Corporate misconduct over federal loans shadowing top-tier financial institutions

In a recent business memo, JPMorgan is to investigate clients and staff over illegally obtained federal aid. The largest US bank has nearly arranged $29bn of forgivable loans under the Paycheck Protection Program (PPP), a business loan initiative established as part of the $2.2 trillion economic stimulus package passed by US…

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Pakistani army to sideline Islamabad over China’s $62bn infrastructural project

Pakistani military seeks greater control over China’s $62bn infrastructural project “Belt and Road Initiative” (BRI) in the country. The army, with close ties with Beijing, is muscling Pakistani government out China’s BRI project in the country with a bill that will cede more responsibility to the army to implement the…

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Morgan Stanley, Citi and Bank of America join PCAF and commit to measuring greenhouse emission of loans and investments

Morgan Stanley, Citi, Bank of America and NatWest Group have announced that they will track CO2 emissions of their loans and investments, committing to disclosing the climate change impact of their financings. The banks have joined the Partnership for Carbon Accounting Financials (PCAF), a global group composed by 70 financial…

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Local and international investors and authorities are pressuring Bolsonaro to fight deforestation

Last July, Jair Bolsonaro, the current President of Brazil, has imposed a ban on forest fires during the dry season and arranged military operations against deforestation practices. This decree comes after pressure from local and international investors and European governments on the need to improve Brazil’s environmental commitment and to…

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Stock ownership by institutional investors cause higher stock price volatility, inefficiency and fragility, study finds

A study by four finance professors, Itzhak Ben-David, Francesco Franzoni, Rabih Moussawi and John Sedunov (June, 2020), has found evidence that the 10 larger institutional investors’ trading activities are responsible for increasing stock price volatility and mispricing in company stocks. In relation to this, the study shows that stocks with…

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Wirecard scandal: the German fintech firm linked to Maltese gambling companies used to launder money for the Mafia

The German payment service provider Wirecard, which went bankrupt last June after its fraud scheme was unveiled, has also been linked to the Italian Mafia. According to a report published by the Financial Times, the company processed payments for two Maltese gambling companies that have laundered money for the ‘Ndrangheta.…

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Morgan Stanley sued by former Head of Diversity for racial discrimination and retaliation

Last June, Marilyn Booker has pursued legal action against Morgan Stanley for “race and gender discrimination, retaliation and unequal pay”. After having worked more than 25 years for the American investment bank, 16 of which spent has Global Head of Diversity, she affirms she was fired in December 2019 after…

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BlackRock’s Sustainable Investing Push

Whereas, in the early stages, responsible investing meant excluding from portfolio highly controversial and problematic stocks, such as gunmakers. Nowadays, responsible investment means selecting carefully the assets in portfolio and constantly monitoring to be investing in companies that behave in a sustainable way, respect human rights and environmental standards and…

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ECB under pressure to ditch climate polluters from balance sheet

The European Central Bank should take “concrete action” to help tackle the climate crisis, more than 160 academics and civil society groups said in a letter to new ECB chief Christine Lagarde. “The most powerful financial institution in Europe cannot just sit passively as we witness a growing environmental crisis,”…

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Hedge Funds Putting More Focus on ESG

Hedge funds are starting to face the increasing interest in responsible investing. According to the survey by BarclayHedge, a division of technology firm Backstop Solutions, four out of ten hedge fund managers now consider environmental, social and governance (ESG) ratings in their capital allocation decision. The reason might be explained…

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