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Vicenza, Veneto rescue underway; Banco Popular faces claims; Deutsche eyes Asia

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Vicenza, Veneto rescue underway; Banco Popular faces claims; Deutsche eyes Asia

In an interview with Welt am Sonntag, UBS Group AG Chairman Axel Weber dismissed concerns about a growing regulatory gap between Europe and the U.S., saying Europe would not continue to tighten regulations while there would not be a "deregulation wave for banks in the U.S."

* The ECB's final guidelines on leveraged lending, which is similar to yet tighter than U.S. guidelines on leveraged loans, is due to be implemented in November 2016 but still has a number of key questions left unanswered, including the definition of total debt and how the 90-day limit for syndicating deals will be applied, Reuters wrote, citing a report by legal firm White & Case.

* European Council President Donald Tusk said no date has yet been set for the beginning of Brexit negotiations, but he urged the U.K. to "avoid a 'no deal' as [a] result of 'no negotiations,'" The Wall Street Journal reported. European officials indicated that the two-year deadline for the U.K. to exit the EU would not be put on hold due to the uncertainties brought about by the results of the U.K. elections.

UK AND IRELAND

* A consortium comprising Qatari conglomerate Al Faisal Holding and Swiss investment firm Interritus Ltd. has reportedly recruited Barclays Plc to help draw up a potential takeover proposal for troubled British lender Co-operative Bank Plc, The Telegraph wrote. However, Co-op Bank is seen to be more likely to agree to a rescue deal being prepared by a group of its investors, including U.S. hedge funds GoldenTree Asset Management and Silver Point.

* Investors are prepared to commit up to about €900 million to purchase shares in Allied Irish Banks Plc's planned IPO, The Sunday Times reported. It added that the government is set to issue a prospectus and the price range, which is expected to be around €4.40 to €4.90 per share, for the planned IPO this week. Yet unnamed sources told The Irish Times that the pricing of the IPO may be delayed by several days to assess the impact of the recent U.K. election results on investor sentiment.

* A survey conducted by British business lobby group the Institute of Directors showed that 57% of business leaders are pessimistic about the U.K.'s economic prospects over the next year due to the political uncertainty brought about by the loss of the parliamentary majority of Prime Minister Theresa May's Conservative Party in last week's general election, Bloomberg News wrote. According to the survey, business leaders are most concerned about the country's ability to secure a post-Brexit trade deal with the EU.

* Kevin Thompson, CEO of industry trade body Insurance Ireland, criticized the Central Bank of Ireland's lack of "a pragmatic approach" as one of the primary reasons for Dublin's failure to lure major insurers shifting operations from London after Brexit, The Sunday Times wrote.

* Helios Underwriting Plc will acquire Lloyd's of London limited liability member Nottus No 51 Ltd. for a consideration of £964,500 in cash.

GERMANY, SWITZERLAND AND AUSTRIA

* Deutsche Bank AG's wealth management unit is hiring 100 client managers around the world in an effort to bolster its access to the super-rich, particularly in the Asia-Pacific region, the Financial Times reported.

* Norddeutsche Landesbank Girozentrale may cut up to 1,000 jobs, including 100 positions overseas, particularly in Singapore, WirtschaftsWoche wrote.

FRANCE AND BENELUX

* French President Emmanuel Macron's movement, En Marche, took 32.32% of the votes in the first round of the French parliamentary elections yesterday, setting it on course to win up to 430 of the 577 seats in the French national assembly, news outlets including The Guardian reported.

* Hypotheek Visie, the third-biggest Dutch mortgage lender, has been put up for sale by its founder, Anton Vanden Bol, De Telegraaf reported.

SPAIN AND PORTUGAL

* Banco Popular Español SA could face client claims in excess of €1.5 billion after its takeover by Banco Santander SA last week, as part of which its existing shares and Additional Tier 1 bonds were wiped out, El País reported.

ITALY AND GREECE

* UniCredit SpA and Intesa Sanpaolo SpA agreed to contribute to a €1.2 billion capital injection for Banca Popolare di Vicenza SpA and Veneto Banca SpA, as long as most other Italian banks also contribute an amount that is proportionate to their size, most dailies including Milano Finanza wrote. Il Sole 24 Ore added that the objective was to seal the deal by Wednesday. UniCredit and Intesa Sanpaolo have been asked to contribute €300 million each to create a new company for the rescue of the two Veneto lenders, Il Messaggero wrote. However, banks such as Banca Monte dei Paschi di Siena SpA, Unione di Banche Italiane SpA, Banco BPM SpA and Cassa depositi e prestiti SpA are opposed to giving money to help the two lenders, La Repubblica wrote.

* Funds taking part in the €26 billion securitization of Banca Monte dei Paschi di Siena's nonperforming loans are asking to pay less than the 20% to 21% discount on the gross book value agreed with the EU, paving the way for a possible reopening of negotiations, Il Sole 24 Ore wrote.

* The board of Banca Carige SpA approved a no-confidence vote against CEO Guido Bastianini, most dailies including Milano Finanza wrote. Reuters also covered.

* Algebris Investments reached an agreement to buy NPLs with a face value of about €750 million from Banco BPM, Bloomberg News reported.

* Greek lawmakers approved reforms demanded by creditors in exchange for more loans and to complete the review of the country's €86 billion bailout program, Reuters reported. Eurozone finance ministers are set to meet in Luxembourg on June 15 to consider the country's reform progress and debt-cutting measures. They are expected to approve a new loan tranche following the Greek parliament's vote.

NORDIC COUNTRIES

* Hoist Finance AB (publ) intends to nominate CEO Jörgen Olsson to serve as deputy chairman and said he will step down as CEO once a successor has been identified.

EASTERN EUROPE

* Otkritie Holding JSC and Otkritie Investments Cyprus Ltd. intend to make a cash tender offer for up to 24,794,253 outstanding Class B ordinary shares of QIWI plc at a price of $28 per share to increase their holding in Qiwi to up to 63.85% from 8.85%.

* The newly appointed supervisory board of Bank Pekao SA asked its CEO Luigi Lovaglio to resign from the post but he refused, Rzeczpospolita reported.

IN OTHER PARTS OF THE WORLD

Asia-Pacific: Singapore, Americas partner on fintech; Deutsche Bank targets clients in Asia

Middle East & Africa: Qatari banks' liquidity at risk after blacklist; Moody's cuts South Africa

Latin America: Venezuela struggles with debt; court omits Odebrecht testimony from Temer case

North America: Zames wants to run his own business; Financial CHOICE Act moves to Senate

North America Insurance: NY insurers seek rate hikes; McConnell supports pre-existing illness protection

NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE

Surprise vote brings fresh uncertainty for UK banks, Brexit talks: Prime Minister Theresa May's hopes of a stronger hand going into the country's crucial Brexit negotiations were dashed as her Conservative Party lost its parliamentary majority, bringing fresh uncertainty to the country's financial sector.

Soft Brexit hopes temper UK election shock as May hangs on as PM: Financial markets hope a weaker Theresa May will mean a softer Brexit as Conservatives patch together a fragile majority in parliament.

Big Italian banks warm to Vicenza-Veneto rescue as €11B wind-up threatens: The largest Italian banks have been asked to contribute €1.2 billion to rescue Banca Popolare di Vicenza and Veneto Banca, to avoid an even costlier insolvency at the two Venetian lenders.

David Hutter, Ed Meza, Danielle Rossingh, Gerard O'Dwyer, Beata Fojcik, Thanasis Kakalis, Ali Kayalar, Yael Schrage, Stephanie Salti, Praxilla Trabattoni and Mariana Aldano contributed to this report.

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