serbinis founded League Inc. as a way to redefine the future of health care, operating an Uber-like platform for customers to access wellness services. So whether a client wanted a Swedish massage or an eye exam, finding a provider, scheduling an appointment and paying for that service were a few smartphone taps away.


BOC’S POLOZ SAYS CANADA'S GROWTH TO SLOW DOWN IN SECOND HALF OF 2017

G&M - Josh Wingrove (2017-10-16)

Canadian growth will moderate in the second half of the year, as the Bank of Canada remains in "intense data-dependent mode" in its consideration of whether to raise interest rates again at a time inflation is sluggish, Governor Stephen Poloz said.


LEVEL 3 INVESTMENT MANAGEMENT A BUSINESS PARTNERSHIP THREE DECADES IN THE MAKING

FP - FP (2017-10-16)

Investment industry veterans Jimmy Brennan and Paul Campbell have teamed up to start Toronto-based Level 3 Investment Management Inc.


SIGNS OF CANADA'S ECONOMIC SLOWDOWN ARE NO LONGER 'JUST A ONE-OFF BLIP'

FP - Gordon Isfeld (2017-10-16)

Getting a solid grip on the Canadian economy can be like a juggling act, not knowing whether the pins will remain in the air for an extended period or fall flat during any given month.


IRS PUTS EQUIFAX CONTRACT ON HOLD DURING SECURITY REVIEW

CBC - CBC (2017-10-16)

The U.S. Internal Revenue Service has temporarily suspended a contract worth more than $7 million US it recently awarded to Equifax Inc following a security issue with the beleaguered credit reporting agency's website on Thursday.


SCOTIABANK PARTNERS WITH NXTP LABS TO ACCESS FINTECH START-UPS IN LATIN AMERICA

Insurance Journal - IIJ (2017-10-16)

Scotiabank announced Oct. 13 a new partnership with Latin American start-up accelerator, NXTP Labs, at the Fintech Conference 2017 in Bogotá, Colombia.


IMPROVING WORKING CAPITAL A TOP PRIORITY FOR SMALL BUSINESS OWNERS IN ALBERTA

Insurance Journal - IIJ (2017-10-16)

Fifty-six per cent of Alberta business owners said they are actively taking steps to improve their working capital, according to the latest issue of ATB Financial Business Beat.


SURVEY: DESJARDINS’ DRIVING APP IS MAKING BETTER MOTORISTS

Insurance Business - Lyle Adriano (2017-10-16)

Desjardins recently conducted a survey of its customers under its Ajusto program, and found that since the program’s launch in 2013, it has helped improve drivers’ habits.


LLOYD’S REPORTS ALREADY PAYING US$738 MILLION FOR HURRICANES HARVEY, IRMA AND MARIA

Canadian Underwriter - CU (2017-10-16)

The Lloyd’s market has now paid almost three quarters of a billion dollars (US$738 million) in response to Hurricanes Harvey, Irma and Maria, the world’s specialist insurance market said on Thursday.


PAYPAL’S MARKET VALUE ECLIPSES AMEX, NEARS MORGAN STANLEY, GOLDMAN

WSJ - WSJ (2017-10-16)

PayPal vaulted over American Express in terms of market value, punctuating a rally that has pushed up the payments company’s shares by nearly 75% since the start of 2017.


MAJOR HEALTH INSURERS ANTICIPATED END OF SUBSIDIES

WSJ - WSJ (2017-10-16)

Several major insurers said they intend to provide health plans on the Affordable Care Act’s exchanges for the rest of this year and for 2018, despite a financial blow from President Donald Trump’s cancellation of federal cost-sharing payments.


PNC’S PROFIT RISES ON GROWTH IN COMMERCIAL LENDING

WSJ - WSJ (2017-10-16)

PNC Financial Services posted better-than-expected third-quarter earnings, helped by strong commercial lending growth that bucked an industrywide trend.


WELLS FARGO FALLS FURTHER BEHIND

WSJ - WSJ (2017-10-16)

Wells Fargo’s third-quarter earnings were a disappointment. Far from digging itself out of trouble, the bank is making a deeper hole.


BOSTON FED’S PRESIDENT MAKES CASE FOR INTEREST RATE HIKES

NY Times - BINYAMIN APPELBAUM (2017-10-16)

Eric Rosengren, president of the Federal Reserve Bank of Boston, was a leading advocate for the Fed’s economic stimulus campaign after the financial crisis. Lately, he has been equally outspoken in arguing that the Fed must continue to raise its benchmark interest rate even though inflation remains sluggish.


EQUIFAX’S GRIP ON MORTGAGE DATA SQUEEZES SMALLER RIVALS

NY Times - Gretchen Morgenson (2017-10-16)

Lawmakers might ask why Freddie Mac, the home finance giant, has given Equifax an edge over capable rivals in a system that checks buyers’ credit.


UK VENTURE CAPITAL FIRM AIMS TO FILL HOLE LEFT BY EU

FT - FT (2017-10-16)

Draper Esprit plans $100m investment in seed funds amid uncertainty over Brexit


REGULATORS WARN RETAIL TRADERS AGAINST CRYPTOCURRENCIES

FT - Hannah Murphy (2017-10-16)

Online derivatives trading companies are taking advantage of the growth of cryptocurrency markets by allowing retail customers to bet on wildly fluctuating prices, prompting warnings from regulators. IG Group, the UK’s largest online derivatives trading company by market share, allows retail investors to trade “contracts-for-difference” based on bitcoin and recently added another digital currency Ether. CFDs track the price of an underlying asset and allow investors to leverage their bets, magnifying gains or losses.


DIMON AND FINK UNITE ON NEED TO ‘CRUSH’ BITCOIN

FT - Ben McLannahan (2017-10-16)

Governments around the world will “crush” bitcoin before long, according to two of the most powerful men on Wall Street, who argue that the only real value in the fast-rising virtual currency is as a tool for criminals and money launderers.


BOFA PROFIT RISES ON HIGHER RATES, LOWER COSTS

Reuters - Reuters (2017-10-16)

Bank of America Corp beat expectations with a 15 percent rise in third-quarter profit on Friday as the second-largest U.S. lender kept a tight leash on costs and benefited from higher interest rates. 


BARCLAYS, U.S. FERC NEAR SETTLEMENT OF POWER MARKET MANIPULATION LAWSUIT

Reuters - Reuters (2017-10-16)

British bank Barclays Plc and the U.S. Federal Energy Regulatory Commission (FERC) made "substantial progress" toward a settlement of FERC's proposed $435 million fine against the bank for alleged power market manipulation, according to court documents.


OHIO EXTENDS BAN ON WELLS FARGO BUSINESS BY SIX MONTHS

Reuters - Reuters (2017-10-16)

Ohio will extend its ban on doing business with Wells Fargo & Co because the bank has not done enough to help consumers or clean up its culture, the state's governor said on Thursday.


JPMORGAN BIDS TO REVOLUTIONISE INTERBANK PAYMENTS WITH QUORUM

Fienxtra - Finextra (2017-10-16)

The big US bank believes Quorum has the potential to revolutionise the interbank payments business and is inviting other banks to join a newly-formed Interbank Information Network (IIN) alliance to try out the platform. ANZ and the Australian arm of Royal Bank of Canada are the first to sign up.


HOME CAPITAL EXITS NON-CORE BUSINESSES INCLUDING THE SALE OF PAYMENT SERVICES INTERACTIVE GATEWAY

Home Capital Group - Press Release (2017-10-16)

Home Capital Group Inc. (“Home Capital” or “the Company”) (TSX: HCG) today announced it has entered into an agreement with a third party to sell the Company’s payment processing and prepaid card business including its Payment Services Interactive Gateway (PSiGate) subsidiaries. The Company previously announced it had determined to exit these businesses with its Q2 2017 financial results.


SIBOS 2017: SWIFT CEO CLAIMS CYBERTHREATS BECOMING 'MANAGEABLE NUISANCE'

Finextra - Finextra (2017-10-16)

In recognition of two of the central threats facing his organisation - hackers and upstart rivals - Swift CEO Gottfried Leibbrandt used his opening remarks at this year's Sibos in Toronto to talk up his gpi and cybersecurity programmes.


INVESTORS STEP UP AS METRO STEPS OUT OF COUCHE-TARD

G&M - Andrew Willis, Nicolas Van Praet (2017-10-13)

Investors signalled a rosy outlook for Alimentation Couche-Tard Inc. by snapping up shares in the convenience store chain that Metro Inc. sold to help fund its foray into the pharmacy business.


‘A NEEDLE IN 50 HAYSTACKS’: SECURITIES REGULATORS FACE DATA OVERLOAD

G&M - Alexandra Posadzki (2017-10-13)

Emerging technologies have given securities commissions new tools to help them detect white-collar crime, but regulators say they have also created additional hurdles for them as they try to keep abreast of change.


TD SHUFFLES EXECUTIVE ROLES AS KEY TECH GROUP HEAD TO RETIRE

G&M - James Bradshaw (2017-10-13)

The head of Toronto-Dominion Bank's technological transformation group will retire next year, setting off a minor shuffle of other executive roles inside the bank.


BIG SHAKEUP COMING TO THE WORLD OF INVESTMENT RESEARCH

FP - Barry Critchley (2017-10-13)

In less than three months, on Jan. 3 to be exact, the Markets in Financial Instruments Directive (MiFID 11), a series of changes that will dramatically affect the investment management business, goes live in Europe and Britain.


CANADA'S BIG HOUSING MARKETS IN 'GOLDILOCKS MOMENT': ROYAL LEPAGE

CBC - CBC (2017-10-13)

Prices in Canada's five biggest housing markets are going up at a similar, healthy pace — the first time that has happened in six years, Royal LePage said Thursday in its latest national house price survey.


AVIVA MAKES DECISION TO EXIT TAIWAN MARKET

Insurance Business - Paul Lucas (2017-10-13)

Less than a month after revealing the sale of its Italian joint venture, insurance giant Aviva has examined its status in another market.


AVERAGE CYBER BREACH COSTS US$394,000, HIGHER IN FINANCIAL SERVICES SECTOR: NETDILIGENCE

Canadian Underwriter - CU (2017-10-13)

The aggregated average total breach cost of a cyber event is US$394,000, with an average claim for a large company of US$3.2 million, a new report from NetDiligence has found.


TRUMP TO END SUBSIDIES TO HEALTH INSURERS

WSJ - WSJ (2017-10-13)

The Trump administration intends to end billions of dollars in payments to insurers under the Affordable Care Act program, but President Donald Trump has told at least one lawmaker that the payments may continue if a bipartisan deal is reached on health care


ECB OFFICIAL WARNS ABOUT IMPACT OF EXTENDING BOND-BUYING PROGRAMS

WSJ - WSJ (2017-10-13)

Central banks risk destabilizing the financial system if they extend bond-buying programs for too long, a top European Central Bank official warns.


COST CUTS, CREDIT-CARD LENDING BUOY BANK EARNINGS

WSJ - WSJ (2017-10-13)

Growth in credit-card lending and a tight rein on costs boosted third-quarter profits at J.P. Morgan Chase and Citigroup offsetting downbeat trading results and a still-challenging interest-rate environment.


HSBC: WHAT TO MAKE OF BANKING GIANT’S NEW TOP TEAM

WSJ - WSJ (2017-10-13)

John Flint, HSBC’s next CEO, has an attitude of service to the cause and a strong background in managing risk, making him the right man to work alongside Chairman Mark Tucker.


GOLDMAN SACHS TO LEND TO HOUSE-FLIPPERS

WSJ - WSJ (2017-10-13)

Goldman Sachs is acquiring Genesis Capital, a private Los Angeles firm that backs investors seeking to buy, renovate and quickly sell single-family homes.


DOLLAR STAYS LOW AS STOCKS CHEER LATEST RECORD STREAK

Reuters - Reuters (2017-10-13)

World stocks rose for a fourth straight day on Friday on expectations of broad-based global growth, while the dollar headed for its worst week in five as investors awaited U.S. inflation data.  Full Article  


RBC INTEGRATES FINANCIAL MANAGEMENT PLATFORM WITH ONLINE BANKING FOR SME CLIENTS

Fienxtra - Finextra (2017-10-13)

RBC says that the offering - a first of its kind in North America - will enable its small business clients to manage their financial needs in a single place, with a single sign on.


BANK TRADE GROUP BIDS TO QUASH SQUARE BANKING BID

Finextra - Finextra (2017-10-12)

The Independent Community Bankers of America (ICBA) noted in a protest letter to the FDIC that Square’s application is designed to avoid legal prohibitions and restrictions under the Bank Holding Company Act.


NASDAQ MAKES ITS PUSH FOR A STOCK EXCHANGE IN CANADA

G&M - Christina Pellegrini (2017-10-12)

Nasdaq Inc. is pushing ahead with its bid to operate a stock exchange in Canada, though it won't be vying for new listings of public companies right out of the gate.


HOUSING STARTS SLIDE AS TORONTO REAL-ESTATE MARKET CONTINUES TO COOL

G&M - Janet McFarland (2017-10-12)

The slowdown in Toronto's real estate market is spilling into the market for newly constructed homes as builders face weaker demand, especially for more expensive detached houses.


THIS MONEY-SAVING MORTGAGE IS ON SALE RIGHT NOW, BUT YOU SHOULD TAKE A PASS

G&M - Rob Carrick (2017-10-12)

The all-star mortgage choice for saving money over the past few decades is finally back on sale at your mortgage broker, bank or credit union.


ONTARIO HAS A GREAT IDEA TO HELP PEOPLE TRAPPED BY EXPENSIVE PAYDAY LOANS

FP - FP (2017-10-12)

Brian Dijkema: Tighter restrictions on payday lending simply raises the cost of providing what customers really need: better small-dollar alternatives


SQUARE LAUNCHES SUPPORT FOR DEBIT CARD PAYMENTS IN CANADA

FP - FP (2017-10-12)

About a quarter of payments were done through debit cards in 2016, up from about 20 per cent in 2011


PREMIUMS AND MARKET SHARE OF THE LARGEST LIFE INSURERS IN CANADA - 2016

Insurance Journal - IIJ (2017-10-12)

Each year The Insurance and Investment Journal publishes the financial results of the largest life insurance companies in Canada, as collected by MSA Research. This year’s table details the premiums and market share of these companies for the years 2014, 2015 and 2016.


CLHIA URGES FEDERAL GOVERNMENT TO ALLOW INSURERS TO COMMERCIALIZE THEIR TECHNOLOGY

Insurance Business - Lyle Adriano (2017-10-12)

The Canadian Life and Health Insurance Association (CLHIA) is requesting the federal government provide insurance companies with more flexibility to invest in technology and commercialize it.


FEWER YOUNG MEN ARE DRIVING CARS IN QUEBEC: REPORT

Insurance Business - Lyle Adriano (2017-10-12)

A report conducted by Groupement des assureurs automobiles found that the number of young men (aged 16-24) who owned an insured car dropped 14% in the last five years.


TRUMP PLANS TO SIGN ORDER TO UNWIND HEALTH-CARE LAW

WSJ - WSJ (2017-10-12)

President Donald Trump is planning to sign an executive order Thursday to initiate the unwinding of the Affordable Care Act, paving the way for sweeping changes to health-insurance regulations that would allow an expansion of less-comprehensive health plans.


HSBC NAMES JOHN FLINT AS CHIEF EXECUTIVE

WSJ - WSJ (2017-10-12)

HSBC said it has appointed John Flint, its head of retail banking and wealth management, as its new chief executive, replacing Stuart Gulliver, who had said he would leave next year.


CHINA BARS HNA UNIT FROM FUNDING PARENT

WSJ - WSJ (2017-10-12)

China’s insurance regulator prohibited Bohai Life Insurance, a unit of acquisitive conglomerate HNA, from providing “any form of financial assistance” to its parent for six months.


IN START TO UNWINDING THE HEALTH LAW, TRUMP TO EASE INSURANCE RULES

WSJ - WSJ (2017-10-12)

President Donald Trump is planning to sign an executive order Thursday to initiate the unwinding of the Affordable Care Act, paving the way for sweeping changes to health-insurance regulations by instructing agencies to allow the sale of less-comprehensive health plans to expand.


IMF CALLS OUT 9 BIG BANKS THAT COULD SOON STRUGGLE WITH PROFITS

TheStreet - Kinsey Grant (2017-10-12)

The International Monetary Fund has identified nine banks that may struggle to report a profit on par with peers in the coming years, according to the body's biannual Global Financial Stability Report released Wednesday, Oct. 11.


TRUMP’S TALK OF SCRAPPING NAFTA COULD SOON BECOME REALITY

NY Times - Ana Swanson (2017-10-12)

  • The North American Free Trade Agreement, long a punching bag for President Trump, is edging closer toward collapse as negotiators gather for more talks.


WITH DEAL-MAKING IN THE DOLDRUMS, GOLDMAN TRIES SOMETHING NEW

NY Times - John Foley (2017-10-12)

Goldman Sachs has a small team cooking up acquisition ideas for big clients. It’s an experiment that could bolster revenue for Goldman’s trading operation.


FED STILL PUZZLED BY INFLATION, BUT RATE INCREASE IS ON TRACK

NY Times - BINYAMIN APPELBAUM (2017-10-12)

Slow inflation was the main topic at the Federal Reserve’s last policy meeting, but most officials leaned toward another interest rate move this year.


FED MINUTES SHOW SUPPORT FOR NEXT HIKE WAS A CLOSE CALL FOR SOME

Bloomberg - Craig Torres (2017-10-12)

Federal Reserve officials held a detailed debate last month over whether forces holding inflation down were persistent or temporary, with several policy makers looking for stronger evidence of price gains before supporting a third interest-rate hike this year.


END OF THE ROAD FOR SEARS CANADA AS RETAILER SET TO LIQUIDATE, CLOSE STORES

G&M - MARINA STRAUSS AND ALEXANDRA POSADZKI (2017-10-11)

Insolvent Sears Canada Inc. said it plans to liquidate its remaining 131 stores and put 12,000 employees out of work, after an attempt by its executive chairman to save the once-dominant department-store retailer failed.


THOMSON REUTERS PLEDGES $100-MILLION TO GROWING TORONTO TECHNOLOGY HUB

G&M - James Bradshaw (2017-10-11)

Thomson Reuters Corp. plans to invest $100-million (U.S.) to help build a permanent home for its growing Toronto technology hub.


STREETWISE NEWSLETTER: A POPULAR NEW FUNDING SOURCE AT SCOTIABANK, FINTECH FUND LAUNCHED BY QUEBEC HEAVYWEIGHTS

G&M - Michelle Siu (2017-10-11)

More Canadian banks and possibly life insurers are expected to follow Scotiabank's lead and take advantage of a novel source of funding – a hybrid security – that has proven to be a hit with investors, bankers and analysts say. Story (Christina Pellegrini and Niall McGee, for subscribers)


SCOTIABANK’S AT1 SECURITY A HIT; OTHER BANKS EXPECTED TO FOLLOW SUIT

G&M - CHRISTINA PELLEGRINI AND NIALL MCGEE (2017-10-11)

More Canadian banks and possibly life insurers are expected to follow Bank of Nova Scotia's lead and take advantage of a novel source of funding that has proven to be a hit with investors, bankers and analysts say.


SIGNS OF CANADA'S ECONOMIC SLOWDOWN ARE NO LONGER 'JUST A ONE-OFF BLIP'

FP - Gordon Isfeld (2017-10-11)

Getting a solid grip on the Canadian economy can be like a juggling act, not knowing whether the pins will remain in the air for an extended period or fall flat during any given month.


BILL 141 DIVIDES THE QUEBEC INSURANCE INDUSTRY

Insurance Journal - Mathieu Carbasse (2017-10-11)

There have been many reactions in the Quebec insurance industry following last week’s tabling of Bill 141An Act mainly to improve the regulation of the financial sector, the protection of deposits of money and the operation of financial institutions.


BERMUDA TO ABSORB AT LEAST 25% OF INSURED-LOSS CLAIMS FROM HURRICANES

Insurance Business - Terry Gangcuangco (2017-10-11)

British island territory Bermuda, where over 32% of the top 40 global reinsurers are based, is forecast to see its insurance market absorb at least a quarter of insured-loss claims from hurricanes Harvey, Irma, and Maria.


OSFI TO RELEASE REINSURANCE DISCUSSION PAPER, LIKELY BY EARLY NEXT YEAR

Canadian Underwriter - Jason Contant (2017-10-11)

The Office of the Superintendent of Financial Institutions (OSFI) will release a discussion paper related to reinsurance, likely early next year, Neville Henderson, assistant superintendent of the regulator’s insurance supervision sector, said last week.


MEXICO TO COLLECT $150 MILLION FROM CATASTROPHE BOND

WSJ - Anthony Harrup (2017-10-11)

Mexico will receive $150 million from a catastrophe bond taken out in August against earthquakes and will use the money to partly fund reconstruction efforts, the Finance Ministry said Tuesday.


CANADA HOUSING STARTS POSTED RARE DROP IN SEPTEMBER

WSJ - Paul Vieira (2017-10-11)

Canadian housing starts fell in September after eight straight monthly gains, although the level remains elevated and suggest residential construction lifted economic growth in the third quarter.


JAPAN STOCKS HIT 21-YEAR HIGH AS INVESTORS SHRUG OFF CONCERNS

NY Times - Jonathan Soble (2017-10-11)

A six-quarter growth streak, low unemployment and surging profits have lifted the markets in the face of challenges, a mirror of global optimism.


TREASURY REPORT CALLS FOR SWEEPING CHANGES TO FINANCIAL RULES

NY Times - Tiffany Hsu (2017-10-11)

The Trump administration released its second report on market regulations, recommending fewer disclosures and more investor access.


US BANK EARNINGS SEASON: THE FOUR KEY QUESTIONS

FT - Ben McLannahan (2017-10-11)

1. Are loan books growing? If not, why not? 2. Just how quiet was it on Wall Street? 3. How much will interest margins rise? 4. How soon will regulatory relief kick in?


CENTRAL BANKERS FACE A CRISIS OF CONFIDENCE

FT - Chris Giles (2017-10-11)

Central bankers usurped the titans of Wall Street as the masters of the universe almost a decade ago. They rescued the global economy from the financial crisis, flooding the world with cheap money. They used their powers effectively to get banks lending again. Their actions raised asset prices, keeping business and consumer confidence up. Financial markets and populations hang on their words. But never have they been so vulnerable.


QUEBEC'S LA CAISSE AND DESJARDINS PUMP $50M INTO FINTECH FUND

Finextra - Finextra (2017-10-11)

Desjardins and la Caisse will each put $25 into the Montreal-based fund, with other institutional investors being tapped to join before the first closing, expected by the end of the year.


EU LAUNCHES ANTI-TRUST PROBE INTO BANK DATA SHARING

Finextra - Finextra (2017-10-10)

The Commission confirms that on 3 October 2017, anti-trust officials carried out unannounced inspections in Holland and Poland concerning online access to bank account information by competing service providers.


LUXEMBOURG BANKERS DRAW UP FINTECH MAP

Finextra - Finextra (2017-10-10)

The Luxembourg Bankers' Association (ABBL) has drawn up a 'Fintech Map' of the nation's startup ecosystem to help drive further collaboration with the established banking community.


'I TRUSTED HIM WITH MY MONEY': WOMAN SAYS BROKER 'CHURNS' HER ACCOUNT, RAKES IN OVER $250,000

CBC - Erica Johnson (2017-10-10)

A Vancouver senior is suing her former financial adviser and his investment firm, claiming her retirement nest egg was decimated largely by excessive commissions her broker earned by purchasing risky investments she didn't authorize.


HAVE INVESTORS LEARNED FROM THE PAST DECADE?

G&M - Tim Shuffelt (2017-10-10)

Citigroup was saved from bankruptcy by a government bailout in November, 2008.


CANADA'S SMALL BUSINESSES ARE TAXED OUT, STRESSED OUT AND BUMMED OUT

G&M - Michael Babad (2017-10-10)

You can be taxed in more ways than one. And Canada's small businesses are.


INSURED LOSSES FROM HURRICANE NATE IN U.S. TO NEAR $500-MILLION: KCC

G&M - Jeff Amy (2017-10-10)

Insured losses in the United States from Hurricane Nate will be close to $500 million, catastrophe modelling company Karen Clark & Company (KCC) said on Monday.


BILL 141 WOULD PERMIT INSURANCE SALES VIA THE INTERNET WITHOUT AN AGENT

Insurance Journal - Alain Theriault (2017-10-10)

If passed as it now stands, Bill 141 which was introduced by the Quebec Finance Minister Oct. 5, will allow the sale of insurance on the Internet without the involvement of an agent.


ARGO GROUP PICKS UP TRAVELERS INSURANCE UNDERWRITER

Insurance Business - Terry Gangcuangco (2017-10-10)

Argo Group International Holdings, Ltd. has appointed Steve Eccles to serve as the chief underwriting officer for its international business.


AON FILES LAWSUIT WITH MARSH COMPANIES FOR ‘IRREPARABLE INJURY’

Insurance Business - Ryan Smith (2017-10-10)

The lawsuit charges Marsh and Marsh & McLennan with misappropriation of trade secrets and deceptive trade practices. Aon alleges that Marsh and Marsh & McLennan obtained Aon survey data and used it in its own business.


INSURANCE LEADERS VOICE CONCERNS FOR FLOOD INSURANCE MARKET

Insurance Business - Sam Boyers (2017-10-10)

Flood insurance in Canada is in a state of flux. The Calgary flood of 2013 changed everything. And, now, increased severe weather events across the country continue to shape the private flood insurance landscape.


NEW SOFTWARE COULD MAKE IT EASIER TO “ADOPT AND TRUST” AI SYSTEMS THAT SET INSURANCE PREMIUMS

Canadian Underwriter - CU (2017-10-10)

New software developed at the University of Waterloo (UWaterloo) in Ontario could make it easier to adopt and trust powerful artificial intelligence (AI) systems that set insurance premiums, generate stock market predictions and assess who qualifies for mortgages, the university said in a press release on Friday.


ECB: BANKS’ CAPITAL BUFFERS ARE BIG ENOUGH TO COPE WITH HIGHER INTEREST RATES

WSJ - WSJ (2017-10-10)

Eurozone banks won’t be required to raise fresh capital to guard against a sudden increase in interest rates, according to the European Central Bank.


ONEMAIN, CITIGROUP’S FORMER SUBPRIME LENDER, FIELDS TAKEOVER BIDS

WSJ - WSJ (2017-10-10)

Subprime lender OneMain Financial Holdings​is in talks to sell itself. With a market value of $3.9 billion and adding a takeover premium, a deal could be worth around $4 billion or more.


TEN YEARS AGO, THE S&P 500 HIT ITS PRE-CRISIS PEAK

WSJ - WSJ (2017-10-10)

By the summer of 2007, the Federal Reserve was struggling to contain the fallout from the mortgage meltdown, but many investors were still betting a crisis would be averted. The S&P 500 closed at a record on Oct. 9, 2007. It would be its last until March 2013.


ETF TRADING VOLUME SLUMPS TO NEAR THREE-YEAR LOWS

WSJ - WSJ (2017-10-10)

Daily turnover in exchange-traded products is plunging relative to the trading of single stocks.


CENTRAL BANKS PULL BACK AS GLOBAL GROWTH PICTURE BRIGHTENS

WSJ - Josh Zumbrun (2017-10-10)

A synchronized global economic expansion is leading to a big shift in monetary policy around the world—toward central banks shrinking rather than growing—with implications for markets, inflation and the outlook for growth.


STANDARD CHARTERED FACES INQUIRY OVER $1.4 BILLION TRANSFER BY INDONESIANS

NY Times - CHAD BRAY (2017-10-10)

Regulators in Guernsey and in Singapore have opened an inquiry into Standard Chartered over the transfer of about $1.4 billion by clients with links to the Indonesian military.


FCA DROPS INQUIRY INTO FORMER BARCLAYS EXECUTIVE

FT - Caroline Binham (2017-10-10)

One of four former top brass at Barclays charged with criminal offences stemming from an emergency 2008 cash call is no longer the subject of a parallel regulatory probe by the UK’s financial watchdog. Richard Boath, Barclays’ former European head of its financial institutions group, was informed by the Financial Conduct Authority this summer that it had dropped its regulatory inquiry into him, according to people familiar with the situation.


AIG WARNS OF $3BN HIT FROM HURRICANES AND MEXICO EARTHQUAKE

FT - Alistair Gray (2017-10-10)

AIG has warned of a $3bn bill from a recent succession of hurricanes and earthquakes that its chief executive described as “unprecedented”. The insurer said it expected to take a $1.2bn hit in the third quarter from Hurricane Harvey, which ruined swaths of Huston, $1bn of losses from Irma, which struck Florida, and $700m from Maria, which devastated Puerto Rico.


CAR INSURANCE COSTS DENTED AFTER YEARS OF INCREASES

FT - Oliver Ralph (2017-10-10)

UK car insurance prices are showing signs of levelling off after almost three years of sharp increases. Motor premiums have been rocketing since 2014 and are approaching record highs. But the latest data suggest the trend may finally be easing off. According to Confused.com, the price comparison website, and Willis Towers Watson, the insurance broker, UK drivers now pay an average of £838 for their car insurance. That is £100 more than it was a year ago, but the figure is 1 per cent lower than at the end of June — the largest quarterly reduction in more than three years.


TOP PUERTO RICO BANK SAYS FOUR MONTHS TOO LONG TO WAIT FOR POWER

Reuters - Hugh Bronstein (2017-10-10)

Puerto Rico needs to accelerate the timetable for restoring its power grid or else residents will flee for the mainland rather than live without electricity for months, the chairman of the territory’s largest bank said on Friday.


RETAILERS SURVIVE BANKRUPTCY

Reuters - Reuters (2017-10-10)

More retailers are expected to emerge from bankruptcy in 2017 than in any other year since 2009, due to support from their lenders, landlords and vendors. Retailers face three fates in bankruptcy: reorganization, when creditors swap debt for equity, a sale, in which an acquirer buys some or all of its assets as a going concern, and liquidation, when assets are sold in pieces.


CIT REACHES AGREEMENT TO SELL FINANCIAL FREEDOM AND REVERSE MORTGAGE PORTFOLIO

Cision - Press Release (2017-10-10)

CIT Bank, N.A., the bank subsidiary of CIT Group Inc.(NYSE: CIT), today announced that it has reached an agreement to sell its reverse mortgage servicing business, Financial Freedom, and its reverse mortgage portfolio to an undisclosed buyer. The transaction includes the sale of mortgage servicing rights and approximately $900 million of reverse mortgage whole loans, including other real estate owned assets as of June 30, 2017. The transaction is expected to close in the second quarter of 2018 and is subject to certain regulatory and investor approvals and other customary closing conditions.  


PAYDAY LOANS FACE NEW CHALLENGE: CAN BORROWERS AFFORD THEM?

USA Today - Paul Davidson (2017-10-10)

Lenders that offer payday loans and other small advances to cash-strapped consumers must first determine if the borrowers can afford to repay the debt under a long-awaited federal rule finalized Thursday.


WHY CAISSE'S MICHAEL SABIA ISN'T YOUR TYPICAL PENSION FUND CHIEF

WSJ - WSJ (2017-10-10)

When work begins on a new, 42-mile commuter rail system here this year, it will also be a groundbreaking moment for Michael Sabia, head of Quebec’s largest pension fund. 


CDPQ AND CKD IM ACQUIRE MEXICAN WIND AND SOLAR ASSETS OF ENEL GREEN POWER, FOR A TOTAL CAPACITY OF 1,712 MW

CDPQ - Press Release (2017-10-10)

La Caisse de dépôt et placement du Québec (CDPQ), a long-term institutional investor, and CKD Infraestructura México (CKD IM), a consortium of Mexican institutional investors, announced today the acquisition of 80% of a portfolio of eight wind and solar assets owned by Enel Green Power (Enel), a global leader in renewable energy. Following this transaction, Enel will remain the operator and retain 20% of the portfolio.


ATM OVERDRAFT HACK HELPS CROOKS STEAL MILLIONS FROM EX-SOVIET BANKS

Finextra - Finextra (2017-10-10)

The gang sent mules with fake identities to bank branches to set up accounts and request debit cards. Then, the hackers manipulated the overdraft limits associated with these cards, removing any restrictions in the core card processing system. Finally, the cards were sent to new mules abroad, who withdrew massive amounts of cash from ATMs despite the fact the accounts were virtually empty.


CANADIAN LENDERS ISSUE OPEN BANKING WARNING

Finextra - Finextra (2017-10-10)

The Canadian Bankers Association says the government should think carefully before embracing open banking, warning that increasing third party access to financial data poses major risks not only to customers but to the entire economy.


News feed

CENTRAL BANKING LEADERSHIP FLUX LOOMS AS GLOBAL ECONOMY FACING COMBUSTIBLE CHALLENGES

FP - Reuters (2017-10-23)

The leaders of the world’s top central banks who risked trillions of dollars and their reputations to rescue the global economy are now set to walk off stage at a time when the lingering effects of the crisis, evolving technology and a combustible political landscape will challenge their successors.


REGULATORS WARN RETAIL TRADERS AGAINST CRYPTOCURRENCIES

FT - Hannah Murphy (2017-10-16)

Online derivatives trading companies are taking advantage of the growth of cryptocurrency markets by allowing retail customers to bet on wildly fluctuating prices, prompting warnings from regulators. IG Group, the UK’s largest online derivatives trading company by market share, allows retail investors to trade “contracts-for-difference” based on bitcoin and recently added another digital currency Ether. CFDs track the price of an underlying asset and allow investors to leverage their bets, magnifying gains or losses.


JPMORGAN BIDS TO REVOLUTIONISE INTERBANK PAYMENTS WITH QUORUM

Fienxtra - Finextra (2017-10-16)

The big US bank believes Quorum has the potential to revolutionise the interbank payments business and is inviting other banks to join a newly-formed Interbank Information Network (IIN) alliance to try out the platform. ANZ and the Australian arm of Royal Bank of Canada are the first to sign up.


ECB OFFICIAL WARNS ABOUT IMPACT OF EXTENDING BOND-BUYING PROGRAMS

WSJ - WSJ (2017-10-13)

Central banks risk destabilizing the financial system if they extend bond-buying programs for too long, a top European Central Bank official warns.


DOLLAR STAYS LOW AS STOCKS CHEER LATEST RECORD STREAK

Reuters - Reuters (2017-10-13)

World stocks rose for a fourth straight day on Friday on expectations of broad-based global growth, while the dollar headed for its worst week in five as investors awaited U.S. inflation data.  Full Article  


CENTRAL BANKERS FACE A CRISIS OF CONFIDENCE

FT - Chris Giles (2017-10-11)

Central bankers usurped the titans of Wall Street as the masters of the universe almost a decade ago. They rescued the global economy from the financial crisis, flooding the world with cheap money. They used their powers effectively to get banks lending again. Their actions raised asset prices, keeping business and consumer confidence up. Financial markets and populations hang on their words. But never have they been so vulnerable.


CENTRAL BANKS PULL BACK AS GLOBAL GROWTH PICTURE BRIGHTENS

WSJ - Josh Zumbrun (2017-10-10)

A synchronized global economic expansion is leading to a big shift in monetary policy around the world—toward central banks shrinking rather than growing—with implications for markets, inflation and the outlook for growth.


FSIM Briefings and Developments reports


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GREAT-WEST COURTS MILLENNIALS WITH PROGRAM TO TACKLE STUDENT DEBT AND SAVE FOR RETIREMENT

Saving for retirement isn't a top priority for many young professionals, but Great-West Lifeco Inc. thinks it can change that by addressing heavy student debt loads.

The life and health insurer is rolling out a new program to its client companies that will allow eligible employees to pay off their student debt while also getting some of the benefits of contributing to a workplace pension plan. As the loans are repaid, employers will provide matched contributions to pension plans managed by Great-West. This gets young people to save for retirement sooner and provides them with a perk they may perceive as more valuable at this stage of their life.

The goal is to court millennials who are entering the work force consumed with more immediate concerns than how to fund their future retirement. These financial pressures may include plans for buying a home, travelling, impending nuptials and tackling debt. Companies are seeking more flexible and customizable benefit plans for the assorted needs of their employees, and insurance company providers have been looking for ways to stand out.

 

"We were asking them the question, for plan sponsors, how can we help you engage with this particular demographic? Because many employers are struggling with how to resonate their employer offerings for them," said Stefan Kristjanson, president of Great-West's Canadian business. "So, our solution is one response to help employers in particular with this group of millennials that have higher levels of debt than previous generations."

Great-West's research showed that the problem of lingering federal and provincial government student loans affects more that 270,000 of its current plan members within group pension accounts. Of the Canadian students that graduate with debt, the average amount for bachelor and masters degrees is more than $26,000, according to the most recent Statistics Canada data from 2010. Other more recent reports, such as those by the Canadian Federation of Students, place that figure a few thousand dollars higher.


ONTARIO SETS UP FINTECH STRATEGY PANEL

The Canadian province of Ontario has put together a team of financial services and technology experts to help it build a fintech strategy that boosts growth while protecting consumers.


VICTORY FOR ABENOMICS LIFTS WORLD STOCKS TO NEW RECORD

Japanese Prime Minister Shinzo Abe’s convincing election victory lifted the Nikkei to its highest in 21 years and world stocks to an all-time high on Monday, despite an escalation of Spain’s constitutional crisis that weighed on the country’s banks.



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