A group of credit unions in Michigan are forming a limited-purpose bank, named Credit Union Trust, to provide trust services to their members, according to Crain's Detroit Business. The new bank — expected to launch in the first quarter of 2019 — will be headquartered in Farmington Hills, Mich. The group will provide $5.5 million in capital for the launch.
Germany-based Deutsche Bank AG is terminating dozens of employees in Chicago and is consolidating its office space in the city, sources for Bloomberg News say.
Richard Yorke, who was COO of Wells Fargo & Co.'s key wholesale business in 2017, is leaving as the bank further integrates its corporate and investment banking segments, The Wall Street Journal reports, citing an internal memo. Yorke is expected to leave in August.
M&T Bank Corp. Chief Security Officer David Stender said that a lot of companies are spending money in the wrong way when they purchase artificial intelligence-based cybersecurity tools they are not ready for, according to the WSJ. "They could take that money and put it into improving basic cybersecurity hygiene, which would do much more to protect their company," Stender said. He said M&T Bank does not use AI for cybersecurity, and wants to watch other companies try it out first and then learn from their mistakes.
Thomson Reuters Corp.'s financial and risk business will be rebranded Refinitiv once the company closes its strategic partnership deal with Blackstone Group LP. The deal will see private equity funds managed by Blackstone buy a 55% stake in the business for about $17 billion.
U.S. Treasury Secretary Steven Mnuchin said on the 'Fox News Sunday' talk show that he foresees the U.S. economy to sustain a 3% growth for the next four to five years, according to Reuters. However, economists expect the pace to moderate, with forecasts showing growth to wane to 1.8% by 2020 from about 3% this year, Bloomberg News reports.
In regulatory news, the Federal Reserve is expected to keep its benchmark interest rate unchanged at its July 31-Aug. 1 policy meeting, the WSJ reports. They most recently raised rates in June and are expected to wait until September for the next rise.
In other parts of the world
Asia Pacific: ICICI Bank Q1 profit down; 2 Japan banks to merge; Samsung Securities CEO leaves
Europe: Deutsche cuts London clearing ops; StanChart extends US sanctions scrutiny
Middle East & Africa: Leumi to sell credit card unit to Warburg Pincus; Moody's downgrades Zambia
Now featured on S&P Global Market Intelligence
Bevy of i-banks battle over billion-dollar depository deals: The array of different investment banks working on a two large depository M&A transactions underscores just how much competition there is for bank deals that approach or top $1 billion.
Synchrony driven to secure Sam's Club card renewal after Walmart walks: After Synchrony Financial's failure to renew a key co-branded card program with Walmart, the lender's other major retail partner renewals could be in jeopardy.
The day ahead
Early morning futures indicators pointed to a mixed opening for the U.S. market.
In Asia, the Hang Seng was down 0.25% to 28,733.13. The Nikkei 225 slid 0.74% to 22,544.84.
In Europe as of midday, the FTSE 100 slipped 0.07% to 7,696.08, and the Euronext 100 lost 0.30% to 1,077.55.
On the macro front
The pending home sales index 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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