Money

Money from bank hacks rarely gets laundered through cryptocurrencies

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Image: SWIFT

Despite being considered a cybercrime haven, cryptocurrencies play a very small role in laundering funds obtained from bank hacks; the SWIFT financial organization said in a report last week.

“Identified cases of laundering through cryptocurrencies remain relatively small compared to the volumes of cash laundered through traditional methods,” said SWIFT, the organization that runs the SWIFT inter-bank messaging system used by almost all banks across the world to wire funds across borders.

These traditional methods include the use of money mules, front companies, cash businesses, and investments back into other forms of crime, such as drug trade or human trafficking.

Past cases of cryptocurrency use to launder stolen bank funds

SWIFT saud that incidents where hackers laundered money via cryptocurrencies have been rare and far between.

One example listed in the organization’s report is the case of a criminal gang who performed an ATM cashout attack. SWIFT

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Here’s what happens when your bank fails

The fallout from COVID-19 is sending serious signals of distress throughout the economy: millions of individuals filing for unemployment and struggling to pay rent, business owners closing their doors and major retailers filing for bankruptcy. With so many segments of the financial ecosystem struggling, will we start to see a wave of bank failures similar to the last recession? Between 2008 and 2013, nearly 500 banks in the U.S. failed, but account holders at those banks could breathe a $250,000 sigh of relief, thanks to the protection of the Federal Deposit Insurance Corporation (FDIC).



a building with a store on the floor: FDIC building


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FDIC building

So far, 2020 does not feel anywhere close to those doomsdays. In fact, only two banks – Ericson State Bank in Nebraska and The First State Bank in West Virginia – have shut their doors this year. But what if that number increases? What happens if your bank fails?

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Largest Bank Dividends in Focus as Fed’s Capital Restrictions Extended

The Federal Reserve Board has extended several measures to ensure that the nation’s large banks maintain high levels of capital for an additional quarter. This move is due to continued economic uncertainty surrounding the coronavirus response. While not all the nation’s banks are currently under close scrutiny, the money center banking giants will just have to favor dividends over buybacks for the time being.

In the Fed’s extension of capital restrictions, the banks with more than $100 billion in total assets will not be allowed to conduct share repurchases for another quarter. As for dividend payment approvals, those will be capped and will be tied to a formula based on the bank’s recent income.



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While the moves might have a sound of concern because of limitations on capital, the Fed’s release noted that the overall capital positions of the nation’s large banks did manage

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Australia’s Central Bank Is ‘Dysfunctional,’ Ex-Researcher Says

(Bloomberg) — Australia’s central bank does little deliberation, ignores opposing views and its decision-makers “seem hostile to a consideration of evidence or research,” according to Peter Tulip, a former senior member of its economic research department.



a close up of a sign: Signage is displayed above an entrance in the foyer of the Reserve Bank of Australia (RBA) building in Sydney, Australia, on Monday, May 18, 2020. Australia’s central bank decided against buying government bonds last week, the first time that’s happened since it began a quantative easing program in late March that sought to hold down three-year yields in order to lower interest rates across the economy.


© Bloomberg
Signage is displayed above an entrance in the foyer of the Reserve Bank of Australia (RBA) building in Sydney, Australia, on Monday, May 18, 2020. Australia’s central bank decided against buying government bonds last week, the first time that’s happened since it began a quantative easing program in late March that sought to hold down three-year yields in order to lower interest rates across the economy.

“We have a board that does not understand monetary policy or statistical research,” Tulip said in a farewell email to colleagues when he resigned from the Reserve Bank in August, according to a Freedom of Information release Friday. “So although there are lots of great people

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Deutsche Bank Revamps Work-From-Home Rule in Permanent Shift

(Bloomberg) — Deutsche Bank AG is revising its work-from-home policies in an effort to permanently reduce office space, adding to a growing number of lenders that are using lessons learned from the pandemic to lower costs.



a room filled with furniture and a large window: Empty desk space sits in the Deutsche Bank AG offices in Eschborn, Germany, on Monday, May 25, 2020. The trickle of workers returning to Deutsche Bank’s Frankfurt headquarters are finding a new reality of takeout lunches and coffee as the lender restricts social contact.


© Bloomberg
Empty desk space sits in the Deutsche Bank AG offices in Eschborn, Germany, on Monday, May 25, 2020. The trickle of workers returning to Deutsche Bank’s Frankfurt headquarters are finding a new reality of takeout lunches and coffee as the lender restricts social contact.

The bank’s leadership is working on a new “hybrid model” for how staff can split work between the office and their homes, Chief Executive Officer Christian Sewing said at a conference on Thursday.

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The new policies will eventually allow employees to have binding agreements on how many days per week they want to work away from the office, a person familiar with the matter said. The

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Bank of America Says Buyers Pay Up for Top-Ranked ESG Firms

(Bloomberg) —



a large green field: Solar panels stand in an aerial photograph taken over the Enel Green Power Mexico Don Jose photovoltaic solar plant in San Luis de la Paz, Guanajuato state, Mexico, on Wednesday, Aug. 14, 2019. Energy reforms begun in 2013 opened the door to private investment and specifically promoted clean energy via competitive power auctions, but new plans to strengthen state control under Mexico's President Lopez Obrador, potentially at the expense of the private sector, are forcing a change of course.


© Bloomberg
Solar panels stand in an aerial photograph taken over the Enel Green Power Mexico Don Jose photovoltaic solar plant in San Luis de la Paz, Guanajuato state, Mexico, on Wednesday, Aug. 14, 2019. Energy reforms begun in 2013 opened the door to private investment and specifically promoted clean energy via competitive power auctions, but new plans to strengthen state control under Mexico’s President Lopez Obrador, potentially at the expense of the private sector, are forcing a change of course.

Stocks with high environmental, social and corporate governance scores have outperformed the broader market and traded at higher valuations this year, according to Bank of America Corp.

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During the first quarter’s selloff, S&P 500 members in the top quintile of ESG rankings beat the index by more than five percentage points, the lender said. Meanwhile, investors have also begun to pay less for stocks with

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Norway central bank says “considerable uncertainty” about NOK supply

OSLO (Reuters) – The Norwegian central bank said on Friday it will offer additional short-term loans to the country’s banks after considerable uncertainty arose about the supply of the crown currency in recent weeks.

Liquidity had been unevenly distributed between banks, Norges Bank said, and it will now seek to strengthen banks’ incentives to lend to each other as a way to boost the interbank market.

As a result of the imbalance, money market rates have recently risen, analysts said.

The Norwegian currency initially weakened on the news, hitting a four-and-a-half month low against the euro before a partial rebound.

Norges Bank data showed that those banks which had ample liquidity on a some occasions had chosen to deposit it with the central bank at negative rates rather than lending to other banks, DNB Markets analyst Kyrre Aamdal said.

“This indicates a problem in the redistribution of liquidity,” Amdal said.

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Here are 3-year bank fixed deposits that offer up to 7.65% for senior citizens



a close up of text on a white background: Here are 3-year bank fixed deposits that offer up to 7.65% for senior citizens


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Here are 3-year bank fixed deposits that offer up to 7.65% for senior citizens

Most senior citizens prefer investing in bank fixed deposits (FDs) to earn a regular monthly income after retirement. However, falling bank deposit rates have reduced their monthly income sharply in the last one year or so. This is because the Reserve Bank of India (RBI) has steadily cut repo rates. Banks have followed the same trajectory and gradually reduced the interest rates on fixed deposits across the tenures. The interest rate on small-saving schemes too have been cut in recent quarters.

Despite falling interest rates, there are still some banks that offer attractive rates on three-year FDs for senior citizens. Not surprisingly, the smaller private banks tend to top the rate chart on fixed deposits, given the competition they face in garnering deposits.

Higher rates offered by smaller private banks

Smaller private banks

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Analyzing Bank of America’s Unusual Options Activity

Bank of America
BAC,
+0.64%

shares experienced unusual options activity on Friday. The stock price moved up to $23.35 following the option alert.

Exceptionally large volume (compared to historical averages) is one reason for which options market activity can be considered unusual. The volume of options activity refers to the number of contracts traded over a given time period. Open interest is the number of unsettled contracts that have been traded but not yet closed by either counterparty. In other words, open interest represents the quantity of contracts that individual parties have written but not yet found a counterparty for (i.e. a buyer finding a seller, or a seller finding a buyer).

Another indicator of unusual options activity is the trading of a contract with an expiration date in the distant future. Additional time until a contract expires generally increases the potential for it to grow its time value and

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