Aurelia Butler

(Reuters) -A Maryland bank agreed to pay about $22.9 million to settle charges by two U.S. regulators that it failed to disclose tens of millions of dollars of loans to family trusts belonging to its former longtime chief executive officer. Eagle Bancorp (NASDAQ:EGBN) Inc, of Bethesda, Maryland, will pay $19.5 million in civil fines and more than $3.35 million in disgorgement and interest to settle with the Federal Reserve Board and the Securities and Exchange Commission (SEC), the regulators said on Tuesday.Ronald Paul, 66, of Potomac, Maryland, an Eagle founder who was CEO from 1997 until he retired in 2019, agreed to pay about $521,000, of which $390,000 represented civil fines. The Fed permanently banned him from working in the banking industry.Neither Eagle nor Paul admitted or denied wrongdoing.Both were pleased to put the matter behind them, according to separate statements from Eagle CEO Susan Riel and Lance Wade, a lawyer for Paul.Wade also said the SEC consent order against Eagle included allegations concerning Paul that were “false, misleading, and unsupported by credible evidence,” and Paul would have disputed them had the SEC included them in its action against him.Regulators accused Eagle of having from 2015 to 2018 extended approximately $90 million of credit to entities that Paul owned or controlled, without disclosing it to investors in periodic reports and proxy statements.The SEC also said that after short seller Aurelius Value in December 2017 questioned the loans to Paul’s trusts, Eagle and Paul falsely assured investors that the loans were proper.”Adequate disclosures of related party transactions are essential to enable investors to evaluate an issuer’s corporate governance,” Sanjay Wadhwa, deputy director of the SEC enforcement division, said in a statement.Eagle has 20 banking offices in Washington, D.C. and suburban Maryland and Virginia. More

The global energy crisis deepened on Tuesday as a further surge in natural gas prices in Europe and the US threatened to push some of the world’s largest economies into recession. Gas markets in Europe jumped by as much as 10 per cent to as high as €251 a megawatt hour, equivalent in energy terms to more than $400 a barrel of oil, as traders raced to secure supplies ahead of the winter. Prices have more than doubled from already extremely elevated levels in June, although they eased marginally later on Tuesday. The moves have followed Russia’s restriction on supplies in retaliation for western powers backing Ukraine after Moscow’s invasion. Traders are fearful of competition for seaborne liquefied natural gas cargoes with Asian utilities before the winter heating season. European politicians have accused Moscow of weaponising supplies. With gas prices at more than 10 times their normal level, the possibility of a deep recession has grown, with investors now more downbeat on Germany’s economy than at any time since the eurozone debt crisis a decade ago. European gas prices are expected to remain near record levels or head even higher as winter approaches, with Berlin discussing the possibility of rationing gas use and governments from London to Madrid preparing to subsidise punishing utility bills. Thanks for reading FirstFT Asia. Here is the rest of the day’s news — AmandaFive more stories in the news1. Russia blames ‘sabotage’ for explosions in northern Crimea Moscow blamed “sabotage” for explosions in Crimea and claimed that Ukraine was behind covert attacks in mainland Russia. The rare acknowledgment provides possible evidence of Kyiv’s increased ability to strike deep behind enemy lines. Ukraine has not claimed responsibility for the attack but warned that Crimea would not be exempt from their attempts to repel Russian forces. 2. Walmart and Home Depot ease recessionary fears despite persistent inflation Two of the US’s largest retailers reported resilient consumer spending, helping ease recessionary fears amid rampant inflation. Walmart beat earnings expectations and forecast a smaller decline in full-year earnings than it had previously warned. Home Depot reported its highest quarterly sales and earnings on record. 3. Odinga rejects Ruto victory in Kenya’s presidential election Kenyan presidential contender Raila Odinga is taking legal steps to challenge William Ruto’s narrow election victory amid concerns of post-election violence. Odinga has until Monday to file a challenge for judgment. Despite some scuffles at the national polling centre, streets have remained mostly peaceful. 4. Liz Cheney braced for primary defeat after leading Republican charge against Trump Liz Cheney will probably lose the Wyoming Republican primary to a Trump-backed candidate. The daughter of former vice-president Dick Cheney was vice-chair of the congressional panel investigating the January 6 attack on the US Capitol. The primary contest is one of the last ahead of November’s midterm elections and serves as a new test of Trump’s grip on Republican voters after the FBI search of his Mar-a-Lago estate. 5. Harvard will offer free MBA tuition to lowest-income students Harvard Business School, one of the world’s most prestigious providers of business education, will waive annual fees of $76,000 for lower-income students. The announcement follows moves from other rich US universities to improve financial terms as tuition costs soar and students suffer under the burden of debt. The day aheadNato holds crisis talks with Kosovo and Serbia Nato secretary-general Jens Stoltenberg will meet Kosovo’s prime minister Albin Kurti and Serbia’s president Aleksandar Vučić in Brussels today amid growing speculation of war between the two countries. Kurti and Vučić will hold talks with the EU’s diplomatic arm tomorrow. Corporate earnings A number of companies will report their earnings today as we near the end of the current reporting season. Notably, Cisco Systems, Target and Tencent will release business figures today. Economic data The UK will release July inflation data today. The country is currently grappling with a cost of living crisis as real wages fall at record rates. Indonesian independence Indonesia celebrates Independence Day, marking 77 years since the country launched its revolution against Dutch rule.What else we’re readingHow a banker fighting Hong Kong ban broke a Wall Street record AMTD Group’s Calvin Choi is riding high after a meteoric price rise within weeks of his company’s initial public offering in the US. The rise comes as Washington cracks down on Chinese companies listed in the US and as Choi faces a two-year ban by Hong Kong’s financial watchdog.

AMTD Digital founder Calvin Choi, centre, rings a ceremonial bell on the floor of the New York Stock Exchange during an earlier IPO of a group company © Richard Drew/AP

EU digs for more lithium, cobalt and graphite in green energy push Europe wants to boost its supply of raw materials for clean energy as it seeks ways to end reliance on Russian oil and gas. The European Commission plans to lower regulatory barriers to mining and production of critical materials such as lithium, cobalt and graphite needed for wind farms, solar panels and electric vehicles. Brazil’s other deforestation Deep within the country’s interior, the conversion of swaths of the once-inhospitable Cerrado region into pasture over the past few decades has helped transform Brazil into an agrarian powerhouse. But the extent of the encroachment is alarming ecologists concerned about threats to the region’s role as a carbon dioxide “sink”.It is not always the perpetrator who pays In the wake of the #MeToo movement, economists are using real-world data to study incidents of everyday sexual harassment in ordinary workplaces. As with the rich and famous, they are finding that it is not always the perpetrators who pay a high price, with women more likely to switch jobs, writes Sarah O’Connor. Anshu Jain, banker, 1963-2022 The first non-white, non-German to lead Deutsche Bank, Anshu Jain was known for his hard-charging style. He spearheaded the bank’s attempt to conquer Wall Street and faced cancer like he did professional challenges: by analysing the problem, trying to fix it, and then moving forward, Olaf Storbeck writes. Jain died on Friday.Work and leisureAugust is the traditional time for making yourself scarce at the office. So why are so many still working this month, asks Pilita Clark:At first I thought I was the only one with an unexpectedly active office. But others in the city have the same problem. One friend who had his hopes of a quietly productive August dashed by office busyness blames the rise of hybrid working More

WASHINGTON (Reuters) -Buoyed by a string of legislative victories, Democrats and their allies are throwing money at key congressional races hoping to overcome President Joe Biden’s poor approval ratings, high inflation and historical precedent in the November midterm elections.In the coming days, millions of dollars will flow into congressional races from groups outside the Democratic Party to tout Biden’s $430 billion climate, healthcare and tax bill called the “Inflation Reduction Act,” aides and allies to Biden tell Reuters.Climate, health and pro-Biden groups will target voters in swing districts with television, radio and internet ads, rallies, and bus tours. Some will even knock on doors.Midterms are difficult for the party holding power even in normal years, but through history inflation has been especially damaging for incumbents. It hit 40-year highs under Biden and voters say the economy is their top concern. Still, Biden advisers are increasingly optimistic voters will punish Republicans for opposing the inflation bill, which Biden signed on Tuesday, and for their party’s attacks on abortion rights.”This law that we’re about to sign delivers on a promise that Washington’s made for decades to the American people,” Biden said.Now that message is going to voters. The Democratic Party has already spent $535 million in ads for the general election, while Republicans have spent $423 million, AdImpact research showed last month. While funding for outside groups is opaque, top party contributors include several billionaires, such as hedge fund creator David Shaw, LinkedIn founder Reid Hoffman and venture capitalist John Doerr, federal filings show.Outside campaigns will be bolstered by Democratic Party spending and 35 trips to 23 states by Biden and his Cabinet through the end of August to tout the bill.”This is as strong an August environment for an incumbent president and his party as you can imagine in terms of getting things done and the momentum shifting,” said senior Biden adviser Steve Ricchetti.Polling and forecasts are not on their side. Six in ten voters either have never heard of the latest bill or know next to nothing about it, according to a Reuters/Ipsos poll https://www.ipsos.com/en-us/news-polls/americans-support-inflation-reduction-act-measures conducted earlier this month. Only 40% of Americans approve of Biden’s performance, according to a Reuters/Ipsos opinion poll completed last Tuesday.All 435 House seats and a third of the 100-member Senate are up for grabs in November. Both chambers are narrowly controlled by Democrats, and traditionally midterms favor the party not in the White House. Most forecasters give Republicans a strong chance of taking the House and see the Senate as up for grabs. INFLATION BILL IS NOT OBAMACARERepublicans say the Democrats’ strategy is delusional given Biden’s poll numbers and predictions that the inflation bill will have only modest short-term impact on prices.But Democrats say they’re not seeing blistering voter opposition to the inflation bill, compared to Obamacare in 2010, which ushered in a Republican landslide.”Every single Democrat who’s running for Congress is going to run ads on this and talk about this,” said Anne Shoup, a spokesperson for Protect Our Care, a healthcare advocacy group targeting Republicans who oppose the inflation bill. ‘PRO-POLLUTER’ ADSBuilding Back Together, a non-profit run by former Biden campaign advisers, has a television, digital and radio ads plan as does the Democratic National Committee, which is focusing on Black, Latino and Asian voters.The League of Conservation Voters, an environmental advocacy, launched a $2.2 million advertising campaign to thank Democratic supporters of the inflation bill; Climate Action Campaign plans digital ads thanking 24 lawmakers who voted for the bill.League-affiliated organizers will also spend $13 million on a door-to-door campaign about the bill and how candidates voted in seven political battleground states. Ads in the coming weeks cast Republicans who opposed the bill as pro-polluter, said spokesperson Emily Samsel.Unrig Our Economy, an outside group focused on populist economic messaging, is targeting four Republicans who opposed the bill: Representative David Valadao of California, Ashley Hinson of Iowa, Don Bacon of Nebraska and Nicole Malliotakis of New York.Forecaster Cook Political Report earlier this month downgraded the chances of victory for Bacon and Malliotakis but the targeted campaigns expressed no concern.”The only thing that will give Iowa families relief from Democrat induced runaway inflation, tax increases and back breaking increases on gas and groceries is a Republican Majority in Congress,” said Sophie Crowell, Hinson’s campaign manager. More

AustralianSuper, which has A$260 billion of the country’s retirement money under management, plans to invest up to 70% of its capital offshore to avoid “performance drag” by focusing on home, Paul Schroder said in a Reuters Newsmaker interview.”We are too big for Australia,” Schroder told the online event.”We consider ourselves a global investor with domestic beneficiaries. It is true we were far too Melbourne-centric and Australian orientated, but we are generally in all of our fibres taking the view that we are global investors.”Australian pension fund managers have benefited from a system introduced in the 1980s under which employers must pay an additional 10.5% of staff wages as superannuation. That has left funds flush with money to invest, but with limited assets to purchase domestically.AustralianSuper now has up to 70% of its funds managed offshore, according to Schroder. The organisation had 70 staff in a London office, with plans to triple that headcount. An office in New York, which was focused on private equity investing, was also growing, Schroder said.The fund, which owns ports, airports, rail and road infrastructure in Australia, Europe and North America, has said it wants A$500 billion in assets by 2026, but Schroder said he was taking a longer view. Within a decade, he said, “we want to be a one trillion dollar investor”.”We’re unashamedly in the business of scale,” he said.AustralianSuper had no specific investment target but considered unlisted assets well-suited to its business in the current economic climate, since they typically carried “inflation protection”, Schroder said.At a time of economic, geopolitical and logistical disruption, Schroder said the single biggest investment challenge was inflation, and he dismissed reports that rate increases by the U.S. Federal Reserve were starting to slow the overheated economy.”You need to see some sustained signals to say it’s dealt with,” he said.”Our view is that there’s some pretty tough times ahead. We think we’re in tight environment. The question is: what’s the rate of that tightening and is there a pivot around the corner?”($1 = 1.4280 Australian dollars) More

Earnings from China’s Tencent, an interest rate decision from New Zealand, and a clutch of Japanese economic indicators will give Asian markets a local steer on Wednesday, following another solid rise on Wall Street and notable decline in oil prices.Tencent’s second-quarter results come a day after Reuters exclusively reported that the tech giant plans to sell all or a bulk of its $24 billion stake in food delivery firm Meituan.This would placate domestic regulators but also bring a timely cash injection – Tencent’s second-quarter profit is forecast to slide 27%, per analyst estimates on Refinitiv, thanks to a slowing economy and tightened video-game rule.Tencent’s shares edged up 0.9% on Tuesday, while Meituan’s slumped 9%, their biggest fall in five months.On the macro front, the Reserve Bank of New Zealand is expected to raise its cash rate by 50 basis points for the fourth meeting in a row. All 23 economists in a Reuters poll forecast the rise to 3.00%, which would mark the most aggressive tightening since 1999. RBNZ rate decision: https://tmsnrt.rs/3ApCqVH Meanwhile, figures from Japan are expected to show a recovery in machine orders and a narrowing trade deficit. The Tankan manufacturing and services indexes for August will also be released. Tuesday marked another 3% fall in oil prices and solid rise on Wall Street. Brent crude is now lower than it was before Russia’s Feb. 24 invasion of Ukraine, and the S&P 500 has rebounded almost 20% from its June low. Later on Wednesday investors also have a clutch of U.S. and European macro releases to digest, including: UK inflation, euro zone GDP and employment, and U.S. retail sales.Key developments that should provide more direction to markets on Wednesday: Tencent’s Q2 earningsRBNZ interest rate decisionJapan machine orders (June)Japan trade data (July)Japan Tankan surveys (August)Australia wage growth (Q2)Indonesia current account (Q2) More