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Monte dei Paschi names chairman; big Euro investment firms to become 'systemic'

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Monte dei Paschi names chairman; big Euro investment firms to become 'systemic'

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

All about Brexit

* Europe's largest investment firms are to be declared systemic and regulated in line with banks, the European Commission has proposed, addressing concerns about them enjoying lighter regulation as they move operations from the U.K. to the EU after Brexit.

* Banks, insurers and clearing houses from the European Economic Area will be able to apply to operate in the U.K. as branches after Brexit, as long as they are not carrying out significant retail business, the Bank of England said.

Regulatory developments

* The EU will likely grant Swiss stock exchanges — SWX Swiss Exchange and BX Swiss AG — a one-year access to its internal market, which will put pressure on the Swiss government to strike an overall deal regarding its relationship with the EU, Reuters reported.

* The U.K. Competition and Markets Authority gave Barclays Plc, HSBC Holdings Plc, Royal Bank of Scotland Group Plc, Santander UK Group Holdings Plc and Bank of Ireland Group Plc more time to comply with "open banking" rules, after they said they would not be able to meet the deadline. The rules are designed to push technological change in the sector, and will make it easier to see how much money people could save by switching banks.

* The Central Bank of Ireland said an additional 13,600 customers were added to the list of those overcharged for tracker mortgages, taking the total to 33,700.

* Banco Santander SA, Banco de Sabadell SA, Bankinter SA, Banco Bilbao Vizcaya Argentaria SA, CaixaBank SA, Bankia SA and Unicaja Banco SA disclosed their capital requirements for 2018 following the annual supervisory review and evaluation process conducted by the ECB.

* One eurozone bank out of 119 surveyed by the ECB's Single Supervisory Mechanism had capital levels below the level at which distribution restrictions can be introduced. The bank was not identified.

Appointments and layoffs

* Banca Monte dei Paschi di Siena SpA appointed Stefania Bariatti chairwoman and Antonino Turicchi as deputy chairman of its 14-member board of directors.

* A majority of London Stock Exchange Group Plc's shareholders voted to retain Chairman Donald Brydon in his post.

* Bankia SA is planning to lay off 2,500 employees as a result of its acquisition of smaller lender Banco Mare Nostrum SA, Cinco Días reported.

On the deal table

* Old Mutual Plc unit Old Mutual Wealth agreed to sell its single strategy asset management division, Old Mutual Global Investors (UK) Ltd., to the business' management team, led by CEO Richard Buxton, and funds managed by private equity firm TA Associates Management LP for a total consideration of about £600 million.

* The U.K. Prudential Regulation and Financial Conduct authorities approved U.K.-based challenger bank Tandem Bank Ltd's acquisition of loss-making lender Harrods Bank Ltd. Meanwhile, Atlas Merchant Capital LLC, founded by former Barclays Plc CEO Bob Diamond, is in tentative talks to acquire a stake in Tandem.

* Banco BPM SpA's board approved the sale without recourse of two unsecured bad-loan portfolios with a gross value of about €1.8 billion, to J Invest SpA and Sweden-based NPL investor Hoist Finance AB (publ).

* Russia's Vnesheconombank plans to transfer GLOBEX Commercial Bank JSC to the state federal property agency after failing to sell the unit, Reuters reported.

* Rabobank sold its mortgage loan business Roparco Hypotheken — including the total outstanding €500 million underlying mortgage-loan portfolio, as well as personnel — to Dutch mortgage provider RNHB, a former label of Rabobank subsidiary FGH Bank.

In other news

* Danmarks Nationalbank Governor Lars Rohde warned investors to stay away from "deadly" bitcoin in an interview with state broadcaster DR, Reuters reported. Meanwhile, Bank of England Governor Mark Carney told U.K. lawmakers bitcoin does not yet pose a financial stability risk, although he expressed discomfort with the idea of cryptocurrency being issued by the central bank for public use.

* Banco Santander SA said retail investors who incurred losses following its takeover of Banco Popular Español SA in June accepted 77.88% of so-called fidelity bonds that will allow them to recoup their losses.

* Intesa Sanpaolo SpA expects about €675 million in personnel cost savings per year from 2021 via job cuts following its acquisition of Venetian lenders Banca Popolare di Vicenza SpA and Veneto Banca SpA.

* DoBank SpA agreed to manage an approximately €1 billion nonperforming loan portfolio as part of the bailout deal for Italian banks Cassa di Risparmio di Rimini SpA, Cassa di Risparmio di Cesena SpA and Cassa di Risparmio di San Miniato SpA.

* Nordea Bank AB (publ) targets a fourfold increase in its investment advisory clients by using a robo-adviser named "Nora," which uses an algorithm to lead clients into portfolios that fit their risk and financial profiles, Bloomberg News reported.

Featured during the week on S&P Global Market Intelligence

Euronext deal set to bring Irish Stock Exchange Brexit benefit: The takeover by Euronext will help the Irish Stock Exchange bolster its debt and fund listings business, analysts believe.

Dutch banks to face reduced yet still significant hit from Basel III: The impact of the Basel III capital requirements on Dutch banks will be less severe than anticipated, but it will still be significant, according to analysts.