Weekly Global News Wrap: CEO changes bring in new age of European banking; Wells Fargo pays $3b settlement for fraudulent sales

And JPMorgan confident that it could withstand economic stresses.

From CNBC: 

Several major European banks have changed top managements recently, with what experts say will be a new era for the region’s finance industry.

UBS, Credit Suisse, ING, and HSBC all changed leadership, whilst RBS named a new chief in November, and Barclays is looking for a new person to replace CEO Jes Staley at the end of next year.

This trend of revamping came after a decade of weak growth. Analysts believe European banks are now entering a new phase, despite more work needed to regain market share.

From CNBC:

Wells Fargo has agreed to pay $3b and admit wrongdoing to settle criminal and civil charges with the US Justice Department and the Securities and Exchange Commission due to the fraudulent fake-account scandal.

As part of the deal, the bank admitted it collected millions of dollars in fees and interest when it shouldn’t have, harmed customers’ credit ratings, and unlawfully misused clients’ personal information.

Wells Fargo will avoid prosecution, instead striking a three-year deferred prosecution agreement to resolve a criminal investigation into false bank records and identity theft.

From Reuters: 

J.P. Morgan executives told investors that it is big enough to weather through times of economic and market stress during its annual investor day in New York.

During the presentation, the management gave updates on the bank’s four main business lines but did not upgrade profit targets, a sign that it expects a slow, steady growth over the medium term, reports Reuters. It has spent the last capitalising on healthy markets and strong customer demand to counter hard times, said CEO Jamie Dimon.

As the largest US bank by assets, its size poses obstacles for growth but also allows the bank to invest where weaker rivals pull back and fund experiments in financial services.

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