The 12 largest global investment banks saw an increase in net revenue from commodities trading in the first quarter, rising to $1.5 billion compared to $1.2 billion in the same period last year, according to consultancy Coalition. Revenue from oil trading was about $700 million, nearly double the figure from Q1 2019, notes Coalition.
Derivatives market participants in Chicago came together to collectively raise more than $4 million for the Greater Chicago Food Depository's emergency COVID-19 response. The list of donor firms include Citadel, CTC Trading, DRW Trading, IMC, Intercontinental Exchange and Mizuho Securities -- and is still growing.
Firms in London's financial district are going to need considerably larger office spaces when their employees return to on-site working, according to real estate firm Knight Frank. The firm estimates that firms based in the City and Canary Wharf will need to add an extra 13 million square feet of office space to meet the government's social distancing rules.
Executives of color in the financial services industry, including Citigroup CFO Mark Mason, have issued strongly worded denunciations of the death of George Floyd, whose death at the hands of a police officer has sparked a wave of civil unrest. "Racism continues to be at the root of so much pain and ugliness in our society -- from the streets of Minneapolis to the disparities inflicted by Covid-19," Mason wrote in a blog on the Citigroup website.
Modern Money Murmurs: This story includes comments from an array of bank CEOs and other executives. They are all saying the right things, but what's more telling is what they are doing when it comes to things like hiring and how they are spending their lobbying dollars on policies like the Community Reinvestment Act.
Older consumers who were reluctant to bank digitally have been using apps and websites more during the coronavirus pandemic and some may use branches less after the pandemic ends, according to a survey by Boston Consulting Group. About 23% of new digital logins at Bank of America were from seniors and baby boomers, said BofA CEO Brian Moynihan.
Visa's US payment volumes declined at a much slower pace during May than in April. The company said US payment volumes fell by 5% in May, after having dropped 18% in April, amid a pick-up in consumer spending and the easing of lockdown restrictions.
Non-bank lenders, such as the business development companies that have channeled lending to small- and mid-sized companies over the past decade, could face several headwinds in the event of a slow US economic recovery, analysts warn. Among the challenges they face are rising defaults, pressure to maintain regulatory leverage ratios and the need to tap investors to raise capital.
Environmental, social and governance factors have entered mainstream thinking as companies and policymakers increasing find they enhance long-term financial performance. In addition to the benefits being seen on the financial side, sustainable firms attract and retain more loyal employees and customers, writes Cecile Andre Leruste.
Vacasa, a startup vacation rental platform, raised $108 million in its Series D funding round. The company has resumed hiring after suspending its recruiting in response to the coronavirus pandemic and has begun calling back some furloughed workers.