#HSBC

Warren Blasts Goldman Over SVB Dual Role

Raising an issue that could lead to broad demands for internal firewalls, Sen. Warren (D-MA) today sent a letter to the CEO of Goldman Sachs demanding more information about the bank’s dual role advising and buying financial instruments from SVB. The senator raises concerns that this caused conflicts of interest and accuses the bank of using “accounting tricks” that were very costly to the DIF.

Key House Member Posits China Sanctions For Hong Kong Banking Activities

Joined by two U.K. MPs, House Select Committee on the CCP Chairman Mike Gallagher (R-WI) today sent a letter to HSBC’s CEO raising concerns with what he says was the bank’s decision as well as that of other unnamed banks to block Mandatory Provident Fund withdrawal requests for Hong Kong residents with British National (overseas) passports. Firing what may be a first shot into the broader battle of how global banks manage their relations with China, the letter highlights instructions to the fund’s trustee institutions – which include HSBC – from the Hong Kong Mandatory Provident Fund Authority to disregard BN(O) passports.

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Eliza Allen2023-01-27T15:24:46-05:00June 14th, 2022|2- Daily Briefing|

Banks, Asset Managers Come in for New Climate Controversy

In a letter to HSBC CEO Noel Quinn, Sen. Steve Daines (R-MT) sharply criticized the bank’s decision to suspend a top official, Stuart Kirk, for earlier remarks that climate change’s financial risk is being overstated. The letter raises policy issues as well as political ones because the Senator warned that the decision may violate US law because it may reflect pressure from BlackRock in violation of its passive-asset commitment to avoid controlling-party designation.

Bureau Bashes Big Banks, Wants Better Customer Service

Fulfilling its director’s promises to target big banks (see Client Report CONSUMER40), the CFPB today released an RFI seeking ideas on how big banks can be encouraged or perhaps forced to enhance customer service, an attribute Mr. Chopra conflates with consumer protection in a speech accompanying this action. The Bureau is concerned that big banks do not provide “high-quality” service and the interactions necessary for the relationship banking deemed important to fair competition, especially in rural areas.

BIS Finds DeFi Increases Financial Risk, Harms Inclusion

In a bulletin today, the BIS highlighted the negative impact that the anonymous nature of DeFi has on financial risk and inclusion. It finds that overcollateralization is pervasive in DeFi lending because screening of individual borrowers is impossible, but crypto’s volatility means that overcollateralization did not eliminate risk of loss.

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