News paper summary

Chinese Banks Halt Experimental Yuan-Remittance Program The article focuses on a tentative program paused by Chinese banks, authorized by the nation’s central bank which would allow people to transfer huge amounts overseas. The program faced media criticism as it would negatively affect China’s financial system. It ministered money laundering through the Bank of China and helped clients disguise their source of wealth. The allegations focused mainly on politicians involved in corruption scandals, who tried to move their illegally acquired assets abroad. The rules allowed for movement of $50000 a year out of the country, but the provisional program permitted the transfer of unlimited amounts. Halting the business discouraged government reform efforts but of late the Bank of China has been offering Yuan remittance services to limited loaded clients who have been researched on to determine their source of monies.
Banks Earnings Give Stocks a Boost
Citigroup’s high earnings jump-started the stock market raising the market indexes. In spite of improved U.S. economic data, optimistic investors kept a view of other foreign stock markets and oversaw improved results in the second-quarter earnings. Big banks recorded an increase in their share earnings despite being hit by litigation costs, declined trade, and a frail mortgage market. Citigroup recorded the highest rise in shares up from $.42 to $48.42 followed by J.P. Morgan Chase 3% and Goldman Sachs 1.3%. Investors thus gained confidence from the report, and their reaction helped the Dollar gain against the Yen and ease on the euro.
Wave of Cash Returns to Australia
Hardly anyone thought capital would return to Australia after it flowed out but with the completion of the mining business. the Australian dollar has since been boosted, and government bonds have lowered. Investors will have a bumpy return in the market due to low-interest rates and low vitality. The dollar has highly been driven by the search for yield raising it from 8% to 15%. Japanese firms are the leading investors in the high-yielding Australian market whereby they sell their low-yielding Japanese investments in search for a high-yielding currency. Sluggish domestic economy brought about the drop in Australian bond yields and statements from the central bank that low-interest rates would carry on for long to back growth caused persistent low-interest rates. Despite growth from the financial crisis in 2008, the Australian government bond market is still small though demand for the bonds remains high.
AIG’s Chief Gets a Small Salary Bump
The article centers on incoming AIG chief executive, Peter Hancock’s salary, a former banker who succeeded Robert Benmosche. He will be offered a slight increase in salary up from $1.5 million to $1.6 million annually. His salary is almost the same as that of his competitors in other insurance firms such as MetLife top cop, Steven Kandarian, who receives a base salary of $1.2 million annually. The insurance company is in its recovery stage after paying a government bailout of $182 billion, but it remains a top insurance company globally. He is expected to the company’s strategic plans and has stressed on higher prices, exit from unprofitable ventures, and improving organizations equipment as their main goal. He also emphasized on the flexibility on the pay issue as a drive to keep the company competitive.
Trading Doldrums Won’t Sink Morgan Stanley, Goldman Sachs
The article concentrates on the two companies where there is expected to be a drop of about 20% to 25% in their trading revenues in the second quarter. Unlike Goldman, Morgan Stanley is in a better position as its trading produced about 27% having generated that from equities. Goldman dependence on trading came from fixed-income, currency, and commodities thus producing 48%. However, Morgan Stanley is forecast to bolster earnings better if mergers and acquisitions surface but most investors still have faith that both companies are worthy trading businesses.
Tough Judge Polices Merger Scene
In the article, tough judge policies merger scene the author describes J. Travis Laster as someone who has built a name as being tough on bankers regarding the corporate directors they offer advice. Born in Beirut, Lebanon, the graduate University of Virginia law school presided over high-profile disputes thus disapproving boards he viewed as careless, ripped contradictory advisers, and paused dealings he viewed as discriminating. An example of a case he has acted upon is that involving Barclays Bank where he criticized the bank for trying to earn higher fees by manipulating the sale process of Del Monte Foods Co. Barclays was consequently fined $23.7 million, and he remains defiant despite criticism from the media. He succeeded suing Loral Space &amp. Communication after the company issued $300 million preferred stock to a large shareholder. His hard work and determination has helped in maintaining integrity of the system and has shaped the view that judges can act boldly and write wrongs.
References
Articles
Chinese Banks Halt Experimental Yuan-Remittance Program
Banks Earnings Give Stock a Boost
Wave of Cash Returns to Australia
AIG’s Chief Gets a Small Salary Bump
Trading Doldrums Won’t Sink Morgan Stanley, Goldman Sachs
Tough Judge Polices Merger Scene

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