In this week's episode of Industry Focus: Financials, host Jason Moser and Fool.com contributor Matt Frankel, CFP, dive into earnings from JPMorgan Chase (NYSE: JPM), Wells Fargo (NYSE: WFC), Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), and Bank of America (NYSE: BAC) to look for the important points and trends investors need to know. Hear why Matt is keeping his eye on Live Oak Bancshares (NASDAQ: LOB) and Jason is watching Ameris Bancorp (NASDAQ: ABCB). To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center.
(Bloomberg) -- Goldman Sachs Group Inc.’s Asian unit was fined $350 million by Hong Kong’s financial regulator over its role in Malaysia’s 1MDB investment-fund scandal.The U.S. bank was “reprimanded” for “serious lapses and deficiencies in its management supervisory, risk, compliance and anti-money laundering controls,” the Securities and Futures Commission said in a statement. Goldman Sachs Asia’s acceptance of the SFC’s findings and disciplinary action facilitated an early resolution of the matter, it said.Goldman is also poised to reach a long-awaited pact with the U.S. Department of Justice to pay more than $2 billion to resolve a criminal investigation into the bank’s role in the 1MDB scandal, people familiar with the matter told Bloomberg News this week.The settlement follows Goldman Sachs’ July agreement with Malaysia, in which the bank promised to pay $2.5 billion. Malaysia dropped criminal charges against the New York-based company in early September.A Hong Kong-based Goldman spokesman said on Thursday that the bank will issue a formal statement in due course.In all, Goldman Sachs may pay roughly $5 billion once accords with Malaysia, the Justice Department and other agencies are tallied together.Over much of a decade, 1MDB has become shorthand for one of the world’s most daring heists -- a conspiracy that spawned probes in Asia, the U.S. and Europe. Authorities spent years tracking funds that allegedly flowed from 1MDB into high-end art and real estate, a super yacht and, ironically, the hit Hollywood movie “The Wolf of Wall Street,” chronicling an earlier era of financial crimes.The bond sales raised a combined $6.5 billion and were arranged by Goldman Sachs International, a London-based unit.The Hong Kong regulator said Goldman’s Asia control hub based in the city “had significant involvement in the origination, approval, execution and sales process of the three 1MDB bond offerings.” The bank received 37% of the total revenue of $567 million generated from the bond offerings, or $210 million, the largest share among the various Goldman entities, the SFC said.(Updates with comment from Goldman in fifth paragraph. An earlier version corrected spelling in headline.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Jack Ma’s Ant Group Co. is asking buyers of what could be the world’s biggest-ever initial public offering to commit to the deal just days before the U.S. presidential election.The Chinese fintech giant will price the Shanghai portion of its dual listing on Oct. 27 and allow subscriptions on Oct. 29, it said in a prospectus published on Wednesday. The deadline for payments will be Nov. 2. Ant hasn’t yet spelled out dates for the Hong Kong leg of the IPO, but they’re expected to be similar.While the company’s share sale is among the most hotly anticipated deals in years, the timeline will leave investors in a potentially precarious position: locked in during a pivotal week for global markets. Shares will almost certainly start trading only after the U.S. vote on Nov. 3, an event that could have big ramifications for both Ant’s overseas expansion plans and investor risk-appetite generally.Ant won regulatory approval for its Shanghai listing on Wednesday, clearing the way for it to begin gauging investor demand for an IPO that could value the Hangzhou-based company at $280 billion or more. It’s planning to raise about $35 billion from the dual listing, surpassing Saudi Aramco’s record $29 billion sale last year, people familiar with the matter have said.An Ant representative declined to comment.The company will issue no more than 1.67 billion shares in China, equivalent to 5.5% of the total outstanding before the so-called greenshoe option, according to its prospectus on the Shanghai stock exchange. It will issue the same amount for its Hong Kong offering.Alibaba Group Holding Ltd., which was co-founded by Ma and currently owns about a third of Ant, has agreed to subscribe for 730 million of the company’s Shanghai shares, which will be listed under the ticker “688688,” according to the prospectus. Alibaba will hold about 32% of Ant shares after the IPO.Read more: Alibaba Will Buy a Fifth of Shares in Ant Group’s Mega IPOSingapore’s sovereign wealth fund GIC Pte, Temasek Holdings Pte and China’s $318 billion National Council for Social Security Fund are also planning to invest, people familiar with the matter said earlier this month.That strong demand means Ant may fetch a valuation equivalent to Bank of America Corp. and Goldman Sachs Group Inc. combined, despite concern that rising geopolitical risks could hamper the Chinese company’s international ambitions. Ant reported a 74% jump in gross profit to 69.5 billion yuan ($10.4 billion) from January to September, according to its prospectus.(Adds details on Alibaba stake in seventh paragraph. An earlier version of this story corrected the spelling of Temasek Holdings Pte.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.