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KS, First Citizens settle; Vista Equity, Thoma Bravo seek billions in funds

Federal Reserve Vice Chairman for Supervision Randal Quarles said that the U.S. central bank should consider decreasing a set of capital requirements for the U.S. subsidiaries of large foreign banks. At a Harvard Law School event, Quarles suggested that the total loss-absorbing capacity requirements for those companies "could be adjusted to reflect the practice of other regulators without adversely affecting resolvability and U.S. financial stability."

In other regulatory news, the Federal Reserve Bank of San Francisco has begun its search for a new president and CEO as the current leader, John Williams, will head to the Federal Reserve Bank of New York in June. The internal search committee tapped female-owned firm Diversified Search to help identify candidates.

On the M&A front, Ruston, La.-based Century Next Financial Corp. is buying Crossett, Ark.-based Ashley Bancstock Co. for approximately $12.8 million.

Investment banking giant Goldman Sachs Group Inc. is conducting a global training initiative, known internally as the "Chairman's Forum," which aims to improve culture and employee conduct, Reuters reports. Around 2,500 employees across the globe are expected to participate in the mandatory training sessions, which began in September 2017 and is expected to conclude later this year, the report adds.

Home Trust Co., a unit of Toronto-based mortgage lender Home Capital Group Inc. obtained a two-year C$500 million funding commitment to replace the C$2 billion credit facility provided by a unit of insurer Berkshire Hathaway Inc. in June 2017. The Berkshire credit facility replaced the more costly C$2 billion loan facility secured in April 2017. As for the C$500 million facility, it has a lower aggregate cost than the existing Berkshire facility it is replacing, Home Capital CFO Brad Kotush said.

In banking news, Smithfield, N.C.-based KS Bancorp Inc. has resolved all outstanding litigation and disputes with Raleigh, N.C.-based First Citizens BancShares Inc. in connection with the latter's takeover attempts and the former's "poison pill." As part of the global settlement, KS Bancorp bought back all its shares owned by First Citizens and its affiliates. First Citizens also agreed to dismiss its lawsuit against KS Bancorp.

And technology-focused private equity firms Vista Equity Partners Management LLC and Thoma Bravo LLC seek to raise $12 billion and $10 billion, respectively, for their buyout funds, The Wall Street Journal reports, citing "people familiar with the matter."

In other parts of the world

Asia Pacific: US SEC fines ICBC unit; Thailand holds rate; Malaysia raids former PM's house

Europe: Deutsche Börse to shed managers; NN Group, KBC post Q1; AIB selling bad loans

Middle East & Africa: Saudi lenders Alawwal, SABB to merge; National Commercial Bank CEO steps down

The day ahead

Early morning futures indicators pointed to a lower opening for the U.S. market.

In Asia, the Hang Seng fell 0.54% to 30,942.15, while the Nikkei 225 rose 0.53% to 22,838.37.

In Europe, as of midday, the FTSE 100 was up 0.17% to 7,747.06, and the Euronext 100 was up 0.36% to 1,077.41.

On the macro front

The jobless claims report, the Federal Reserve Bank of Philadelphia business outlook survey, the E-Commerce retail sales report, the leading indicators report, the Energy Information Administration natural gas report, the Federal Reserve balance sheet and the money supply report are due out today.

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