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GSEs' cap structure revised; HBT Financial files for IPO; 2 NY CUs to merge

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GSEs' cap structure revised; HBT Financial files for IPO; 2 NY CUs to merge

The Federal Housing Finance Agency announced a revised cap structure on the multifamily businesses of government-sponsored enterprises Freddie Mac and Fannie Mae. The regulator put a multifamily loan purchase cap of $100 billion for each of the two GSEs, for a total of $200 billion, for the period covering the fourth quarter of 2019 to the fourth quarter of 2020. The new caps apply to all multifamily businesses, the FHFA emphasized in a news release.

In New York, members of the 89-year-old Postal Employees of Troy N.Y. FCU agreed at a special meeting Sept. 12 to discontinue operation and merge with Capital Communications FCU. The merger was the outcome of regulations that put significant pressures on small financial institutions like PETFCU, the more than 150 members of which will join CAP COM FCU's membership of 133,000.

Goldman Sachs Group Inc. CEO David Solomon and President John Waldron have been talking to dozens of the company's partners, offering them huge payouts to encourage them to leave, Business Insider reports, citing people with knowledge of the discussions. Through the earlier exits, Solomon would to be able to understand the composition of the management team better before presenting his plans for the bank in January 2020.

Meanwhile, Goldman Sachs seems to be imitating JPMorgan Chase & Co.'s strategy in the big banks' fight for share in the $4 trillion U.S. exchange-traded funds market, Bloomberg News reports. Goldman has filed for a line of broad-based index products that could begin to trade at cheap prices by next week, the news outlet reports, citing regulatory records.

Speaking of JPMorgan, federal prosecutors might bring up charges of precious metals markets price rigging to senior officials of the bank as investigations zero in on higher-ups' accountability, Bloomberg News reports, citing two people familiar with the years-old inquiry. JPMorgan is under investigation for alleged "spoofing," or rigging the metals market by creating false demand to reap more benefits. Two traders who previously pleaded guilty are assisting the government in its probe.

HBT Financial Inc., formerly known as Heartland Bancorp Inc., filed for an IPO of its common stock, with a proposed maximum aggregate offering price of $100 million, estimated solely to calculate the registration fee. The Bloomington, Ill.-based company plans to list on the Nasdaq Global Select Market under the symbol HBT. Proceeds from the IPO will fund a distribution to the company's existing shareholders right after the offering's close.

Senate Banking Committee Chairman Mike Crapo, R.-Idaho, is preparing to hold a vote on legislation that would allow banks to engage in business with cannabis-related businesses, POLITICO reports, citing an interview with Crapo. Although he said he is not for lifting the federal ban on marijuana, the lawmaker stated he is eyeing a vote by the end of the year.

In other parts of the world

Asia-Pacific: HKEX to press on despite LSE rebuff; regulators mull key rate decisions

Europe: LSE rejects HKEX's £32B offer; ex-Deutsche CEO becomes Man Group chair

Middle East & Africa: Old Mutual's spat with Moyo drags on; Zimbabwe hikes key rate

Now featured on S&P Global Market Intelligence

US banks close net 83 branches in August: U.S. banks and thrifts closed 160 branches and opened 77 in August for a net 83 closures, according to S&P Global Market Intelligence data.

Agricultural loan delinquencies rise YOY in Q2'19: The delinquency rate of agricultural loans at U.S. banks and thrifts rose 15 basis points year over year to 2.10% in the second quarter, while it declined from 2.40% in the first quarter.

CECL could pose 'heightened risk' for small banks: After years of guidance, only a small number of community banks are ready to adopt the current expected credit loss accounting model, and some bankers believe the CECL standard poses a risk to small banks with scant resources.

The day ahead

Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, Hang Seng slipped 0.83% to 27,124.55.
In Europe, around midday, the FTSE 100 shed 0.24% to 7,349.78, and the Euronext 100 dropped 0.59% to 1,087.19.

On the macro front

The Empire State Manufacturing Survey 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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