Lloyds puts £450mn for FCA probe; Morgan Stanley accused of ‘snobbery’.

TLDR:

Key Points:

• Lloyds sets aside £450mn for FCA motor finance probe
• Morgan Stanley accused of ‘snobbery’ over $1bn margin call

In a recent article by The Banker, Lloyds Banking Group has allocated £450 million to cover potential costs associated with a UK regulatory investigation into its historical motor finance commission arrangements. The Financial Conduct Authority is conducting an inquiry to determine if customers were overpaying for car financing loans due to discretionary commission arrangements that allowed dealers to adjust interest rates, increasing their commission. The investigation is in response to a ban on this practice in 2021, and settlements may be pursued if widespread misconduct is found.

On the other hand, Morgan Stanley is facing accusations of ‘snobbery’ after a $1 billion margin call. The article also touches on India’s consideration of new KYC regulations following the Paytm scandal, the World Bank’s call for faster growth in emerging economies, and more financial news.