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Tenn. bank pays almost $2B for one in NC; UK's George Osborne joins BlackRock


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Tenn. bank pays almost $2B for one in NC; UK's George Osborne joins BlackRock

For about $1.9 billion in stock, Tennessee's Pinnacle Financial Partners Inc. is buying North Carolina-based BNC Bancorp, in a deal that creates a company with $20 billion in assets and a four-state footprint.

And Florida's HCBF Holding Co. Inc. of Fort Pierce will become a $2.1 billion-asset bank when it closes its 20%-cash, 80%-stock deal for Oldsmar-based Jefferson Bankshares Inc.

Elsewhere in banking, Brexit relocation rumors include 1,000 positions from Morgan Stanley and 100 from Citigroup Inc., say sources for Reuters.

J.P. Morgan Asset Management, meanwhile, is throwing its weight behind actively-managed, periodically-disclosed (a.k.a. nontransparent) ETFs. It has signed a letter of intent to negotiate for Precidian Investments' ActiveShares, despite the latter's regulatory hurdles.

Also in asset management: One keeps hearing about hard times for hedge funds, but an HFR report shows that the industry saw its total, global capital rise by $46.8 billion in the final quarter of 2016. That increase brought its year-end funds to $3.02 trillion, its first time past the $3 trillion mark. Investor withdrawals declined quarter over quarter — to $18.7 billion from $28.2 billion. And hedge funds may thank post-election markets for that win, The Wall Street Journal says, adding "it may take just a month of poor performance [to bring those assets] under $3 trillion, once again."

On the other hand, data compiled by Emolument for the Financial Times shows median pay for asset management employees globally dropped again year over year, to $99,000. Those at associate levels in the U.S. were among the worst hit. Directors in North America, though, got an 11% increase, thanks to bonuses.

And guess who is now on BlackRock Inc.'s payroll: former U.K. Chancellor George Osborne, the FT reports. BlackRock's statement notes Osborne will serve as an adviser, and not engage in any lobbying. BlackRock, of course, is far from being the only Wall Street firm receiving advice from British ex-politicians. The list includes Gordon Brown at Pacific Investment Management Co. LLC; William Hague and Mervyn King at Citigroup Inc.; Alistair Darling at Morgan Stanley; and Tony Blair at JPMorgan Chase & Co.

And AdvisorHub points out the resurfacing of Greg Fleming as a broker at Axiom Capital Management Inc. Fleming had once been wealth management president at Morgan Stanley — and a possible successor to CEO James Gorman.

In other parts of the world

Asia-Pacific: Fairfax Financial to sell Indian JV stake; Mizuho may move UK biz amid Brexit

Europe: Bank execs back London; HSBC to cut senior jobs; SocGen hit with fine

Middle East & Africa: Angolan banks call for bailout package; Abu Dhabi merges wealth funds

The day ahead

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

In Asia, the Hang Seng climbed 0.06% to 22,898.52, while the Nikkei 225 slid 1.29% to 18,891.03.

In Europe, around midday, the FTSE 100 was down 0.41% to 7,169.13 and the Euronext 100 by 0.21% to 933.25.

On the macro front

No notable reports are due out today.

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