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Updated: HK regulator fines Goldman $350m for 1MDB failures

Hong Kong’s securities watchdog has fined Goldman Sachs $350m for regulatory failures in its work on bonds issued by the scandal-hit Malaysian state investment fund 1MDB, part of a multi-billion-dollar settlement with global regulators.

22 Oct 2020
Ukraine hopeful of unblocking $5bn IMF loan amid legal rows

A legal ruling that appears to cast doubt on the independence of Ukraine’s anti-corruption unit has delayed a loan from the IMF and comes in the wake of a row over a decision to ‘reprimand’ two independent members of the country’s central bank

15 Oct 2020
Regulator details Luckin fine for false advertising

China’s State Administration for Market Regulation (Samr) has imposed a Rmb2m ($298,000) fine on each of Luckin Coffee’s two main operating entities in China and three other companies, the highest possible penalty under the country’s competition law.

13 Oct 2020
Rubio is wrong to want to block Ant IPO

US senator Marco Rubio wants his government to find a way to delay the listing of Ant Group, even though it is happening outside of the US. The move would undoubtedly be bad news for US banks but it also appears to offer little upside to politicians.

13 Oct 2020
FCA warns on insider information

Julia Hoggett, director of market oversight at the Financial Conduct Authority, said that market participants need to be careful about insider information, and that companies should be overseeing staff use of private devices at a time when many are working from home.

12 Oct 2020
'China is a paper tiger,' says Kyle Bass, Hayman Capital Management

Kyle Bass, made famous by shorting the US housing market in the run up to the financial crisis, has told GlobalCapital that the Chinese state is a paper tiger on the road to collapse. The Texan, who has been on a fierce campaign against the Chinese Communist Party for years now, says that US politicians are finally catching up with his position.

09 Oct 2020
China policy and markets round-up: Beijing joins WHO-led vaccine initiative, September forex reserves drop, Trump resumes China Covid blame

In this round-up, China joins an initiative backed by the World Health Organization for fair global access to Covid-19 vaccines, the country’s foreign exchange reserves slide, and US president Donald Trump continues blaming Beijing for causing the pandemic.

09 Oct 2020
LendingClub shutters retail investor platform in pivot to banking

LendingClub is retiring its retail notes platform at the end of 2020 as the company continues to walk the path of becoming the first fintech-turned-bank. This marks the end of an era for the online lender, which pioneered the peer to peer model in the earliest days of marketplace lending, sources say.

08 Oct 2020
Germany nears revamped restructuring rules

Germany is set to implement a total revamp of its corporate restructuring rules from next year, with a draft bill overhauling a court-led regime more than 25 years old and replacing it with rules law firm Kirkland & Ellis called ‘best practice’.

08 Oct 2020
Bankers balk at London bans for suspect foreign firms

Suggestions that the UK government is considering a consultation process to give it the power to ban foreign firms from listing on the London Stock Exchange have horrified equity capital markets bankers.

07 Oct 2020
Puma Energy pulls bond, investors say credit story 'uncredible'

Singapore-incorporated global energy business Puma Energy has pulled a planned dollar bond that was set to refinance an existing loan. The company attributed it to a lack of conducive market conditions, though investors say the issuer's credit story was unconvincing.

07 Oct 2020
China seeks way into CEE with closer co-operation but investment remains low

Though China has increased co-operation with Central and Eastern European nations in recent years, provoking some concern in the EU, investment volumes remain muted. Non-EU nations in the Balkans, however, offer a chance to progress on the Belt & Road initiative

06 Oct 2020
Insider trading risk delayed ABS deals in early 2020

Concerns around disclosure of mortgage forbearance figures and payment holidays led to deals scheduled for issuance earlier in 2020 being delayed to later in the year, as issuers feared securitization investors having access to information not widely disseminated to other investors.

05 Oct 2020
Securitization issuers ready rush to market ahead of election uncertainty

The upcoming presidential election is driving a rush by securitization issuers to get deals through the pipeline before November, when sources say election uncertainty and a potential second wave of Covid-19 infections could make for a highly volatile end to 2020.

24 Sep 2020
Yangtze Power launches Stock Connect listing in London

China Yangtze Power, a Chinese utility company, has launched its listing on the London Stock Exchange, becoming the third company to list in London through the London-Shanghai Stock Connect scheme. The deal is expected to be worth up to $3.4bn.

23 Sep 2020
Iosco warns of regulatory action over DCM mandate pressure

Banks may be using their lending relationships with companies to press them into granting bond mandates, the International Organisation of Securities Commissions has warned. This follows the UK Financial Conduct Authority's remarks about similar pressure for equity mandates in April.

23 Sep 2020
Chinese regulator fines Luckin for unfair competition

The State Administration for Market Regulation (Samr) has concluded a five month investigation into Luckin Coffee over unfair competition, fining the company and nearly four dozen others that were also involved a total of Rmb61m ($9m).

22 Sep 2020
FinCEN leak to spark extra due diligence measures from lenders

The release of thousands of leaked documents over the weekend that implicated major banks in money laundering and sanctions violations has sent a shudder through capital markets. Lenders say they will likely increase due diligence to make sure they are not exposed to further revelations.

21 Sep 2020
Funding from Congress can replace GSE refi fee, Calabria says

The adverse market refinance fee came under fire in a hearing this week, during which House policy makers characterised it as last-minute and poorly explained. Federal Housing Finance Agency (FHFA) Director Mark Calabria emphasized that the fee is necessary, and the only alternative would be to receive funding from Congress before the December implementation date.

17 Sep 2020
Grenke’s shares plummet following Viceroy report

Bank and leasing firm Grenke has seen its share price plummet by more than half over the past two days after becoming the latest target of Viceroy Research, the activist short seller known for its campaigns against Wirecard and Steinhoff. German regulator Bafin has told GlobalCapital it is investigating the situation.

17 Sep 2020
Rule of law, the new face of the CMU and fighting deflation

This week in Keeping Tabs: the state of EU capital markets and whether good government matters, a profile of Mairead McGuinness, and Adam Tooze on central banks.

11 Sep 2020
Fraser to replace Corbat at Citi

Michael Corbat is to retire from Citigroup in February, and Jane Fraser will step up as chief executive.

11 Sep 2020
Prepare for interventionism in capital markets

European policymakers may decide to ramp up efforts to retain control of capital markets, amid rising Brexit tensions, the US-China dispute and the need to recover economic growth.

10 Sep 2020
Financial services face weaponisation as Brexit tension rises

The tension between the EU and UK over Brexit ratcheted up this week, with the prospect of the UK reneging on the EU-UK Withdrawal Agreement rearing up. Rising political tension could now boil over into talks on financial services.

08 Sep 2020
Updated: Ant clears up Alibaba ties, business model after SSE questions

Ant Group has tackled more than two dozen questions posed by the Shanghai Stock Exchange ahead of its concurrent jumbo IPOs on the Star market and Hong Kong. The digital payment firm’s ownership structure, especially its ties to Alibaba Group Holding, as well as its business model and use of the listing proceeds were under scrutiny.

08 Sep 2020
Ukraine maintains interest rate but reform worries linger

The National Bank of Ukraine’s (NBU) decision to maintain interest rates against pressure to cut them was not enough reassurance for analysts worried about the broader reform agenda in the country. As the saga continues surrounding the ownership of one of its banks rumbles on, a number of obstacles stand in Ukraine’s path to recovery.

04 Sep 2020
China policy round-up: Beijing supports semiconductor sector to counter Trump, India bans Baidu, Alipay, foreign ministry threatens retaliation on journalist visas

In this round-up, China plans to develop the domestic semiconductor industry amid tighter technology export controls imposed by the Trump administration, India blocks over 100 Mainland-based apps including Baidu and Alipay, and Beijing vows countermeasures if Chinese journalists fail to get their US visas renewed.

04 Sep 2020
NIB expands lending capacity with updated statutes

Nordic Investment Bank has updated its statutes, modernising and improving its risk and capital management systems. Henrik Norman, the supranational’s CEO, believes the update will improve NIB’s flexibility and allow it to act more quickly as well as expanding its lending capacity.

03 Sep 2020
China policy and markets round-up: Sino-US trade talks ‘constructive’, securities houses get annual ratings, Shenzhen bourse ready for WVR companies

In this round-up, senior trade officials from China and the US hold ‘constructive’ talks, the securities regulator publishes the latest ratings for Mainland brokerages, and the Shenzhen exchange hopes to attract listings from companies with weighted voting rights (WVR).

28 Aug 2020
EM leaders bullying central bank governors are harming their countries

Political interference in central bank business is rarely a smart move, especially for emerging market countries trying to win the respect of international markets. But it’s an even more reckless endeavour in the midst of a global crisis, especially for a debt-ridden country like Zambia.

25 Aug 2020
Amigo tumbles again as board fights founder

James Benamor called a second shareholder vote in four months on Thursday to replace the board of Amigo Holdings, the troubled UK guarantor loan company he founded in 2005, after the board rejected his proposals — including reappointing him as CEO.

24 Aug 2020
Market fears EM debt pile-up, as defaults and downgrades loom

As debt levels across emerging markets reach unprecedented highs, bankers, investors and analysts alike are beginning to worry about the potential implications on sovereigns in the post-pandemic world. The increased fear of downgrades, defaults and unwinding of stimulus packages is giving market experts much to think about.

24 Aug 2020
Colorado 'true lender' settlement brings legal clarity for fintechs

The Colorado attorney general reached a settlement with marketplace lenders Avant and Marlette Funding on Tuesday that enables the lenders to keep working with partner banks under safe harbour provisions if they comply with rules set out by the state. Market participants said the settlement is a clear win for online lenders, as it brings legal certainty, and it may guide other states in resolving “true lender” issues.

19 Aug 2020
Get ready for a mortgage holiday fight

UK politicians should prepare for mortgage holidays becoming a political hot potato after borrowers who took payment holidays just-in-case realise that their financial well-being may not be as unscathed as they first anticipated.

18 Aug 2020
Amigo founder vows return to company

Amigo’s estranged founder wants to return to Britain’s biggest guarantor loans provider, floating the possibility of another shareholder vote, after selling more than 40% of the company, reducing his stake to below 20%.

18 Aug 2020
Fear of contested US election result stalks equity markets

The fear of a volatile and bitterly contested US election between Donald Trump and Democratic Party challenger Joe Biden is likely to create a keen sense of urgency for companies seeking to sell equity when the European market reopens at the end of this month.

18 Aug 2020
Investment bank whistleblowing cases shoot up in 2020

As investment bankers got used to working from home in the first half of the year, many more whistleblowing cases were opened by the UK’s Financial Conduct Authority. Meanwhile, challenges around monitoring staff and forging a bank’s internal culture have not gone away just because the workforce is outside of the office.

13 Aug 2020
ECB fears banks may be ‘overestimating’ their internal capital levels

The European Central Bank has asked financial institutions to justify why they are using additional tier one and tier two bonds as sources of internal capital, highlighting its concern that the instruments lack real economic value.

12 Aug 2020
Ukraine shows the difficulties of reform

Less than a year ago, international investor optimism about Ukraine was high but the journey to western style reform since then has shown just how hard a road it can be to travel.

04 Aug 2020
Morgan Stanley suspended from French auctions

The Agence France Trésor (AFT) has suspended Morgan Stanley’s primary dealership in French government bonds, making it the first bank to suffer such a proscription.

04 Aug 2020
Luckin faces penalties as Chinese regulators step in

The Chinese Ministry of Finance and two other national regulators have concluded their investigations into fraud at Luckin Coffee. They will now impose administrative penalties.

03 Aug 2020
Argentina bondholders can expect more political pressure

In recent weeks, Argentina’s PR agency has been cramming the inboxes of financial journalists as the government goes on the attack in an apparent attempt to guilt-trip dissenting creditors into accepting its restructuring offer.

28 Jul 2020
Australian govvies hit by climate challenge

In a world first this week, 23-year-old student and Australian retail government bond investor Katta O’Donnell filed a legal challenge against the sovereign on Wednesday, claiming that the government does not do enough to disclose the risks of climate change to investors. If successful, the case could change issuers’ obligations regarding climate risk disclosure.

23 Jul 2020
The war on Huawei, robots and female pay, state aid’s real state of play

Each week, Keeping Tabs brings you the very best of what we have found most useful, interesting and informative from around the web. This week: what’s next for the US after its war on Huawei, the impact that more robots would have on the gender pay gap, and a look on the bright side of Europe’s mishmash of state guarantee schemes.

17 Jul 2020
China policy round-up: Huawei banned from UK’s 5G network, Beijing sanctions Republican politicians, Trump strips HK of special status

In this round-up, the UK bars Huawei Technologies from its 5G mobile network, the Chinese foreign ministry retaliates against recent US sanctions, and Donald Trump signs an executive order that ends Hong Kong’s preferential trade treatment.

17 Jul 2020
China rolls out unified law on bond defaults

China has introduced a primary legal framework to tackle bond defaults, bringing together separate guidelines that had been in place for each of its three debt markets. While the move simplifies things for bondholders, there are still a number of unanswered questions, said bankers.

17 Jul 2020
HKEX makes leadership hires to listing division

Hong Kong’s stock exchange has appointed two legal and consulting veterans to senior positions in its IPO vetting unit and a new compliance team.

17 Jul 2020
Regulators need to think like short sellers

The Wirecard scandal — like other recent debacles such as NMC Health — shows that financial reporting, oversight and governance, as they are currently practised, are woefully inadequate.

16 Jul 2020
Reckoning begins for BaFin after it pursued Wirecard foes, not fraudsters

Short sellers who for years have complained that BaFin, the German financial markets regulator, ignored their criticisms of Wirecard, the collapsed payments company, and instead prosecuted the critics, have begun to be vindicated with the news that the European Securities and Markets Authority (ESMA) has opened a review into the organisation. By Silas Brown.

16 Jul 2020
Market keeps guard up as Ukraine names new CB chief

Krylyo Shevchenko, the chairman of state-run Ukrgasbank, has been selected as the new governor of the National Bank of Ukraine (NBU) after weeks of deliberation. The choice has elicited a mixed reaction from market spectators, some of whom hope that Ukraine can salvage its international debt market access and IMF funding. Mariam Meskin and Ross Lancaster report.

16 Jul 2020