trending Market Intelligence /marketintelligence/en/news-insights/trending/-KZWq3c4TIwlEWBUhPJuow2 content esgSubNav
In This List

BoE wants banks to draw resolution plans; US funds bid for Banco BPM loans

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


BoE wants banks to draw resolution plans; US funds bid for Banco BPM loans

* Commenting about plans to create new eurozone funds to help crisis-hit countries, German central bank President Jens Weidmann said the bloc would create "dubious incentives" if it were to introduce "a far greater degree of fiscal risk sharing," the Financial Times wrote.

* Separately, Weidmann said the recent financial market turmoil in Italy illustrated that the eurozone is "not yet crisis proof in a durable way" and called for more reforms at both the national and European levels, according to Reuters.

* Some insurers will pre-emptively boost their capital buffers in the run-up to the introduction of the new global IFRS 17 accounting rules in 2021, according to a report by S&P Global Ratings.

UK AND IRELAND

* Bank of England Deputy Governor Jon Cunliffe said the regulator plans on requiring major U.K. banks to submit a self-assessment of their resolvability — a plan detailing how they will wind up their business in the event of bankruptcy — as part of regulatory efforts to ensure that failing banks bow out in an orderly manner.

* The U.K. government could make another offer of Royal Bank of Scotland Group PLC shares by September, as it seeks to reduce its holding in the lender to below 50% by 2018-end, sources told The Times.

* Standard Chartered PLC is planning to bring its Asia-based operations under two main hubs in Singapore and Hong Kong to cut costs and simplify its network, insiders told Bloomberg News.

* The U.K. Financial Conduct Authority said it will demand claim management companies to abide by stricter rules when dealing with customers when it begins regulating these firms in 2019.

* Meanwhile, the regulator will formally launch an investigation into TSB Banking Group PLC's IT failures, FCA head Andrew Bailey confirmed in a letter to U.K. Treasury Select Committee Chair Nicky Morgan, the Financial Times reported. Bailey said the FCA was dissatisfied with the bank's communications to its customers over the matter and failure to meet requirements to compensate them quickly enough.

* A technical fault at Tesco Personal Finance Plc, known as Tesco Bank, resulted in the lender's customers being unable to access online and mobile banking services yesterday, Reuters reported. The bank did not immediately disclose the cause of the glitch, but later said on social media that the issue had been resolved.

GERMANY, SWITZERLAND AND AUSTRIA

* Australia's regulators have charged Deutsche Bank AG, along with Australia & New Zealand Banking Group Ltd. and Citigroup Global Markets Australia Pty. Ltd., with criminal cartel offences in relation to a 2015 share placement by ANZ in which Deutsche Bank and Citigroup served as underwriters.

* Meanwhile, Deutsche Bank's head of corporate finance in Europe, the Middle East and Africa, Alasdair Warren, is leaving the German lender, along with the two heads of its U.S. leveraged finance business, Scott Sartorius and Christopher Blum, Bloomberg News wrote. Mark Fedorcik, co-president of corporate and investment banking, will take over additional responsibilities of the EMEA corporate finance business, while Ian Dorrington and Manfred Affenzeller will replace Sartorius and Blum.

* With its withdrawal from trading in the U.S., Deutsche Bank will forgo some $1 billion in annual revenue, Handelsblatt wrote, citing financial services group Keefe Bruyette & Woods Inc.

* Commerzbank AG's headquarters in London is being sold for roughly £425 million, Bloomberg reported after CoStar.

* Julius Bär Gruppe AG completed the purchase of a 95% stake in Brazil-based independent wealth manager Reliance Group. Financial terms of the deal were not disclosed.

* PostFinance AG said it plans to cut 500 full-time jobs by 2020 due to eroding profit margins and a decline in revenues, Swissinfo.ch reported.

* UBS Group AG named Solon Kentas managing director of its mergers and acquisitions team covering consumer products and retail sectors in the U.S. starting July, Reuters reported.

* Evangelische Bank eG is spinning off its investment management business into a new wholly owned subsidiary.

FRANCE AND BENELUX

* Société Générale SA subsidiary Boursorama SA agreed to sell Spanish unit Self Trade Bank SAU to U.S.-based private equity firm Warburg Pincus LLC and former Banco Santander SA CEO Javier Marín Romano.

* BNP Paribas SA is looking for small potential acquisition opportunities in Germany instead of big ones, Germany country head Lutz Diederichs said, according to Reuters.

SPAIN AND PORTUGAL

* Less than a week after his ouster in a no-confidence vote, former Spanish Prime Minister Mariano Rajoy said he will resign as leader of the center-right People's party, a position he held since 2004, the Financial Times reported.

* Meanwhile, Nadia Calvino, director general for budget in the European Commission, has been named Spain's new economy minister, El País wrote.

* A team from American consulting firm Bain & Company is working with the board of directors of Caixa Económica Montepio Geral caixa económica bancária SA to prepare the bank's transformation plan due to be presented in September, Economia Online said.

ITALY AND GREECE

* Italy's newly installed populist government won a confidence vote in the country's Senate after Prime Minister Giuseppe Conte vowed to pursue radical policies, but ruled out leaving the euro.

* Firms including Christofferson Robb & Co. LLC, Davidson Kempner Capital Management LP, Elliott Management Corp. and Pacific Investment Management Co. LLC have bid for the riskiest parts of a securitization backed by €5.1 billion worth of Banco BPM SpA's bad loans, insiders told Bloomberg News.

* Claudio Costamagna will step down as chairman of Italian state lender Cassa depositi e prestiti SpA, Reuters reported. CEO Fabio Gallia will also quit his post, insiders told the Financial Times.

* Credito Valtellinese SpA appointed Mauro Selvetti CEO with effect from July 1, MF reported. Selvetti will retain his current role as general manager of the lender.

* Private equity investors have begun to eye the possibility of an investment in Banca Sistema SpA, MF said, noting that banks and special purchase acquisition companies could also be interested in buying the group.

NORDIC COUNTRIES

* All parties in the Norwegian parliament support a prohibition on aggressive marketing of consumer loans, which have grown twice as much as other loans in the last few years, Dagens Næringsliv reported.

* The Danish FSA is considering changes to regulations concerning banks' sale of private customers' debts to debt collection firms amid concerns about both customers' situation and personal information being passed on, Børsen reported.

EASTERN EUROPE

* Russian central bank head Elvira Nabiullina said the regulator wants to take control of the assets of the owners of banks that it has rescued or will have to bail out, Reuters reported. She also said that the central bank will soon end its cycle of rate cuts.

* Russian banking associations and self-regulatory organizations plan to sign a memorandum to develop standards for the sale of insurance, pension and other nonbanking products by banks, Kommersant reported.

* The Polish Bank Guarantee Fund informed Bank Zachodni WBK SA that the lender will be required to hold a minimum requirement for own funds and eligible liabilities, or MREL, equivalent to 14.087% of total liabilities and own funds, starting from Jan. 1, 2023, news agency PAP said.

* Polish brokerage house Dom Maklerski TMS Brokers SA notified the Polish Financial Supervision Authority about its intention to offer brokerage services in Spain, Germany, Latvia and Lithuania, Parkiet reported.

* The Belarusian government approved the sale of a stake in state-owned Belarusian Bank for Development and Reconstruction (Belinvestbank) JSC to the European Bank for Reconstruction and Development, Interfax-Zapad reported. Alexander Pivovarsky, EBRD head of office in Belarus, said that the transaction could be completed within six to nine months, and that the stake that the EBRD plans to acquire in the Belarusian lender will be close to 25%.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: PICC Group's Shanghai IPO gets nod; StanChart eyes Asian ops consolidation

Middle East & Africa: Fitch lifts Qatar outlook; Mashreqbank seeks Saudi banking license

Latin America: Bci-TotalBank deal gains final approval; Agibank sets price range for IPO

North America: Legg Mason to pay $64.2M to settle probe; Wells Fargo sues team of ex-advisers

North America Insurance: AmTrust adjourns meeting; Fidelis launches sidecar; Cigna in Asia data breach

NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE

Rebranded Marsh-owned underwriting agency aiming to double its $1.2B premium: Schinnerer Group, now called Victor, wants to expand globally through a combination of acquisitions and organic growth, CEO Christopher Schaper said.

Sheryl Obejera, Ed Meza, Danielle Rossingh, Esben Svendsen, Beata Fojcik, Heather O'Brian, Brian McCulloch, Sophie Davies and Mariana Aldano contributed to this report.

The Daily Dose has an editorial deadline of 7 a.m. London 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.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings.