Fears in financial markets appeared to ease, a day after regulators agreed a rescue deal for troubled lending giant Credit Suisse. The bank was bought by rival UBS on Sunday after regulators worked around the clock to secure the takeover. Along with the collapse of two smaller US banks, its struggles had sparked fears over the global financial system. Hope that the deal would help contain the crisis helped lift shares in Europe and the US. London’s FTSE 100 closed up roughly 0.9%, recovering ground after early losses. Major indexes in Europe also ended higher, with UBS climbing roughly 1.5% … Continue reading Update: Investor fears appear to ease as UK and US share prices rise

Central banks have moved globally to keep credit flowing after an unsettled period in the US banking sector and the Credit Suisse merger. Six central banks, including the Bank of England, announced they would boost the flow of US dollars through the global financial system. On Sunday the struggling Credit Suisse was taken over by UBS in a Swiss government-back deal. The US dollar liquidity “swap line” arrangement will run from Monday. In a statement the Bank of England, Bank of Japan, Bank of Canada, the European Central Bank, US Federal Reserve and Swiss National Bank launched the co-ordinated action to … Continue reading Central banks of world’s major economies to boost flow of US dollars amid market unease

Troubled bank Credit Suisse has been rescued by its Swiss rival UBS in a government-backed deal. Sunday evening’s announcement came after a weekend of emergency talks in Switzerland between the two banks and the country’s financial regulators. The Swiss National Bank said the deal was the best way to restore the confidence of financial markets and to manage risks to the economy. The Bank of England said it welcomed the “comprehensive set of actions”. Credit Suisse shareholders were deprived of a vote on the deal and will receive one share in UBS for every 22.48 shares they own, valuing the … Continue reading Saved By The Bell: Swiss largest bank UBS accquires Credit Suisse in emergency rescue deal

People and businesses who have money deposited with failed US bank Sillicon Valley Bank (SVB) will be able to access all their cash from Monday, the US government has said. A statement from the US Treasury, the Federal Reserve and Federal Deposit Insurance Corporation (FDIC) said depositors would be fully protected. The taxpayer will not bear any losses from the move, the statement said. SVB was shut down by regulators who seized its assets on Friday. It was the largest failure of a US bank since the financial crisis in 2008. The move came as the firm, a key tech lender, … Continue reading Failed Bank: US government says Silicon Valley Bank deposits safe

JP Morgan Chase (JPMC) is suing former top executive Jes Staley over his links to sex offender Jeffrey Epstein. The Wall Street giant alleges Mr Staley failed to disclose potentially damaging ties to the late sex trafficker. JPMC is facing lawsuits from the US Virgin Islands and an unnamed woman alleging that it aided Epstein’s sex trafficking by allowing him to remain as one of its clients. The bank is attempting to make Mr Staley liable for any penalties it might face if it is found to have helped Epstein’s sex trafficking crimes in the two lawsuits. The lawsuits allege … Continue reading JP Morgan sues former executive Jes Staley over Epstein ties

Banking giant HSBC says its quarterly profit has almost doubled, boosted by rising interest rates around the world. The London-based firm reported profit before tax of $5.2bn for the last three months of 2022, up more than 90% from the same time a year earlier. However, pre-tax profit for the year as a whole fell by $1.4bn to $17.5bn, as it absorbs the cost of selling its French retail banking operations. HSBC is also in the process of selling its business in Canada. The bank said it planned to use the money raised from that sale to make payouts to … Continue reading Banking giant HSBC sees quarterly profit almost double

US financial regulators have charged failed South Korean cryptocurrency boss Do Kwon and his company Terrraform Labs with “orchestrating a multi-billion dollar crypto asset securities fraud”. The Singapore-based firm created the Terra Luna and TerraUSD tokens, which collapsed spectacularly last year. The collapse is estimated to have cost investors more than $40bn. “We allege that Terraform and Do Kwon failed to provide the public with full, fair, and truthful disclosure as required for a host of crypto asset securities, most notably for LUNA and Terra USD,” US Securities and Exchange Commission (SEC) chairman Gary Gensler said in a statement. “We also … Continue reading US regulator charges cryptocrash boss Do Kwon with fraud

North Korea-backed hackers stole $1.7bn of crypto in 2022, says blockchain analysis firm Chainalysis. This nearly quadruples the country’s previous record for cryptocurrency theft – $429m in 2021. The loot also made up 44% of the $3.8bn stolen in crypto hacks last year, which the firm called “the biggest year ever for crypto hacking”. Experts have said the country, facing heavy sanctions, is turning to crypto theft to fund its nuclear arsenal. North Korea has conducted six nuclear tests and analysts expect the seventh one this year, as the country accelerates its nuclear weapons programme under leader Kim Jong-un. Last … Continue reading North Korea-linked hackers stole $1.7b worth of Crypto in 2022

Nigeria’s central bank has extended the deadline to exchange old banknotes for redesigned ones. There have been long queues at some banks as Nigerians have struggled to meet the original deadline of Tuesday. People now have until 10 February to do the swap. The redesign of the higher denomination naira notes has been heavily criticised with analysts saying six weeks was not enough time for Africa’s most-populous country to phase out the old currency. It is happening a few weeks before the country goes to the polls in presidential and parliamentary elections. Local media has been reporting that there are … Continue reading Nigeria extends deadline to exchange old cash

The billionaire chairman of JP Morgan, Jamie Dimon, has called Bitcoin a “hyped-up fraud” and the financial equivalent of a “pet rock” as financial chiefs turn against digital currencies. Mr Dimon called cryptocurrencies a “waste of time” in comments at the World Economic Forum in Davos. However, he said the technology behind Bitcoin, known as a blockchain, could have uses. This kind of digital ledger is designed to be difficult to alter or hack and enables the creation of a public record of transactions. He said: “Blockchain is a ledger system that we use to move information… to move money. It’s … Continue reading Bitcoin is a ‘hyped-up fraud’, says JP Morgan chief

Authorities have seized cryptocurrency exchange Bitzlato, and arrested its co-founder, accusing the firm of fuelling a “high-tech axis of crypto crime”. The US Department of Justice charged Anatoly Legkodymov, a Russian national living in China, with running a business that catered to what he once described as “crooks”. They said Bitzlato processed more than $700m in illicit funds, breaking rules designed to thwart money laundering. Mr Legkodymov was arrested in Miami. “Institutions that trade in cryptocurrency are not above the law and their owners are not beyond our reach,” US Attorney Breon Peace said at a press conference on Wednesday, … Continue reading Bitzlato crypto founder charged with $700m financial crimes

Collapsed cryptocurrency exchange FTX has located more than $5bn (£4.1bn) of assets, an attorney for the firm says. However, a US bankruptcy court was told on Wednesday that the extent of losses to customers is still not known. Prosecutors have accused FTX’s former chief executive Sam Bankman-Fried of orchestrating an “epic” fraud that may have cost investors, customers and lenders billions of dollars. Mr Bankman-Fried has pleaded not guilty to charges that he cheated investors. “We have located over 5 billion dollars of cash, liquid cryptocurrency and liquid investment securities,” Andy Dietderich, an attorney for FTX, told US Bankruptcy Judge … Continue reading Update: Collapsed crypto giant FTX recovers over $5bn of assets