* Andreas Dombret, an executive board member of the Deutsche Bundesbank, gave his tacit approval to a proposed compromise over banking rules that have been dubbed Basel IV. Dombret noted that even though the central bank still considers a proposed 72.5% output floor to be too high, the compromise figure is nevertheless acceptable.
* The U.K. has agreed to assume up to €100 billion of EU liabilities as part of its agreement with the bloc on a Brexit divorce bill, the Financial Times reported. However, Britain will aim to make net payments of less than half that amount over many decades, as it pushes for an implied amount of between €40 billion and €45 billion, taking into account U.K. receipts and other deductions.
* Eurogroup President Jeroen Dijsselbloem will not extend his term, Dutch Finance Minister Wopke Hoekstra said, according to Het Financieele Dagblad, following reports that Dijsselbloem would be staying on for an extra six months because of political uncertainty in Germany.
* SWIFT, the global provider of secure financial messaging services, warned banks that cyber threats are on the rise as hackers use increasingly sophisticated techniques, Reuters wrote.
* New York's Department of Financial Services ordered certain underwriters at Lloyd's of London to pay a civil money penalty of $920,000 for underwriting an unlicensed credit and debit card-based life insurance program.
UK AND IRELAND
* London Stock Exchange Group Plc announced that outgoing CEO Xavier Rolet will step down, effective immediately, with CFO David Warren assuming the additional role of interim CEO until a successor is appointed. Chairman Donald Brydon also indicated to the group that he will not stand for re-election at the company's annual general meeting in 2019. The decision comes after Bank of England Governor Mark Carney called on Rolet to depart LSE quietly, saying he could not "envision a circumstance where the CEO stays on beyond the agreed period," The Sunday Times reported.
* There had been widespread inappropriate treatment of small and medium-sized enterprise customers by Royal Bank of Scotland Group Plc, according to the U.K. Financial Conduct Authority's final summary of an independent review of the bank's controversial Global Restructuring Group. FCA head Andrew Bailey warned that senior RBS managers could be held personally accountable if the bank fails to respond to the scandal involving the now-defunct restructuring unit, The Sunday Times reported.
* London Market Group, an industry body representing U.K. insurers, is expected to outline to the EU today post-Brexit trade proposals, including an insurance-specific free-trade agreement with the bloc, the Financial Times reported. Malcolm Newman, leader of the association's Brexit task force, told Reuters that Britain also needs to negotiate a reinsurance deal with the U.S., one of the sector's largest markets.
* Pool Reinsurance Co. Ltd. said it will begin underwriting risks from cyber terrorism from April 2018. The coverage will include material damage and direct business interruption using a cyber-trigger, while damage to intangible assets will not be covered, according to the reinsurer.
* Irish Prime Minister Leo Varadkar wrote to Micheál Martin, leader of the Fianna Fáil opposition party, confirming that he has accepted Deputy Prime Minister Frances Fitzgerald's resignation offer, Irish broadcaster RTE reported.
* Bank of Ireland Group Plc said its common equity Tier 1 ratio will rise by around 50 basis points after it executed a credit risk transfer on around $1.7 billion of loan assets originated by its leveraged acquisition finance business.
* The Irish central bank confirmed the core elements of mortgage measures, saying the loan-to-income and loan-to-value limits will remain unchanged in 2018.
GERMANY, SWITZERLAND AND AUSTRIA
* The German Savings Banks Association has selected Helmut Schleweis to be its new president, with the appointment to be made official before the Christmas holidays, according to Reuters. Schleweis, who serves as CEO of Sparkasse Heidelberg, will succeed Georg Fahrenschon, who recently resigned amid an investigation into tax evasion.
* Vienna Insurance Group AG
* ERGO Group AG has ended discussions concerning the sale of its German life insurance companies with traditional life insurance portfolios, following an assessment of nonbinding offers submitted by potential buyers. Management Board Chairman Markus Riess said the portfolios' current value and their potential appreciation were not adequately reflected in the offers.
* Credit Suisse Group AG CEO Tidjane Thiam told Bloomberg TV that he was "painfully aware" that shareholders had gone through tough times and that all options were on the table to return cash to investors as profitability improves. Thiam also said the lender's employees "should not expect anything spectacular, but something fair" in terms of pay rises for 2017.
* Deutsche Bank AG named Peter Selman head of its global equities business, an insider told Financial News. Selman, who most recently served as co-head of global equities trading and execution services at Goldman Sachs Group, will replace Tom Patrick.
* UBS Group AG has appointed Winfried Gutmannsbauer COO at its Asia-Pacific wealth management division, Finews.com reported. Gutmannsbauer, who will be based in Singapore, succeeds Geoffroy de Ridder and Andreas Neuber, who are moving to new positions that have yet to be announced.
FRANCE AND BENELUX
* ASR Nederland NV
* The French senate confirmed Eric Lombard as CEO of Caisse des Dépôts et Consignations, Les Echos reported.
* Matmut SA and SGAM AG2R La Mondiale are in talks about a merger, which they hope will take place in January 2019, Les Echos reported. L'Agefi also covered.
* French banks have to conform to new anticorruption laws Jan. 1, 2018, although most claim their existing procedures already meet the new standards, Les Echos reported.
* KBC Group NV is moving its online broker Bolero from KBC Securities to KBC Bank to allow KBC Securities to focus only on institutional investors, L'Echo reported.
SPAIN AND PORTUGAL
* Banco Santander SA is considering scaling back the number of job cuts it will make after its acquisition of Banco Popular Español SA, according to El Economista. The bank has already reduced the number of cuts to 1,384 jobs, instead of 1,585, but unions have asked it to reduce that number further.
* Banco Santander is to name Isabel Tocino new vice president of Santander España and president of Banco Pastor once it has obtained the necessary regulatory approvals, Expansión reported. Banco Pastor is a subsidiary of Banco Popular Español SA, which was acquired by Santander in June.
* Bankia SA is close to deciding how many jobs it will have to cut after its acquisition of Banco Mare Nostrum SA and is planning no further mergers, Expansión reported, citing Bankia Chairman Jose Ignacio Goirigolzarri. ABC quoted Finance Minister Luis de Guindos as saying that the government plans to sell off its stake in Bankia as soon as possible, with the aim of recouping as much taxpayers' money as possible.
* Portugal's ruling Socialist party has proposed legislation that would allow the country's central bank to close overseas branches of Portuguese banks if they fail to cooperate with regulatory authorities, Jornal de Negócios reported.
* The mutual association that controls Portugal's Caixa Económica Montepio Geral caixa económica bancária SA has completed the sale of a majority stake in its Lusitania Companhia de Seguros SA insurance arm to China's CEFC group in exchange for an undisclosed capital increase, Jornal de Negócios and Jornal Económico reported.
* Leading investors BlackRock and PIMCO and four smaller fund managers said they would boycott a €300 million subordinated debt issue by Millennium BCP this week in protest to Portuguese authorities' treatment of holders of senior bonds in Novo Banco SA, Reuters, the Financial Times and Jornal de Negocios reported. The funds said Portugal's central bank "has not addressed the unlawful and discriminatory retransfer of notes from Novo Banco to Banco Espirito Santo SA in 2015."
ITALY AND GREECE
* Italian lender Banca Carige SpA said it has shortlisted two bidders to continue negotiations for the sale of its consumer credit business unit Creditis SpA, with the aim of determining the final bidder before the end of its ongoing cash call. The two bidders are Christofferson Robb & Co. and Chenavari Financial, Il Sole 24 Ore noted.
* In the first five days of Carige's capital increase, some 70% of option rights were traded, with one foreign investor eyeing some 10% of the lender, MF wrote.
* In mid-December, Banca Monte dei Paschi di Siena SpA will transfer €26 billion in nonperforming loans to a special purpose vehicle that will then securitize them with the mezzanine tranche sold to the Atlante 2 rescue fund, MF reported.
* UniCredit SpA is ready to sell the entire Fino 1 NPL portfolio of €15.5 billion to Fortress, Il Messaggero wrote, noting that Fortress already has 51% of Fino 1 and that UniCredit is now ready to sell the remaining 49% to Eurocastle, a vehicle of the Fortress group.
* Credito Emiliano SpA said its capital ratios are "amply above" the ECB's requirements, according to Reuters.
* Piraeus Bank SA posted a third-quarter net loss attributable to shareholders from continuing operations of €19 million, compared to a profit of €27 million a year earlier. The bank forecasts an increase in sales of bad loans to private-sector buyers in 2018 and a positive year-end result.
NORDIC COUNTRIES
* Sweden's government is set to approve a proposal by the country's financial regulator to implement tougher mortgage repayments rules, despite risks that the move could lead to deeper property price falls, insiders told Reuters.
* The owners of Danish insurance company Alka are planning to sell it, Børsen reported. Several insurance companies are reported to be interested, including TopDanmark, Alm. Brand and Tryg, as well as British-owned Codan and Norwegian Gjensidige.
* Nordea Bank AB (publ)'s Swedish mortgage book reduced to 444.7 billion Swedish kroner in October, from 445.6 billion kroner in September, according to Bloomberg calculations. The data indicates that the lender is losing its clients in the country, after disclosing plans of relocating its headquarters to Finland, the newswire reported.
EASTERN EUROPE
* Société Générale SA does not plan any acquisitions in Russia, but is eyeing a revenue growth by more than 11% a year until 2020 thanks to the strengthening of the Russian economy, Reuters reported, citing SocGen's head Frédéric Oudéa.
* Russian Standard Ltd. defaulted on its eurobonds worth $451 million, with bondholders now planning to take over 49% shares of AO Russian Standard Bank that were pledged as collateral on the bonds and wanting to obtain seats in the lender's board of directors, Vedomosti reported.
* The Russian central bank suspended the additional issue of shares by PAO Moscow Industrial Bank after its actual completion, which could be due to violations in the issuance procedure itself or the provision of inaccurate information by the issuer, Kommersant reported. The lender initiated the procedure already in December 2016, and was able to place only 27% of offered shares, which would allow it to increase its capital by 1.2 billion Russian rubles.
* The Polish Bank Association's head, Krzysztof Pietraszkiewicz, proposed to consider banning cryptocurrencies if it turns out that the situation on the cryptocurrency market is going in the wrong direction, but he noted that the banking sector is interested in the use of the blockchain technology itself after relevant testing, Rzeczpospolita reported.
* The Slovak central bank is ready to further raise the countercyclical capital buffer for banks if pressure on the loan market continues to grow, Reuters reported.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: China to impose higher banking penalties; Indostar Capital shelves M&A talks
Middle East & Africa: Mizrahi Tefahot buying Union Bank; Egypt lifts forex controls for importers
Latin America: Scotiabank offers $2.2B for BBVA Chile stake; Grupo Aval Q3 profit slides
North America: Hiring freeze at CFPB; Scotiabank offers $2.2B for BBVA Chile stake
North America Insurance: Insurers oppose essential benefits plan; reinsurers' combined ratio worsens
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
Data Dispatch EMEA: Barclays, RBS scrape through Bank of England stress test: The U.K.'s seven largest lenders would be able to cope with extreme scenarios including a "disorderly" Brexit, according to the Bank of England's annual stress test results. But Barclays and Royal Bank of Scotland only just scraped through.
SocGen CEO sees cross-border consolidation as lender unveils strategic plan: Having announced new revenue, cost-to-income and ROE targets for the French lender, Frédéric Oudéa predicted that the banking market in the eurozone will ultimately resemble that of the U.S.
Sheryl Obejera, Ed Meza, Danielle Rossingh, Esben Svendsen, Beata Fojcik, Yael Schrage, Brian McCulloch, Sophie Davies and Helen Popper contributed to this report.
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