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Generali eyes MetLife assets; N26 told to boost AML controls; Deutsche in focus


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Generali eyes MetLife assets; N26 told to boost AML controls; Deutsche in focus

* Elections for the European Parliament are being held today in the U.K. and Netherlands, with other EU member states following over the next three days, Sky News noted. Results will be unveiled Sunday after all 28 member states have cast their votes.

* Italian insurance group Generali is said to be in preliminary talks to acquire U.S.-based MetLife Inc.'s central European assets, estimated to be worth more than €2 billion.

* Home Credit Group BV, controlled by Czech billionaire Petr Kellner's investment group PPF, is planning an IPO of at least $1 billion in Hong Kong, with Citigroup, HSBC and Morgan Stanley to lead the offering, insiders told Reuters. The listing could take place in September or October.


* U.K. House of Commons leader Andrea Leadsom resigned from Prime Minister Theresa May's government, saying she opposes the concessions set out in the newly proposed Brexit legislation. Leadsom added that a second referendum would be "dangerously divisive" and may undermine the integrity of the U.K., echoing sentiments May previously expressed.

* Royal Bank of Scotland Group PLC-backed financial technology firm Loot Financial Services Ltd. has entered into administration after failing to raise funding, City A.M. reported, noting that RBS already owned 25% of the company and planned to fully acquire it but the deal collapsed. Meanwhile, Henry Shinners, one of the administrators, said they were already in advanced talks with a potential buyer that could take over Loot's services, according to the Financial Times.

* Barclays PLC is cutting jobs at its global market division, the bulk of which is expected to impact credit teams, in the wake of a management revamp earlier this year, unnamed sources told Business Insider. This comes in contrast with the bank's stance last month, when it said it had "no plans for job cuts."

* Christopher Woolard, the U.K. Financial Conduct Authority's strategy director, warned asset managers that unless they disclose fees to institutional investors using a voluntary template, the regulator would consider tougher actions, including making the template mandatory, Reuters reported.


* German financial watchdog Bafin ordered online bank N26 GmbH to ramp up its anti-money laundering and terrorist financing controls and to comply with customer due diligence obligations. The bank should take measures including removing IT backlogs, re-identifying customers and documenting workflows.

* Deutsche Bank AG confirmed a glitch in the computer system it uses to analyze payments retroactively for suspicious transactions, news outlets including The Wall Street Journal and Bloomberg News reported. The bank said it is working with regulators to correct the error.

* Proxy advisory firm Hermes EOS reportedly urged Deutsche Bank shareholders to absolve the lender's executives of liability for their actions last year at today's annual general meeting. Hermes also recommended not voting to oust supervisory board chairman Paul Achleitner. Handelsblatt also covered.

* A New York federal judge junked U.S. President Donald Trump's preliminary injunction request to bar banks from handing over financial records to lawmakers, potentially allowing Congress to access his files in Deutsche Bank and Capital One Financial Corp., news outlets including Bloomberg News and Reuters reported.

* Deutsche Bank will retain its presence in the U.S. where it primarily operates its troubled investment bank division, but is looking for measures to lift growth and cut costs there, CFO James von Moltke told Börsen-Zeitung.

* Commerzbank AG CEO Martin Zielke said the bank is open to growing "inorganically" following the collapse of the controversial merger talks with Deutsche Bank, Reuters wrote. He added that he meets with CEOs of other banks regularly, including ING Groep NV CEO Ralph Hamers, but that there were no concrete offers for merger negotiations.

* Vienna Insurance Group AG posted pretax profit of €127.5 million for the first quarter of 2019, up from the year-ago €117.3 million. Premium income rose 3% on a yearly basis to €2.9 billion. CEO Elisabeth Stadler maintained the insurer’s targets to achieve a premium volume of €9.9 billion and pretax profit of between €500 million and €520 million in 2019.

* Allianz X GmbH, the digital investment unit of Allianz Group, has acquired GmbH, a financial products comparison platform covering insurance, pension funds and private finances.

* Swiss asset management firm Geneva Management Group SA launched a new unit, GMG Institutional Asset Management SA, which will focus on investment solutions for institutional clients, mainly Swiss pension funds.


* Dutch payments company Adyen NV aims to expand its foothold in Brazil through card reader machines, having launched the product this month, Jean Christian Mies, the company's senior vice president for Latin America told Reuters.

* A U.S. appellate court revived a lawsuit filed by alleged victims of a genocidal regime in Sudan against BNP Paribas SA, saying claims that the French lender's New York branches aided the Sudanese government's atrocities were subject to judicial review, Reuters reported.

* Bailed out by the French state six years ago, Crédit Immobilier de France is in the process of organizing a fifth workforce reduction plan, according to l'Agefi. The institution's dismantling has returned €950 million to the French state, Les Echos noted.


* Millennium BCP's shareholders approved a plan to return €30 million in dividends and make a €12 million payment to employees to compensate for salary reductions and freezes it implemented between 2014 and 2017, Jornal de Negócios reported. Despite the decision, more than a thousand workers protested at the bank's headquarters demanding immediate payment, rather than the three-year gradual compensation proposed by BCP.


* UniCredit SpA is working out a sale of non-performing loans with a face value of up to €5 billion potentially through a structured transaction in one or more tranches, to be completed by year-end, sources told Bloomberg News.

* Meanwhile, Intesa Sanpaolo SpA will only divest up to half of a €10 billion portfolio of unlikely-to-pay loans in a sale currently being negotiated with Prelios, insiders told Reuters.

* The ECB is increasing pressure on Banca Carige SpA to involve private investors in its capital strengthening plans, according to MF. To help attract investment funds to invest in Carige, extraordinary commissioners of Carige are evaluating the possibility of reducing its capital requirements to €630 million from €720 million previously and taking steps to facilitate their future exit from the bank's capital, Il Sole 24 Ore wrote.

* Meanwhile, an amendment to an Italian legislative package of economic growth measures could allow Banca Carige to benefit from a €700 million tax break should it merge with a small lender, Corriere della Sera reported.

* Luigi Luzzatti Spa, affiliated with Italian cooperative banking association Assopopolare, is preparing a portfolio of €1 billion in nonperforming loans from 15 small lenders, with an aim to close a sale by June, MF wrote.


* Sweden's central bank said the country's Financial Supervisory Authority should impose a 5% leverage ratio requirement for banks. The regulator also cautioned that the money laundering scandal involving local banks could weigh on their ability to secure funding.

* Iceland's central bank lowered the rate on seven-day term deposits to 4% from 4.5%, noting that the country's economy is bound to contract this year due to a decline in tourism.


* Raiffeisenbank Austria d.d. CEO Michael Georg Müller said the Raiffeisen Bank International AG unit is seeking potential acquisitions in Croatia to boost its market share in the country.

* TCS Group Holding Plc, the holding company of Russia-based JSC Tinkoff Bank, said Tinkoff Group agreed to acquire an additional 35% stake in Latvia-based Cloud Payments International, LLC. Upon completion, the deal will increase the group's stake to 90%, having bought a 55% stake in October 2017.

* PKO Leasing SA will reduce the price offered in a tender to acquire all shares of Polish vehicle fleet operator Prime Car Management SA from 23.75 Polish zlotys to 20.0 Polish zlotys apiece during the second phase of the tender, which will take place between May 23 and June 11, news agency PAP noted.

* The Polish central bank's head Adam Glapiński said entering the eurozone would "dramatically limit growth opportunities" for the Polish economy and that he would not allow for Poland to apply for the eurozone membership as long as he heads the central bank, Reuters reported, noting that Glapiński's term ends in 2022.

* The board of Romania's central bank unanimously voted to hold the benchmark interest rate at 2.50% during a meeting last week, according to bank minutes seen by Reuters.


Asia-Pacific: ICBC gets nod to set up unit; 5 face charges for Bangladesh Bank heist

Middle East & Africa: Zambia central bank hikes key rate; Kenyan banks post Q1 results

Latin America: 2 Panama banks in proposed merger; Caixa to restructure client debts

North America: JPMorgan exec pay support dips; Morgan Stanley trims in London; 2 RIAs acquired

Global Insurance: Potential MetLife/Generali deal; Fairfax Financial CFO dies; cat bonds pricing


What the European parliamentary elections mean for Brexit: The main U.K. political parties face a Brexit backlash in European elections as Prime Minister Theresa May faces another defeat of her withdrawal agreement in the House of Commons.

High cost of 'getting it wrong' means Barclays must tread carefully with fintech: When the consequences of making a mistake could be devastating, large banks have to tread carefully when innovating, argues Barclays' head of business banking, Ian Rand.

Smart data, less bias — finance firms must do more on diversity: Fitch Learning: As diversity and inclusion become a more prominent part of the conversation on winning and retaining talent in financial services, there is a risk of ending up with a box-ticking exercise rather than a cultural change, Andreas Karaiskos said.

Deza Mones, Arno Maierbrugger, Danielle Rossingh, Esben Svendsen, Beata Fojcik, Heather O'Brian, Stephanie Salti, Sophie Davies and Mariana Aldano contributed to this report.

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