TOP NEWS IN GLOBAL FINANCIALS
* The U.S. Securities and Exchange Commission is expected to rescind this week a Trump-era rule that requires proxy advisory services companies such as ISS and Glass Lewis to inform businesses of their voting recommendations when they are sent to shareholders, the Financial Times (London) reported, citing sources. The SEC, which is due to vote on the matter tomorrow, declined to comment to the FT.
* Klarna Bank AB (publ) raised $800 million in fresh funding at a valuation of $6.7 billion, down 85% from its peak $45.6 billion valuation a year ago. The Swedish payments firm, which noted that it "has not been immune to the significant downdrafts of fintech stock in public markets," said it will use the funds to expand its market position in the U.S. Klarna's new investors included the United Arab Emirates' Mubadala Investment Co. PJSC and the Canada Pension Plan Investment Board.
➤ Rate hikes boost attractiveness of European bank stocks after rocky H1
Owning bank stocks will pay off, with European interest rate hikes on the cards and banks' balance sheets strong enough to withstand a new downturn, investment managers and analysts say.
➤ Goldman Sachs remains top asset management, i-bank debt underwriter in H1'22
Goldman Sachs was the top underwriter of debt offerings in the asset management, investment bank, broker and capital markets sector at the end of the second quarter. The firm maintained its lead with $15.05 billion in deal credit from 112 deals.
READ MORE about the market reaction and industry impact of the evolving situation in Russia and Ukraine in our new Issue in Focus.
US & CANADA
* loanDepot Inc. rolled out a plan to address the present and future mortgage market conditions and position itself for sustainable long-term value creation. Called "Vision 2025," the plan has four components, meant to increase focus on purchase transactions while serving increasingly diverse communities across the country; execute previously announced growth-generating initiatives; centralize management of loan originations and loan fulfillment to enhance quality and effectiveness; and aggressively rightsize cost structure, according to a news release.
* Citigroup Inc. suspended Jan Skarbek, the U.S. bank's co-head of banking, capital markets and advisory business in the U.K. and Ireland, Bloomberg News reported, citing people with knowledge of the matter. The suspension is pending a probe into allegations of misconduct against Skarbek, according to the report.
Click here for more of the day's essential bank and financial services news in the U.S. and Canada.
LATIN AMERICA
* Mercado Pago has secured a $233 million credit line from Goldman Sachs, Reuters reported. Funding will be split between increasing credit to small and medium-sized enterprises in Brazil and Mexico. Mercadopago is the Brazilian platform of Argentina's Mercado Libre.
* Francisco José Mejía Sendoya has resigned as president of Colombia-based Banco Agrario de Colombia SA, La República reported.
* Colombia's Superfinanciera regulator logged 8,662 complaints in April, with banks accounting for 5,690 cases, La República reported.
EUROPE
* Norwegian bank DNB Bank ASA posted a second-quarter profit attributable to shareholders of 6.28 billion kroner, up from 4.22 billion kroner a year earlier, as net interest income rose 28% to 8.89 billion kroner driven by interest rate hikes. The bank's attributable profit for the first half also rose year over year to 10.82 billion kroner from 8.99 billion kroner.
* The Financial Stability Board — the Switzerland-based international body of regulators, government officials and central bankers — plans to submit in October proposals for global regulation and supervision of stablecoins and other crypto-assets. Meanwhile, the European Central Bank said while financial stability risks from stablecoins are still limited, urgent regulation of stablecoins is necessary before they become a risk to financial stability and disrupt payment systems.
Click here for more of the day's essential financial news in Europe.
MIDDLE EAST & AFRICA
* Directors at 10 Nigerian banks earned 6.96 billion naira of allowances and compensation in 2021, up 3.32% from 6.74 billion naira the year before, The Punch reported, citing the banks' financial statements. The banks are United Bank for Africa PLC, Zenith Bank PLC, FBN Holdings PLC, Guaranty Trust Holding Company PLC, Union Bank of Nigeria PLC, Stanbic IBTC Holdings PLC, FCMB Group PLC, Wema Bank PLC, Fidelity Bank PLC and Unity Bank PLC.
* Cryptocurrency exchange Binance still processed trades by Iran-based clients despite sanctions by the U.S., according to Reuters. The U.S. reimposed sanctions in 2018, but traders told the news wire they were able to access accounts until as recently as September 2021. Binance did not respond to Reuters' questions.
ASIA-PACIFIC
* India's central bank set up a mechanism to facilitate international trade in rupees amid increasing interest among the global trading community in the currency, according to a release. Banks will require prior approval from the foreign exchange department of the central bank before serving as authorized dealers for such transactions.
* Japan-based Nomura Holdings Inc., through its Nomura Singapore Ltd. unit, acquired a stake in Indian technology provider BLS International Services Ltd. for 270 million rupees, Business Standard reported, citing bulk deal data from the National Stock Exchange.
Click here for more of the day's essential financial news in Asia-Pacific.
Ryan Jeffrey Sy contributed to this report.
The Daily Dose has an editorial deadline of 8:30 a.m. Eastern Time. Some external links may require a subscription. Links are current as of publication time, and we are not responsible if those links are unavailable later.
