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Daily News Roundup: Tuesday, 20th November 2018

Posted: 20th November 2018


TSB names new CEO

TSB has named Debbie Crosbie, currently chief operating officer of CYBG, as its new CEO. She will take over from chief executive Paul Pester, who was put on gardening leave in September following the bank's IT meltdown earlier this year. TSB executive chairman Richard Meddings said: “With over two decades of experience, superb retail and SME banking expertise, and a genuinely open and engaging style of leadership, we have found an outstanding new CEO." Mr Meddings will return to his non-executive chairman role when Ms Crosbie joins. Commenting on her new role, Ms Crosbie said that TSB has "all the right ingredients to be the leading challenger bank in the UK". “The exciting thing about TSB is just how much potential the bank has to redefine banking to better serve customers and their changing financial needs," she added.

Edmonds to launch £60m lawsuit against Lloyds

TV presenter Noel Edmonds is said to be launching a £60m lawsuit against Lloyds Bank, with lawyers set to serve the bank with a pre-case letter this week. The suit is related to claims that Mr Edmonds’ firm, Unique Group, failed due to the influence of fraudsters at the Reading branch of HBOS, which Lloyds acquired. Mr Edmonds has said that a portion of any money gained from the pending lawsuit will fund a charity for banking victims, offering “intelligence and contacts” and serving as a “one-stop shop for those who believe they are victims of banking criminality.” A spokesman for Lloyds Bank said that if a claim is filed, “it will be contested.”

CYBG faces legal action over SME loans

Hundreds of small businesses are to launch a £350m legal action against CYBG over claims they were mis-sold loans, with a claim against Clydesdale and its former parent, National Australia Bank expected in the first half of next year. James Hayward, chief executive of RGL Management, which represents the SMEs, said he is "extremely confident" about the legal merits of the case. A CYBG spokeswoman said allegations contained within correspondence with RGL’s solicitors “are not accepted by the bank and if necessary will be defended in the strongest terms possible."

Consumers 'wrongly' told they do not have PPI

The Alliance of Claims Companies (ACC), a trade body for claims management companies, has complained that banks are giving incorrect information to customers looking to get compensation for mis-sold PPI. ACC chief executive Simon Evans said: "Consumers are telling claims management companies that they have approached their banks and they have been told they have had no PPI in some cases. Yet when the case has been investigated subsequently by our members we find that is untrue."


Global VC industry trebles since 2008

Analysis by Octopus Ventures shows that the global venture capital industry has trebled in a decade, with the amount of capital invested climbing from $53bn in 2008 to $160bn in 2017. The number of deals also soared in the period, jumping from 6,990 to 14,727. The UK’s share of Europe's venture capital industry has risen from 31% to 42% since 2008, with the total amount of capital invested in the UK rising 255% from $2.2bn in 2008 to $7.9bn in 2017. The US holds the largest share of the global market, at 53% - with this down on the 79% recorded in 2008. Asia has led on growth in the ten year period, with its market share hitting 27% last year compared to 4% in 2008.

VC firm's token to trade on OpenFinance Network

Venture capital firm SPiCE VC says its security token will trade on the OpenFinance Network, making it the first such asset to list on a US regulated trading platform. Such tokens are digital currencies backed by a tradable asset and have gained prominence as more companies look to create tokens that comply with regulations as they take advantage of the move to blockchain or distributed ledgers.

Bridgepoint hires advisers to prepare for MotoGP sale

Bridgepoint has hired advisers to conduct a review of Dorna, the holding company behind MotoGP, in anticipation of a sale. Bridgepoint holds 40% of the business, having sold 39% to CPPIB in 2012.


Societe Generale fined $1.3bn over sanctions violations

Societe Generale ​has agreed to pay US authorities $1.3bn to resolve allegations it violated US sanctions on countries including Cuba, Libya and Iran. In a separate agreement the bank will also pay $95m relating to its anti-money-laundering compliance programme. Chief executive Frederic Oudea said: “We acknowledge and regret the shortcomings that were identified in these settlements, and have cooperated with the US Authorities to resolve these matters.”

Danske whistleblower says €150bn flowed through European bank

Danske Bank whistleblower Howard Wilkinson has told Denmark’s parliament that as much as $150bn of questionable funds targeted in the bank's money laundering scandal flowed through a large European bank, with some sources reporting that Deutsche Bank is the bank in question while others note that JP Morgan and Bank of America were also involved in clearing dollar transactions for Danske’s Estonian branch. Mr Wilkinson also told a Danish parliamentary hearing that Danske tried to pay him to keep silent over money-laundering.

Barclays not liable for pre-2008 US IPO

Barclays is not liable to US investors who bought in before the 2008 financial crash. In one of the last cases accusing banks of inflating their share prices by hiding or failing to fix bad credits on their balance sheets before the crisis, the 2nd US Circuit Court of Appeals in Manhattan upheld the dismissal of claims against the bank, and underwriters led by Citigroup, over its April 2008 sale of $2.5bn of American depositary shares.

Deutsche Bank announces €1bn bond buyback

Deutsche Bank has earmarked €1bn to buy back senior non-preferred bonds in an attempt to lower its costly liquidity reserve and help it “optimise its future interest payments and maturity structure.” Chief financial officer James von Moltke said: “Using a small part of our high cash position to repurchase senior non-preferred securities reflects our aim to redeploy excess liquidity without taking undue risk. This benefits all our stakeholders.”

Bank Leumi to launch online bank Pepper in US

Israel’s Bank Leumi is in talks with potential partners over launching online-only bank Pepper in the US. The bank is said to have also considered the UK and India for its first international venture.

Indian central bank to rethink policies amid government pressure

The Reserve Bank of India is to reassess its management of reserves after pressure from the government. It will also review its Prompt Corrective Action framework over fears it is damaging market liquidity.


Renault-Nissan chief executive arrested

Carlos Ghosn, chairman and chief executive of Renault-Nissan, has been arrested in Japan on suspicion of falsifying financial statements. Senior US executive Greg Kelly has also been taken into custody, with it alleged that the men took part in crimes including under-reporting their pay to the Tokyo stock exchange by £34m. With an internal investigation uncovering several “significant acts of misconduct”, Nissan chief executive Hiroto Saikawa said the company plans to dismiss the two men at a board meeting this week.


Weston builds bumper profits and revenues

London and south east-focused housebuilder and office provider Weston has posted bumper results. Pre-tax profits rose by 50% year on year to £35m, while the group’s revenue was up almost 30% year on year to £257m. The average selling price for its units over the financial year was £329,000.


AJ Bell confirms £500m float

Broker and online trading platform AJ Bell has confirmed it is to launch a £500m float in London next month. The company said the float would enhance its brand, extend its shareholder group, assist in recruitment and incentivisation, and aid growth.

App to offer socially responsible investments

Fund managers including Aberdeen Standard Investments, Columbia Threadneedle Investments, AllianceBernstein and Alquity are working with magazine The Big Issue to launch an investment app that will offer users socially responsible investment options. Creators say the blockchain-driven Big Funds investment platform is capable of attracting £3bn of assets within its first five years.


Pharma leaders warn Brexit deal lacks detail needed for patient safety

The Association of the British Pharmaceutical Industry and the BioIndustry Association warns that the draft Brexit deal doesn't explain how patients will be protected on key issues including the safety of medicines.


European firms to build satellite parts in UK

European firms Airbus and Eutelsat will build parts for new communications satellites in the UK, with components to be made at sites in Portsmouth and Stevenage before being shipped to Toulouse for final assembly. A spokesman for the Department for Business, Energy and Industrial Strategy (BEIS) said the deal is “worth hundreds of millions of pounds” and marks “a huge vote of confidence in the UK expertise in the space industry, benefiting 500 high-skilled workers involved in Eutelsat projects."

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