Latest news with #Banking
The Independent
6 hours ago
- Business
- The Independent
What does the overturning of a City trader's fraud conviction mean for deregulation?
Tom Hayes, the former City trader who was jailed in 2015 for his part in rigging inter-bank interest rates, the so-called Libor scandal – was a patsy. The former UBS and Citigroup trader was convicted and sentenced to 14 years in prison, later reduced to 11. This week, that conviction was quashed by the Supreme Court. I'm all for white collar criminals getting their just desserts, but Hayes' penalty always seemed more than a little excessive. It is more than twice what the rogue trader Nick Leeson got for bringing down Barings Bank. However, proportionality never came into this. Hayes' trial was designed to deliver a head on a plate to a public that was justifiably angry about what the City was getting up to after the bankers nearly crashed the economy. There was a widespread feeling that overpaid boys – and they were mostly boys – with massively inflated egos and little sense of morality were thumbing their noses at the rest of Britain, which was just starting to feel the impact of the then-government's austerity policies. But Hayes, who ended up serving five-and-a-half years, had nothing to do with that crisis, and contributed not a whit to austerity. Libor – the interest rate at which key banks were willing to lend unsecured loans to each other – was unregulated at the time, which also wasn't Hayes' fault, but rather an issue for the politicians and regulators who were asleep at the wheel. It did ultimately set the rate for a number of loans, including some mortgages, but the day-to-day activities of Hayes and his peers didn't have much effect on what ordinary borrowers paid. No one was able to convincingly show any, otherwise we would have seen a string of compensation claims. The chief losers were likely other trading desks, which were often playing the same game anyway. That's not to justify what went on. Cheating is still cheating, and the whole business knocked confidence in the City and its markets. But, then, the whole system was a joke. 'Tom Hayes' penalty always seemed more than a little excessive. It is more than twice what the rogue trader Nick Leeson got for bringing down Barings Bank' (PA Wire) Libor was set based on what some rube at Bank A estimated would be their cost of borrowing from other banks. These were put together, and a daily rate declared. If a hotshot trader got in touch, suggesting that the Libor guy tweak their Tuesday submission to help their trading position, they tended to comply. This is how the scandal got going. Needless to say, all this was unregulated. Yes, you read that right. Stupid is as stupid does, and this was really stupid. The Financial Services Authority, which was then the City's chief watchdog, ended up using failings in systems and controls and violations of its principles of business to justify the chunky fines it ultimately levied on the banks involved. Back to Hayes: the Supreme Court didn't completely exonerate him. It said there was 'ample evidence' during the trial that could have led to a conviction. But the judges raised issues with the trial judge's summing up, the directions given to the jury, and the impact it had on Hayes' defence. This was deemed to be unfair and the conviction unsafe as a result. It wouldn't be a surprise to see the other seven convicted traders up next. Similar cases have also been quashed in the US. The whole deck of cards is collapsing. The Serious Fraud Office said it would not seek to re-try Hayes or Carlo Palombo, another former trader, at Barclays, who received a four-year sentence for manipulating another benchmarked interest rate, Euribor, but has also won his appeal. They've done their time, and it's unlikely that the taxpayer will be coughing up any compo. Best sweep this one under the carpet because who wants all that stupid aired in public again, right? Here's the problem. The government had promised to deregulate financial services in the hope that reducing its oversight of the financial sector would light a fire under the City of London, boost the UK's stalling economy and bring in the tax revenues that the Treasury is in dire need of. This will likely involve loosening the rules governing the conduct of senior bankers that were ushered in following the 2008 credit crunch and the wave of scandals that followed in its wake, including interest-rate fixing. Can you see the problem with that? I think Andrew Bailey, governor of the Bank of England, can. Earlier this week, he advised the Treasury select committee that any big reforms to dramatically loosen City regulation – what the chancellor Rachel Reeves described in her Mansion House speech as a "boot on the neck" of business – and encourage more risk-taking might actually do more harm than good. He hinted that it might even trigger another financial meltdown. If traders can find an edge, an opening, they will jump on it. It was ever thus. They had good reason to think they had with Libor and that they were okay because there weren't any proper rules in place at the time. Their bosses will either turn a blind eye, just as they did then, or quietly encourage it, especially if the numbers come up good. And when this results in another scandal, there will be fines, which banks see as the cost of doing business, and an attempt to find another Tom Hayes to carry the can. The supervising bosses, who do the hiring and set the culture and who are supposed to be on top of what their banks are up to, will ride out the storm and pocket their bonuses as they always have. Justice, of a sort, has been served this time. But as for all that talk we heard about lessons being learned? They never are.
Business Upturn
2 days ago
- Business
- Business Upturn
Intellect Design Arena wins landmark deal with Tier 1 Canadian bank, marks entry into US core banking market
By Aditya Bhagchandani Published on July 23, 2025, 11:02 IST Intellect Design Arena Ltd has announced a major deal with a Tier 1 Canadian multinational bank, marking its first deployment of the Core Banking platform in the United States. The agreement is a strategic engagement to power the bank's global deposit growth strategy and covers its Corporate and Investment Banking business initially in the US, with planned expansion into Europe and Asia. According to the company, the competitive win reinforces its position in North America and deepens its relationship with one of Canada's largest financial institutions. Built on a cloud-native, microservices-based, and API-first architecture, Intellect's platform aims to: Launch tailored offerings faster across new markets. Enhance customer experiences with AI-driven personalisation. Roll out innovations rapidly through composable configurations. Reduce costs through seamless integration and real-time processing. Speaking about the deal, Manish Maakan, CEO of Intellect Wholesale Banking, said: 'This is a defining moment for us — our entry into the U.S. core banking market demonstrates the trust placed in our technology and our ability to deliver at scale. It's not just a technology replacement, but a strategic move to reimagine how the bank grows deposits and serves clients in the digital age.' He added that the win also reflects the growing role of deep-tech players from the East in transforming global banking. The engagement follows a rigorous evaluation process against leading global players and leverages Intellect's focus on First Principles and Design Thinking to create scalable, modular, and impactful solutions. Intellect Design Arena serves over 500 financial institutions in 61 countries with solutions spanning wholesale, consumer, central banking, wealth, capital markets, and insurance technology. For more details, visit: Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Globe and Mail
2 days ago
- Business
- Globe and Mail
First Northern Community Bancorp Welcomes Richard A. Bedoya to Its Board of Directors
First Northern Community Bancorp (OTCQX: FNRN), the holding company of First Northern Bank, is pleased to announce that Richard A. Bedoya has joined its Board of Directors of both the Bank and holding company, effective July 17, 2025. Mr. Bedoya will also serve on the Bank's Audit, Asset/Liability, and Directors Loan Committees. He succeeds Foy McNaughton, who retired from the Board on July 20, 2025, upon reaching First Northern's mandatory retirement age for directors. Mr. McNaughton served with distinction for 25 years. Mr. Bedoya is a seasoned business leader and entrepreneur with more than 30 years of experience spanning the automotive and agricultural industries. He currently serves as Owner and Partner at DuPratt Ford Auburn, where he brings decades of expertise in fixed operations, customer satisfaction, and business development. In addition, Mr. Bedoya is the Owner and CEO of Dixon Bee Company and the Owner of Bedoya Orchards, businesses that reflect his commitment to sustainable agriculture and innovation. 'Richard's extensive business acumen and deep roots in our communities make him an exceptional addition to our Board,' said Jeremiah Smith, President and Chief Executive Officer of First Northern Community Bancorp and First Northern Bank. 'His leadership, strategic insight, and dedication to community service align perfectly with First Northern's mission of serving our customers and communities with integrity and excellence.' Throughout his career, Mr. Bedoya has earned a reputation for driving growth, fostering long-term client relationships, and building high-performing teams. He has dedicated over two decades to community service, including serving as a life member and past president of the Dixon Lions Club, and volunteering in leadership roles with Davis Little League, Dixon Dolphins Swim, Dixon Rugby, and the Dixon High School Quarterback Club. He also serves on the advisory board for automotive technology at Cosumnes River College, supporting the advancement of technical education and workforce readiness. 'I am honored to join First Northern Bank's Board of Directors,' said Mr. Bedoya. 'I look forward to contributing my experience and passion to help guide the Bank's continued growth and its commitment to increasing shareholder value.' The other nine members of First Northern Bank's Board of Directors include: Sean P. Quinn of Fairfield (Chairman), Richard M. Martinez of Dixon (Vice Chairman), Patrick R. Brady of Roseville, John M. Carbahal of Winters, Gregory DuPratt of Dixon, Barbara A. Hayes of Sacramento, Richard M. Martinez and Jeremiah Z. Smith of West Sacramento, and Louise A. Walker of Dixon. About First Northern Bank First Northern Bank is an independent community bank that specializes in relationship banking. The Bank, headquartered in Solano County since 1910, serves Solano, Yolo, Sacramento, Placer, Colusa, and Glenn counties, as well as the west slope of El Dorado County. Experts are available in small business, commercial, real estate, and agribusiness lending, as well as mortgage loans. The Bank is an SBA Preferred Lender. Real estate mortgage and small-business loan officers are available by appointment at any of the Bank's 14 branches, including Dixon, Davis, West Sacramento, Fairfield, Vacaville, Winters, Woodland, Sacramento, Roseville, Auburn, Rancho Cordova, Colusa, Willows, and Orland. Non-FDIC insured Investment and Brokerage Services are also available at every branch location. First Northern Bank is rated as a Veribanc 'Green-3 Star Blue Ribbon' Bank and a '5-Star Superior' Bank by Bauer Financial for the earnings period ended March 31, 2025 ( and ( For additional information, please visit or call (707) 678-7742. Member FDIC. Equal Housing Lender. Forward-Looking Statements This press release and other public statements may include certain 'forward-looking statements' about First Northern Community Bancorp and its subsidiaries (the 'Company'). These forward-looking statements are based on management's current expectations, including but not limited to statements about the Company's performance and strategic initiatives, and focus on improving shareholder value, and are subject to certain risks, uncertainties and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. More detailed information about these risk factors is contained in the Company's most recent reports filed with the Securities and Exchange Commission on Forms 10-K and 10-Q, each as it may be amended from time to time, which identify important risk factors that could cause actual results to differ materially from those contained in the forward-looking statements. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's most recent reports on Form 10-K and Form 10-Q, and any reports on Form 8-K. The Company undertakes no obligation to update any forward-looking statements to reflect events or circumstances arising after the date on which they are made. For further information regarding the Company, please read the Company's reports filed with the SEC and available at
Globe and Mail
2 days ago
- Business
- Globe and Mail
3 Brilliant Dividend Stocks to Buy Now and Hold for the Long Term
Key Points Federal Realty is a reliable Dividend King that's attractively priced. Visa is expensive, but has an attractive growth story to offer. Bank of Nova Scotia is a Canadian banking giant with a solid turnaround plan. 10 stocks we like better than Visa › Dividend stocks come in all shapes and sizes, so there's no one-size-fits-all approach that works for everyone. That's actually good news, since every investor is unique. If you are looking for dividend stocks to buy, you'll want to examine Federal Realty (NYSE: FRT), Visa (NYSE: V), and Bank of Nova Scotia (NYSE: BNS). Here's why these three options could be brilliant stocks to buy and hold for the long term (for the right investor). 1. Federal Realty is boring and reliable Federal Realty is a retail-focused real estate investment trust (REIT). It owns strip malls and mixed-use developments that are centered around retail assets. It isn't the biggest retail REIT, owning only around 100 properties. However, those properties are large and very well located, with higher average populations and income than the REIT's closest peers. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » One of the key skills that Federal Realty possesses is on the development and redevelopment front. In fact, it is a fairly active portfolio manager, buying assets that need some love, fixing them up to increase their value and rent-generating capacity, and then selling if a good price can be had. The process is then repeated. This model has worked very well over time, noting that Federal Realty is the only REIT to have achieved Dividend King status. Now add in an attractive 4.6% dividend yield, which is well above the 1.3% yield of the S&P 500 index (SNPINDEX: ^GSPC) and the 4.1% yield of the average REIT. If you are looking for a large and reliable income stream, Federal Realty should be on your radar today. 2. Visa is a dividend growth machine Not every dividend investor is looking for a big yield; some are looking for dividend growth. That's where Visa excels, noting that its annualized dividend growth rate over the past decade was a shockingly impressive 17%. More recent growth has been a bit slower, but the dividend growth rates over the one-, three-, and five-year periods are all over 10%. These are the kind of stats that dividend growth investors should love. Visa is a payment processor. It collects small fees for facilitating billions of transactions with cards that carry its logo. No single fee is very large, but over the vast number of transactions it handles, the figures add up. And, despite its already impressive scale, the business is still growing. In the second quarter of 2025, Visa processed 9% more transactions than it did a year ago, leading to a 9% jump in revenues and a 10% increase in adjusted earnings. The one problem with Visa stock is that investors are well aware of how attractive the business is today, and the stock's price-to-sales and price-to-earnings ratios are above their five-year averages. That said, neither of these metrics is shockingly above its average, so more aggressive investors focused on dividend growth (the dividend yield is a tiny 0.7% or so) still might want to dive in here, noting that the world continues to move toward digital and card payments. 3. Bank of Nova Scotia is a low-risk and high-yield turnaround Bank of Nova Scotia, which normally just gets shortened to Scotiabank, is one of the largest banks in Canada. Canada has strict banking regulations that have, effectively, created protected industry positions for the country's largest banks. And that regulation has generally left the largest banks, like Scotiabank, with a conservative ethos. That's the backdrop for a stock that is offering up an attractively high 5.7% yield. The dividend, meanwhile, has been paid every year since 1833. This is a reliable dividend stock, but it isn't exactly running on all cylinders today. Scotiabank attempted to differentiate itself by focusing on Central and South America as it looked to expand beyond its Canadian borders. That didn't work out as well as hoped, and it is now revamping its approach, exiting weaker markets, emphasizing stronger markets, and including the U.S. in the mix to a greater degree. This effort is ongoing, making Scotiabank a turnaround story, but it seems to be achieving decent success. Notably, dividend growth was put on pause in 2024, but has resumed again in 2025. Dividend options for all sorts of investors The dividend stocks on this list probably won't all be attractive to the same investor. Investors looking for a boring and reliable high yield will likely appreciate Federal Realty. Dividend growth investors should focus on Visa. And turnaround lovers will like Bank of Nova Scotia. Should you invest $1,000 in Visa right now? Before you buy stock in Visa, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Visa wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
Yahoo
2 days ago
- Business
- Yahoo
DA Davidson Stays Positive on Fifth Third Bancorp (FITB), Keeps Buy Rating
Fifth Third Bancorp (NASDAQ:FITB) is one of the 10 Best Financial Stocks on Wall Street's Radar. On July 18, DA Davidson maintained a 'Buy' rating on Fifth Third Bancorp (NASDAQ:FITB) and kept its price target of $47. The investment firm still has a positive view of the banking company despite noting that Fifth Third Bancorp (NASDAQ:FITB) has indicated loan growth will likely moderate in the second half of 2025. The company has also tempered its fee income growth guidance for the full year. This prompted DA Davidson to slightly reduce its earnings per share forecasts for Fifth Third Bancorp (NASDAQ:FITB). An empowered woman in the boardroom leading a discussion on the company's wealth & asset management strategy. According to DA Davidson, the company's management is still aiming to deliver 150 to 200 basis points of positive operating leverage, even if the capital markets do not recover. The firm highlighted strong first-half 2025 performance and noted that Fifth Third Bancorp (NASDAQ:FITB) has several expense reduction options available. Additionally, DA Davidson's analysis suggests that the company is on track to achieve record net interest income even without interest rate cuts from the Federal Reserve or any further loan growth. Fifth Third Bancorp (NASDAQ:FITB) is a bank holding company for Fifth Third Bank, which offers a wide range of financial services to individuals, families, and businesses. While we acknowledge the potential of FITB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best American Semiconductor Stocks to Buy Now and 11 Best Fintech Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
