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Interest in Old Mutual Wealth; VTB to adjust London i-bank ops


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Interest in Old Mutual Wealth; VTB to adjust London i-bank ops

Basel Committee consults onleeway for banks over accounting rules: The Basel Committee on Banking Supervisionyesterday launched aconsultation on policy considerations related to the regulatory treatment ofaccounting provisions under the Basel III capital framework for banks. Thecommittee proposed retaining for an interim period the current regulatorytreatment of provisions under the standardized and the internal ratings-basedapproaches for calculating credit risk. The consultation will run until Jan.13, 2017. Reuters has a report.

*German Finance Minister Wolfgang Schäuble said he would prefer to have apositive decision by year-end regarding the planned European financialtransaction tax, Bloomberg News reports.Austrian Finance Minister Hans Jörg Schelling said the group of 10 Europeancountries pursuing the tax agreed that the European Commission will presentdraft legislation before 2016-end, adding that they will further assess thetax's potential impact on pension funds, among others.


Old Mutual receivesapproaches from UK biz: Old MutualPlc has received approaches from parties interested in acquiringits U.K. operation Old Mutual Wealth as the group presses on with its plannedseparation into four businesses, the Financial Times reports.

*Aon Plc's global riskmanagement business, Aon Risk Solutions, will New York-based global riskmanagement firm Stroz Friedberg Inc. for an undisclosed amount. The twocompanies will join forces to create a cyber risk management advisory group.

*Former Barclays PlcCEO Bob Diamond will takeover as interim chairman of Atlas Mara Ltd., the firm he co-founded in 2013 toinvest in banks in sub-Saharan Africa. Diamond will temporarily replace ArnoldEkpe, who will step down at the Dec. 1 expiry of his three-year term.

*Irish Finance Minister Michael Noonan said yesterday that the government neverdecided for certain that AlliedIrish Banks Plc's IPO would take place in 2017, adding that thegovernment will sell a 25% stake in the bank when the time is right, Reuters reports. 

* In a budget speech, Noonan said millions ofpounds will be diverted to shield Ireland against potential consequences of theU.K.'s decision to leave the EU, noting that "economic shock absorbers"were necessary to "reduce or eliminate the impact of future economicshocks," Sky News reports.

*Employees at overwhelmingly rejected a pay deal that included a 4% lump sum payment and a2.2% increase in salary for some staff positions, the Irish Independent reports. Unite, the main trade union of the Dublin-based bank, is seeking up toa 12% pay increase as well as restoration of salary increments.


UBS sees consolidation inasset management sector: UBS Group AGCEO Sergio Ermotti toldBloomberg that heexpects to see more consolidation among asset managers andthat he cannot ruleout an acquisition. Ermotti declined to comment on 's rumored plans to sell parts or all of itsasset management unit, but said UBS was "going through a redefinition" ofits asset-management strategy.

*German trade union Verdi said Commerzbank AG's plans to cut 9,600 jobs translates intofewer actual job cuts as this already included 1,700 cuts already agreedpreviously, along with an average of roughly 900 staff that voluntarily leavethe bank every year, Reuters reports.

*Deutsche Bank raised another $1.5 billion in private debt following a $3billion debt offering last week, insiders tellBloomberg.          

*Deutsche Bank named Lok Yim interim head of its wealth management businessin Asia,effective immediately, reports.Yim replaces RaviRaju, who stepped down to join UBS.Anurag Mahesh, Deutsche Bank's head of key client partners, is also leavingthe company.

*Credit Suisse GroupAG appointed Honggui Li its China investment banking and capitalmarkets head, Reuters reports.Li was most recently deputy head of China at UBS' corporate client solutionsdepartment.

* EDEKABANKAG appointed Maik Wandtke new executive board chairman, Börsen-Zeitungreports.He succeeds Jürgen Manegold, whoretired in September.

* Switzerland's Forum Finance Group registeredas aninvestment adviser with the U.S. Securities and Exchange Commission in a bid tocater to American clients, Citywire reports.The move comes at a time when many Swiss asset managers are turning away U.S. clients due to high regulatory demands.


Top French banks eyerecruitment spree in 2017: The main French banks are planning to recruit between 8,100 and 12,000full-time employees in 2017, with 4,000 jobs at , 2,100 atSociété Générale SA and2,000 at BNP ParibasSA, Le Monde reports.

*Details of ING BelgiëNV's job cuts have been given to unions, with 700 jobs to go in2017, and 1,000 the following year, L'Echo reports.

* Dutch Finance Minister Jeroen Dijsselbloemsuggested he may stay on as president of the Eurogroup of finance ministerseven if he is no longer a member of the Dutch cabinet, as his political partyPvdA may face defeat in next year's general elections, accordingto Het Financieele Dagblad. Dijsselbloem said the president of the Eurogroupdoes not necessarily have to come from the group's members.   

* The ECB prevented from taking over aTurkish bank at the end of last year, Het Financieele Dagblad reports.ING dropped its pursuit of Demirbank, now HSBC Bank AS, afterreceiving a warning from the ECB about cash transactions the Turkish bank haddone with people in Iran.  


Calls for independent auditor to value Banco BPI: Smallshareholders in Banco BPI SA asked Portuguese securities regulator CMVMto appoint an independent auditor to value the bank, arguing that the takeoverbid price offered by Spain's CaixaBank SA is too low, accordingto Dinheiro Vivo.

* A parliamentary inquiry into could besuspended due to lack of available documents, Jornal de Negócios reports.A Lisbon appeals court is currently deciding whether to force CGD and thePortuguese central bank to submit paperwork that they have so far withheld,citing banking secrecy rules.  


Monte dei Paschicreditors forming groups over debt swap talks: Major shareholders inBanca Monte dei Paschi di SienaSpA will meet by next week to examine the names proposed byheadhunter Spencer Stuart as the bank's new chairman, including former Bank ofItaly director general Fabrizio Saccomanni, Il Messaggero writes. Meanwhile, some of Monte dei Paschi's international creditors, suchas Attestor Capital, Bybrook Capital and Centerbridge Partners, are forminggroups to negotiate the terms of a possible debt-for-equity conversion with thebank, Bloomberg reports.

*Italfondiario and Fonspa concluded due diligence on the nonperforming loansportfolio of Monte dei Paschi, finding that there were more secured positionsthan expected, MF reports.

*Banca Popolare di MilanoScarl CEO Giuseppe Castagna tellsCorriere della Sera that a vote against themerger of the bank with BancoPopolare Società Cooperativa at a shareholder meeting Saturdaywould weigh on the entire Italian banking system.

*UniCredit SpA namedMatthias Janssen co-head of equity capital markets for Germany alongsideAlexander Vart, effective Nov. 15, Reuters reports.In addition, UniCredit appointed Andrea Petruzzello head of corporate financeadvisory for Italy, effective immediately.

*Former Fondiaria-Sai SpA head Salvatore Ligresti was convicted to six years injail for false accounting and market manipulation, MF reports. His daughter Jonella Ligresti and former FonSai CEO Fausto Marchionniwere sentenced to five years and eight months in prison and fined €1.2 millioneach.

* Banca Popolare di Vicenza SpA said it is preparing aproposal to partially reimburse shareholders who lost a portion of theirinvestment when the value of the lender's shares plunged  after the ECB found holes in the bank'sbalance sheet, Reuters reports.

*Greek central bank Governor Yannis Stournaras said Greece is keen on tappingfinancial markets as quickly as possible as its multibillion-euro bailoutprogram will end in 2018, Reuters reports.The bailout deal, worth up to €86 billion, was approved in 2015.


Danske Bank offersvoluntary redundancy to 40% of workforce: Danske Bank A/S offered voluntary redundancy to some 8,000 employees, orabout 40% of its workforce, mainly in the personal and business bankingsegments in Denmark. The move forms part of the lender's efforts to cut costsamid historically low interest rates.

* expects the Swedishcentral bank to cut its policy rate by 10 basis points to negative 0.6% laterthis month and extend its quantitative easing program by 15 billion kronor eachin inflation-linked bonds and nominal bonds, DagensIndustri and Affärsvärldenreport.

* Svenska Handelsbanken AB named Jens Wiklund head of itsDutch operations, Het Financieele Dagblad writes.Wiklund succeeds Mikael Sørensen, who will be leading the bank's Britishoperations.

* Skandinaviska Enskilda Banken AB's SEB Pensionestablished a new ethical fund that will allow investors to bypass investmentsin potentially contentious companies operating in sectors such as tobacco,alcohol, gambling, pornography, coal and military weapons, accordingto FinansWatch.

* Gjensidige Forsikring ASA is considering selling up to14.5 million shares, or a 5.67% stake, in SpareBank 1 SR-Bank ASA, Dagens Næringsliv writes.

* Norwegian lawmakers want to know moreinformation about DNBASA's involvement in aiding clients to evade taxes through its unitin Luxembourg, writes.The lawmakers sent questions to Trade Minister Monica Mæland to discover howmuch DNB's board knew about how DNB Luxembourg helped its clients dodge taxesthrough the creation of accounts in tax havens.


VTB likely to adjust Londoni-bank activities: JSC VTB Banksaid it is likely to adjust its investment banking activities in London due toBrexit but the scale of the changes will depend on how the departure unfolds,Reuters reports.The FT earlier wrotethat the bank wanted to move its investment banking headquarters out of Londondue to the Brexit vote.

* Separately, VTB is working on a new strategyuntil 2019, Kommersant reports. Underthe strategy, the bank wants to reach a net profit of 200 billion Russianrubles for 2019.

*VTB Capital wants to expand its business in Europe and Russia as internationalbanks look to withdraw from some markets, Reuters writes,citing CEO Alexei Yakovitsky. The investment bank is also eyeing cross-bordertransactions such as M&A involving investors in Asia.

*PJSC Jugra Bankdecided not to hold an IPO in 2016, Kommersant reports. Instead, the lender willget a capital boost from current shareholders, who recently approved a 22billion Russian rubles additional share issuance at the bank.

*QIWI plc, whichprovides payment services in Russia, joined international consortium R3in the development of blockchain technology, Kommersant says.

*The Polish FSA approved Grzegorz Jurczyk as management board chairman atBank BPH SA, PulsBiznesu reports.

*The Czech central bank saidERB Bank a.s. becameunable to meet its financial obligations. Hospodarske Noviny reportsthat the central bank already launched a procedure to cancel ERB Bank's license,but its decision is not yet legally binding.

* Due to the lack of a required quorum, the lower house of the Romanian parliament postponed until the next weekthe final vote on a bill aimed to allow Swiss franc mortgage holders to converttheir loans to the local currency at historical rates, Reuters writes.


Asia-Pacific: Shenzhen-HKtrading link established; India to merge 2 state-run banks

Middle East & Africa: Atlas Mara names interim chair; bank stocks fall as Gordhansummoned

Latin America: UBSto restructure Mexican ops; Banco Votorantim investing in fintechstartups

North America: Wells COO expects return of government deals; bank employeescomplain of other bad practices

North America Insurance: Expected Hurricane Matthew losses drop; insurers push back againstCanada housing rules


DataDispatch: Deutsche Bank ETFs see a wave of outflows in September:The bank's ETFs experienced more than $2 billion in net client outflows inSeptember.

Distracteddrivers pushing up claims costs, Tryg executives warn: The Danish insurerhighlighted a rise in both the number of claims and the cost of resolving them,but it still reported a year-over-year rise in third-quarter profit.

BaselCommittee moots 5-year IFRS 9 delay to avoid bank 'capital shock':New rules on provisioning for expected credit losses could drain banks' capitalby more than expected, the Basel Committee on Banking Supervision said. TheIFRS 9 standards may have to be phased in over up to five years.

Leo Magno, Ed Meza, Danielle Rossingh, Praxilla Trabattoni, BeataFojcik, Mike Hatzidakis, Gerard O'Dwyer, Brian McCulloch, Helen Popper, YaelSchrage and Ali Kayalar contributed to this report.

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