Coutts faces Swiss tax probe; Greek bailout tensions grow - as it happened
Royal Bank of Scotland reveals that its private banking arm is being probed by German authorities, on top of existing US investigation
- German regulators investigating Coutts over tax evasion
- CEO pledges tough action
- The official statement
- News comes as RBS announces substantial job cuts
- Earlier: German MPs unhappy about Greek bailout
6.20pm GMT
PS: about that Bild stunt:...
German tabloid Bild today called on Germans to 'say no to greedy Greeks'. Their response is #NeinZurBild 'No to Bild' pic.twitter.com/TPgDo8LK3K
6.13pm GMT
And finally, our Europe editor Ian Traynor has filed this analysis on Friday's vote, and beyond...
The German parliament is expected to agree to extend the eurozone's bailout of Greece on Friday, capping a tumultuous first four weeks in office for the anti-austerity government in Athens. The next four months will be crueller yet.
That will be clear from the debate in the Bundestag in Berlin. Although Chancellor Angela Merkel has never been outvoted in five years of policy decisions on the euro crisis and need not fear defeat on Friday, the endorsement will be grudging and will reek of suspicion of the Greek prime minister, Alexis Tsipras.
Greece bailout saga strains German patience http://t.co/74gxVNP7Xj
5.52pm GMT
Greece's Ta Nea newspaper is reporting tonight that Greece could need a third bailout of some 30 billion euros, when its existing programme ends. It is attributed to eurozone sources, Helena flags up. The MNI newswire had the story earlier.
See http://www.tanea.gr for more.
4.56pm GMT
Tax evasion is also a big theme in Greece today.
"We will move quickly to apply swingeing reforms to clamp down on tax evasion and corruption and reforming the public administration, "
"We are coming round to accepting that the agreement was the best we could do but it still hurts."
4.47pm GMT
The BBC has more details about the proposed sale of Coutts' international arm:
Last year RBS appointed Goldman Sachs to find a buyer for Coutts' international operations, as part of its drive to focus on the UK business.
Coutts International employs 1,200 people, has some 21.5bn of assets under management and has an estimated value of up 800m .
3.49pm GMT
Tax barrister Jolyon Maugham QC, who has worked on several important tax cases recently, tweets that other banks may face similar investigations:
@jamesrbuk if Coutts is the last I'll eat my (horsehair) wig.
3.42pm GMT
You can see our news story about the German probe into Coutts here:
3.04pm GMT
The US investigation into possible tax evasion have already hit RBS's efforts to sell Coutts International, according to the Financial Times.
The FT reported last week that:
Bidders for Coutts International have tried to use the recent scandal over tax evasion by clients of HSBC's Swiss arm to lower the price of the private banking assets being sold by Royal Bank of Scotland, said people familiar with the situation.
Bidders for Coutts International have been given a detailed breakdown of the bank's client portfolio in an attempt to reassure them that it does not include any potential problem cases of either tax-dodging or money-laundering.
2.49pm GMT
My colleague Juliette Garside flags up the help that Coutts offers its clients:
Coutts website offers advice on "how to structure your wealth to take maximum advantage of the Swiss taxation system" http://t.co/RyH62FCfrQ
Advice from the Queen's bank on how to shelter wealth in Switzerland #Coutts pic.twitter.com/I87m9DNUou
2.02pm GMT
Ross McEwan, chief executive of RBS discussed the tax evasion probe into Coutts' Swiss arm by German authorities at a press conference in London.
"I want to be very clear if we find anything that has evidence of wrong doing we will come down incredibly hard on any of those issues."
"Any situation like this we take seriously" it if the reputation of our business. This is what has tarnished the banking industry and in my view private banks have taken far too long to catch up with the public's expectations."
Ross McEwan says he is a resident non-dom. "I'm a proud Kiwi but I work here and I pay taxes here".
Ross McEwan says he has bank accounts in the UK, New Zealand (he was born there) and in Australia (he worked there) but not Switzerland.
1.38pm GMT
Back to the news that Coutts bank is being investigated by German authorities over whether its Swiss banking arm helped customers evade tax.
RBS discloses the probe on page 120 of its 2014 financial results, released this morning.
A prosecuting authority in Germany is undertaking an investigation into Coutts & Co Ltd in Switzerland, and current and former employees, for alleged aiding and abetting of tax evasion by certain Coutts & Co Ltd clients. Coutts & Co Ltd is cooperating with the authority.
RBS says German authorities looking at its Coutts private bank in its legal warnings
1.10pm GMT
1.08pm GMT
Back in Greece, the Syriza party is putting on a brave face after yesterday's marathon, record-breaking 12-hour session to discuss the bailout situation, writes Helena Smith in Athens.
A phalanx of Syriza cadres appearing on TV chat shows this morning said the deal was essentially "not an agreement" but the key that would unlock the door to new negotiations.
"The next four months are what is critical....There is no agreement as such."
"We have taken a small step that is only the beginning. Things will be judged on how we govern....Next week you will see that parliament will begin operating and a lot of legislation will be pushed through,"
"Why is (German finance minister Wolfgang) Schauble so angry, if we are such good guys?"
12.34pm GMT
Royal Bank of Scotland has revealed that Coutts, its private banking arm, is being investigated by German authorities.
They are examining whether it helped clients to evade tax by using Swiss bank accounts - a hot topic, following revelations around HSBC in recent weeks.
German prosecutor investigating #RBS (Coutts) in #Switzerland for aiding and abetting tax evasion by customers pic.twitter.com/PXaamVML2p
Ross McEwan reveals RBS's private bank now being investigated in Germany (as well as US) for allegedly helping wealthy clients evade tax
Ross McEwan on @CouttsandCo and alleged tax evasion "if we find anything that's gone wrong in that business...we will take severe action."
Ross McEwan tells @itvnews that decision to sell @CouttsandCo was moral as well as commercial.
12.01pm GMT
Hmmm. The a700m that flowed back into Greek banks on Tuesday may be related to pension payments by the government, reckons Kathimerini newspaper -- More here.
So, maybe the tide hasn't turned quite as much as Varoufakis suggested.
11.41am GMT
The German Association of Journalists has called on Bild to ditch its anti-Greek campaign.
They argue that Bild has crossed the line into political campaigning, by urging readers to pose with their "Nein" poster ahead of tomorrow's Bundestag vote [see earlier post].
11.33am GMT
The governor of Greece's central bank has predicted that the country's economy will grow this year, unless the fragile recovery is derailed by bailout deadlock.
"In the past few years, we have covered some very rough ground at high cost to the whole of Greek society.
"If we can address the relatively few issues still pending and complete the first phase of the effort launched in 2010, we will then be able to move on to the next phase, in which the growth potential of the economy will be considerably enhanced."
11.19am GMT
Bild's campaign against those "Greedy Greeks" may be backfiring.
This reader has posed for a selfie, as instructed, but he's refusing to pay for that 'stupid' newspaper:
Take a NEIN selfie for #Geece with @BILD ! @sechsdreinuller does it the right way pic.twitter.com/nucSWPJiqw
10.58am GMT
German news magazine Spiegel confirms that CDU/CSU MPs expressed concern about the Greek loan deal, at their meeting with Wolfgang Schiuble this morning.
It also reports that CDU parliamentary leader Volker Kauder criticised the "loutish" comments made by Greek politicians -- it's not clear exactly what he's referring to. More here.
German conservatives agree to extend #Greece aid, but FinMin #Schiuble is "stunned" by tone of Varoufakis interview in #CharlieHebdo. 1/2
Schiuble: "If #Greece violates agreement, then it is invalid." Said that Greeks are trampling on European solidarity. http://t.co/uQjqvAfHTM
10.31am GMT
Europe's economy may be turning the corner.
Consumer confidence has hit a seven year high this month, Eurostat just announced, with people in several eurozone nations reporting that they're a little more optimistic:
Eurozone M3 annual growth up to 4.1% YoY, better than expected. Old 4.5% 'target' not far off anymore.
10.05am GMT
Greek banks suffered a significant deposit flight last month, new data from the European Central Bank shows.
Around a12bn was withdrawn from Greek banks in January, the ECB says, taking deposits down to a155.4bn.
NEW official data: #Greece bank deposits -12bna in Jan, lowest level in 10 years. Was about time to reach that deal! pic.twitter.com/AygFoTnpsl
Indication of pressure on Greece during negotiations. In January deposits in Greek banks fell by 12 billion a . # Greece
"There was a deposit flight back into the Greek banking sector,"
"It's a question of direction. Once you turn the tide, you hope."
9.48am GMT
On a happier note, the ONS also reports that UK exports rose by 3.5% in the last quarter of 2014.
That reverses a 0.8% drop in the third quarter. Imports increased by 1.3%, meaning the UK's dire trade position improved for once.
We badly need this! RT @mhewson_CMC UK Exports revised up for Q4 to 3.5%.
9.37am GMT
There's a worrying new fact in today's UK GDP data; British business investment has fallen at its fastest pace in almost six years.
Business investment dropped by 1.4% in the last three months of 2014, following a 1.2% decline in July-September.
9.33am GMT
9.30am GMT
The UK economy grew by 0.5% in the last three months of 2014, the Office for National Statistics reports. That matches the initial estimate.
9.28am GMT
Here's Jill Treanor's take on Royal Bank of Scotland's results:
Royal Bank of Scotland has revealed it handed out 421m in bonuses in 2014 as it reported its seventh consecutive year of losses and appointed Sir Howard Davies as its new chairman.
Its chief executive, Ross McEwan, also warned of substantial job cuts as a result of a further retrenchment of its once-dominant investment bank. RBS said it would reduce its operations to 13 countries, compared with 38 at the end of last year and 51 in 2009, just after it was bailed out.
9.12am GMT
This morning's news of far bigger drop than expected of 20k in German Feb unemployment fits with my read the world economy is picking up.
9.02am GMT
Just in: Another strong month of unemployment data from Germany, backing hopes that Europe's largest economy is picking up.
The unemployment total fell by 20,000 this month, on a seasonally-adjusted basis, twice as much as expected.
GERMAN UNEMPLOYMENT FELL 20,000 IN FEB. VS EST. 10,000 DROP
8.54am GMT
Some City bankers are too buttoned up. But not Bill Winters, the new boss of Standard Chartered!
As this video shows, he doesn't mind loosening a few buttons for charity, and can pull off a decent falsetto at the same time.
@katie_martin_FX he'll be so delighted he did that.
8.44am GMT
There are fresh signs of jitters in Germany over Greece's bailout today.
Reuters is reporting that finance minister Wolfgang Schiuble told CDU party members that the extension could be abandoned if Athens doesn't stick to its pledges.
Germany's Wolfgang Schaeuble told a meeting of conservatives lawmakers on Thursday that recent remarks by the Greek finance minister had strained European solidarity and that a bailout extension for Athens could be ditched if the country failed to stick to its promises, according to participants.
The German finance minister met lawmakers from Chancellor Angela Merkel's conservative bloc to prepare for Friday's vote in the Bundestag on extending the Greek bailout in return for a new package of reform commitments by the new leftist-led government of Alexis Tsipras.
German Fin Min Schaeuble tells German MPs that Greek Fin Min Varoufakis ' strains the solidarity of European partners.'#Greece
How low can they go? "No further billions 2 greedy #Greeks" screams #Bild! Says hold page up, take selfie & send it! pic.twitter.com/ccSm9wUqsM
8.19am GMT
It's official: Standard Chartered CEO Peter Sands is leaving the company, replaced by Bill Winters.
And he's not alone -- the bank has also announced that chairman John Peace will depart in 2016. Jaspal Bindra, CEO for Asia, is also leaving soon, along with three other long-serving non-executives. Here's the statement.
8.10am GMT
Newsflash from Germany: 22 MPs from Angela Merkel's CDU party and their CSU allies* are planning to oppose Greece's four-month bailout extension in Friday's vote.
[* - tweaked, thanks readers]
*GREEK AID EXTENSION OPPOSED BY 22 MERKEL CAUCUS MEMBERS: HILLE
8.07am GMT
In other banking news, Sky are reporting that Standard Chartered is about to name a new chief executive:
EXCLUSIVE: Standard Chartered to name Ex-JP Morgan executive Bill Winters as new chief executive; announcement later today, I'm told.
7.59am GMT
RBS CEO Ross McEwan has announced there will be "substantial" job cuts as he continues to reshape the company.
Its investment bank is being particularly hit.
"Let me be clear, this marks the end of a standalone investment bank at RBS" says CEO McEwan as he announces further retrenchment
RBS boss admits there will be "substantial" job cuts as a result of the latest restructuring" "unfortunately they will be substantial"
7.49am GMT
Chancellor George Osborne has flexed his muscles and decreed that RBS's top directors should not take home a bonus this year.
In a letter to the bank, Osborne says:
I would expect that no executive directors or members of the executive committee will receive bonuses."
7.40am GMT
RBS incurred almost 2.2bn in fines, provisions and legal costs last year, for its role in a series of banking scandals and blunders.
The bank explains:
This included additional provisions for PPI redress (650 million) in PBB, provisions relating to investigations into the foreign exchange market (720 million) in CIB, Interest Rate Hedging Product redress (185 million), the fine relating to the 2012 IT incident (59 million) booked in Centre and other costs (580 million) including provisions relating to packaged accounts and investment products.
#RBS takes 2.2bn hit on costs of litigation and mis-selling in 2014 accounts
7.37am GMT
RBS has also confirmed that its CEO, Ross McEwan, will not take a 1m 'pay allowance' [designed to avoid the EU's bonus cap] which he was entitled to 2014, as reported last night.
7.31am GMT
RBS also has a new chairman, Sir Howard Davies (former head of the CBI, the Financial Services Authority, the London School of Economics...)
#RBS confirms Howard Davies will be its new chairman. #RBS narrows its losses to 3.5 billion in 2014 - down from 9 billion in 2013.
7.30am GMT
2014 wasn't a vintage year for RBS's investment bankers:
Total #RBS bonus pool 421m down 21% on last year. Bonuses for 'risky' investment bank down by half to 114m @BBCNews
7.28am GMT
Another year, another loss at Royal Bank of Scotland.
RBS has just reported that it made an attributable loss of 3.5bn in the last financial year. That's mainly due to writing down the value of its US business, Citizens, by 4bn and a tax charge.
7.20am GMT
Good morning, and welcome to our rolling coverage of Greece, the world economy, the financial markets and business.
Today we'll be tracking the political tensions in Athens over its bailout agreement, as analysts fret about Greece's ability to meet its debt repayments in the coming months.
"There are parts of the letter [with reform proposals] that are reminiscent of the lenders' language, not ours."
Today: Euro-zone consumer confidence, German unemployment; Greece's Varoufakis says counts on ECB's #Draghi to avoid a default next month
UK companies posting results today - Capita, RBS, Ladbrokes, Interserve, RSA, Merlin Entertainment, Domino Pizza, Spirent Communications
Continue reading...