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Goldman Sachs' Blankfein condemns Trump's decision over Paris climate accord


Japan M&A By the Numbers: Q4 2023


Banking Essentials Newsletter: 7th February Edition

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A Bank Outsources Data Gathering to Meet Basel III Regulations

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An Investment Bank Taps S&P's Real Estate Modeling Expertise

Goldman Sachs' Blankfein condemns Trump's decision over Paris climate accord

In government news, U.S. President Donald Trump will initiate a U.S. withdrawal from the Paris Agreement on climate change, calling the agreement a "bad deal" for Americans that "accomplishes little for the climate." Soon after the announcement, executives of several big U.S. companies, including Goldman Sachs Group Inc. CEO Lloyd Blankfein, criticized Trump's decision. Blankfein, in his first message on Twitter, said that the decision "is a setback for the environment and for the U.S.'s leadership position in the world."

On regulation, the Federal Reserve will change a number of things in its stress testing process for banks, Fed Gov. Jerome Powell told CNBC. Powell said the upcoming stress test results will also come with information on the changes, such as how banks should report loss rates for certain corporate loans.

Similar with the recent assessment of executives at JPMorgan Chase & Co. and Bank of America Corp., Citigroup Inc. CEO Michael Corbat said that second-quarter trading revenue will likely be down year over year due to lower volatility, pushing down stocks. Citi hopes to return more capital than it earns in the near term, Corbat said at a conference yesterday.

Three bank M&A deals were recently announced — in Georgia, Charter Financial Corp. is buying Resurgens Bancorp in an all-cash deal valued at about $26.3 million; in Wisconsin, First American Bankshares Inc. is buying Commercial Bancshares Inc.; and in Minnesota, Waseca Bancshares Inc. seeks to merge with Freedom Bancorp. Inc.

In other banking news, Esquire Financial Holdings Inc. filed a Form S-1 registration statement for an initial public offering of its common stock. The Jericho, N.Y.-based company intends to apply to list its common stock on the Nasdaq Capital Market under the symbol ESQ.

In the asset management scene, Blackstone Group LP and Paulson & Co. Inc. hired investment bank Moelis & Co. to come up with a blueprint for reforming mortgage lenders Fannie Mae and Freddie Mac and release them from U.S. government control, the Financial Times reports.

KKR & Co. LP announced the final closing of its KKR Asian Fund III, a $9.3 billion fund focused on investments in private equity transactions across the Asia Pacific region.

Private investor Jack Freney paid $5 million for 553,097.345 common shares of Owl Rock Capital Corp II, which represent 46.70% of the investment company's outstanding common shares.

And in Canada, Canadian Western Bank is open to making some portfolio purchases from Home Capital Group, according to President and CEO Christopher Fowler. "We're interested in looking at other portfolios within [Home Capital], and we'll see what transpires there," Fowler said during the bank's June 1 earnings call.

In other parts of the world

Asia-Pacific: Nomura involved in controversial bond buy; Deutsche eyes Asian wealth expansion

Europe: EU approves MPS rescue; CaixaBank makes CoCo debut; Unicaja to launch IPO

Middle East & Africa: Barclays Africa share placing upsized; Egypt ratifies investment law

The day ahead

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

In Asia, the Hang Seng increased 0.44% to 25,924.05, and the Nikkei 225 climbed 1.60% to 20,177.28.

In Europe, around midday, the FTSE 100 was up 0.34% to 7,569.70, and the Euronext 100 was up 0.86% to 1,035.45.

On the macro front

The employment situation report, the international trade report and the Baker-Hughes Rig Count report are due out today.

The Daily Dose is updated as of 7:30 a.m. ET. Some external links may require a subscription.