Financial Biz Recap: Morgan Stanley’s Trendy SCANDAL, Citigroup’s New INITIATIVE
Big banks who are anticipating losses from the expected new debit-card processing rule include Regions Financial (NYSE:RF), which faces the biggest hit as a percentage of earnings, possibly 4 percent; JPMorgan (NYSE:JPM), and Wells Fargo (NYSE:WFC). The new requirements include the processing of debit card transactions in the order they occur, as opposed to largest to smallest.
Don’t Miss: SNEAK PEEK: JPMorgan Chase Quarterly Earnings.
Germany gets trendy, as it now might also have its own financial scandal: German prosecutors open an inquiry of the head of Morgan Stanley’s (NYSE:MS) German division, Dirk Notheis, who is currently on leave, and his interactions with the former premier of a German state. The target of the investigation is that state’s purchase of shares in a German utility, and emails implying improper insider ties between the banker and the politician(NYSE:S).
Citigroup (NYSE:C) introduces its Client Segregation Transparency Initiative, in reaction to a pattern among brokerages that seem to treat the idea of segregated client accounts as little more than a might-do-sometime thing. Bank officials comment that, “No other clearing member provides this level of disclosure to its clients.”
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