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American Express: FBI and OCC probe forex unit pricing

The Wall Street Journal reported last week that the FBI is investigating American Express’ (AmEx’s) pricing practices at its foreign-exchange unit. The probe, which is reportedly still in the early stages, according to “people familiar with the matter”, focuses on whether AmEx’s foreign-exchange international payments department lured clients with offers of low currency-conversion rates and then raised those rates without any notice or warning. The Office of the Comptroller of the Currency (OCC) is also reportedly looking into how AmEx disclosed foreign-exchange pricing to customers. The investigation centres on AmEx’s foreign-exchange business that serves mostly small- to medium-sized businesses, so individuals are unlikely to have been impacted.

Fortunately for Amex its forex business, accounts for less than half of a percentage point of the company’s total revenue. Nevertheless, news of the probe saw its share price sliding, with the AmEx share price dropping as much as 2% on news of the report on Wednesday, 5 September. However, the share price has since come back and is up 1.2% WoW, closing Tuesday (11 September) at $108.31/share.




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WEBINAR | The Navigator – Anchor’s Strategy and Asset Allocation, 2Q24

Anchor CEO and Co-CIO Peter Armitage will host the webinar, provide an introduction to current global and local market conditions and give his thoughts on offshore equities. Together with Head of Fixed Income and Co-CIO Nolan Wapenaar, Pete will also discuss Anchor’s strategy and asset allocation for 2Q24, focusing on global equities and bonds. In addition, Fund Manager Liam Hechter will provide insights into local equities, highlighting some investment ideas; Global Equities Analyst James Bennet will discuss Ferrari and give an update on Tesla, and finally, Analyst Thomas Hendricks will participate in a Q&A with Peter, explaining the 10-year US Treasury to attendees.