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After Bangkok Floods, IMF and World Bank Weigh Global Risks

IMF and World Bank’s annual meeting explores economic resilience amid climate risk, debt pressure, and AI.

While walking around central Bangkok, it’s easy to miss the damage that prompted IMF and World Bank officials at their annual meeting to consider postponing this week’s event. 

No evidence of the extreme flooding elsewhere in the city, which caused so much damage and loss of life just a week ago, is visible. Life goes on—scooters buzz and trucks barrel down the expressways and narrow streets where vendors hawk exotic foods and trinkets. Bangkok officials did an admirable job cleaning up to prepare for the arrival of some 15,000 attendees, and the area surrounding the convention center is as dry—and secure—as it’s probably ever been. 

Inside the meetings, though, the question was how much more disruption—climate-related or otherwise—the global economy can absorb, and who can afford to recover when the next shock arrives.

At Tuesday’s World Economic Outlook briefing, IMF Chief Economist Silvana Tenreyro described a world economy being pulled in two directions. Conflict in the Middle East has pushed energy prices higher, while investment in artificial intelligence has helped drive growth. The IMF outlook projects global growth of 3.1% this year, but that headline figure masks sharp differences among countries. Energy exporters and countries driving the AI boom are better positioned, she said, than those that must import fuel or have little stake in the massive technology surge.

“The economy has been resilient, but that resilience is reaching its limits,” Tenreyro said at the briefing.

The economy is holding up, in part, because countries and companies have navigated disruptions by rerouting supplies, drawing down inventories, improving efficiency, and finding alternatives. Without those adjustments, the IMF estimates global growth would be closer to 2.5%.

But these measures have limits. Inventories run down. Efficiency gains can only go so far. And another shock—whether geopolitical or climate-related—could arrive before economies have recovered from the last one.

G-24’s Climate and Debt Dilemmas

The Intergovernmental Group of Twenty-Four on International Monetary Affairs and Development, or G-24, which represents emerging-market and developing economies, brought the issue closer to home. Nigeria’s finance minister and G-24 chair, Taiwo Oyedele, cited the flooding in Thailand to argue that climate commitments need to be backed by money, not just promises.

“Our appeal to world leaders is to put their money where their mouth is,” he said in a separate briefing shortly after WEO’s.

For businesses, resilience has a price. Holding extra inventory, diversifying suppliers, and keeping cash on hand can seem like unnecessary costs when markets are stable. But during a disruption, they can keep production moving and prevent higher costs from affecting the business.

Countries face a similar trade-off but lack the same resources. Developing economies need funding for infrastructure, climate preparedness, and basic services, even as debt payments consume a large share of public funds. Oyedele cited estimates that developing countries pay roughly $500 billion more in debt costs than developed economies. His broader point is clear: The countries that need to invest in resilience often face the highest financing costs.

Iyabo Masha, director and head of the Secretariat of the G-24, described the dilemma this way: “Debt is something that restrains growth.” When governments spend so much on creditors, she said, they have less left to invest in their economies.

The AI Factor

Another uncertainty in the IMF’s outlook is that AI investment may boost growth, but its benefits do not necessarily translate into jobs. Oyedele warned that countries with younger populations could see growth alongside rising unemployment if they do not plan carefully. Growth, he said, “has to be job rich; it has to be inclusive.”

That’s a broad definition of resilience—not simply keeping an economy growing, but ensuring people benefit and that governments retain the capacity to respond when circumstances change.

In Bangkok, the discussions have ranged from growth forecasts to debt and climate finance. But the underlying question is who can afford to prepare for the next disruption and who will be left to pay for recovery.

Central Bangkok shows little sign of the recent flooding, but that doesn’t mean the damage elsewhere was any less severe. The same holds for the global economy: A resilient growth forecast doesn’t mean every country is equally prepared for the next shock. The question is how much each can afford to absorb—and what it might have to give up to recover.

Paul Curcio is the editor of Global Finance Magazine. Contact him at paul.curcio@gfmag.com.

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US fines Bank of America $1.2bn for money laundering, sanctions violations | Banks News

The second-largest US bank faces record penalties for failing to comply with sanctions and money laundering laws.

The US Treasury Department has imposed more than $1.21 billion in penalties against Bank of America, the second-largest bank in the US, for violating anti-money laundering and sanctions laws.

The fines announced on Tuesday include the third-largest penalty in the department’s history, the US Treasury said in a statement.

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“When a bank of this size fails to meet its anti-money laundering and sanctions obligations, the consequences extend far beyond its own walls, exposing the entire US financial system to significant illicit finance risks,” US Treasury Secretary Scott Bessent said.

He added that these “actions send a clear message that even the biggest financial institutions are not above the law”.

Enforcement actions

According to the Treasury Department, the Financial Crimes Enforcement Network (FinCEN) assessed a $1.2 billion penalty over the bank’s failure to mitigate and report “priority national security risks, including Chinese Money Laundering Networks and illicit finance along the southwest border”.

The failures identified by FinCEN involved deficiencies related to the bank’s suspicious transaction identification and reporting and customer due diligence processes. According to the statement, “the Bank effectively outsourced to third parties a substantial portion of its proactive detection and reporting obligations”.

“Bank of America failed to timely report to FinCEN over $5 billion dollars in suspicious transactions”, the Treasury said in the statement.

The Office of the Comptroller of the Currency (OCC) assessed a $750 million fine, the largest in its history, for the bank’s deficient and ineffective anti-money laundering compliance programme. FinCEN’s $1.2 billion penalty includes credit for the OCC fine.

The Office of Foreign Assets Control (OFAC) also announced an $11.6 million settlement agreement over apparent violations of numerous sanctions programmes, including on Iran, Russia, narcotics and global terrorism.

Bank of America agreed to settle 475 apparent violations of multiple sanctions programmes, and the settlement includes “significant compliance commitments regarding training, testing and audit, and future communication and cooperation with OFAC”.

In the statement, the Treasury said the actions “underscore the importance of effectively complying” with US anti-money laundering and sanctions requirements.

In response, Bank of America said in a statement: “Financial crime compliance is serious, and we are responsible for getting it right.”

“We have invested billions of dollars in technology and dedicated thousands of employees to combat financial crime, and our team is far along with and committed to completing the work required to address the issues raised by our regulators.”

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This is where earnings growth is coming from in Q3 – Citadel Securities’ Rubner (MU:NASDAQ)

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Micron Technology (MU) and Nvidia (NVDA) alone account for 36% of expected S&P 500 (SP500) earnings growth in the third quarter, according to Scott Rubner, head of Equity and Equity Derivatives Strategy at Citadel Securities.

Consensus entered Q3 reporting looking

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Warner Bros. could face loss of at least $150 million on ‘Digger’ after tepid box office

The Tom Cruise-led “Digger” is poised for a massive loss after ticket sales for the political satire fell 60% in its second weekend in theaters in the U.S. and Canada.

The Warner Bros. film made just $3.2 million in those theaters over the weekend, according to a studio estimate. Its opening weekend brought in $8 million, Cruise’s lowest opening as a leading man since 2007’s “Lions for Lambs.” Global ticket sales for “Digger” were only $35.3 million.

The tepid box-office returns mean the studio is now expected to lose at least $150 million on the film, including ancillary revenue streams such as premium video-on-demand and streaming, industry sources said. Historically, a film has typically needed to make 2½ to three times its budget to recoup its costs.

A Warner Bros. spokesperson did not respond to a request for comment.

It’s a tough result for the film, which stars Cruise as an aging oil tycoon whose company sets off an environmental catastrophe. Analysts have said that the film was challenging to market, given a major twist in the plot, and that Cruise’s nearly unrecognizable appearance could have dissuaded his fan base from coming out to support the film.

The film suffered from polarizing critical reviews, notching a 53% on aggregator Rotten Tomatoes. Opening-night audiences gave it a C+ on CinemaScore, a grade that typically points to weak word of mouth and steep drops in the weeks that follow.

The budget for “Digger” raised the stakes. Warner Bros. has said the film cost $125 million to produce, though some industry experts and trade reports have estimated the cost was at least $160 million, citing production delays.

That figure also doesn’t include marketing costs, which sources said could have increased in the days after the film’s opening since Warner Bros. began using the divided reviews in social media and TV ads to encourage people to see the film for themselves.

The film will have value to Warner Bros. — and Skydance, the newly combined company that now owns it — beyond its theatrical reception. “Digger” probably will make money through downstream revenue sources such as streaming. If Cruise wins his first competitive Oscar, that also would be a plus for the film.

But a film’s domestic reception, and to some extent, its international box office revenue, does play a role in the value of those downstream revenue opportunities, experts said.

“Even with respectable ancillary income based on the film’s pedigree, the movie is going to lose a lot of money,” David A. Gross wrote in his FranchiseRe movie industry newsletter shortly after the film’s opening.

The reception for “Digger” comes during a tough time for Warner Bros.

The film opened Oct. 2, the same day the studio’s film chiefs, Michael De Luca and Pam Abdy, departed. Four days later, Paramount completed its acquisition of Warner Bros. Discovery, and the combined company took the name Skydance.

The studio has had a string of disappointments this year, including Maggie Gyllenhaal’s “The Bride!” and DC Studios’ “Supergirl.” None of its 2026 releases has crossed $100 million at the domestic box office.

But the prospects for Warner Bros. should improve next year, according to the research and brokerage firm Bernstein. Skydance has said it will keep the Warner Bros. and Paramount studios distinct, though Paramount Pictures chiefs Dana Goldberg and Josh Greenstein are expected to oversee both. Bernstein expects the Warner Bros. film and TV studios to amass $11.7 billion in revenue, driven by strong titles that include the sequel to “Minecraft” and a new “Lord of the Rings” movie.

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The Caribbean’s Payment Rail Moves to Pilot

CAPSS has entered its pilot phase, bringing real-time local currency payments to 11 Caribbean nations.

This article appears in the October issue of Global Finance Magazine.

The long-awaited CARICOM Payment and Settlement System (CAPSS), designed to transform cross-border payment settlement across the Caribbean, has entered its pilot phase, putting the region’s vision for real-time payments in local currencies into practice across 11 jurisdictions.

Developed by the region’s central banks in partnership with the African Export-Import Bank (Afreximbank), CAPSS connects national payment systems to enable real-time cross-border payments in local currencies, allowing businesses and consumers to bypass the U.S. dollar as an intermediary.

“While background settlements will still involve U.S. dollars among central banks, day-to-day transactions will use local currencies — a key innovation with broad potential,” said Timothy Antoine, governor of the Eastern Caribbean Central Bank, which serves eight Caribbean countries and territories that share a common currency.

Cutting Costs

The project aims to boost intra-CARICOM trade, with goods exports to regional partners accounting for roughly 8% of the bloc’s total goods exports, according to the IMF.

Settling directly in local currencies cuts foreign exchange conversion costs and makes smaller cross-border transactions worthwhile, which matters most to small- and mid-sized businesses, who pay the highest relative costs for international payments.

“If for instance, I am in Barbados and I want to buy goods from Trinidad and I don’t have the U.S. dollars to make that payment, then it becomes simply wishful thinking. We think that stifles trade,” said Okechukwu Ihejirika, acting chief operating officer at Afreximbank’s Caribbean office.

CAPSS also offers a route around the region’s shrinking correspondent-banking network. Research by the Economist Intelligence Unit in 2024 found that about 40% of correspondent banks had withdrawn from the Caribbean over the previous 15 years.

An IMF working paper published in May, “Mind the Gaps: Caribbean Trade Patterns and the Connectivity Constraint,” found cross-border banking relationships lift CARICOM trade at less than half the global rate.

Modeled On African Payment Rail

The system is modeled on the Pan-African Payment and Settlement System, or PAPSS, launched by Afreximbank and the African Union in 2022. PAPSS provides a framework for real-time cross-border payments in local currencies and now connects banks and payment providers across 16 African countries.

The Caribbean push began in October 2023, when every CARICOM central bank adopted PAPSS as its preferred settlement system. 

A proof of concept took place in February 2025 at the Central Bank of The Bahamas, where a live payment between Barbados and The Bahamas settled in each country’s own currency, with no dollars passing between them. Afreximbank and PAPSS provided a design already running in Africa, while payments software firm Montran Corp. built the connection between the two national systems. Trinidad and Tobago’s central bank took part, and Suriname sent an observer.

Governors expanded the test last November. CARICOM’s central bankers meet again in November, the next point at which the timetable could firm up.

Beyond the pilot, central banks plan to link CAPSS to PAPSS, building a payment bridge between Caribbean and African markets.

Thomas Monteiro is a contributing writer based in Spain.

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In NLCS, Dodgers see what money can’t buy: a bullpen such as Milwaukee’s

The Dodgers spent $163 million on the back end of their bullpen the past two years. The Milwaukee Brewers did not.

So two games into the National League Championship Series, guess which team’s relief corps has been lights out and which one has been lit up? (Spoiler alert: it’s not the team with all the money.)

Milwaukee sent a parade of four relievers to the mound for a second straight game Monday, and for a second straight game they didn’t give up a run, retiring the last 15 Dodgers in order in a 7-4 win that gives Milwaukee a commanding 2-0 lead in the best-of-seven series, which moves to Dodger Stadium for Game 3 on Wednesday.

The Brewers’ bullpen has pitched 9 2/3 innings in the series, yielding just two hits — both off Abner Uribe — and three walks. That’s it. Both wins have gone to relievers, DL Hall in the opener and JoJo Romero in Game 2.

Dodger relievers, meanwhile, have pitched 9 1/3 innings in the two games, giving up four runs on nine hits. Reliever Brock Stewart took the loss Monday.

In a series that’s rapidly shaping up as a battle of the bullpens, the Dodgers clearly aren’t getting what they paid for.

“I don’t have an answer,” Dodgers manager Dave Roberts shrugged when asked why the Dodgers relievers have struggled while the Brewers have shined. “I know that they’ve got good arms; so do we. I think they’re just finding ways to win pitches better than we are.”

Slugger Max Muncy has a theory on the same question.

“They’re really good,” he said.

The Brewers’ 48 bullpen wins was the most in baseball during the regular season and its 3.40 ERA was best in the National League. And it has been even better in the postseason, giving up just one earned run in 28 2/3 innings against the Dodgers and San Diego Padres. In the divisional era (since 1969), only the 1991 Minnesota Twins have a lower bullpen ERA through six playoff games and with a reliever earning the victory in all five of Milwaukee’s postseason wins, the Brewers have done something only the 2014 Kansas City Royals had done previously.

“There’s a reason they’re where they’re at right now and the bullpen’s a big piece of that,” Muncy said. “If there is a positive, you can say that a lot of our guys are starting to get looks at their back-end guys. But when they’re as good as they are, I don’t know how much that helps.

“They’re all throwing 100 [mph] plus and they all have really nasty stuff.”

Especially Aaron Ashby, who has pitched in both games, holding the Dodgers to a walk in 3 2/3 innings, striking out three. He’s the Brewers’ best-paid reliever, earning $5.5 million this season.

The Dodgers have three relievers making at least twice that — and one of them, Blake Treinen, didn’t even make the postseason roster. One of the others, Tanner Scott, gave up twice as many runs in his first postseason appearance as the Brewers’ bullpen has given up this month.

Milwaukee Brewers pitcher Abner Uribe celebrates after completing the seventh inning of Game 2 of the NLCS.

Milwaukee Brewers pitcher Abner Uribe celebrates after completing the seventh inning of Game 2 of the NLCS.

(Robert Gauthier / Los Angeles Times)

“They attack the hitters,” Dodgers outfielder Teoscar Hernández said of Milwaukee’s relievers. “They throw strikes. They got good stuff. They throw hard. We’ve just got to do a better job.”

Hernández then echoed Muncy in pointing out the Dodgers have now seen six of Milwaukee’s nine relievers, with Ashby and Uribe throwing in both games. And while the Dodgers haven’t done anything against them yet, that familiarity could help going forward.

“We know what we’re going to get,” Hernández said.

Brewers manager Pat Murphy conceded the point — sort of.

“Familiarity, as the numbers tell us, does provide an edge,” he said. “So what we try to do is make sure they don’t face the same guys the next time they pitch if they’re one-inning guys.

“Can’t always do that.”

Sometimes you can, though. Uribe, who has appeared in all six Brewers games this postseason, has already faced eight Dodger hitters in the series, but only one of them, Andy Pages, twice. And when he does face someone a second time, Murphy said with a smile, who’s to say he’ll him pitch the same way?

“Uribe might have something up his sleeve based on how those other times went,” he said. “Like, well, I never gave him this.’”

That would count as a surprise. However the dominant performance of the Brewers’ bargain-basement bullpen would not. Because even in baseball, the Dodgers are finding out, there are some things money can’t buy.

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Beyond T+1: Custody for 24/7 Markets

Faster settlement is forcing banks and treasurers to rethink liquidity, payments, and custody.

This article appears in the October issue of Global Finance Magazine.

The transition to compressed settlement cycles was initially framed as an operational hurdle. In reality, it exposed a fundamental flaw: markets trade 24/7, while legacy custody and payment rails remain shackled to traditional banking windows.

As settlement windows shrink, treasurers no longer have the luxury of multi-day batch reconciliations. Prefunding trades require real-time liquidity optimization to prevent settlement fails. “We are at an inflection point,” said Lim Soon Chong, group head of Global Transaction Services at DBS Bank Ltd. “Intermediaries are reassessing their strategies to capture the shift toward an ‘on-demand’ digital economy.”

Since 2021, DBS has operationalized this through blockchain-powered token services, enabling real-time multicurrency liquidity and automated treasury actions. By integrating these services with custody and digital exchange services, DBS provides the infrastructure for a programmable, real-time financial ecosystem.

Operational Vanguard: Citi’s Custody+ and SEP

Lim Soon Chong,
DBS Bank

Custody transformation is being driven by integrating real-time processing with modular delivery. At the forefront is Citigroup Inc.’s Custody+, a platform designed for an always-on economy.

For Amit Agarwal, head of custody at Citi, the requirement is clear: “To deliver a frictionless, always-on market, cash and securities for fiat and digital assets must settle in real time, 24/7, supported by custody infrastructure that is equally always on.” This vision is operationalized through Citi’s patented Single Event Processing (SEP) technology. Agarwal noted that SEP’s value extends beyond efficiency. By compressing timelines for income events, corporate actions and tax processing, SEP provides clients with earlier liquidity. This transforms faster settlement from a back-office metric into a strategic advantage.

Chris Cox, head of investor services at Citi, added that clients are modernizing legacy models to address cost and regulatory pressures. Cox said the Custody+ ecosystem is the direct answer to these needs. “Customers fundamentally want simplification and improved outcomes,” Cox explained. “Custody+ is our response to addressing those needs—it’s about creating front-office benefits rather than just letting custody be about post-trade. We chose to disrupt our own custody model and bring together our suite of near- and real-time capabilities as a modular ecosystem.”

Yet, technological speed alone is insufficient. Anthony Yeung, chief commercial officer at CoinCover, argues that institutional confidence requires secure key management and transparent recovery. “The regulatory architecture must be matched by institutional-grade safeguards,” Yeung explained. “The real measure of success is whether the ecosystem is built with resilience and operational integrity at its core.”

While Citi’s modular approach serves as a blueprint, this evolution is triggering a cascading effect across the landscape. The move to 24/7 markets is being actively operationalized by major players stripping away the obsolescence of batch-driven infrastructure, fueled by the rise of 24/7 trading, the need for instantaneous collateral fluidity and the proliferation of tokenized real-world assets.

Industrywide Architectural Shifts

Global custodians are redefining the infrastructure layer through digital adoption. BNY has pioneered a unified omnibus architecture that integrates legacy and digital instruments within a single compliance framework. By using distributed ledger technology, BNY enables microsettlements and real-time collateral movement, bypassing standard clearing hours.

Similarly, J.P. Morgan’s Kinexys platform leverages its institutional blockchain arm for intraday liquidity and near-instant delivery-versus-payment, allowing managers to pledge tokenized money market shares as collateral during weekends, neutralizing settlement drag. State Street Bank and Trust Company is bridging the gap between digital asset solutions and legacy accounting via strategic partnerships, replacing traditional reconciliation feeds with streaming APIs. Specialized players like Sygnum and AMINA, meanwhile, further enable atomic cross-currency settlements and smart-contract-based custody.

Buy-Side Adoption & Operational Impact

The buy side is equally driving the push for modernization. BlackRock’s BUIDL fund, in partnership with BNY and Securitize, Inc., enables continuous yield and peer-to-peer collateral transfers. Franklin Templeton’s Franklin OnChain US Government Money Fund uses public ledgers to enable round-the-clock share creation, while Fidelity Digital Assets supports continuous digital clearing. Additionally, UBS Asset Management is piloting automated fund servicing through Project Guardian. These initiatives signal a shift toward programmable financial services.

The infrastructure of 24/7 custody rests on three pillars. First, tokenized liquidity replaces traditional, time-restricted batch messaging windows with programmable cash legs, allowing instantaneous value movement. Second, automated servicing utilizes smart contracts to manage corporate actions, drastically reducing latency. Third, advanced security orchestration, leveraging multiparty computation and hardware security modules, ensures that high-value movements remain secure and verifiable, even outside banking hours. As custodians dismantle legacy constraints, the focus is shifting toward always-on capabilities. The race is no longer about who settles fastest but who builds the most reliable architecture for a global economy that never sleeps.

Navigating the New Custody Paradigm

Moving from traditional, batch-reliant processes to always-on operations transforms custody into a strategic advantage. It allows automated, round-the-clock value movement, continuous yield opportunities, and real-time liquidity management. However, operating in a 24/7 market shifts focus toward new security and regulatory obligations. 

Regulatory requirements from the U.K. Financial Conduct Authority (such as the crypto asset authorization gateway and CRYPTOPRU prudential rules) and U.S. federal stablecoin rulemaking have effectively shifted compliance from a legal filing into an operational and technical security mandate. As a result, custodians and issuers must move away from treating digital asset security as simple smart contract auditing, moving instead toward protecting off-chain infrastructure.

Ultimately, the era of the “siloed vault” is ending. Custody modernization is no longer merely an IT upgrade; it is a fundamental reengineering of the trust model. By embedding institutional-grade wallet infrastructure directly into core banking rails, custodians are shifting from passive gatekeepers to active enablers of the 24/7 digital economy. This evolution is the critical foundation for the next decade of institutional finance, where speed, transparency, and ironclad security are the primary competitive currencies. 

Gilly Wright is a contributing writer based in the U.K.

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Asian markets mixed following Wall St gains; heavy earnings week ahead

Stock market activity shows price changes and trading movements in real time

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