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Weekly news through April 8


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Weekly news through April 8

S&P Global Market Intelligence offers ourtop picks of banking news stories and more published throughout the week.

Panama Papers: Impact on Europe, banking

* Areport from the InternationalConsortium of Investigative Journalists, one of the organizations with direct access to more than 11.5 million leaked files from Panama-based law firm MossackFonseca, showed that the 10 banks that requested the highest number of offshorecompanies from Mossack Fonseca are European. The documents how the law firm allegedly helped wealthyand powerful figures from around the world hide their financial assets throughoffshore tax regimes, laundered money and evaded sanctions.

* Threebanks allegedly linked to MossackFonseca — HSBC HoldingsPlc, Credit SuisseGroup AG and SociétéGénérale SA — rejected the Panama Papers-related that they used to help clientsevade taxes.

* IcelandicPrime Minister Sigmundur Davíð Gunnlaugsson was pressured to after the Panama Papers revealedthat he once owned an offshore company with claims on the country's threecollapsed banks. The company is nowreportedly controlled by his wife.

* The U.K. Financial Conduct Authority lenders and other financialservices firms in the country until April 15 to complete initial investigationsinto whether and how they are linked to Mossack Fonseca.

*Hypo LandesbankVorarlberg CEO Michael Grahammer stepped down following the Panama Papers revelations.

Regulatory developments

* TheEuropean Parliament approved a European Commission proposal to push back theimplementation date of the revised Markets in Financial Instruments Directive,or MiFID II, by a year to 2018 to make "targeted amendments" to thenew rules.

* The BaselCommittee on Banking Supervision has issued a on the Basel IIIleverage ratio framework, proposing changes to the treatment of derivatives andoutlining how the world's largest banks may have to meet additionalrequirements.

* TheECB reportedly gaveBanca Popolare di VicenzaSpA until the middle of May to execute a proposed €1.76 billioncapital increase, extending the deadline that had been set for the end ofApril.

* Sourcessaid the Italian government's plan to create a state-backed fund that could buybad loans and help plug capital holes at troubled banks should be by April 11.

* TheCentral Bank of Cyprus is tightening its anti-money laundering and anti-terroristfinancing rules for banks.

Top moves

* MarkYallop, a former Deutsche BankAG and UBS GroupAG executive, is rumoured to be in the to become the next CEO of theU.K. Prudential Regulation Authority.

*Norddeutsche LandesbankGirozentrale's supervisory board appointed Thomas Bürkle chairman of the managing boardand Hinrich Holm deputy chairman, with effect from Jan. 1, 2017.

*Swedbank ABappointed BirgitteBonnesen CEO of the bank. Bonnesen has been the lender's acting CEO sinceFebruary, after Michael Wolf left the bank.

Buyers and sellers

*Grupo Catalana OccidenteSA agreed to acquire Grupo Previsora Bilbaína, including itsinsurance business for €74 million, insurance mediation company Azkaran for €18million and Bilbaína's funeral business for €33 million.

*Bank of SingaporeLtd. agreed to acquire Barclays Bank Plc's wealth management operations inSingapore and Hong Kong for about US$320 million.

*London Stock Exchange GroupPlc CEO Xavier Rolet said the firm will not consider an offer from due tothe latter's track record with previous acquisitions. ICE announced that italready obtainedfinancing for part of the debt thatwill be needed to fund a £10 billion takeover bid for LSE.

*Julius Bär Gruppe AGcompleted thepreviously announced deal to acquire an additional 60.1% stake in KairosInvestment Management SpA for €276 million, bringing the group's totalownership at the Milan-based company to 80%.

* Angolanbusinesswoman Isabel dos Santos reportedly resumed talks with CaixaBank SA regarding the latter's plan to acquire her18.6% stake in Banco BPISA

Thebottom line

*Co-operative Bank PlcCEO Niall Booker expects the lender's core business to return toprofitability by 2017-end after reporting attributable losses of up to £623.3 million for the 2015 fullyear.

*Barclays Plcdoes not expect"as strong a performance" from its investment banking operations forthe first quarter in light of current market conditions for investment.

In other news

* is reportedlyplanning to launch an IPO of subsidiary First Hawaiian Bank, as early as June.

* Spanishunion Comisiones Obreras said Banco Santander SA plans to 1,200 jobs as part of arestructuring plan in Spain.

Featured during the week on S&P GlobalMarket Intelligence

* Banks named in Panama Papers, but it's just the tip of the offshoreiceberg: Papers leaked from just one law firm in Panama haveexposed how banks helped the rich and powerful channel cash into offshorecompanies. But it's just the tip of the iceberg.

* The £40B PPI question facing UK banks: The cost of mis-selling payment protectioninsurance has cost U.K. banks dear. But there may be a lot more to come.

*Heta conflict nears €10Bsolution: Decisions about who pays or receives what have yet to bemade but a deal over Austrian bad bank Heta is drawing to a close.