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Israel Regulator Seeks Bank Provisions to Cover Possible Tax Settlements-Army Radio
Feb 26, 2015 | Reuters
By Steven Scheer
Israel's banking regulator has demanded that two of Israel's largest banks set aside money to settle possible U.S. tax evasion investigations, Army Radio reported on Thursday. -
Overview: US-Swiss Tax Dispute
Feb 26, 2015 | Handelszeitung.
Many of the Swiss banks in category 2 of the US voluntary disclosure program should reach an agreement with the US authorities in the tax dispute, the Swiss Handelszeitung writes. The results of the negotiations, including the amount of fines, are expected to be announced in Marc -
Banks Setting Money Aside for US Tax Evasion - Report
Feb 26, 2015 | Globes (English)
The Supervisor of Banks instructed Bank Hapoalim and Mizrahi Tefahot Bank to set aside money, reports Galei Zahal. -
Israel's Bank Leumi Warns on Fourth-Quarter Profit
Feb 25, 2015 | Haaretz (English)
By Steven Scheer
Bank Leumi, Israel's second-largest bank, said on Wednesday it would not report a profit for the fourth quarter of 2014 partly because of a number of one-off charges and regulatory demands. -
Company for the Location and Restitution of Holocaust Victims’ Assets:
Feb 25, 2015 | Calcalist (Hebrew)
By Racheli Bindman
The Jewish Colonial Trust continues to make it difficult for the minority shareholders’ demands, in particular Company for the Location and Restitution of Holocaust Victims’ Assets and several other financial institutions, to divide the central asset of 5% of Bank Leumi shares, as dividends in kind.
Bank Leumi Media Monitoring 02/26/15
English Language Press - There are no relevant clips to report at this time.
Swiss German Language Press
Israeli Press
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Israel Regulator Seeks Bank Provisions to Cover Possible Tax Settlements-Army Radio
Feb 26, 2015 | Reuters
By Steven Scheer
Israel's banking regulator has demanded that two of Israel's largest banks set aside money to settle possible U.S. tax evasion investigations, Army Radio reported on Thursday.
Citing an unnamed source, the radio said the request was made to Hapoalim, Israel's largest bank, and Mizrahi Tefahot, the fourth biggest. It did not say how much the banks needed to provision.
The Bank of Israel declined to comment, while a Hapoalim spokeswoman said there was nothing to add since publishing quarterly financial results in November. Mizrahi-Tefahot was not immediately available for comment.
"It's possible this will not be the only provision but the first of several," said Amir Adar, a banking analyst at brokerage Meitav Dash.
Leumi, Israel's second-largest lender, in December agreed to pay fines totalling $400 million in the United States to settle two separate investigations into whether it helped its U.S. clients evade taxes.
Hapoalim has said Swiss authorities have notified Hapoalim Switzerland that several Swiss banks, including Hapoalim Switzerland, are under investigation by U.S. authorities. No details or circumstances concerning Hapoalim Switzerland specifically were provided in connection with this investigation.
Mizrahi-Tefahot in October said the bank had provided regulators with statistical data but there were no new developments. In August, it said its Swiss unit was asked by U.S. authorities to provide more data.
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Overview: US-Swiss Tax Dispute
Feb 26, 2015 | Handelszeitung.
- Many of the Swiss banks in category 2 of the US voluntary disclosure program should reach an agreement with the US authorities in the tax dispute, the Swiss Handelszeitung writes. The results of the negotiations, including the amount of fines, are expected to be announced in March.
Among the Swiss banks that have been negotiating with the US Justice Department (DoJ) are the Swiss cantonal banks. They all belong to category 2, which is comprised altogether around 80 banks. Other banks in category 2 include BSI, Migros Bank, Aargauer KB, Berner KB, Lombard Odier, Zuger KB, Coop Bank, Postfinance, Valiant and Union Bancaire Privée.
The DoJ will initially deal with the less severe cases among the banks, and with banks that have been cooperating willingly. For those approximately 30 banks whose offences are more serious, or who had a larger amount of US clients, negotiations will continue.
http://www.handelszeitung.ch/unternehmen/us-steuerstreit-erste-millionen-bussen-im-maerz-745351
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Banks Setting Money Aside for US Tax Evasion - Report
Feb 26, 2015 | Globes (English)
The Bank of Israel Supervisor of Banks Dudu Zaken recently instructed Bank Hapoalim (TASE: POLI) and Mizrahi Tefahot Bank(TASE:MZTF) to set aside money for the US tax evasion affair, “IDF Radio" (Galei Zahal) reported this morning.
The investigation by the US authorities against the two Israeli banks is in different stages. Bank Leumi (TASE: LUMI) has already been compelled to pay a $400 million fine for helping its customers in the US evade taxes and launder money.
"Because the instruction comes from the Supervisor of Banks and not as a result of a settlement with the US authorities then this may not be the only money set aside but rather just the first installment," said Meitav-DASH analyst Amir Adar. "In so far as we can estimate the risk, as a result of the figures that the banks will provide, then the investigation will still cast its shadow, but will fade slightly. But without the possibility of evaluating the risk the shadow will persist even after money is set aside because the feeling is (in the absence of data from the banks, we cannot find a better word) that ultimately the US regulator intends taking something from the pockets of all banks and financial institutions."RELATED ARTICLESAttorney General deepens Bank Leumi investigationFormer Leumi chiefs deny knowledge of US tax evasionBank of Israel to probe Leumi customers tax evasion affairLeumi agrees $400m settlement over US tax evasion
Adar maintains his "Market Perform" rating for both banks.
In late morning trading on the Tel Aviv Stock Exchange, Bank Hapoalim was down 1.5% and Mizrahi tefahot was down 1.08%.
For Additional Coverage (Hebrew):
http://glz.co.il/1189-58920-HE/Galatz.aspx
http://www.themarker.com/markets/1.2575392
http://www.calcalist.co.il/markets/articles/0,7340,L-3653382,00.html
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Israel's Bank Leumi Warns on Fourth-Quarter Profit
Feb 25, 2015 | Haaretz (English)
By Steven Scheer
Bank Leumi, Israel's second-largest bank, said on Wednesday it would not report a profit for the fourth quarter of 2014 partly because of a number of one-off charges and regulatory demands.
The bank, which reports fourth-quarter results in March, said it was expecting to record a 400-500 million shekel ($102-$127 million) contribution to pre-tax profit in the quarter relating to a new pay deal with staff.
But some of that will now be shifted into 2015 following a directive from Israel's banking regulator relating to Leumi's new collective agreement with its employees' union.
Fourth-quarter earnings will also be reduced by 280 million shekels due to changes in calculating the retirement age for pension benefits.
A write-down at conglomerate Israel Corp, in which Leumi is a shareholder, will cut profit by a further 220 million shekels.
Leumi holds 11.1 percent of Israel Corp after selling a 6.9 percent stake earlier this month. Israel Corp has said its profit would be cut following the spin-off of some its assets into a new company called Kenon Holdings.
For the full year, Leumi expects profit of 1.6 billion shekels.
"That's not a bad result given the low inflation and low rate environment," Citi analyst Michael Klahr said. He said that the salary agreement and pick-up in credit growth provided some grounds for optimism in 2015.
Still, Klahr trimmed his target price for Leumi's shares to 16 shekels from 17 shekels but maintained a "buy" recommendation. They were down 0.9 percent at 13.42 shekels in afternoon trading.
The bank said 2014 profit would have been 2.6 billion shekels excluding a provision of about 1 billion to cover a settlement with U.S. authorities over possible tax evasion by its U.S. clients.
Leumi will pay a fine of $400 million to settle the U.S. investigations. The bank had provisioned the entire amount in 2013 and through the first three quarters of 2014.
Earlier this week, Israel Discount Bank, Israel's third-largest bank, had also warned of near-zero fourth-quarter profit.
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Company for the Location and Restitution of Holocaust Victims’ Assets:
Feb 25, 2015 | Calcalist (Hebrew)
By Racheli Bindman
The Jewish Colonial Trust continues to make it difficult for the minority shareholders’ demands, in particular Company for the Location and Restitution of Holocaust Victims’ Assets and several other financial institutions, to divide the central asset of 5% of Bank Leumi shares, as dividends in kind.
Yesterday evening the company announced that at the general shareholders meeting set to take place this coming Sunday there will be no vote about this demand of the shareholders, only a discussion about this issue. This is following the message of the directorate of the company yesterday that was based on the opinions of Professor Assaf Hamdani that the assembly does not meet the requirements for the distribution of dividends according to the companies act.
Calcalist was sent a copy of the letter that advocates Shirel Guttman-Amira and Michal Perry from the law firm of Agmon and partners that represent the holocaust restitutions company. The letter speaks against the opinion of Hamdani “the board of director’s opinion is mistaken and misleading”. The company is strongly opposed to the board’s attempts to avoid putting the decision up for discussion and general vote. This is in blatant violation of the fact that the majority of the regular shareholders of the company warned the board of the economic damage of the great discount at which JCT shares were traded, and have called for Bank Leumi shares to be distributed as dividends in kind. The two write “that it was expected that the board members would take steps to promote this and not hinder it.”
- The article continues to discuss the legal arguments for and against the vote.
Bank Leumi Media Monitoring 02/26/15
English Language Press - There are no relevant clips to report at this time.
Swiss German Language Press
Israeli Press
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