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Wells preparing to launch its first ETF; Lloyds buying BofA's MBNA


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Wells preparing to launch its first ETF; Lloyds buying BofA's MBNA

Greensburg, Ind.-based MainSource Financial Group Inc. struck a $56.9 million deal to acquire Louisville, Ky.-based FCB Bancorp Inc. in a cash-and-stock transaction.

Lloyds Banking Group Plc is buying British credit card issuer MBNA Ltd. from FIA Jersey Holdings Ltd., a wholly owned subsidiary of Bank of America Corp., for a cash consideration of £1.9 billion.

In Missouri, First State Bancshares Inc. is seeking to buy three branches — located in Moberly, Macon and Marshall — of NBH Bank division Bank Midwest, the Moberly (Mo.) Monitor-Index reports.

BancorpSouth Inc.'s unit BancorpSouth Insurance Services Inc. has acquired certain assets of Waguespack & Associates Insurance Inc., an independent insurance agency that handles commercial and personal lines insurance.

In other banking news, Norwich, N.Y.-based NBT Bancorp Inc. appointed John Watt Jr. president and CEO of the company and unit NBT Bank NA, effective Dec. 19.

Orrstown Financial Services Inc. named Executive Vice President and CFO David Boyle chief accounting officer.

Blairsville, Ga.-based United Community Banks Inc. Executive Vice President and CFO Rex Schuette will retire in 2017.

The FDIC and the Georgia Department of Banking and Finance issued a consent order against Ameris Bank relating to weaknesses in its Bank Secrecy Act compliance program.

Meanwhile, a group of financial institutions, including Goldman Sachs Group Inc. and JPMorgan Chase & Co., are reportedly investing in blockchain startup Axoni, according to Reuters. The investment — expected to be announced this week — will range from $15 million to $20 million, a source said.

Wells Fargo & Co.'s Wells Fargo Asset Management is thinking to launch its first-ever exchange-traded fund in the next three to six months, Bloomberg News reports, citing company executives. Specifically, the firm is weighing multifactor smart beta ETFs.

Deutsche Bank AG may reach an agreement with the U.S. Department of Justice as early as tomorrow to settle a lawsuit alleging that it missold mortgage-backed securities in the U.S., a source told Reuters, noting that the bank is set to pay far less than the $14 billion initially sought by the DOJ. Credit Suisse Group AG could also reach a potential settlement with the DOJ over its sale of MBS this week. Another source for the publication said the DOJ proposed that Credit Suisse pay between $5 billion and $7 billion to settle the investigation.

Speaking of regulators, the Federal Reserve adopted a rule that will require large banks to publicly disclose their consolidated liquidity risk metrics every quarter based on the previous quarter's averages. The rule also requires large banks to disclose consolidated high-quality liquid asset amounts, broken down by category, as well as report projected net stressed cash outflow amounts, including retail inflows and retail deposit outflows, derivatives inflows and outflows, and several other measures.

The Commodity Futures Trading Commission filed an order against Convergent Wealth Advisors LLC after it found that its former CEO David Zier — who died in 2014 — made fraudulent representations and issued false statements to clients in connection with a commodity pool he operated as an outside business activity, while acting as an agent of the company. Convergent will pay an $800,000 civil monetary penalty.

Canada's Office of the Superintendent of Financial Institutions will undertake a consultation with federally regulated financial institutions as part of its review of the expectations it has of the companies' boards of directors.

Meanwhile, The Wall Street Journal reports that Intercontinental Exchange Inc.'s NYSE Arca incurred a technical glitch on its platform yesterday, which led to a 15-minute halt in trading. The glitch was due to the rollback of software updates made during the weekend, according to NYSE spokeswoman Kristen Kaus.

In the credit union scene:

Community Credit Union CEO Marvel Ebenhahn will retire in January 2017, the Credit Union Journal reports.

Elsewhere, First City Credit Union named Jim Miller successor to retiring President and CEO Terry O'Steen and Corporate Central Credit Union appointed Gregg Tushaus chief information officer.

And online lender Social Finance Inc. is pushing back its IPO plans. In an interview with Bloomberg, CEO Mike Cagney said the company, instead, wants to concentrate on developing new business lines. He also said the company is not ready for the type of scrutiny that public companies face.

In other parts of the world

Asia-Pacific: Doha Bank eyes Indian branch network; Google delays NAB proceedings

Europe: Lloyds to buy MBNA; Credit Suisse could face up to $7B US penalty

Middle East & Africa: 3 Qatari banks mull merger; Nigeria buckles up for sukuk drive

The day ahead

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

In Asia, the Hang Seng dropped 0.47% to 21,729.06, while the Nikkei 225 rose 0.53% to 19,494.53.

In Europe, around midday, the FTSE 100 gained 0.16% to 7,028.14, and the Euronext 100 lifted 0.36% to 928.99.

On the macro front

The Redbook is due out today.

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