Finance

Growth and investment – the unintended victims of financial crime regulation

Reuters/Kieran Doherty

As a global industry, financial services needs to do a better job of opening bank accounts for people, investors and businesses.

It is perhaps the starkest example of the unintended consequences of regulatory reform – certainly the most visible consequence to customers – that it is now so difficult to open the bank accounts which are the first step in international commerce for any growing business. What began as a challenge to money launderers is now posing a palpable threat to the world’s financial centres, and we can do it much better.

This century has seen a welcome international consensus to ensure the proceeds of crime cannot be rendered invisible simply by being transferred across borders. Banks are now the front line of defense against organized crime and it falls to all financial technology providers to support them in stamping out money laundering and criminal financing.

But this is to agree the end and not the means. It is one thing for policymakers to decree that something has to be done; it is quite another for businesses to carry out that decree. (more…)

Growth and investment – the unintended victims of financial crime regulation

Reuters/Kieran Doherty

As a global industry, financial services needs to do a better job of opening bank accounts for people, investors and businesses.

It is perhaps the starkest example of the unintended consequences of regulatory reform – certainly the most visible consequence to customers – that it is now so difficult to open the bank accounts which are the first step in international commerce for any growing business. What began as a challenge to money launderers is now posing a palpable threat to the world’s financial centres, and we can do it much better.

This century has seen a welcome international consensus to ensure the proceeds of crime cannot be rendered invisible simply by being transferred across borders. Banks are now the front line of defense against organized crime and it falls to all financial technology providers to support them in stamping out money laundering and criminal financing.

But this is to agree the end and not the means. It is one thing for policymakers to decree that something has to be done; it is quite another for businesses to carry out that decree. (more…)

Comcast’s optimism

Richard Beales talks to Jeffrey Goldfarb about the odds investors are attaching to the ultimate success of Comcast’s $45 bln-plus deal to buy Time Warner Cable. (more…)

Thomson Reuters Eikon – News

Be among the first to know the most important, relevant and actionable news and information. In Thomson Reuters Eikon, our news capabilities allow you to monitor trends, visualize stories and go behind the headlines with analysis and insight.

Hedge fund positions and oil prices in 2014 – Graphic of the day

The causes of the oil price plunge, and what happens now, are discussed in our new report, A Brief History of the Oil CrashToday’s graphic, which comes directly from the report, tracks hedge fund positions and oil prices throughout 2014.

A Brief History of the Oil Crash

Download the full report.

Social responsibility at Islamic banks – Redefining the business model

Social Responsibility At Islamic Banks

By Dr. Ali Adnan Ibrahim, First Vice President at Al Baraka Banking Group

There is an expectation of Islamic banks to participate in the economic development of the communities where they operate. Whether or not this is pragmatic or realistic, meeting this expectation becomes particularly challenging in today’s regulated financial markets. Expectations such as this put Islamic banks under pressure, and often subject to criticisms, for not doing enough to propel wide-scale economic development. Such expectations usually ignore the need for Islamic banks to achieve and maintain financial viability and consistency with the terms of their license.

However, the expectations about Islamic banks are not entirely misplaced. With very real limits on public resources, the role of the private sector is critical in channeling financial resources where governments may not be able to do enough. Public-private partnerships and the emerging field of impact investing have opened up a new universe of possibilities to achieve economic development and community service. Therefore, Islamic banks should engage in economic development and empowerment innovatively, without risking their financial sustainability.

Social responsibility and Islamic banks

(more…)

GM backseat driver

The carmaker’s former restructuring guru and his hedge fund backers want a board seat and an $8 bln buyback.

Rob Cox and Reynolds Holding say the activists deserve a cautious welcome: (more…)

The world is in debt, not just Greece

There were numerous promises to tackle debt after the global financial crisis in 2007. But eight years on, consultancy McKinsey and Co says the world’s debt mountain is now almost $200 trillion – up by $57 trillion.

Kirsty Basset reports: (more…)

Davos 2015: Intoxicating influences

REUTERS/Ruben Sprich

If the picture in your head of the World Economic Forum’s annual meeting in Davos is one of Great Gatsby-esque parties of caviar, champagne and dancing after midnight then you’d be right – but only at the fringes. There are hundreds of talks, dozens of parties and numerous other events, only a small handful of which are over the top. Most are a pleasant backdrop to one of Davos’s primary pursuits: learning. Learning about trends in other industries, learning about the latest thinking in academia, business and policy and learning from others about how they overcome their biggest challenges.

In a way, Davos is a deeply individual experience, as everyone selects a unique combination of events, leading to a wide array of interactions. What you take away from Davos is equally individual. To me, the learnings from this year’s WEF were primarily about what the world’s most ambitious companies are doing: (more…)

Raising over £1.1m for Save the Children at the IFR Awards Dinner

Earlier this month at the 20th annual Thomson Reuters International Financing Review (IFR) awards gala dinner, £1,164,240 was pledged to Save the Children, the global charitable organization that works to save and improve the lives of some of the world’s most vulnerable children. During the evening’s proceedings, senior representatives of the world’s leading investment banks pledged money to Save the Children via an interactive charity bidding board. Morgan Stanley topped the list of contributors with a phenomenal bid of £630,000, the largest ever Bookrunner bid to Save the Children in 20 years of IFR Awards history.

The dinner, organized by IFR, was attended by over 1,000 senior investment bankers.. The event is recognied as the key awards ceremony for global financiers and is Save the Children’s largest single annual fundraiser.

IFR award winners for 2014 include: (more…)