Thursday, April 15

Month: June 2020

Goldman, other banks hold dividend steady, Wells Fargo to cut after stress test

investment
Nearly all of the largest U.S. banks said Monday that they performed well enough on the Federal Reserve's most-recent stress test to maintain their current quarterly dividend.Goldman Sachs, Bank of America, Morgan Stanley, JPMorgan Chase and Citigroup all said they will maintain their current dividend. Wells Fargo said the Fed's assessment of its business will warrant a reduction to its quarterly payout. While the nation's largest banks were quick to drop stock buybacks at the onset of the coronavirus pandemic, the group is often loathe to cut its dividend payments, which are viewed as a steady source of income for investors.The industry was forced to slash dividends after the 2008 financial crisis and has only slowly built them up since the Fed first allowed banks to raise dividends in 2
SBI urges UK Home Secretary to reject Vijay Mallya’s asylum plea

SBI urges UK Home Secretary to reject Vijay Mallya’s asylum plea

Finance
Mumbai: India’s largest lender State Bank of India (SBI) has written to UK home secretary Priti Patel’s office, challenging Vijay Mallya’s asylum plea, said three people in the know. The letter, written on behalf of the consortium of lenders led by SBI, and dispatched earlier this month, urged the British authorities to expedite the fugitive businessman’s extradition proceedings as this was key to recovering dues from him, said one of the persons. The missive is being seen as part of a collective effort by Indian banks, investigative agencies and other entities to put pressure on the UK government to hasten Mallya’s return to India. “A letter was dispatched recently, urging the UK home office to expedite Mallya’s deportation since his return is crucial to recovering the money owed to bank
Chesapeake Energy, a pioneer in the U.S. shale revolution, files for bankruptcy protection

Chesapeake Energy, a pioneer in the U.S. shale revolution, files for bankruptcy protection

investment
A worker on a Chesapeake Energy natural gas rig in Fort Worth, TexasMatt Nager | Bloomberg | Getty ImagesChesapeake Energy, the poster child of the U.S. shale revolution, filed for bankruptcy protection on Sunday. The move comes as the company and industry more broadly has been rocked by a drop in oil and gas prices amid the coronavirus pandemic.The heavily indebted company has been in trouble for some time, and in May said that it had concerns regarding its long-term viability.Chesapeake said that $7 billion in debt will be wiped out through the restructuring. The company has secured $925 million in debtor-in-possession financing in order to continue operations during the bankruptcy process. In addition, Chesapeake has secured an agreement in principle from certain existing lenders for $...
Yes Bank to auction properties of Essel Infra, SKIL Infra in July to recover dues

Yes Bank to auction properties of Essel Infra, SKIL Infra in July to recover dues

Finance
NEW DELHI: Yes Bank will next month auction properties of Essel group firm Essel Infraprojects and SKIL Infra to recover dues of Rs 1,368.16 crore. The private bank on July 8 will auction properties owned by Essel Infraprojects in Mumbai. It has also put under the hammer properties owned by another group firm Rama Associates. It selling properties to recover dues of Rs 556.53 crore, according to a public notice by Yes Bank. The bank took symbolic possession of their properties on January 8 and 10, 2020, the notice said. The sale of immovable assets is under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (Sarfaesi) Act, 2002. "The e- auction will take place on July 8, 2020, for recovery of Rs 556,52,30,349....
Bringing co-operative banks under RBI could create challenges for state governments

Bringing co-operative banks under RBI could create challenges for state governments

Finance
MUMBAI: The government's ordinance to amend the Banking Regulation Act empowering RBI more control over co-operative banks marks a turning point for these financially weak lenders, but it throws up a set of challenges that could lead to states challenging the regulator when interests clash. The central bank and state governments may often end up in courts over the powers of the RBI in overruling the managements of the lenders if the veto power vested with the regulator through the amendments to the Act clashes with the interests of local politicians who mostly control co-operative banks, analysts said. Maharashtra, a state which has numerous co-operative banks and has been witness to many going belly-up in recent years is opposing the legislation that it sees trespasses on its regulatory...

Analysts are betting on stocks like Nvidia & Mastercard

investment
Mastercard credit cardsRoberto Machado Noa/ LightRocket via Getty ImagesHow to find compelling stocks primed to outperform during a volatile second half of the year? Here are a few of the names the best-performing Wall Street analysts are betting on right now.As fears of a resurgence in the coronavirus sweep the globe, it could make sense to follow the stock picks of analysts with a proven track record of success. Here we used TipRanks analyst forecasting service to pinpoint Wall Street's best-performing analysts. These are the analysts with the highest success rate and average return measured on a one-year basis- and factoring in the number of ratings made by each analyst.With that in mind, here are the best-performing analysts' five favorite stocks:GWPHMedical cannabis stock GW Pharma h
Bankers in India are more productive working from home

Bankers in India are more productive working from home

Finance
By Ronojoy Mazumdar Work from home may remain part of the norm for many in India’s financial industry beyond the end of the world’s biggest lockdown. The reason: elimination of lengthy commutes in the past three months has boosted employee productivity. Take Jefferies’ India team for example. On average, its 60 members have managed to save over an hour every day on commute and 70% of them have seen higher productivity, according to a note from the brokerage, drawing on a survey of its staff. As banks and asset managers around the world try to figure out how they’ll manage their offices after the coronavirus pandemic, many in Mumbai - India’s finance hub - see the opportunity for permanent change in how they work. The average commute time on the city’s major routes is over an hour, more th
Credit card industry reins in balance-transfer offers as banks from JPMorgan to Amex fear defaults

Credit card industry reins in balance-transfer offers as banks from JPMorgan to Amex fear defaults

investment
Banks have pulled back from a popular credit card promotion on concerns that borrowers struggling during the coronavirus crisis may leave them with defaulting loans.Balance transfer offers, which typically entice borrowers to move their debt to a new lender in exchange for a temporary 0% interest rate, have been sharply reduced at banks including JPMorgan Chase, Citigroup, Bank of America, Barclays and Capital One, according to people with knowledge of the matter at each firm.American Express took the most drastic step, dropping the product altogether, according to a company spokesperson."We are not currently offering balance transfers across all our card products," American Express said in a statement. "From time to time, we make adjustments to our offerings to ensure we're managing risk
Irdai asks insurers to offer corona standard policy by July 10

Irdai asks insurers to offer corona standard policy by July 10

Finance
New Delhi: Amid rising number of coronavirus cases in the country, sector regulator Irdai has asked the general and health insurers to offer short-term COVID standard health policy or 'Corona Kavach Policy' for individuals by July 10. Issuing the guidelines, Insurance Regulatory and Development Authority of India (Irdai) said the policy should be offered for three and half months, six and half months, and nine and half months. The sum insurances for COVID Standard Health Policy could range from Rs 50,000 to Rs 5 lakhs (in multiples of Rs 50,000). The nomenclature of the product should be 'Corona Kavach Policy', succeeded by name of insurance company, the regulator said. The mode of payment would be single premium, the guidelines said, adding "the premium under this product should be pa...