Finance Watch -- WSJ
December 06 2016 - 3:02AM
Dow Jones News
GOLDMAN SACHS
Financial Institution Unit Revamps Top
Goldman Sachs Group Inc. has reshuffled the leadership of the
banking unit that counts other banks as clients.
Mike Esposito, who currently co-heads the global financial
institutions group, known as FIG, will be promoted to chairman of
that unit effective next month, according to a memo reviewed by The
Wall Street Journal.
He will be succeeded by Luke Sarsfield, who is chief operating
officer of Goldman's investment-banking division and will split the
role with FIG co-chief Todd Leland, based in London. The
reshuffling comes as Goldman has sought to deepen its reach among
financial institutions.
--Liz Hoffman
DELOITTE TOUCHE
Brazil Arm to Pay $8 Million Penalty
The Brazil affiliate of accounting firm Deloitte Touche Tohmatsu
agreed to pay $8 million to settle a U.S. regulator's allegations
that it issued false audit reports and tried to cover it up.
The fine for Deloitte Touche Tohmatsu Auditores Independentes,
Deloitte's Brazilian member firm, is the largest ever imposed by
the Public Company Accounting Oversight Board, the U.S.
audit-industry regulator. Twelve former Deloitte Brazil partners
and other personnel were sanctioned as well.
In settling, Deloitte Brazil admitted it violated
quality-control standards and failed to cooperate with the PCAOB's
inspection and investigation. Deloitte Brazil said in a statement
that "unethical behavior is not tolerated in our firm," and that
the conduct of the individuals involved was "wholly incompatible
with our culture." The firm is under new leadership now, and "we
have full confidence in the quality of our audits," the firm
said.
--Michael Rapoport
ROYAL BANK OF SCOTLAND
Lawsuits Are Settled On Rights Disclosure
Royal Bank of Scotland Group PLC said it would pay as much as
GBP800 million ($1.02 billion) to settle claims with shareholder
groups over allegations that it misled them in the run-up to an
emergency rights issue during the financial crisis.
RBS said that it had concluded settlements with three out of the
five shareholder groups without admitting fault and said that it
would "vigorously defend" claims from any parties that wouldn't
settle.
The dispute relates to a GBP12 billion cash call just before RBS
was bailed out by taxpayers in 2008. The GBP800 million already has
been set aside in RBS's accounts. RBS continues to negotiate with
the remaining two groups. If no agreement is reached, a trial is
due to commence next year.
--Max Colchester
PENSION FUNDS
Dallas Mayor Sues To Stop Withdrawals
Dallas Mayor Mike Rawlings filed a lawsuit to halt exits from
the city's police and fire pension fund following more than $500
million in withdrawals since early August.
The retreat by the city's police officers and firefighters is
heightening the risk that a major U.S. pension could run out of
money. Pension officials say the fund could be insolvent in 10
years.
Officers say they are pulling their money because of concerns
about the financial standing of the Dallas Police and Fire Pension
Fund following a series of investment blunders that produced more
than half a billion dollars in losses.
The fund made an ill-fated foray into real estate that included
luxury homes and shopping centers in Hawaii, student housing in
Texas and raw land in Idaho and Colorado.
The Dallas mayor, who said he is acting in his private capacity
as a Dallas taxpayer and paying for the suit himself, has been
publicly critical of the fund and has said the city doesn't intend
to bail out the retirement plan.
--Heather Gillers
(END) Dow Jones Newswires
December 06, 2016 02:47 ET (07:47 GMT)
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