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BANK

Sweden doubles savings guarantee

Sweden's government has announced a doubling of the state’s bank deposit guarantee from 250,000 kronor ($35,000) to 500,000 kronor, effective immediately.

Sweden doubles savings guarantee

The new measure, which is designed to further shield savers’ funds and bolster confidence in the financial system, also covers both fixed and variable rate accounts, whereas the previous guarantee excluded certain fixed interest rate accounts.

“The move aims to ensure that savers continue to have confidence in the financial system,” Finance Minister Anders Borg and Financial Markets Minister Mats Odell said in a statement.

“The government is the ultimate guarantor for financial stability. It is responsible for ensuring that there is a set of rules that make the financial system function effectively, is stable and protects savers,” the statement said.

“Increased savings guarantees in a number of other European countries means that savers risk moving to banks in those countries,” it added.

The Swedish state introduced a bank savings guarantee of 250,000 kronor in

1996 following a widespread bank crisis in the Scandinavian country in the

early 1990s.

The guarantee amount was doubled as of Monday and would, unlike the previous guarantee, be valid for all accounts, the government said.

“The government also has the possibility to extend the guarantee to credit institutes and branches in Sweden where the home country’s bank savings guarantee can not be fully honoured,” it said.

“We’re prepared to implement further measures if it proves necessary,” said Borg at a press conference announcing the new guarantee.

BANK

Deutsche Bank to pay $130m to settle US bribery probes

Deutsche Bank will pay $130 million to settle a foreign bribery probe and fraud charges in precious metals trading, US officials announced on Friday.

Deutsche Bank to pay $130m to settle US bribery probes
A woman walks past the offices of Deutsche Bank in London. Photo: Tolga Akmen / AFP
The bribery case relates to illegal payments and to false reporting of those sums on the bank's books and records between 2009 and 2016, the Department of Justice said in a press release.
   
The bank “knowingly and wilfully” kept false records after employees conspired with a Saudi consultant to facilitate bribe payments of over $1 million to a decision maker, the DOJ said.
   
In another case, the bank paid more than $3 million “without invoices” to an Abu Dhabi consultant “who lacked qualifications… other than his family relationship with the client decision maker,” the DOJ said.
   
In addition to criminal fines and payments of ill-gotten gains, Deutsche Bank agreed to cooperate with government investigators under a three-year deferred prosecution agreement.
 
   
In the commodities fraud case, Deutsche Bank metals traders in New York, Singapore and London between 2008 and 2013 placed fake trade orders to profit by deceiving other market participants, the DOJ said.
   
The agreement took into account Deutsche Bank's cooperation with the probes, DOJ said.
   
“Deutsche Bank engaged in a criminal scheme to conceal payments to so-called consultants worldwide who served as conduits for bribes to foreign officials and others so that they could unfairly obtain and retain lucrative business projects,” said Acting US Attorney Seth D. DuCharme of the Eastern District of New York.
   
“This office will continue to hold responsible financial institutions that operate in the United States and engage in practices to facilitate criminal activity in order to increase their bottom line.”
   
“We take responsibility for these past actions, which took place between 2008 and 2017,” said Deutsche Bank spokesperson Dan Hunter, adding that the company has taken “significant remedial actions” including hiring staff and upgrading technology to address the shortcomings.
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