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Santander acquiring Banco Popular; RBS settles cash call claims


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Santander acquiring Banco Popular; RBS settles cash call claims

* The mismanagement of risks can potentially expose global investment bank bondholders to faster deterioration in credit quality compared to investors in other financial institutions, according to Moody's. These risks include the global systemically important banks' opaque, rapidly changing risk profiles; periodic concentrated positions; extensive reliance on less-stable wholesale funding; and confidence-sensitive customer bases.


* Royal Bank of Scotland Group Plc reached a settlement with the remaining claimants suing the bank over its controversial £12 billion rights issue in 2008, meaning that former CEO Fred Goodwin may not need to appear in court, Sky News reported. Representatives for the RBoS Shareholder Action Group informed a judge ahead of a June 7 deadline that they would accept the British lender's 82 pence-per-share settlement offer.

* U.K.-based currency investment firm ECU Group filed a legal application asking the court to order HSBC Holdings Plc to hand over files relating to three foreign exchange orders executed in 2006, the Financial Times wrote. ECU had already previously complained about suspicions that HSBC traders were ripping the company off but was persuaded by the bank to drop the issue.

* KIRS Group, the new umbrella firm created from the merger of Towergate with four other U.K.-based insurance businesses, priced its offering of about £800 million in sterling and dollar bonds, the Financial Times reported. Proceeds from the notes, maturing in 2023, will be used to repay £500 million of debt put in place during the restructuring of Towergate.

* Lloyds Banking Group Plc's Lloyds Bank Commercial Banking named John Feeney head of the global corporates division, Reuters reported. He replaces Clare Francis, who left the group last month.

* Lloyds signed a deal to outsource about 1,500 technology jobs to IBM Corp., City A.M. reported, citing The Register. The deal is expected to reduce the bank's costs by roughly £759 million.

* Atom Bank Plc CEO Mark Mullen said the digital lender would certainly not launch its planned current account "in 2017, and maybe not even in 2018" as the U.K. personal banking market was too "ambiguous and uncertain" due to upcoming banking rules, the Financial Times reported.


* UBS Group AG established an independent legal entity, UBS Business Solutions, for 18,000 back-office staff as part of an emergency plan for severe crisis situations, reported. The division will oversee IT, transactions, trading systems, risk management, human resources, marketing and legal services.

* The number of German cooperative banks that are charging negative interest rates is increasing dramatically, Handelsblatt wrote. A selection of the country's 972 cooperative banks across Germany shows that negative interests of between 0.3% and 0.5% have become the norm, and not only for checking accounts but also for overnight money market deposit and fixed accounts, according to a listing compiled by price comparison site Verivox.

* DZ BANK AG unit DVB Bank SE and Norddeutsche Landesbank Girozentrale are most at risk of further net losses and capital reductions as a result of their shipping-loan exposures, according to Moody's. The rating agency expects the shipping sector-related woes of Germany's five largest shipping lenders, which also include HSH Nordbank AG, KfW IPEX-Bank GmbH and Commerzbank AG, to continue this year and even beyond.


* Crédit Agricole SA sold its entire 15.42% stake in investment firm Eurazeo to JCDecaux Holding, the investment company of the Decaux family, for a total consideration of €790.5 million. The sale is expected to boost Crédit Agricole SA's and Crédit Agricole Group's fully loaded common equity Tier 1 ratio by slightly more than 10 basis points and slightly more than 5 basis points, respectively. Crédit Agricole SA also expects to book a positive impact on its net income group share of roughly €100 million in the second quarter.

* Banque Fédérative du Crédit Mutuel SA and Mutuelles Investissement announced their intention to file a public tender offer for all shares of CIC that are not directly or indirectly owned by BFCM, representing 6.86% of CIC's share capital. The proposed price is €390 per share.

* SCOR SE named Wolfgang Murmann head of longevity for Europe, the Middle East and Africa, Artemis reported.

* Banks are using specialized philanthropy services as a way of keeping wealthy clients, Le Monde wrote.

* CNA Hardy plans to establish a new European subsidiary in Luxembourg. The unit establishment process is underway and expected to be complete by early 2019.

* Euronext NV recorded an average daily transaction value on its cash order book of about €8.47 billion in May, up 42.8% from a year earlier and 0.2% from April.

* Van Lanschot Kempen NV, previously known as Van Lanschot NV, acquired UBS Group's domestic wealth management activities in the Netherlands. Van Lanschot Kempen will pay an initial price of €28 million for the acquisition, which is expected to complete in the third quarter.


* Banco Santander SA agreed to acquire the entire share capital of troubled lender Banco Popular Español SA. As part of the deal, Santander will carry out a share capital increase of approximately €7.0 billion to cover the capital and provisions required to reinforce Banco Popular's balance sheet.

* Moody's recently downgraded Banco Popular's long-term deposit ratings to B2 from Ba3 and long-term senior unsecured debt ratings to B3 from B1. The rating outlook remains negative.

* Telefónica SA's mobile telephone company Movistar launched Movistar Money, an online consumer loan service, offering loans of up to €3,000 for its Spanish customers. The service is initially available for customers who have financed a mobile phone purchase through Telefónica Consumer Finance, a joint-venture with CaixaBank Consumer Finance, part of CaixaBank SA.

* The Banco de Portugal said in its latest financial stability report that Portuguese banks remain vulnerable despite ongoing improvements and tough rules on lending or selling complicated financial instruments should not yet be relaxed, according to Expresso and Jornal de Negócios. The central bank warned lenders against selling complex securities products or easing credit risk checks in an effort to boost profits.

* Portuguese banks represented by the country's banking resolution fund are seeking guarantees that they will not have to inject funds into Novo Banco SA as a result of losses incurred by the bank's "aggressive" management, Jornal de Negócios wrote. Meanwhile the Portuguese central bank is monitoring Novo Banco Chairman Rui Cartaxo, who previously served as CEO of national power grid operator REN and who is under investigation as part of a corruption probe into the energy industry, according to Jornal Económico.

* Sociedade Interbancária de Serviços SA, which administers Portugal's Multibanco ATM network, plans to sell up to 100% of the business to a foreign investor and will likely hire Deutsche Bank as financial adviser for the operation, Expresso reported.


* Italian and EU authorities have begun examining the possibility of an orderly liquidation of Banca Popolare di Vicenza SpA and Veneto Banca SpA should the conditions for their precautionary recapitalization not be met, Corriere della Sera wrote. Intesa Sanpaolo SpA CEO Carlo Messina said a potential collapse of the two lenders poses risks to Italy's economy and government bonds, Reuters reported.

* Unione di Banche Italiane SpA's management board resolved to commence exercising the mandate to increase the bank's share capital by up to €400 million.

* Credito Valtellinese SpA sold a property portfolio to Italian real estate group Beni Stabili for €115.4 million, in a deal yielding a capital gain of about €70 million and boosting the bank's common equity Tier 1 ratio by 51 basis points, Reuters said.

* Data from the Bank of Greece indicate that Greek banks reached their targets in cutting nonperforming exposures in the first quarter as a result of significant write-offs, Naftemporiki reported. The central bank estimates that overdue loans will fall to €40.2 billion in 2019 from €78.3 billion in June 2016.


* DNB ASA expects new financial players, like Facebook and Apple, to become serious competitors within the money transfer arena in Norway and the Scandinavian region soon, Dagens Næringsliv wrote. Rune Garborg, the head of DNB's mobile payment service Vipps, believes Nordic banks need to prepare for the changing financial services landscape and the arrival of new actors that will pose competitive threats to traditional banks.


* Finance Minister Anton Siluanov asked Russia's State Duma to exclude JSC VTB Bank, which has been hit by Western sanctions, from the country's privatization plan, Reuters reported. Siluanov reportedly said the current price of VTB's shares does not reflect the market value at which they could be sold if the bank was not affected by sanctions.

* The Russian Deposit Insurance Agency is having difficulties with transferring the ownership of BANK ROSSIYSKY CAPITAL (PJSC) to the JSC The Agency for Housing Mortgage Lending, as the two parties cannot agree on the price of the asset, Vedomosti reported. The transfer is part of a planned overhaul of the financial recovery system for Russian banks, under which the central bank would take control of the DIA.

* PZU SA and Polish development fund PFR are set to complete the purchase of a more than 30% stake in Bank Pekao SA from UniCredit SpA, with Pekao's current CEO Luigi Lovaglio set to remain on the post over the next few months, Puls Biznesu reported.

* The Czech parliament postponed a second-reading debate on draft legislation aimed at securing the central bank with more powers to regulate the local mortgage market, Hospodarske Noviny reported. It is not yet clear when the second reading will continue and it may be difficult to complete the entire legislative process before the national election in October, the paper noted.

* Slovenia may not proceed with the planned sale of a stake in Nova Ljubljanska banka dd at present, Reuters reported, citing Deputy Prime Minister Karl Erjavec, who believes that the price the state may get for the lender's shares could be too low.

* A survey carried out by the Lithuanian central bank showed that politically-motivated cyber attacks from Russia are viewed as the biggest threat to the Lithuanian financial system, Reuters reported.

* The European Bank for Reconstruction & Development reduced its stake in JSC TBC Bank through a sale of 1.9 million shares in the Georgian bank via an accelerated bookbuild offering. The shares sold by the EBRD represented 3.6% of TBC Bank's total shares.

* Magyar Takarékszövetkezeti Bank Zrt. and a group of savings cooperatives will increase to as far as 100% their combined stake in FHB Jelzálogbank Nyrt. after receiving clearance from Hungary's central bank, Budapest Business Journal reported, citing Hungarian news agency MTI. The takeover bid is priced at 533 Hungarian forint per share.

* Hungary-based OTP Bank Nyrt. is seen as the front-runner to acquire National Bank of Greece SA's Romanian unit Banca Româneasca SA, Romania Insider reported, citing Ziarul Financiar.


Asia-Pacific: CIMB Group to sell 50% brokerage stake; QBE Insurance moving EU base to Brussels

Middle East & Africa: Saudi, UAE banks halt dealings with Qatari peers; South Africa in recession

Latin America: Chile central bank cuts 2017 growth forecast; Temer campaign trial begins

North America: Trump to nominate former banker as OCC head; 2 Pennsylvania banks merging

North America: Senate eyes July vote on health bill; more states may follow NY move to keep ACA


Data Dispatch Europe: Stricter mortgage rules set to further curb Swedish mortgage lending: Potentially stricter amortization rules on home loans could curb mortgage lending growth at Sweden's major banks, analysts say.

Banks to push loans via apps by year-end, says fintech CEO: Mobile apps that enable the tracking of user behavior will enable a "fundamental shift" in what banks are able to offer customers, said Moven boss Brett King.

Private equity bid for Shawbrook still stands a chance, analysts say: Directors of Shawbrook Group have rejected an elevated final offer from private equity investors, but analysts say it is still too early to write off the possibility of a deal going ahead.

France's Macron nudges European debt mutualization closer to reality: The election of Emmanuel Macron has breathed new life into plans for common eurozone bonds. But, even if German opposition can be overcome, will they make much difference to borrowing costs?

Leo Magno, Ed Meza, Meike Wijers, Gerard O'Dwyer, Beata Fojcik, Mike Hatzidakis, Ali Kayalar, Heather O'Brian, Brian McCulloch, Sophie Davies and Helen Popper contributed to this report.

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