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EC's euro-clearing plans; Italian merger may be off; EU leaves door open for UK

* The European Commission could force the biggest clearinghouses for the clearing of euro-denominated derivatives to operate from within the EU.

* The proposed merger between Banca Popolare di Vicenza and Veneto Banca could be called off if the rescue of the two Italian lenders is successful.

* French President Emmanuel Macron and German Finance Minister Wolfgang Schaeuble said the door for the U.K. to decide to rejoin the EU remains open.

PAN-EUROPEAN

* The European Commission has set out plans for increased regulation of the clearing of euro-denominated derivatives, including giving itself the power to force the biggest clearinghouses to operate from within the EU. The commission's proposals to overhaul the bloc's European Market Infrastructure Regulation, or EMIR, foresee the creation of a two-tier system for supervising clearinghouses, through which the bulk of derivatives transactions must now be routed as part of post-financial crisis reforms.

* The U.S. Treasury's plans to delay the implementation of globally agreed reforms to make banks safer after the 2008 financial crisis will cause confusion to a system of international cooperation between regulators, EU and Asian regulatory sources told Reuters. The Treasury Department released a report focusing on bank regulation that suggested numerous changes to the U.S. financial regulatory framework.

* British Prime Minister Theresa May said Brexit negotiations will start next week, dismissing calls to delay negotiations with Brussels, The Independent reported. Her comments came at a joint press conference with French President Emmanuel Macron in Paris. Macron said the door for the U.K. to decide to rejoin the EU remains open until exit talks wrap up. German Finance Minister Wolfgang Schaeuble echoed this view.

* Meanwhile, the EU's chief negotiator, Michel Barnier, warned that the U.K. risks leaving the EU without a trade deal if it delays Brexit negotiations any further following government setbacks in the recent elections, the Financial Times reported.

UK AND IRELAND

* ECB Executive Board member Sabine Lautenschläger warned that "the clock is ticking" for U.K. banks to apply for a license in the EU to continue doing business in Continental Europe after Brexit, noting that "obtaining a license takes some time, so don't put off applying for one for too long."

* Allied Irish Banks Plc's book runner said the Irish lender's IPO, priced at between €3.90 and €4.90 per share, has been fully subscribed, including the overallotment option, Reuters reported. Ireland intends to raise as much as €3.3 billion when it sells its 25% stake in AIB on the Irish Stock Exchange and the London Stock Exchange later this month.

* Meanwhile, Allied Irish Banks has hired accountancy firm KPMG to help assess the sales potential of as much as €3 billion of toxic loans, the Irish Independent wrote, noting that the lender's nonperforming debt burden is one of the largest threats to its IPO valuation.

* Standard Life Plc CEO Keith Skeoch said the insurer intends to sell its £16.1 billion annuity book after the completion of its merger with Aberdeen Asset Management Plc, but noted that this does not imply that the company was exiting the insurance sector, City A.M. wrote.

* U.S.-based Fiserv Inc. agreed on the terms of a recommended cash offer to acquire London-based financial technology firm Monitise plc for about £70 million. The transaction is expected to close in the third quarter.

GERMANY, SWITZERLAND AND AUSTRIA

* Deutsche Bank AG Chairman Paul Achleitner is seeking a compromise with 11 former executive board members and proposed that in return for forfeiting part of their past bonuses, the bank would not take any legal actions against them for alleged past misconduct, Bloomberg News reported.

* Damages from banks' fraudulent cum-ex deals, which cost German taxpayers around €30 billion, could also materialize in Austria, where they could reach hundreds of millions of euros, according to the Green Party's Bruno Rossmann, Der Standard reported, citing an ORF Radio interview with the politician.

FRANCE AND BENELUX

* Crédit Agricole SA has begun discussions with potential buyers on a partial sale of its 31% stake, valued at about $2.6 billion, in Saudi Arabia-based Banque Saudi Fransi, insiders told Bloomberg News.

SPAIN AND PORTUGAL

* Approximately 400 Banco Popular Español SA retail investors have requested Spain's anti-corruption prosecutor to investigate whether the lender's chairman, Emilio Saracho, and former board member Antonio del Valle contributed to its collapse, according to a document reviewed by Reuters.

* MAPFRE SA closed the purchase of a 31% stake in Indonesian insurance company PT Asuransi Bina Dana Arta Tbk (ABDA) for some €90.3 million, raising its stake in the company to 51% and therefore obliging it under Indonesian law to make an offer on the outstanding shares, Europa Press reported.

* Spain's anti-corruption office has requested a sentence of five years in prison for former Bankia SA Chairman Rodrigo Rato over his involvement in the lender's ill-fated IPO. He is facing trial in 2018 over alleged falsification of accounts when he was head of the bank.

* Norwegian credit management firm Axactor AB bought more than €300 million worth of bad loans from Banco Santander SA.

ITALY AND GREECE

* The mooted merger between Banca Popolare di Vicenza SpA and Veneto Banca SpA could be called off after the intervention of UniCredit SpA and Intesa Sanpaolo SpA and some medium-sized lenders to rescue the banks, all dailies including MF wrote, adding that there is confidence a deal may be reached by Sunday. There is no risk of activating a bail-in procedure, according to Il Sole 24 Ore. Reuters also covered.

* Banca Carige SpA will hold a board meeting June 21 during which it could raise the size of its capital increase to €600 million, while a decision on the new CEO is not expected before July 11, all dailies including MF reported. Carige Chief Lending Officer Gabriel Delmonte took on the role of interim CEO after the resignation of Guido Bastianini, while Marina Natale is in pole position for the role on a permanent basis, Il Sole 24 Ore reported. Reuters also covered.

* Banco BPM SpA will sell €693 million worth of nonperforming loans to an Algebris vehicle, MF wrote. Reuters also covered.

NORDIC COUNTRIES

* The Danish state sold its stake in Vestjysk Bank A/S at a huge discount, its decision to accept a 1 krone per share offer price from a group of investors underlining the urgent need to find a buyer willing to both inject significant fresh capital into the ailing bank and rescue its operations from a potential collapse, Børsen reported, adding that the buyers will pay 123 million kroner for the lender. They are expected to inject 745 million kroner into it, FinansWatch added.

* SPAREBANK 1 ØSTLANDET completed its IPO, with more than 4,000 private investors participating, according to Dagens Næringsliv.

EASTERN EUROPE

* The Czech National Bank decided to increase the countercyclical capital buffer rate for domestic exposures of lenders to 1% from 0.5%, effective July 1, 2018, citing continued rapid lending growth, especially in the mortgage segment.

* Getin Holding SA plans to sell 32.92% of its stake in JSC Idea Bank to Carcade Russia for 716.26 million Russian rubles, Warsaw Business Journal reported.

* The Polish Financial Supervision Authority rejected Raiffeisen Bank International AG's request to delay the planned IPO of its Polish unit Raiffeisen Bank Polska SA, confirming the June 30 deadline to float at least 15% of the subsidiary, Reuters reported. Raiffeisen said after the regulator's announcement that it would continue to work on the listing.

* PJSC TAScombank will take over part of the assets and liabilities of insolvent lender Diamantbank PJSC, including retail deposits falling within the 200,000 Ukrainian hryvnia limit covered by the Ukrainian Deposit Guarantee Fund. Assets that will not be transferred to TAScombank will be used by the fund to satisfy the claims of the remaining creditors of Diamantbank, the fund said.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: Hong Kong, Australia ink fintech deal; US$2.2B deal may be linked to 1MDB

Middle East & Africa: New rules for Tanzanian banks; Qatari lenders raise dollar deposit rates

Latin America: Santander said to eye Banco Original purchase; CEO change at IRB-Brasil

North America: Canadian banks face House Committee; FBR hit with post-merger layoffs

North America Insurance: ACA enrollment drops to 10.3 million; Zoom Health Plan comes under FBI scrutiny

NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE

Co-op Bank likely to retain name, ethical identity regardless of takeover: The U.K.'s Co-operative Bank is likely to retain its "ethical" stance in the event of a potential takeover by either a Qatari/Swiss consortium or a group of hedge funds, analysts say.

UK insurers should expect little from hamstrung lawmakers, Aviva exec warns: Insurers should expect little relief on pressing legislative issues as British lawmakers grapple with the inconclusive results of a general election days ahead of the start of formal talks over the terms of the country's exit from the EU.

David Hutter, Arno Maierbrugger, Danielle Rossingh, Gerard O'Dwyer, Beata Fojcik, Thanasis Kakalis, Ali Kayalar, Yael Schrage, Stephanie Salti, Praxilla Trabattoni and Mariana Aldano contributed to this report.

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