Trouble on all sides: Investment fund 1MDB is in default after missing interest payments on $2 billion in bonds. This default, in turn, appears to have triggered technical defaults on two other bond issues worth a similar amount of money. Separately, the Malaysian central bank issued a notice of non-compliance for 1MDB’s failure to disclose important facts in its applications to make some of its foreign investments. The international investigation of 1MDB has expanded to include Seychelles. Singapore authorities have arrested at least two bankers in their investigation of 1MDB transactions. A U.K. banker is caught up in the investigation there after a $33 million commission paid to the banker was found to have originated in 1MDB.
Hacked: The Swift network for international money transfers between banks said it was hit with a series of bogus transactions going back to last year. Swift users will have to install updated software, it said.
Failed: State regulators in Tennessee closed Trust Company Bank in Memphis. The failed bank had $20 million in deposits and four branch locations. Deposits have been transferred to The Bank of Fayette County, which is also purchasing a small part of the assets. This is only the second U.S. bank failure of the year.
