The Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) made some huge announcements that made headlines on all business news outlets. At a glance, this is just what was announced:

• The bank will certainly be cutting 1,500 jobs (concerning 1,000 in Canada)
• It will certainly be closing or downsizing about 120 worldwide banking branches
• It will take a $451 million pre-tax costs in the fourth quarter

The 3rd point is possibly one of the most worrisome for investors as it will most straight hurt the company’s profits for the next quarter, anticipated in December.

Allow's undergo each of the above 3 points, beginning from the bottom as well as take a look at how this would likely influence investors in the Bank of Nova Scotia.

$451 million pre-tax charges.
This charge includes every little thing - from Bank of Nova Scotia's Venezuelan assets, to its Caribbean hospitality  loan portfolio, to plain old retail loans gone bad. Analysts have lengthy questioned its move to endeavor into Latin America and the Caribbean. The announcement just appears to cement this view and increase analysts' eyebrows. So how will that play on the bank's earning's next quarter?

Well, it is believed the charges in total are anticipated to cut the bank's fourth-quarter diluted profits by $0.28 cents each share. New Chief Executive Officer Brian Porter said in a statement that he is positive that 'Our 2014 reported results will certainly be within our financial objectives for the full year.'

Mr. Porter additionally says that these campaigns will allow Bank of Nova Scotia to proceed purchasing high-growth locations of the bank as he means to create a more streamlined, effective bank.

Job cuts & downsizing.
Bank of Nova Scotia additionally said it plans to reduce 1,500 jobs and get rid of approximately 120 worldwide branches. There is no question that employees will not be kindlied about this technique. Last year, the bank reported a record $6.7 billion in net profit. So exactly how does it justify to its employees the termination of their jobs? That's an inquiry that executives still should resolve but they believe that the financial institution is anticipated to save expects to save regarding $120 million every year as a result of this restricting. However, investors will only see the complete benefits of this on the books sometime in 2016.

Bank of Nova Scotia is additionally book a restructuring stipulation of about $148 million in the next quarter, largely to cover employee severance costs.

As the days pass, there will certainly continue to be a great deal more evaluation on these news. It will be interesting to see if Bank of Nova Scotia will change its emerging markets approach, although it does not rather seems so presently. For now, it seems like this announcement is indeed likely to prove to be a positive move for the bank in the long-term.

The company said the United States Division of Justice (DoJ) had launched a criminal investigation, while various other regulators are running civil investigations.

It added that feasible losses from all its the legal process can amount to $5.9 bn (£3.7 bn).

A number of various other banks, including Barclays, HSBC and also Royal Bank of Scotland, have actually just recently alloted sums to cover similar probes.

Global lenders, such as UBS and also Citigroup, are additionally being investigated over the supposed rigging of foreign-exchange rates.

In a filing with the Securities and Exchange Commission (SEC) on Monday, JP Morgan said that it was co-operating with authorities, and also currently engaged in conversations focuseded on 'Resolving Their Corresponding Investigations'.

Yet, the company included, 'There is no guarantee that such conversations will certainly lead to settlements'.

In addition to the criminal investigation by the DoJ, JP Morgan revealed it additionally encounters civil investigations by the UK's Financial Conduct Authority (FCA), the Commodity Futures Trading Commission (CFTC) & 'Other foreign Government Authorities'.

In 2013, JP Morgan Chase agreed to a document $13bn settlement with Unaited State authorities for misleading investors during the housing crisis.

Investment banks could be cutting back on their trading tasks but also for those still on the market the money stays good - specifically at JP Morgan.

Directors at the US Bank earn usually £461,000 a year - £214,000 in salary and also a £272,000 bonus offer, according to research by the salary benchmarking web site Emolument.com.

The JP Morgan bankers, working in sales, trading as well as research, earn 15 % greater than competitors at equal grades at 2nd-place Deutsche Banking, the survey found.

Supervisors at both out-earn those at Goldman Sachs and Morgan Stanley, generally assumed to pay the very best. Bank of America Merrill Lynch was 3rd, paying an average of £376,000.

directorshe best awarded at a British bank were HSBC's directors, in 12th place on a typical £308,000. Barclays was one level lower, paying about £280,000.

Investment banks have lowered their own-account trading after regulatory authorities boosted the amount of capital consumed by those tasks. But JP Morgan's loss of at least $6bn (£3.7 bn) in 2012 from its London Whale bet revealed that dealing is still a large part of the business.

Morgan Stanley's traders earned £353,000, placing them 7th in the rankings, while those at Goldman Sachs were paid £330,000 and ranked 9th.

Emolument said Goldman paid its managing directors well - at the top layer of investment bankers - yet it appeared much less charitable compared to competitors for investors on the next rung down. For those that work in the markets, JP Morgan is the place to be, it said.

Robert Benson, chief executive of Emolument, said banks from continental Europe, such as France's Society General & Credit Agricole, had the problem of matching pay from their much less profitable home market with high wage demands in London.

Emolument said its estimates were based upon feedbacks from 640 bankers in trading, sales and research about their pay for 2013/14.

U.S. authorities are checking out London-based Standard Chartered Plc for potential UNITED STATE sanctions violations connected to its bank for Iranian-controlled entities in Dubai, baseding on people acquainted with the probe.

The latest investigation entailing the bank is based, partly, from proof that arised throughout a separate probe of BNP Paribas, the French bank that pleaded guilty this summertime to fees associated with sanctions-busting and consented to pay $8.9 billion [5.56 billion pounds] in penalties, people s people said.

During the course of the BNP case, U.S. federal & state investigators got proof the French bank had done business with a Dubai-registered corporation that was a front for an Iranian body, one source said. Investigators also discovered that the company used to have an account with Standard Chartered, according to the source.

Such an account would have been covered by U.S. sanctions laws that prohibit negotiations with Iran because activity in the account included UNITED STATE dollar transactions.

The sources did not would like to be identified due to the fact that the probe is continuous and also its best result unknown.

Spokespersons for the Manhattan District Attorney and also U.S. Department of Justice, which are among the authorities checking out, decreased comment, as did the New york city Department of Financial Services, which looks after the bank's branch in the state. A representative for Standard Chartered additionally decreased comment on the probe.

The New York Times reported on Wednesday that prosecutors were taking a makeover at Standard Chartered over feasible sanctions infractions, but the concentration of the investigation was not disclosed.

Information of the examination begins leading of the bank's significant negotiations with authorities over U.S. sanctions-related offenses in 2012, as well as once more this year. Standard Chartered in 2012 paid $667 million to U.S. authorities as well as took part in postponed prosecution contracts with the Manhattan Standard District Attorney and also U.S. Department of Justice over infractions originating from Iran and other sanctioned countries.

In August of this year, New york city's Attorney banking regulator fined Standard Chartered one more $300 million after a monitor selected in 2012 uncovered drawbacks in the bank's security systems that triggered a " significant number of potentially high-risk transactions " to go unseen, baseding on a permission order.

The new investigation, sources said, surpasses the significant findings in the 2012 arrangements, through which Standard Chartered accepted responsibility for stripping details on wire transfers to the united state so they wouldn't be detectable as settlements hooked up to Iran or various other sanctioned entities.

The sources said the account at sanctioned Standard Chartered found via the BNP probe was one example of potential added infractions, and that authorities are considering various other troublesome tiny and also medium-sized company accounts in Dubai that could have been managed by Iran.

The investigation is 'Very Energetic' however not at the factor of discussing a resolution, one of the sources said.

It is uncertain what activity authorities could take, although sources said the delayed prosecution arrangements, which were set to end in December, are anticipated to be prolonged, and Standard Chartered could encounter one more fine.

District attorneys likewise have the choice of drawing back the deferred prosecution arrangements as well as negotiating a criminal guilty plea from the bank, one of the sources said.

The most recent investigation is another frustration for Standard Chartered Leader Peter Sands. Criterion Chartered stays successful, but Sands is under pressure from financiers to restore the financial institution and also reduce prices after a 31 % slump in its share cost this year.

MORE CLEAR DISCLOSURES

U.S. authorities think Standard Chartered must have revealed their Dubai accounts linked to Iran throughout the course of the prior years-long examination, although the British bank had actually closed the account concerned prior to authorities confronted it with regards to a year back, the sources said.

Baseding on files in the BNP instance, from 2006 with 2012, the French banking processed settlements in support of an Iranian-controlled company that aided facilitate giving fluid oil gas to a company in Iraq.

The company was signed up as a company in Dubai, yet it was a front for an Iranian power group based in Tehran, the court documents say.

In December 2011, a U.K. bank shut out a payment involving the company and also mentioned to BNP it would no longer work with the company due to its connections to Iran, the documents show.

Yet for virtually a year longer, BNP remained to process payments for the company, purchases involving over half a billion bucks, the documents kept in mind.

The U.K. bank is not called in the BNP records, yet one source determined it as Standard Chartered. The Dubai company additionally is not named, though it is described in other documents as a "petrochemical" company.

Standard Chartered consented to end small- & mid-sized business client relationships in the United Arab Emirates within 90 days, as part of the August negotiation, as well as is currently winding them down.

Additional proof that banks are supporting for stiff charges for rigging currency markets emerged on Friday after Royal banks of Scotland alloted £400m to cover the cost of the examination right into the £3.5tn-a-day market.

There were expectations that HSBC, which reports on Monday, would incur a comparable fee, which would come on top of movies by Barclays, US bank, Citigroup and JP Morgan and also Swiss Bank UBS to put hundreds of countless pounds apart to cover charges from regulators in the US and Britain. The choice to designate funds shows the bank’s belief that the charges might be enforced soon, with the UK's Financial Conduct Authority as well as its US equivalents anticipated to reveal a coordinated owned

RBS, which is 81 % owned by the taxpayer, also added £100m to its provisions to cover the expense of mis-selling repayment defense insurance. It adheres to responses by other high-street banks to raised applications for compensation in the costliest mis-selling scandal in history.

One more £180m was earmarked by RBS for various other fines consisting of the IT meltdown in 2012, which left clients shut out of their accounts, consisting of those at Ulster Bank which were affected for more than 3 weeks.

RBS said it anticipated to get in negotiation talks with the Irish regulatory authorities at the end of the year.

Campaigners for tax on the financial sector used the current cautions concerning greats to revive their phone calls. ‘It's disgraceful that a bank which is 80 % owned by the state is so deeply embroiled in yet another multimillion-pound scandal. The fact such big stipulations for greats and compensation appear typical shows simply exactly how separated from the rest of truth Bank’s have ended up being,’ claimed a representative for the Altruistic Tax obligation campaign.

 Ross McEwan, a year into his role chief executive of the bailed-out bank, acknowledged that the more fines would certainly continue to dent RBS's reputation, however highlighted boosted results.

‘We have actually said for a long time that several of the expenses are already in the article,’ said McEwan, that added that the total provision of £780m was the current finest price quote. Additional bills could possibly pertain to work out lawsuits for home mortgage bonds sold in the United States prior to the onset of the 2007 credit report crunch.

He said; ‘We are lessening prices, and also are on track to attain our capital targets. The UK & Ireland are showing indicators of growth, and disability styles are significantly much better compared to we had anticipated at the start of the year. Yet we know we still have a long list of conduct as well as litigation problems to deal with as well as considerably, much more to do to recover our client’s trust in us.’

McEwan declined to offer any kind of guarantees that the expense of paying greats would certainly be borne by the team with a cut in bonuses, instead of by shareholders, as had been requested when the banking was fined £390m for manipulating Libor last year.

McEwan said there would certainly be a ‘Process’ which ‘people should be answerable for these things’ yet refused to elaborate.

Publishing its most recent trading upgrade, RBS claimed revenues in the 3 months to the end of September were £1.3 bn, compared with a £634m loss throughout the same duration a year earlier. For the nine-month duration, profits were up to £3.9 bn, versus £740m a year earlier.

RBS has been examining its possession of Ulster Bank and also has considered a number of options to draw back from the Bank, which has actually blown a £15bn gap in RBS's accounts given that 2008. But McEwan said RBS would certainly now keep its connection with Ulster, which he said remained a core part of this business, a decision made amidst indicators that the Irish economy and residential property market are enhancing. RBS's revenues were boosted by its capacity to release stipulations formerly alloted for uncollectable loans of £801m in the last quarter, compared with £ 93m in the previous quarter - largely from Ulster Bank & its bad division. It additionally anticipates to release more arrangements in the last quarter of the year.

Even so, it notified: ‘The overview for 2015 continues to be reasonably benign, albeit with some threats to the drawback. At such low degrees of disabilities there might be volatility in any type of quarter’.

The shares rose 3 % to 376p after the figures as well as at some point shut 6 % up after the marketplaces reacted to an industry-wide announcement about capital from the bank of England. They shut at 388p-- still listed below the typical rate of 502p which taxpayers spent £45bn buying shares in 2008 and 2009.