The Church of England has criticised the conduct of Barclays in its annual report, after a year dogged by scandal and resignations at the bank.
See the article here: Church: Barclays ‘let down society’
Category : Business, World News
The Financial Conduct Authority says the number of complaints about the mis-selling of PPI fell in the second half of last year.
Read the original here: PPI complaints start to decline
Category : World News
Computer problems that affected RBS customers last summer are to be investigated by the Financial Conduct Authority.
Excerpt from: RBS faces IT failure investigation
BNY Mellon unit Ivy Asset Management ‘violated responsibility’ by advising clients to invest with fraudster Bernard Madoff
US authorities have reached a $210m settlement with the BNY Mellon subsidiary Ivy Asset Management for advising clients to invest with the ex-financier Bernard Madoff, whose multibillion-dollar fraud landed him in federal prison.
The settlement of suits filed by the New York attorney general, Eric Schneiderman, Labour Department and private plaintiffs also provides for about $9m in payments by other defendants. Combined with anticipated future payments from Madoff bankruptcy proceedings, Schneiderman said it expected to return nearly all of the original investments to those who were defrauded, including union pension funds from upstate New York.
“Ivy Asset Management violated its fundamental responsibility as an investment adviser by putting its own pecuniary interests ahead of the interests of its clients,” Schneiderman said.
“Ivy deliberately concealed negative facts it uncovered in its due diligence of Madoff in order to keep earning millions of dollars in fees. As a result, its clients suffered massive and avoidable losses.”
Between 1998 and 2008, authorities say Ivy was paid more than $40m to give advice and conduct due diligence for clients with large Madoff investments.
Michelle Hook, spokeswoman for Schneiderman, said the losses included about $138m by the 78 pension funds, and most would be recovered.
Internal Ivy documents showed the firm had deep but undisclosed reservations about Madoff, authorities said. Its clients lost more than $236m after the businessman’s Ponzi scheme collapsed.
In 2010, then New York attorney general Andrew Cuomo filed a civil complaint, alleging fraudulent conduct by Ivy in connection with securities sales and breach of fiduciary duty, violations of the state’s Martin Act.
Ivy said its advisers had raised questions about Madoff with clients and urged them to reduce their positions. The Ponzi scheme had cost investors an estimated $17.3bn, according to New York authorities.
Madoff pleaded guilty in 2009 and is serving a 150-year prison sentence in Butner, North Carolina.
BNY Mellon did not immediately reply to requests for comment.
Category : World News
FORT LEE, NJ–(Marketwire – Oct 3, 2012) – As part of an eight-city MCC tour, local Farmers AgencyPoint representatives from the Parsippany, New Jersey AgencyPoint offices will conduct an appreciation cookout lunch to firefighters at the Fort Lee Fire Department, 557 Main Street, Fort Lee, New Jersey, Firehouse #3, October 4, 2012.
Follow this link: MEDIA ALERT: Farmers Insurance Visits Fort Lee, NJ Fire Department for Firefighters Appreciation Luncheon With Mobile Catastrophe Claims (MCC) Bus
Category : World News
UK media regulator Ofcom says BSkyB is “fit and proper” to hold a broadcasting licence but criticises ex-chairman James Murdoch for “ill-judged” conduct.
Read the rest here: Sky ‘fit and proper’, rules Ofcom
Workers at factory in Guangdong Province have complained about low pay and aggressive and verbally abusive behaviour
British-owned luxury goods manufacturer Burberry has pulled production of its bags from a factory in the Guangdong Province of China.
The move follows concerns that working hours and conditions at the factory, operated by the Korean company Simone Accessories Collection, were in possible violation of Burberry’s ethical guidelines.
The China-based factory makes handbags for several western clothing and accessory brands. As well as Burberry, previous clients include Michael Koors and Coach.
It has been the centre of worker grievances. In June 2011 employees staged a four-day strike. They complained about low pay and aggressive and verbally abusive behaviour by the factory’s new Korean management.
During the strike large numbers of police arrived to maintain order, and some strikers were arrested.
In June 2010 Burberry joined the Ethical Trading Initiative and the company has put the ETI Code into its own Ethical Trading Code of Conduct.
One section of the code states that “workers shall not on a regular basis be required to work in excess of 48 hours per week and shall be provided with at least one day off for every 7-day period on average”.
According to the Bureau of Investigative Journalism, however, workers at the Simone factory have been working up to 11 hours a day on a six-day working week.
The fashion firm confirmed that it “had been made aware of work hours exceeding 60 hours per week”.
The company said it had advised Simone that it considered this to be non-compliance with its code of conduct.
Prior to pulling out of the Chinese factory, Pamela Batty, Director of Corporate Responsibility, stated “we do recognise that more needs to be done and we thank the Bureau of Investigative Journalism for bringing these issues to our attention”. The company received its last consignment of Simone-made products in July.
Last week Burberry was in the headlines after warning its profits would be at the bottom end of expectations.
MPs have voted to set up a joint committee of MPs and peers to conduct an inquiry into the banking scandal
Go here to see the original: Martin Rowson on George Osborne and the City – cartoon
Category : World News
OTTAWA, ONTARIO–(Marketwire – June 23, 2012) - Between June 26 to 28, 2012, a Russian Federation Tupolev TU-154M aircraft will conduct observation flights over Canada, in accordance with the Treaty on Open Skies.
See the article here: Russian Observation Aircraft Takes to Canadian Skies Under International Treaty