In its 2017 report, the Financial Stability Oversight Council said cybersecurity remains the top risk to financial sector stability. The FSOC supports the creation of a private sector council of senior executives that would focus specifically on ways that cyber incidents could impact business operations and market functioning and liaise with principal-level government counterparts on cybersecurity issues. It also identified virtual currencies as an area to monitor and analyze their effects on financial stability.
In banking news, Bank of Orrick Chairman William Scott Clark and his family will sell their 63.8% stake in the bank to investor Justine Hurry. Clark is set to retire, while Cheri Clark and Christopher Clark, who are both members of the bank's board, are also stepping down.
After Brexit, the European Union will tighten regulations over large investment banks like Goldman Sachs Group Inc. and JPMorgan Chase & Co., Reuters reports. The proposal seeks to prevent these banks from exploiting the lighter policies imposed on EU member states.
Savings Bank of Walpole is joining New Hampshire Mutual Bancorp — the holding company of Meredith Village Savings Bank, Merrimack County Savings Bank and MillRiver Wealth Management. As an affiliate bank, Savings Bank of Walpole will retain its name and state charter. Its president and CEO, Gregg Tewksbury, will succeed New Hampshire Mutual President and CEO Samuel Laverack when he retires June 30, 2018.
ESSA Bank & Trust and a plaintiff, who sued the bank in September 2016 over repossessed motor vehicles, are negotiating a settlement that would resolve the lawsuit on a class-wide basis. The bank may pay $1.3 million, with its insurance carrier covering the amount in excess of a $125,000 retention as part of the settlement.
Randolph Bancorp will lay off about 8% of its employees before 2017 ends. The layoffs are estimated to save the company approximately $1.1 million in annual operating costs.
Meanwhile, executives at Guggenheim Partners LLC are working to curb customer concerns on an ongoing probe by U.S. regulators, as well as the future of CEO Mark Walter. According to documents seen by Reuters, some investors have put the asset manager on "watch" lists, and will continue to monitor closely.
Routemaster Capital Inc signed a letter of intent to invest about $1.4 million to acquire a 49% interest in blockchain and cryptocurrency company Pinedale Springs LLC.
And in the credit union space, Dekalb County CU is merging into Vibrant CU in Illinois in a deal expected to close in 2018.
In other parts of the world
Asia Pacific: Indonesia, Philippines hold policy rates; ASIC to monitor P2P lenders
Europe: ECB, BoE hold rates; Sberbank's new game plan; M&G eyes Bradford & Bingley loans
Middle East & Africa: Emirates NBD Bank exits Lebanon; Mizrahi Tefahot Bank CoCo draws strong demand
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng slipped 1.09% to 28,848.11, and the Nikkei 225 dropped 0.62% to 22,553.22.
In Europe, around midday, the FTSE 100 was up 0.03% to 7,450.49, and the Euronext 100 slid 0.41% to 1,034.23.
On the macro front
The 3-year note settlement report, the 10-year note settlement report, the 30-year bond settlement report, the Empire State Mfg Survey, the Industrial Production report, the Atlanta Fed Business Inflation Expectations report, the Baker-Hughes Rig Count and the Treasury International Capital report are due out today.
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