Citigroup Inc. (NYSE:C): Citibank, N.A. confirmed it has entered into a Consent Order with the Office of the Comptroller of the Currency regarding certain deficiencies relating to its Bank Secrecy Act/Anti-Money Laundering Compliance Program. Requirements and deficiencies cited by the OCC include: developing a stronger process for monitoring client relationships on a global basis; enhancing customer due diligence in certain businesses; and failed to file suspicious activity reports on a self-reported monitoring gap for the remote deposit capture product offered by its foreign correspondent banking business. Citibank said, “In recent years, we have taken significant steps and developed a comprehensive plan to address legacy AML issues and better manage AML risks comprehensively across products, businesses, and geographies. Because of these actions, many of the issues highlighted in the OCC’s Order have already been remediated or are in the process of being remediated. Furthermore, we are developing a plan to address the remaining OCC requirements…Important progress has been made, and we will continue to work towards having an industry-leading BSA/AML compliance program.
Bank of America Corp (NYSE:BAC): Custodian banks including JPMorgan (NYSE:JPM), Citi (NYSE:C), HSBC (NYSE:HBC), Deutsche Bank (NYSE:DB), State Street (NYSE:STT) and Bank of New York Mellon (NYSE:BK) are urging the European Commission to amend technical standards proposed for implementing the 2011 alternative investment fund managers directive, warning that the planned rules for the hedge fund and private equity industries would cause a significant and undesirable disruption to financial markets, reported Financial Times.
Cisco Systems, Inc. (NASDAQ:CSCO): Teleconferencing products maker Polycom (NASDAQ:PLCM) is dropping sharply after the company earlier this morning preannounced Q1 adjusted EPS guidance of 21c-23c, versus analysts’ consensus estimate of 30c. The company’s Q1 revenue guidance was also lower than expected. “We estimate that we grew quarterly revenues approximately 7% year-over-year, with each region recording increases. However, the growth rate was below our overall expectations, driven primarily by shortfalls in Asia Pacific and North America,” said Polycom CEO Andrew Miller. Polycom said that its Q1 revenue had grown 1%-3% year-over-year in North America and 5%-8% in the Asia Pacific region. Revenue from the company’s unified communication group systems products increased 4%-6%, while revenue from unified communication personal products rose 7%-9%, the company added. In a note to investors this morning, UBS defended Polycom, saying that the company’s stock is on sale at current levels. The firm believes that demand for the company’s products is bottoming, and sees the company as a potential takeover target. UBS maintained a Buy rating on Polycom, which sank $3.49, or 19.19%, to $14.70 in early trading. Cisco (NASDAQ:CSCO), which also sells teleconferencing products, was also trading lower.
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