Weekly Global News Wrap: India’s Paytm Bank punished for data lapses; Record bonuses spur Wall Street banks’ staff churn
And Barclays suspends sales of two products related to oil, volatility.
Paytm Payments Bank, which processes transactions for India’s digital payments giant Paytm, was reportedly barred from taking on new customers because it violated rules by allowing data to flow to servers abroad and did not properly verify its customers, according to a person familiar with the matter.
Annual inspections by the Reserve Bank of India found that the company’s servers were sharing information with China-based entities that indirectly own a stake in Paytm Payments Bank, the person said, asking not to be identified as the details are private.
Paytm Payments Bank, being a regulated financial institution, was required to maintain a so-called service level agreement with its technology vendor that would ringfence the entity from its owners, the source said.
Staff turnover on Wall Street is set to surge in coming weeks as investment bankers who held off job-hunting during the pandemic cash in their record bonus checks and leave for new opportunities in the red-hot labour market, said recruiters.
Bonuses are up 20% to 25% on average across Wall Street thanks to last year's deal-making frenzy, but bankers have been waiting for the checks to hit their accounts—which typically happens each year between January and March—to jump ship.
Barclays has suspended the sales and issuance of two exchange-traded notes (ETNs) with combined total assets of $1b–one linked to crude oil and another to a gauge of market volatility.
The British bank cited “capacity constraints” as a reason for suspending sales.
Some investors said that this move could spur big price swings in the products.
ETNs are debt securities that banks issue with the promise to pay holders a return linked to the performance of underlying securities or benchmarks.