Currencies

Nomura rounds up markets’ biggest misses in 2016

Forecasting markets a year in advance is never easy, but with “year-ahead investment themes” season well underway, Nomura has provided a handy reminder of quite how difficult it is, with an overview of markets’ biggest hits and misses (OK, mostly misses) from the start of 2016. The biggest miss among analysts, according to Nomura’s Sam […]

Continue Reading

Property

Spanish construction rebuilds after market collapse

Property developer Olivier Crambade founded Therus Invest in Madrid in 2004 to build offices and retail space. For five years business went quite well, and Therus developed and sold more than €300m of properties. Then Spain’s economy imploded, taking property with it, and Mr Crambade spent six years tending to Dhamma Energy, a solar energy […]

Continue Reading

Currencies

Euro suffers worst month against the pound since financial crisis

Political risks are still all the rage in the currency markets. The euro has suffered its worst slump against the pound since 2009 in November, as investors hone in on a series of looming battles between eurosceptic populists and establishment parties at the ballot box. The single currency has shed 4.5 per cent against sterling […]

Continue Reading

Banks

RBS falls 2% after failing BoE stress test

Royal Bank of Scotland shares have slipped 2 per cent in early trading this morning, after the state-controlled lender emerged as the biggest loser in the Bank of England’s latest round of annual stress tests. The lender has now given regulators a plan to bulk up its capital levels by cutting costs and selling assets, […]

Continue Reading

Currencies

China capital curbs reflect buyer’s remorse over market reforms

Last year the reformist head of China’s central bank convinced his Communist party bosses to give market forces a bigger say in setting the renminbi’s daily “reference rate” against the US dollar. In return, Zhou Xiaochuan assured his more conservative party colleagues that the redback would finally secure coveted recognition as an official reserve currency […]

Continue Reading

Categorized | Banks, Financial

FCA appeal in Whale case set for court


Posted on September 25, 2016

LONDON, ENGLAND - MAY 19: A general view of the Supreme Court on May 19, 2016 in London, England. The Supreme Court has ruled that an injunction that banned the naming of a 'celebrity' allegedly involved in an extra-marital relationship should stay in place. (Photo by Dan Kitwood/Getty Images)©Getty

Supreme Court in London

A landmark case with potentially far-reaching consequences on what the financial regulator is able to publish in enforcement cases is set to be heard before the UK’s highest court next month.

The Supreme Court appeal by the Financial Conduct Authority centres on whether Achilles Macris, who was chief investment officer of the synthetic credit portfolio team at JPMorgan, was improperly identified by the FCA when it fined the bank £138m over the Whale debacle in 2013.

    Mr Macris was in charge of JPMorgan’s London Whale, a nickname given by rival traders based on the large debt-market trades at the bank. He oversaw Bruno Iksil, the trader at the heart of the scandal that cost the US bank $1bn in penalties, including the FCA fine.

    Mr Macris claims that the FCA findings improperly identified him as “CIO London management” and accused him of deliberately misleading the regulator. He was unable to give his account of events, he argues.

    FCA final notices are not intended to identify individuals because they may face future criminal prosecutions before a jury. But often the FCA’s findings are detailed and include emails from traders or messages from electronic chat rooms, which are linked to certain bankers by the media.

    Those individuals identified by the FCA are meant to be given the right to make representations — and can also be given certain evidence — before a final notice is published.

    Mr Macris argues that he should have been consulted before the FCA report detailing the wrongdoing was published because even though he was not mentioned by name, his identity could be ascertained.

    He argued that there were references to a part of the bank’s management structure that identified him and he should have been given the right to make representations.

    The Upper Tribunal and Court of Appeal have both held Mr Macris was identified by the notices.

    Athens-based Mr Macris was fined £792,000 by the FCA earlier this year for failing to inform it about concerns over the credit derivatives division he headed, where trades ultimately led to huge losses in 2012. The regulator said there was no deliberate dishonesty on the part of Mr Macris.

    If the Supreme Court upholds the earlier decisions about identifying Mr Macris it could mean that the FCA has to be more cautious about the detailed information it can publish in future rulings.

    The FCA appeal is being closely watched because at least four other traders — caught up in regulatory probes including the Libor and foreign exchange rigging probe — have filed similar legal challenges over their alleged identification in decision notices.