RETAIL BANKING | Staff Reporter, Singapore

Weekly Global News Wrap Up: Citi buys $6.4b mortgages from UK bad bank; Goldman Sachs slapped with $45m by UK watchdog

And Wells Fargo CEO Tim Sloan is stepping down.

From Bloomberg:

Citigroup will inject $6.4b (GBP4.9b) for residential mortgages and unsecured loans from the British government’s bad bank in a move to offload the assets it acquired on the peak of the financial crisis.

“This is a significant step in the reduction and simplification of our balance sheet,” said Ian Hares, CEO of UK Assets Resolution. Citigroup in London declined to comment. UKAR has now cut its balance sheet by 93% since its formation, to $10.5b (GBP8 b).

From Reuters:

Goldman Sachs International was slapped with a fine of $45m (GBP34.3m) by the Financial Conduct Authority in the UK for failing to provide accurate reporting of transactions over a decade.

“These were serious and prolonged failures,” said Mark Steward, the Financial Conduct Authority’s executive director of enforcement and market oversight.
Goldman agreed to resolve the case speedily, thus qualifying for a 30% discount to avoid a fine of $64m (GBP49m).

From CNBC:

Wells Fargo CEO Tim Sloan who took office in October 2016 will resign. The bank’s general counsel, Allen Parker, will take over as interim CEO, and the bank is searching externally for a permanent successor.

Sloan informed the board Tuesday that he felt his presence was a hindrance for the company, according to a Thursday call conference call with reporters. The move wasn’t the result of the banks first-quarter performance or any “newly discovered issues,” he said.  

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