Weekly Global News Wrap: Goldman Sachs cuts Q2 earnings for 1MDB settlement; Barclays probed for spying claims

And Revolut says losses more than tripled in 2019.

From Reuters

Goldman Sachs has slashed its previously stated quarterly earnings as it allotted more money for its settlement with the Malaysian government over the 1MDB scandal.

The bank lowered its net earnings attributable to common shareholders to $197m from $2.25b, setting aside $2.96b in Q2 for legal and regulatory costs.

It faces a separate investigation by the US Department of Justice, which is reportedly looking at whether the bank violated the Foreign Corrupt Practices Act, which bars U.S. companies from paying foreign government officials for help in getting or keeping business.

From Reuters

Barclays is being probed by the United Kingdom’s Information Commissioner’s Office over allegations that it spied on its staff.

Earlier this year, Barclays said it was changing a system that it was piloting, which tracked how employees spent their time at work, after critical media reports accused the bank of spying on its staff.

In 2017, Barclays faced widespread criticism when it rolled out a system known as OccupEye, which tracked how long people spent at their desks.

From CNBC

British fintech firm Revolut said its losses more than tripled in 2019, despite a surge in revenues and customer numbers.

It posted a total loss of $139.6m for the year ending 31 December, up from $42.9m in 2018.

Revolut blamed the mounting losses on its investment in international expansion and new product offerings. Last year, the firm launched a commission-free stock trading feature to take on incumbent online brokers like Hargreaves Lansdown and AJ Bell. It’s also been pushing its app into new regions like the US, Singapore and Australia.