Deutsche Bank to pay $75 million to settle lawsuit by Epstein accusers
CNN
23-05-18 04:43
Deutsche Bank has agreed to pay $75m to settle a class action-related lawsuit brought by Epstein accusers, who claim the bank enabled his sex trafficking activities. Epstein died in jail in August 2019. The former Deutsche client, who had banked with the lender from 2013 to 2018, was also a client of JPMorgan Chase between 1998 and 2013. The bank, which has faced multiple suits regarding Epstein's activities, may yet face similar legal challenges from accusers; the settlement will not prevent future claims from being brought against Deutsche or JPMorgan. The banks have not commented on the settlement.
Deutsche Bank is to pay $75m to Jeffrey Epstein's sexual abuse victims in order to settle a case against the bank in New York. The settlement awaits approval from a federal judge and is intended to bring closure to a class-action suit in which the bank was accused of either ignoring or overlooking clear warning signals in Epstein's accounts which showed he was part of a sex trafficking ring. Lawyers for the victims of Epstein have previously sued JP Morgan, while the government of the U.S. Virgin Islands have also taken legal action against the bank.
BT is planning to cut up to 42% of its workforce over the next seven years as it seeks to reduce costs and boost profit growth, according to CEO Philip Jansen. Total workers, including employees and contractors, will fall from around 130,000 to between 75,000 and 90,000 by 2030. The telecommunications company has aimed for annual savings of £3bn ($4.1bn) by the end of 2025. The firm has been reducing its workforce for the past five years, though more drastic cuts have been considered since 2019. Jansen’s planned reductions, which will come into effect over several years, reflect in part the shift towards automation and digitalisation in the telecoms industry, as well as the firm’s drive to improve its responsiveness to customers.
US banks are adopting emergency procedures and bolstering risk management strategies to combat social media 'attacks' after Silicon Valley Bank failed in March this year partly as a result of customers withdrawing millions of dollars after rumours surrounding the bank's health circulated on Twitter. As banks adapt to a world where tweets can have a significant impact on company reputations and lead to liquidity issues or a quick slide in share prices, they are rethinking the role of social media as a marketing tool to one that should be managed as a potential risk.
Deutsche Bank will pay $75m to settle a class-action lawsuit alleging that the bank helped enable the sex trafficking of young women by convicted sex offender Jeffrey Epstein, according to lawyers representing the victims. If approved by a federal judge, the settlement will resolve the lawsuit filed in New York last year. Deutsche Bank denied comment on the proposed settlement but said that it had taken strides to amend past issues while investing in bolstering its internal controls. This is not the first time Deutsche Bank has been involved in legal action relating to Epstein. In 2020, the bank agreed to pay $150m to New York regulators after it was claimed it repeatedly overlooked suspicious transactions involving Epstein.
Italian investment bank Mediobanca is set to acquire London-based M&A advisory firm Arma Partners, enhancing its expertise in European software buyouts and expanding its international reach. The deal is expected to add 30% to Mediobanca's corporate investment banking fee pool and boost earnings per share, the bank said, although it didn't disclose the cost of the transaction. The deal comes as CEO Alberto Nagel prepares to unveil a new three-year strategy on 24 May.
Gold is emerging as the top investment choice for professionals and retail investors as they consider what to do in the event of a US default. Analysts at RBC Capital have indicated that “gold looks like one of the few likely candidates that would bear the burden of resulting market flows from default anxiety.” Data from the World Gold Council shows that central bank purchases of gold hit a record high in Q1 2022, while LBMA-accredited precious metals refiners have reported seeing far higher volumes than usual of large bars. Other investments suggested include the yen, the Swiss franc, and high-quality international equities.
JPMorgan is seeking documents from Manhattan District Attorney Alvin Bragg as part of a lawsuit against the bank by women who say they were abused by Jeffrey Epstein. It is not clear why Bragg took part in a conference in the case, but U.S. District Judge Jed Rakoff instructed him to provide JPMorgan with a privilege log by Friday. The bank's request became known after Deutsche Bank agreed to pay $75m to settle a lawsuit by women who accuse it of facilitating Epstein's sex trafficking.
Deutsche Bank agrees to $75M US settlement with Jeffrey Epstein victims
CBC
23-05-18 14:08
Deutsche Bank has agreed to pay $75 million in a settlement over allegations that it should have seen evidence of sexual exploitation by American financier Jeffrey Epstein when he was a client. The lawsuit was launched by a woman only identified as Jane Doe and claimed the bank had profited from Epstein’s sex trafficking. Deutsche Bank was said to have chosen “profit over following the law” to earn millions of dollars from the businessman. The bank has previously acknowledged it made mistakes in taking on Epstein as a client, and has since invested over €4bn ($5.9bn) to bolster anti-financial crime processes.
Charlie Javice, a young entrepreneur, has been indicted on charges of defrauding JPMorgan Chase out of money to buy her college financial aid start-up, Frank. She has been accused of securities fraud, wire fraud, bank fraud, and conspiracy. The company was sold for $175m in 2021, but prosecutors allege that Javice lied to JPMorgan by saying her start-up had lined up 4.25 million student customers, while the true number was closer to 300,000. In December, JPMorgan sued Javice and her former chief growth officer Olivier Amar for fraud.
Alphawave IP Group has announced a series of revisions to its full-year results for 2022, including $7m cut from its sales figures due to overstatement, while its operating profit was overstated by $7.4m. The income tax bill was wrong to the tune of $200,000, with R&D expenses increased by $400,000 due to a change in the amortisation period. The company also addressed its balance sheet, with an $8.2m reclassification of payables between non-current and current liabilities, and another $4.4m reclassification of payables related to deferred comp from its acquisition of Banias Labs in October 2022. And finally, the firm's CFO, Daniel Aharoni, has stepped down with immediate effect. JPMorgan, which helped organise Alphawave's £750m ($1.05bn) flotation in 2021, described the firm's changes as mixed but noted the company's cash flow remained unchanged during the audit.
Restaurant chain Cava reveals 2022 revenue jump in U.S. IPO filing
Reuters
23-05-19 12:23
Mediterranean restaurant chain Cava Group has filed for an initial public offering after its revenue for last year jumped by 13%. The company, which operates 263 units in the US, saw revenue rise by 12.8% to $564.1m in 2022, up from $500m a year earlier. Brett Schulman, who joined Cava in 2009 to help the group grow its offerings for grocery stores, is CEO of the firm, which was founded by Ted Xenohristos, Ike Grigoropoulos and Dimitri Moshovitis.
Turkey’s big economic gamble looks set to continue
CNN
23-05-19 11:58
Turkish President Recep Tayyip Erdogan has pledged to continue cutting interest rates to tackle inflation should he be re-elected, despite falling short of winning 50% of the votes cast in last Sunday’s election. Erdogan’s loss of seats has prompted concern from investors, and Turkey’s lira fell to a record low against the US dollar. City analysts warned that Turkey needs to curb inflation, secure financial stability, and achieve sustainable growth, regardless of the election results.
Turkey’s Erdoğan vows to keep cutting rates to fight inflation if re-elected
CNN
23-05-19 10:46
Turkey's president Recep Tayyip Erdoğan has promised to continue his low interest rates policy if he is re-elected on 28 May. The Turkish lira crashed by more than 40% last year as Erdoğan's economic policies fuelled a jump in inflation. While central bankers across most of the world's biggest economies have been raising rates at a rapid clip to control surging prices, Turkey has been doing the opposite. "Please do follow me in the aftermath of the elections, and you will see that inflation will be going down along with interest rates," he told CNN's Becky Anderson in an exclusive interview.
With JPMorgan's Investor Day taking place on Monday, analysts will seek more details about the bank's acquisition of First Republic Bank, as well as Jamie Dimon's succession plan following James Gorman's announcement that he will step down as Morgan Stanley CEO in the next 12 months. The investor day will also provide insight on the bank's plans to integrate First Republic's business into the largest bank in the US, as well as reports on the bank's performance via comments on the economy, growth, deposit growth, strategic opportunities, loan loss provisions and expenses.
An investigation launched last year by India's Securities and Exchange Board into offshore entities with holdings in Gautam Adani's companies has "hit a wall", according to a report by a committee appointed by the country's supreme court. Among the investigators was the US's Hindenburg Research, which this year accused Adani of stock price manipulation and fraud. The committee could not find evidence of regulatory failures but the report concludes that Sebi has drawn a blank in its investigation into 13 offshore entities it deemed suspicious, adding that bankers had declined to assist in matters relating to cross-border transactions.
A US federal judge will decide by the end of the month whether JPMorgan can proceed with its lawsuit against former executive Jes Staley, who developed a friendship with convicted sex offender Jeffrey Epstein. The bank accused Staley of getting caught up in Epstein's shenanigans and putting JP Morgan at risk of damages from lawsuits brought by Epstein's alleged victims as well as the US Virgin Islands. Staley, who later went on to become CEO at Barclays, claimed the bank was using him as a "public relations shield" for its own shortcomings.
Investors are choosing emerging market local currency bonds over dollar assets, as inflation drops and attractive yield rates are offered. From January to April, emerging market hard currency bond funds were hit with a net withdrawal of $2.65bn, while $5.23bn was invested in local currency bond funds. According to fund flow data provider EPFR Global, this year JPMorgan’s emerging market benchmark for local currency government bonds has delivered a 6.8% total return - more than three times its hard currency counterpart.
Lawyers for Jes Staley, former CEO of Barclay’s, have refuted allegations brought against him by JPMorgan Chase that he masked a relationship with now-deceased sex offender Jeffrey Epstein. The bank is seeking to make Staley liable for two lawsuits alleging the bank failed to flag Epstein's transactions for 15 years and helped him maintain a network of victims by turning a blind eye to suspicious transactions. JPMorgan has also claimed that Staley vouched for Epstein, whereas Staley’s lawyers argue that the assertion is based on shaky foundations. A federal judge is due to rule on the motion to dismiss by the end of the month.
As JP Morgan Chase's investor days begin, CEO Jamie Dimon must convince investors that the bank, now the largest in the US, can still expand further while still dealing with the damages of two lawsuits related to its relationship with Financier Jeffrey Epstein and fraud accusations related to investment start-up Frank. Nevertheless, JP Morgan's shares have outrivaled the KBW banking index in the past year and have been awarded as one of the winners in the regional banking crisis. Shareholders will also be looking for potential internal candidates for the CEO role should Dimon decide to step down.
