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BofA, Citi, JPMorgan among 7 big banks in $324M rate-fixing deal

Banking Essentials Newsletter - November Edition

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University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

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BofA, Citi, JPMorgan among 7 big banks in $324M rate-fixing deal

To settle aprivate lawsuit over alleged ISDAfix rigging, Bank of America Corp., Citigroup Inc., JPMorganChase & Co., BarclaysPlc, Credit SuisseGroup AG, DeutscheBank AG and RoyalBank of Scotland Group Plc agreed to pay . That's not all. BloombergNews adds they will cooperate with prosecutors againstremaining defendants GoldmanSachs Group Inc., MorganStanley, Wells Fargo& Co., BNP ParibasSA, UBS AG,HSBC Holdings Plc,Nomura Holdings Inc.and ICAP Plc.

Speaking ofthe big banks, Gerard Cassidy looked at the top 20 in the U.S. and their stockperformance under current CEOs. Winning at this "ultimate measure ofsuccess," according to the RBC Capital Markets analyst, are Wells Fargo'sJohn Stumpf, M&T Bank Corp.'sBob Wilmers and JPMorgan's Jamie Dimon.

In banking M&A — a deal between WestVirginia-based WesBanco Inc.($8.57 billion) and Your CommunityBankshares Inc. ($1.55 billion) of Indiana. The combinedbalance sheet will be shrunk, however, to keep WesBanco under the $10 billion threshold.

In New Jersey,Investors Bancorp Inc.($21.19 billion) is buying Bankof Princeton ($1.04 billion) for $154 million in stock and cash.

In Maryland,Revere Bank ($1.17billion) is not done acquiring. Despite having just its ($215.0 million) buy inMarch, it announced a $65.1million stock deal for MonumentBank ($513.8 million).

And has sold the assets of its FirstSanta Fe Insurance Services to Hub International Ltd.

In peoplenews, Karen Parkhill has left beleagueredComerica Inc. topursue other opportunities.David Duprey replaces her as CFO.

Meanwhile,Fulton Financial Corp.decided it needs a COOand that Philmer Rohrbaugh is the man for the job.

Two Californiacredit unions are combining.San Gabriel Valley Postal CreditUnion ($20.3 million) will mergeinto Credit Union of SouthernCalifornia ($1.05 billion).

Allergan-Pfizer,Halliburton-Baker Hughes. Terminated deals in 2016 have added up to a recordhigh, The Wall Street Journalreports, citing Dealogic. The total so far this year is $378 billion in value.One can estimate the adviser fee casualties.

In more broker/dealer news, Stifel NicolausEurope has bought ISMCapital.  

People havebeen hating on hedge funds, buttheir assetsunder management generally keep growing. "Perhaps "hedge funds"are bad, but each individual hedge fund is special and lovely to its investors,"Matt Levine remarks in Bloomberg View.

yesterday posted a net loss allocated to shareholders of 38 cents per share,primarily due to a $200.0 million reserveto settle the Libya briberyallegations. CFO Joel Frank on the earnings call, however, admitted the finalamount will probably be greaterthan the reserve.

For , finance REITNew York Mortgage Trust Inc.will acquire the rest of the membership interests of its part-owned .

And WealthEnhancement Group agreed to acquireSound Financial Solutions and the latter's $260 million AUM.

Mortgage bank Cascade Financial Services, a.k.a.Southwest Stage Funding LLC,is being acquired byCenterbridge Partners LP-advisedfunds.

Meanwhile, acouple of things are getting cut at ProsperMarketplace Inc.: headcount and CEO Aaron Vermut's salary. Vermuttold Bloomberg News the cost saving is due to "the recent tighteningof the capital markets." On Monday, fellow online lender On DeckCapital Inc. reported an even bigger than it did a year ago. And theJournal comments investors havereason to be cautious, because "alot can go wrong" with these new, untested business models.

Lastly, thenet stable funding ratiohas gotten its third regulatorythumbs up. The Fed also approved a proposal requiring hedge funds to suspendtheir contracts' early termination rights when G-SIBs file for bankruptcy.

In other parts of the world

Barclaysis now allowing certain customers to take up mortgage loans without a deposit, TheGuardian reports. The move, which is considered as the latest sign of areturn to riskier lending, makes Barclays the first bank in the U.K. since thefinancial crisis to offer a mortgage equivalent to 100% of a property's valuewithout a deposit, according to the FinancialTimes.

The day ahead

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

In Asia, theHang Seng was down 0.73% to 20,525.83.

In Europe asof midday, the FTSE 100 fell 1.23% to 6,109.69, and the Euronext 100 dropped0.88% to 851.71.

On the macro front

The ADPemployment report, the international trade report, productivity and costs,Gallup U.S. job creation index, PMI services flash index, the factory ordersreport, ISM non-manufacturing index and the EIA petroleum status report are dueout today.

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