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Man Group plans new holding company; Banca Carige may seek business combinations


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Man Group plans new holding company; Banca Carige may seek business combinations

* Growing trade and political tensions around the world, but chiefly between the U.S. and China, are beginning to weigh on international commerce and have the potential to derail the economic recovery of the eurozone, according to minutes published by the European Central Bank.

* European shares extended losses yesterday, with the pan-European STOXX Europe 600 index closing down 1.98% to its lowest level since December 2016. The FTSE 100 dropped 1.94%, while the eurozone blue-chip Euro STOXX 50 declined 1.77%. The Euro STOXX Banks index closed 1.84% lower.


* An abrupt and disorderly Brexit could have a "severe" short-term impact on U.K. public finances and the economy, the U.K. government's independent forecaster, the Office for Budget Responsibility said in a new report. Meanwhile, Britain's banks could face credit rating downgrades in the event of a disruptive Brexit accompanied by a severe economic shock, according to S&P Global Ratings.

* British lenders expect to limit mortgage lending over the next three months to November-end, according to the Bank of England's latest quarterly credit conditions survey, which also showed that banks and building societies are becoming more risk-averse, influencing their plans to supply secured borrowing and loans to businesses.

* Man Group PLC intends to incorporate a new group holding company in Jersey, citing significant growth in the size of its U.S. business over the past five years. The group reported funds under management of $114.1 billion as of Sept. 30, compared to $113.7 billion at June-end and $103.5 billion at the end of September 2017.

* HSBC Holdings PLC appointed Greg Guyett co-head of its investment bank, insiders told the Financial Times. Guyett joins from JPMorgan Chase & Co., where he served for nearly 30 years in a variety of roles, including head of investment banking in Asia Pacific.

* Standard Chartered PLC is set to create a new sustainable finance team to lead its push into the business, according to Reuters.

* CYBG PLC received approval to use its own internal risk models in determining credit risk weighted assets, with the application delivering a significant reduction in the RWAs held for both its mortgage and SME/corporate portfolios.

* London-based stock analysis firm Autonomous Research LLP is in advanced discussions regarding a potential $110 million sale to U.S. investment management group AllianceBernstein Holding LP, insiders told Financial News.

* Singapore-based United Overseas Bank Ltd. is reviewing its life insurance tie-up with Prudential PLC as it aims to get more value out of its insurance operations, insiders told Bloomberg News.

* Permanent TSB Group Holdings PLC CEO Jeremy Masding warned that the Irish lender's high level of nonperforming loans is "dangerous" for Ireland, as he defended the bank's sale of bad loans to a Lone Star affiliate, The Irish Times wrote.


* Ship financing is gradually shifting towards Asia from Europe, as traditional German lenders are now pulling back, according to Moody's. Deleveraging by German banks was the main driver for the overall decline in European lending to the shipping sector to about €200 billion at 2017-end from more than €300 billion in 2012, the agency noted.

* UBS Group AG suffered a setback at a tax evasion trial in Paris after the court rejected its request to drop the allegation of money laundering and limit the case to tax fraud, which has lower penalties, Reuters reported. The bank is on trial over claims that it helped wealthy clients fraudulently evade up to €10 billion.

* Japan-based Daiwa Securities Group Inc. migrated its London trading operations to Frankfurt unit Daiwa Capital Markets Deutschland GmbH, as part of its Brexit contingency plans, the FT reported.

* The German finance ministry has asked the local unit of Turkish lender T.C. Ziraat Bankası AŞ to submit documents and information as part of a tax probe into some individuals, according to Reuters.


* LeasePlan Group, the parent of LeasePlan Corp. NV, called off a planned listing of its shares on Euronext in Amsterdam and Brussels, citing market conditions.

* Shares in Natixis fell 4.62% yesterday after the French lender confirmed that it is in talks to take over payments firm Ingenico Group SA, with Les Echos pointing to investor concerns that a potential acquisition would scupper their hopes of a high dividend. Meanwhile, Edenred SA is also interested in acquiring Ingenico, insiders told Reuters.

* Caisse des Dépôts et Consignations said it is not able to open cryptocurrency accounts because of the high risk that they will be used for money laundering, in spite of parliamentarians proposing a law designating it as the bank of last resort for such accounts to facilitate initial coin operations, Les Echos reported.

* The National Bank of Belgium has taken control of asset manager Weghsteen, De Tijd reported. Weghsteen has 2,500 customers and manages assets worth €500 million.


* The European Commission approved CaixaBank SA's sale of a portfolio of real estate assets to U.S. private equity firm Lone Star.

* The liquidation commission of the former Banco Espírito Santo SA requested €90 million from Goldman Sachs International to compensate for interest and commissions paid on the assembly of Oak Finance a few days after the Portuguese bank's resolution. Oak Finance was the mechanism created by Goldman Sachs which granted $835 million to Banco Espírito Santo shortly before it went bankrupt, Jornal de Negócios wrote.


* Italian lawmakers approved the government's fiscal plan, including deficit targets of 2.4%, 2.1% and 1.8% of GDP in 2019, 2020 and 2021, respectively, Bloomberg reported.

* Italian Deputy Prime Minister Luigi Di Maio said the government will cut tax breaks that banks can take on interest payments, Reuters reported. Separately, Tito Boeri, head of Italian state pension agency INPS, said the government's plans to lower the retirement age will cost future generations about €100 billion.

* Banca Carige SpA said its board will consider identifying an investment bank to explore potential business combinations. The lender is also planning a €200 million subordinated bond guaranteed by its key shareholder, the Malacalza family, to boost its capital ratios, MF said.


* A survey conducted by market research group Voxmeter estimates that Danske Bank A/S has lost almost 49,000 customers so far in 2018 amid continuing money laundering investigations involving the bank's branch in Estonia, according to Børsen.

* Meanwhile, Jyske Bank A/S became the first Danish bank to discontinue the issuance of 1,000 Danish kroner banknotes, following a push by the government to strengthen the country's anti-money laundering regulations, Berlingske Tidende reported. Other Danish lenders are expected to follow suit by 2018-end.

* Gjensidige Forsikring ASA will close eight branches in Norway and cut jobs at its banking and insurance operations in Sweden and Denmark, wrote.


* The Slovenian Sovereign Holding invited investors to submit expressions of interest in a 100% stake in state-owned lender Abanka dd. The deadline submitting expressions of interest is set for Oct. 26.

* Losses of Russian insurers from yesterday's unsuccessful launch of the Soyuz MS-10 spacecraft could amount to several billion Russian rubles, Vedomosti reported. Soglasie Insurance Co. Ltd. acted as the main insurer, with the launch insured by the company for a total of 4.66 billion rubles, the newspaper noted.

* Russian financial group Cashbery suspended its activities until Nov. 1, blocking cash deposits and withdrawals, as well as internal transfer transactions, RBC news agency reported. The Central Bank of the Russian Federation recently said Cashbery had been operating as a Ponzi scheme, with potential damage to the group's clients estimated at 1 billion Russian rubles.

* Turkish President Recep Tayyip Erdoğan said the country's treasury should take over the opposition Republican People's Party's 28% stake in Türkiye İş Bankası AŞ, Reuters reported, citing local daily Hürriyet.

* Kuwait-based First Takaful Insurance Co. KPSC received an acquisition offer for its 35% stake in Turkey's Neova Sigorta.


Asia-Pacific: MUFG Bank seeks higher Vietinbank stake; Japanese firm eyes North America

Middle East & Africa: Fitch downgrades Zambia; US regulator fines Mashreqbank over compliance issues

Latin America: Itaú names 2 directors to XP; Peru opposition leader arrested

North America: OCC may penalize Citi for discriminatory lending; Investar to buy Texas bank

Global Insurance: Michael strikes hard; Catalina adds $700M to war chest; Centene's ACA growth


Nordic banks face more scrutiny over Baltic ties: anti-money laundering expert: After Estonia revealed huge sums flowed through its banks over an eight-period, a leading financial crime analyst who helped reveal the scale of wrongdoing at Danske Bank A/S said suspicions of money laundering would taint the wider Nordic banking system.

French online banks face challenge in achieving profits — regulator: New players operating in France's banking sector face a major challenge in achieving profitability given tough competition in a mature market that will restrict growth, according to a study by the French banking regulator.

Leo Magno, Ed Meza, Danielle Rossingh, Gerard O'Dwyer, Beata Fojcik, Heather O'Brian, Brian McCulloch, Sophie Davies and Mariana Aldano contributed to this report.

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