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NATIXIS steps back: British financial policeman investigates H2O AM

(hooly-news.com) – Natixis (-4.78% to 2.289 euros) shows the largest drop in the SBF 120 index and amplifies the decline in the banking sector due to information from the Financial Times that the British gendarme of the financial sector , the FCA, investigates the resale by H2O AM, a bank subsidiary, of illiquid stocks and bonds to the controversial German financier, Lars Windhorst.

Relations between the latter and the asset manager were already at the center of investors’ questions about H2O AM’s practices, last June. Investors were concerned about the proportion of illiquid assets in certain funds, assets issued by companies controlled by Lars Windhorst. The FT Alphaville investigation had led to a fall in the action of the French bank.

H2O AM reached an agreement with Lars Windhorst to sell these difficult assets to it in late April, after its flagship bond and currency funds lost more than half their value in March when the coronavirus epidemic hit financial markets .

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Finance – Banks

Life is hard for European banks! The latter are first subject to very strict regulation, which imposes capital and liquidity constraints on them (Basel III). American banks, which do not have these constraints, generate higher margins and dominate the lucrative niche of investment banking. In addition, low or zero interest rates weigh on profitability. Added to this is competition from Fin Tech and Gafa. Moreover, large establishments are buying fintechs to counter this technological threat. But the fight against Facebook or Google, which offer free services by paying for the use of payment data, looks very complex.