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Italian bonds included in ECB stimulus plan

The European Central Bank (ECB) on Monday set out on its massive bond purchase programme, including €150 billion worth of Italian bonds, as it seeks to ward off deflation and stimulate growth in the single currency area.

Published: 10 March 2015 09:22 CET
Italian bonds included in ECB stimulus plan
ECB chief Mario Draghi. Photo: Daniel Roland/AFP

Most of the Italian bonds would be bought through the Bank of Italy, Ansa reported. 

ECB chief Mario Draghi announced the 18-month plan to buy at least €1.14 trillion ($1.2 trillion) in bonds, at a rate of €60 billion per month, back in January.

But it was only last week that he named Monday as the exact start date for the scheme.

"The ECB and Eurosystem national central banks have, as previously announced, started purchases under the Public Sector Purchase Programme," the ECB announced via Twitter on Monday.

The bank hopes that by buying bonds off investors they will invest the money elsewhere, thus boosting growth and preventing a dangerous cycle of falling prices from setting in.

Italian investors responded well to the news, pushing the FTSE Mib in Milan up by 0.57 percent to end the day’s trading at 22,564 points – a level not seen since the spring of 2011, Ansa reported.

The Bank of Italy bought €130 billion of Italian State paper while the ECB itself bought about €20 billion, Ansa said.
 

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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.

Published: 9 January 2021 15:08 CET
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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