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BlackBerry reports Q3 loss; software, services revenue climbs – BNNBloomberg.ca

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WATERLOO, Ont. – BlackBerry Ltd. lost US$32 million in its latest quarter compared with a profit of US$59 million in the same quarter last year as its revenue climbed higher.

The security software company, which keeps its books in U.S. dollars, says the loss amounted to seven cents per diluted share compared with a loss of a penny per share a year ago.

Revenue in the quarter ended Nov. 30 totalled $267 million, up from $226 million.

The growth came as the company’s software and services revenue grew to $262 million, up 21 per cent compared with a year ago.

On an adjusted basis, BlackBerry says it earned $17 million or three cents per share in its latest quarter. Adjusted revenue totalled $280 million, up 23 per cent from a year ago.

Analysts on average had expected a profit of two cents per share and $276 million in revenue, according to financial markets data firm Refinitiv.
 

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Bank shares slide on report of rampant money laundering – Yahoo Canada Finance

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Bank shares slide on report of rampant money laundering

The financial sector was hit hard Monday following a report alleging that a number of banks, JPMorgan, HSBC, Standard Chartered Bank, Deutsche Bank and Bank of New York Mellon among them, have continued to profit from illicit dealings with disreputable people and criminal networks despite previous warnings from regulators.

According to the International Consortium of Investigative Journalists, leaked government documents show that the banks continued moving illicit funds even after being warned of potential criminal prosecutions. The documents were obtained by BuzzFeed News and shared with the ICIJ.

The report compounded a massive sell-off across global markets because of gloom and doom over COVID-19 infections and the economic damage from the pandemic.

The consortium reported that documents indicate that JPMorgan moved money for people and companies tied to the massive looting of public funds in Malaysia, Venezuela and the Ukraine. The bank also processed more than $50 million in payments over a decade for Paul Manafort, the former campaign manager for President Donald Trump, according to the documents, which are known as the FinCEN Files.

Shares of JP Morgan tumbled 4.4%.

The consortium’s investigation found the documents identify more than $2 trillion in transactions between 1999 and 2017 that were flagged by financial institutions’ internal compliance officers as possible money laundering or other criminal activity, and $1.3 trillion of that activity took place at Deutsche Bank. Shares of Deutsche Bank dropped 7.7%.

Deutsche Bank has been under scrutiny for years. The bank, based in Frankfurt, Germany, agreed to pay the state of New York $150 million to settle claims that it broke compliance rules in its dealings with the sex offender Jeffrey Epstein. Epstein killed himself last August in a Manhattan federal jail while awaiting trial on sex trafficking charges.

German newspaper Sueddeutsche Zeitung reported last year that Deutsche Bank gave expensive gifts to senior Chinese officials and hired family members of Chinese elite as it was trying to establish itself as a major player in China’s financial industry.

In a related action, the bank agreed last year to pay about $16 million to settle civil charges by the U.S. Securities and Exchange Commission that it violated the Foreign Corrupt Practices Act by hiring relatives of government officials in Asia and Russia in an effort to improperly influence the officials to help its investment banking business. Deutsche Bank neither admitted nor denied the allegations in the settlement.

Also in 2019, German prosecutors indicted a 48-year-old former employee of Deutsche Bank as part of a probe into a massive tax evasion scam that’s led to more than a dozen prosecutions.

In 2018, German authorities raided Deutsche Bank’s headquarters on suspicions that its employees helped clients set up offshore companies that were used to launder hundreds of millions of euros. The case was spurred by the release of the Panama Papers. A long-running money-laundering investigation of the bank is being pursued by federal prosecutors in New York.

In the wake of the Epstein scandal, Deutsche Bank said it had invested almost $1 billion to improve its training and controls and had boosted its staff overseeing the work to more than 1,500 employees “to continue enhancing our anti-financial crime capabilities.”

For years, Deutsche Bank has wrestled with regulatory penalties and fines, high costs, weak profits and a low share price. The bank went three straight years without turning an annual profit before recording positive earnings of 341 million euros for 2018.

The London Bank HSBC, Europe’s largest acknowledged in 2012 that it had laundered at least $881 million for Latin American drug cartels. However, according to the report, HSBC continued to manage money for shady clients, including suspected Russian money launderers and a Ponzi scheme under investigation in multiple countries.

Shares of HSBC, already down more than 50% this year, slumped to levels not seen in more than two decades Monday.

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This story has been corrected to show that Deutsche Bank’s $16 million settlement last year was related to the Foreign Corrupt Practices Act, not a criminal money-laundering case.

The Associated Press

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TSX joins global stock market sell off as coronavirus fears refuse to go away – CBC.ca

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The TSX joined stock markets around the world in a new round of selling off Monday, as surging cases of the coronavirus reignited concerns that the economic impact of the pandemic is still far from over.

The S&P/TSX Composite Index was down by almost 400 points or more than 2.5 per cent nearing midday, as health-care companies, energy companies, mining companies, banks and even tech names were all lower.

Losses began in Asia as soon as trading opened for the week, and they accelerated in Europe on worries about the possibility of tougher restrictions there to stem rising coronavirus counts.

In New York, the broad S&P 500 was down by 84 points or 2.5 per cent, while the Dow Jones fared even worse, down almost 1,000 points or 3.5 per cent.

Bank stocks had sharp losses Monday morning after a report alleged that several of them continue to profit from illicit dealings with criminal networks despite being previously fined for similar actions.

Shares in technology companies have been on fire for the past six months, as pandemic lockdowns have caused booming demand for online services such as Amazon, Netflix, Apple and Facebook.

But tech companies have been selling off of late on fears that they have risen too far, too fast.

“Stock markets around the world are trading lower to start the week amid mounting uncertainty,” said Colin Cieszynski, chief market strategist with SIA Wealth Management in Toronto. “Growing uncertainty and volatility in world markets has sparked a move of capital.”

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Global banks hit by new corruption allegations. Why authorities are unlikely to act this time – MarketWatch

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Shares of European banks fell sharply on Monday, after the release by BuzzFeed and the International Consortium of Investigative Journalists of thousands of documents seemingly showing that some $2,000 billion worth of illicit funds were moved and laundered through the U.S. financial system over two decades.

– The papers show that five global banks — JPMorgan
JPM,
-4.29%
,
 HSBC, Standard Chartered Bank, Deutsche Bank
DBK,
-7.96%
,
and Bank of New York Mellon — kept doing business with “oligarchs, criminals and terrorists” even after being fined by U.S. authorities for earlier failures to clamp down on dirty money. The banks themselves said they could not comment on specific transactions due to bank secrecy laws. Their statements can be found here.

– The reports are based on leaked suspicious activity reports (SARs) filed by banks and other financial firms with the U.S. Department of Treasury.

– Shares in British-Asian giant lender HSBC
HSBA,
-4.98%

 and the U.K.’s Standard Chartered
STAN,
-5.09%

 fell 6% and 5%, respectively, marking 20-year lows in London mid trading. HSBC said in a statement that “all of the information provided (…) is historical.”

The outlook: The report, based mostly on past behavior already fined and sanctioned by U.S. authorities, is unlikely to trigger new punishments by governments or regulators. Especially not in a moment in the deepest of the coronavirus recession, when authorities are trying to convince and subsidize banks so they can keep lending to businesses and households. And even if legal grounds did exist in a few cases for authorities to act, regulators everywhere are likely to decide that punishment by markets is enough for now.

Read: U.K. edges closer to second national lockdown to help contain second coronavirus wave

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