• Cliff Equity
  • Posts
  • 📈 Big Banks Busted: ÂŁ100m Chatroom Scandal!

📈 Big Banks Busted: £100m Chatroom Scandal!

Lab Diamonds Rock De Beers’ World

February 21, 2025

This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes

In today’s stories:

  • Big Banks Busted: ÂŁ100m Chatroom Scandal!

  • Lab Diamonds Rock De Beers’ World

  • Ofgem’s ‘Choice’ – More Confusion, Less Savings!

The summary: Big banks got caught swapping secrets in chatrooms, racked up £100m in fines (except Deutsche Bank, the teacher’s pet), and now claim they’ve learned their lesson—let’s hope they actually have!

The details:

  • Banking bigwigs slapped with ÂŁ100m fines – Traders at HSBC, Morgan Stanley, Citi, Deutsche Bank, and RBC got a little too cosy in private chatrooms, sharing sensitive UK bond pricing info between 2009-2013.

  • Citi gets a ‘discount’, Deutsche Bank dodges the bill – Citi’s ÂŁ17.2m fine was softened by early cooperation, while Deutsche Bank walked away scot-free under the CMA’s leniency policy for whistleblowing.

  • Lessons learned (or so they say) – The banks insist they’ve introduced strict compliance measures to prevent future rule-breaking. We’ll see


  • The CMA flexes its muscles – With a firm warning about fair competition, the watchdog says these fines could have been much worse had the banks not scrambled to clean up their act.

Why it matters: When the world’s biggest banks play fast and loose with market-sensitive information, it’s not just bad form—it warps competition and could leave investors short-changed. The CMA’s hefty fines serve as a not-so-gentle reminder that even financial giants aren’t above the rules (unless, of course, they snitch first, like Deutsche Bank). If banks truly have cleaned up their act, great—but history suggests it might be wise to keep an eye on those chatrooms.

The summary: De Beers, once the undisputed king of diamonds, is losing its shine as lab-grown gems and shifting markets leave Anglo American scrambling to sell it off—while fending off a £34bn takeover bid—turning this corporate saga into a high-stakes game of pass-the-parcel with a very expensive rock.

The details:

  • Diamonds aren’t forever (profits, at least) – De Beers, once the crown jewel of the industry, has cost parent company Anglo American a sparkling $3bn, thanks to the rise of lab-grown gems and sluggish Chinese spending.

  • Anglo’s grand breakup plan hits a snag – The FTSE 100 giant had hoped to spin off De Beers this year, but progress is slower than a diamond forming under pressure. A trade sale, IPO, or demerger may now have to wait until later in 2025.

  • A decade of falling prices leaves De Beers looking a bit dull – With yet another $2.9bn writedown, the former diamond titan is now valued at $4bn, a far cry from its past dominance when it controlled 90% of the market.

  • BHP’s lurking, but Anglo’s playing defence – Facing a ÂŁ34bn takeover bid from the Aussie mining behemoth, Anglo is scrambling to offload assets, with Botswana eyeing a piece of De Beers. Will the diamond giant find a buyer, or just gather more dust?

Why it matters: De Beers' downfall is a glittering example of how even the shiniest monopolies can lose their sparkle when consumer trends shift—lab-grown diamonds and cautious Chinese wallets have turned the industry on its head. Anglo American, once keen to ditch De Beers in a hurry, now finds itself stuck with a pricey gemstone nobody’s quite sure what to do with, all while fending off a £34bn takeover from BHP. With Botswana eyeing a stake and potential buyers circling, the fate of one of the world’s most famous diamond brands is now less about eternal love and more about who’s willing to take on a fading empire.

1

The summary: Ofgem’s latest plan to shuffle energy charges around might sound like a choice, but it’s more of a head-scratcher that could leave vulnerable folks paying more, all while ignoring the real problem of sky-high energy costs!

The details:

  • Ofgem’s “Fix” Feels More Like a Fudge – In response to 30,000 complaints about standing charges (which have soared 43% since 2019), Ofgem proposes a "choice" of tariffs. The catch? One option hides the fee in unit rates, making bills just as painful—only in a different way.

  • A Maze, Not a Solution – Critics say Ofgem's plan makes energy bills more baffling, not fairer. Vulnerable customers might pick the wrong tariff and end up paying even more, while regional price disparities remain firmly in place.

  • Energy Debt Hits Record Highs – With Brits already owing a staggering ÂŁ3.8bn to suppliers, campaigners argue the real issue—sky-high energy costs—is being ignored. Pensioners like Betty, 76, say they’re freezing while still paying ÂŁ300 bills.

  • The Standing Charge Stand-Off – Charities and suppliers slam the proposal as a mere sleight of hand. As Fuel Poverty Action puts it: “It’s not a fix, it’s just better disguised.”

Why it matters: Energy bills are already a nightmare, and Ofgem’s attempt to give customers “choice” looks more like a sleight of hand than a real fix—shuffling costs around rather than making them fairer. Vulnerable people, who can least afford mistakes, could end up paying even more just for the privilege of turning on a light. Meanwhile, with energy debt soaring to £3.8bn, pensioners like Betty are left choosing between warmth and a worrying bill, while suppliers and campaigners wonder why Ofgem is rearranging deckchairs instead of plugging the hole.