According to the observations of Oliver Wyman some of the “most forward-thinking banks’ already taken action to avoid the worst effects. “At the moment they come out of the business with the products that are most seriously affected by the new rules,” says Emerson. As an example of such a product, it indicates individual insurance against default (credit default swaps, CDS) with low liquidity. According to bankers securitisations are also very expensive with the new rules, even after their recent changes.
In Europe institutions such as Deutsche Bank, Credit Suisse and Barclays already outlined plans to shrink its activities in investment banking to meet the concerns of its shareholders to lower profits. UBS has taken similar steps at the end of 2012, recalls FT. Expected cuts in US banks to be more targeted as institutions in the US are not subject to the same pressures to reduce the overall size of its investment banking compared to its European competitors, notes the publication.
This kind of fraud occurs when illegitimate companies are able to persuade their customers to not pay their taxes, particularly those who have very high interest rates. This goes unnoticed by many federal banks or financial institutions because the companies are not authorized or monitored by these banks and institutions in the first place. This means that depositors are not able to acquire insurance or protection on their investments from states or federal institutions.
Otherwise known as loan fraud, this kind of banking fraud occurs when a person presents false information in order to qualify for a loan. One particular example is in the application for mortgage or equity loans. There are even times when loan officers are involved in the fraud and may be persuading the person for falsify information.