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Two former managing directors of Credit Suisse, Andrew Pearse and Surjan Singh, have been banned from the UK financial services industry following their guilty pleas in the United States related to Mozambique's "tuna bond" scandal. The Financial Conduct Authority (FCA) reported that Pearse, who was head of Credit Suisse's Global Financing Group, received approximately $45m in kickbacks, while Singh received $5.7m. The scandal involved around $1.3bn in loans to Mozambican state-owned companies, intended for tuna fishing and maritime security projects. However, the loans led to significant financial turmoil in Mozambique after hundreds of millions went missing, prompting legal actions against Credit Suisse and others. In 2021, Credit Suisse settled for about $475m to resolve related charges and forgave $200m of Mozambique's debt.

 

Financial Times

Reuters

The Times

Citigroup nearly credited about $6bn to a customer's account in its wealth management business in error. The near-miss occurred after an employee handling the transfer copied and pasted the account number into a field for the dollar figure, which was detected on the next business day. The incident was reported to regulators and the lender has now launched a tool to help vet large, anomalous payments and transfers. Last week, the FT reported that Citigroup had mistakenly credited $81tn instead of $280 to a customer’s account and took several hours to reverse the error. The erroneous transaction was not initially detected by the assigned payments employee or the secondary reviewer before it was processed the following day. The incidents, which both occurred last April, highlight Citigroup’s ongoing struggle to improve risk and controls after it was hit with regulatory penalties and restrictions because of its poor systems, Bloomberg reports.

 

Bloomberg

Apple is challenging the UK government's demand for a "back door" in its secure cloud storage systems by filing a complaint with the Investigatory Powers Tribunal. The legal action marks the first test of the 2016 Investigatory Powers Act, which allows UK authorities to break encryption. Apple received a "technical capability notice" in January targeting its Advanced Data Protection for iCloud, which it has since withdrawn from the UK. Despite this, the UK government insists Apple has not complied with the order. US President Donald Trump has condemned the UK's demand, likening it to Chinese surveillance, while Tulsi Gabbard, US director of national intelligence, warned that accessing Americans' data would violate privacy agreements. The UK argues that breaking encryption is essential for public safety and combating terrorism.

 

Financial Times

Investing

Today marks a crucial moment in one of the largest class action lawsuits in English legal history, as Pogust Goodhead (PG) faces off against mining giant BHP in the High Court. The case stems from the 2015 Samarco dam disaster in Brazil, which resulted in 19 fatalities and extensive environmental damage. The lawsuit, valued at £36bn, involves 620,000 individuals, 2,000 businesses, and several local authorities. PG contends that BHP is liable for the dam's collapse, a claim the company disputes. As closing arguments commence, PG's future hangs in the balance. The firm is financially supported by US investment manager Gramercy, which has invested £500m to fund the case. Should PG prevail, it could receive up to 30% of the proceeds, potentially recouping Gramercy's investment.

 

Daily Mail

Telecom Italia's (TIM) top investor, Vivendi, has appealed a Milan court's ruling that dismissed its challenge against the sale of TIM's landline network. Vivendi, which owns a 24% voting stake in TIM, argued that the sale, valued at up to €22bn, should have been subject to a shareholder vote. The court previously ruled that Vivendi lacked grounds for legal action, saying it did not exercise its right to call a meeting. In its appeal, Vivendi contends that all shareholders, including those who did not vote, should have the right to sell their shares back to TIM. The sale, completed in July 2024, was supported by the Italian government.

 

U.S. News

The pharmaceutical and cosmetics industries are preparing to sue the EU over a new tax to pay to clean up polluted wastewater, arguing other sectors should also have to foot the bill.

 

Financial Times

Germany's financial regulator Bafin has fined Deutsche Bank €23.05m for violations related to the sale of derivatives in Spain and other issues at its Postbank division. The majority of the fine, nearly €15m, pertains to incidents from 2021. Deutsche Bank has accepted the penalties and stated that it has enhanced its controls and processes. However, the bank is appealing a separate fine from Spanish authorities for similar breaches.

 

Financial TImes

Reuters

The Competition and Markets Authority (CMA) has said that it may approve Topps Tiles' £9m acquisition of CTD Tiles, contingent on the adequacy of proposed remedies. The CMA previously expressed concerns regarding the purchase of 30 CTD Tiles stores, which could impact competition in certain regions of England and Scotland. To address these concerns, Topps and CTD have proposed divesting stores in Dorking, Edinburgh, Inverness, and Aberdeen. The CMA has until May 1 to make a decision on whether to accept these remedies or block the acquisition.

 

Reuters

The number of mergers and acquisitions (M&A) involving UK companies significantly decreased at the end of 2024, with only 65 deals recorded in December, down from 151 in November. The decline is attributed to uncertainty surrounding US trade policy and increased taxes announced by the government. The quarterly M&A total fell to 402, representing a 13% drop from the previous quarter and a 9% decrease compared to the same period in 2023. However, the value of domestic M&A transactions rose by over a quarter to £8.6bn, driven by major deals such as Nationwide's acquisition of Virgin Money for £2.9bn and Barratt's purchase of Redrow for £2.5bn. In contrast, the value of foreign acquisitions of UK companies plummeted to £4.5bn.

 

The I

Aberdeen Group has reverted to its original name after scrapping the controversial Abrdn rebrand, which was introduced in 2021. The decision, made under new CEO Jason Windsor, aims to "remove distractions" and marks the firm's fourth name change in eight years. Windsor said: "This is a pragmatic decision marking a new phase for the organisation, as we focus on delivering for our customers, people and shareholders." Despite the rebranding challenges, the company reported a 2% profit increase to £255m, driven by the acquisition of 35,000 new customers in its Interactive Investor business.

 

Daily Mirror

Deutsche Bank clashed with the European Central Bank throughout 2024 over concerns the German lender may be underestimating how many loans would sour, people familiar with the matter told the FT.

 

Financial Times

HSBC UK is in search of a new chief executive as Ian Stuart transitions to the role of group customer and culture director, reporting to global chief executive Georges Elhedery. The change follows a series of significant leadership adjustments since Elhedery's appointment in September, which includes a plan to streamline the bank's geographical units from five to two. Additionally, HSBC is implementing job cuts globally, aiming to save $1.5bn (£1.2bn) by the end of next year as it reduces parts of its investment banking operations.

 

Financial Times

The Daily Telegraph

LaCros, a Dutch e-bike reseller, is being investigated for allegedly smuggling electric bikes from China in order to avoid paying import taxes in Europe. The European Public Prosecutor's Office (EPPO) in Rotterdam is in charge of the inquiry.

 

NL Times

Security minister Dan Jarvis has announced that Iran will be the first foreign power placed on the enhanced tier of the Foreign Influence Registration Scheme (Firs) due to its increasingly aggressive actions. He said: “Iran has become increasingly emboldened, asserting itself more aggressively to advance their objectives and undermine ours.” The scheme, expected to launch by summer, will require individuals directed by Iran to register or face up to five years in prison. This move comes amid a significant rise in MI5 investigations into state threats, which surged by 48% last year. The government is also considering extending the scheme to include China, as calls for broader measures grow.

 

London Evening Standard