Cantor Fitzgerald & Co. and BMO Capital Markets Corp. agreed to pay more than $647,000 and $3.9 million, respectively, to settle the U.S. Securities and Exchange Commission's charges of improperly handling pre-released American Depositary Receipts, or ADRs. Both the broker companies obtained pre-released ADRs, or U.S. securities that represent shares in a foreign-listed company, "when they should have known that the pre-release transactions were not backed by foreign shares," the regulator said.
Grand Forks, N.D.-based Alerus Financial Corp. filed a registration statement with the SEC for an initial public offering. The proposed maximum aggregate offering price is $75 million.
In Texas, Happy Bancshares Inc. agreed to purchase and assume the operations of Centennial Bank and its holding company Commerce BancShares Inc. Happy State Bank will assume Centennial Bank's roughly $585 million in loans and $679 million in deposits in the deal, terms of which were not disclosed.
Cryptocurrency exchange Coinbase Inc. acquired the institutional businesses of Xapo Inc., a provider of payment wallet and online and offline security solutions for digital currency Bitcoin. Coinbase did not reveal the purchase price but a Fortune report said it was $55 million, and that Coinbase beat Fidelity, another contender, to win the deal.
President Donald Trump spoke by phone to JPMorgan Chase & Co. CEO Jamie Dimon, Bank of America Corp. CEO Brian Moynihan and Citigroup Inc. CEO Michael Corbat about the state of the U.S. consumer after stock markets plunged Aug. 14 when the yield curve inverted, sources told CNBC. An inverted yield curve is a scenario wherein the yield on short-term U.S. Treasurys is higher than the yield on long-term U.S. Treasurys. An inverted yield curve has historically preceded recessions.
JPMorgan plans to host a conference call to brief clients on volatility in equity markets, Reuters reports, citing an invitation from JPMorgan Cross-Asset & Derivatives Strategy. During the event, the bank plans to discuss systematic flows and liquidity dynamics in equities and the extent to which high-frequency trading is responsible for drops in market depth.
Goldman Sachs Group Inc. has engaged lawyer Chetan Jethwani to hold a watching brief in the second trial of former Malaysian Prime Minister Najib Razak over 1Malaysia Development Berhad, or 1MDB, Bloomberg News reports, citing a Kuala Lumpur court. A watching brief will allow Jethwani to obtain witness statements and documents in the trial but prohibit him from questioning the witnesses or submitting evidence. The trial starts Aug. 26. The Malaysian government recently filed criminal charges against 17 current and former directors of three Goldman Sachs units over their alleged links to the 1MDB scandal.
In other parts of the world
Asia-Pacific: China revises loan prime rate mechanism; Malaysia eases forex policy
Europe: Leaked Brexit crisis plan; ECB clears Carige rescue; NatWest data breach
Middle East & Africa: Bahrain's Al Salam Bank denies merger rumors; Africa growth risks increasing
Now featured on S&P Global Market Intelligence
M3F adds 7 banking positions in Q2'19; Citizens Financial takes top spot: Salt Lake City-based hedge fund manager M3F Inc. initiated seven new banking positions worth a combined $14.3 million during the second quarter, according to the firm's most recent Form 13F filing.
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng grew 2.17% to 26,291.84, and the Nikkei 225 was up 0.71% to 20,563.16.
In Europe, as of midday, the FTSE 100 was up 1% to 7,188.07, and Euronext 100 had climbed 1.11% to 1,042.75.
On the macro front
The E-Commerce Retail Sales report is due out today.
Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.
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