In Tennessee, Brentwood-based Reliant Bancorp Inc. is acquiring Clarksville-based First Advantage Bancorp and unit First Advantage Bancorp for $123.4 million in a cash-and-stock transaction. The combined company will have assets of about $3 billion.
West Warwick, R.I.-based Centreville Bank is buying Putnam, Conn.-based PB Bancorp Inc. and unit Putnam Bank in a $115.5 million deal set to close in the first or second quarter of 2020. PB Bancorp shareholders will receive $15.25 in cash per share under the deal's terms. Centreville Bank will enter eastern Connecticut through the acquisition and the combined bank will have about $1.78 billion in assets and $1.31 billion in deposits.
Blackstone Group Inc. reported third-quarter distributable earnings of $709.9 million, or 58 cents per share, compared to $769.3 million, or 63 cents per share, in the year-ago period. Nasdaq Inc. reported third-quarter EPS of $1.27 per share, compared with $1.13 in the year-ago quarter.
Although Malaysia had publicly demanded that Goldman Sachs must pay $7.5 billion for its alleged involvement in the 1Malaysia Development Berhad scandal, representatives of the Malaysian government have been talking privately with the Wall Street bank, discussing numbers just around $2 billion to $3 billion, sources told Bloomberg News. Malaysian Prime Minister Mahathir Mohamad is inclined to reach a settlement before year-end but it is not yet clear if a multibillion-dollar settlement would lead Malaysia Attorney General Tommy Thomas to drop all charges against the investment bank, or 17 current and former bank executives individually charged.
The U.S. Attorney's Office for the Southern District of New York charged six individuals for allegedly being part of a multimillion-dollar insider trading scheme. The six are Benjamin Taylor, reportedly a former London-based investment banker at Moelis & Co.; Darina Windsor, who worked as London-based investment banker at Centerview Partners LLC at the time of the alleged conduct; investment banker Bryan Cohen, who was put on leave by employer Goldman Sachs following his arrest and release on bail Oct. 18; Telemaque Lavidas, who is the son of an ARIAD Pharmaceuticals, Inc. board director; and securities traders Georgios Nikas and Joseph El-Khouri.
Federal Housing Finance Agency Director Mark Calabria said in a House Financial Services Committee hearing Oct. 22 he is open to wiping out shareholders of government-sponsored enterprises Freddie Mac and Fannie Mae altogether if necessary, saying he is working for the taxpayers, American Banker reports. Calabria's remark came as Rep. Bill Foster, D-Ill., questioned the regulator's allowing Fannie and Freddie retain earnings, thereby benefiting hedge funds with principals linked to President Donald Trump's administration. Calabria also hinted at a future rulemaking aimed at lessening the GSEs' footprints, according to the news outlet.
Facebook Inc. CEO Mark Zuckerberg is expected to tell the House Committee on Financial Services panel in a hearing today that the social media giant will not be leading efforts to launch the Libra cryptocurrency. In his prepared remarks, Zuckerberg said the coalition of 21 companies and non-profits Facebook created to start the project, known as the Libra Association, will move the project forward. He also said Libra payments system will not be launched anywhere in the world until approved by U.S. regulators.
Logistics property developer ESR Cayman Ltd. and its private equity backer, Warburg Pincus LLC, approached Morgan Stanley in August to develop a rescue plan for ESR's initial public offering, which did not push through as planned in June, sources told Reuters. Morgan Stanley had no role in ESR's first IPO attempt but has dislodged its peers Citigroup Inc., CLSA, Deutsche Bank AG, Credit Suisse Group AG, DBS, and Goldman Sachs Group Inc. to bag the lead role in the IPO relaunch deal, according to the report.
In other parts of the world
Asia-Pacific: China considers replacing HK chief; India banks face US$50B shortfall says Fitch
Europe: Fast-track Brexit rejected; Swedbank Q3 profit down; Handelsbanken to exit Asia
Middle East & Africa: UAE banks mull real estate lending cap; Commercial Bank's Q3 profit up YOY
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Big i-banks owe debt of gratitude to lower rates: Some of the largest U.S. investment banks were able to gain market share and boost their total advisory and underwriting revenue during a typically slow dealmaking period. Deal activity tends to dip during the summer months, but total investment banking revenue increased 1.2% quarter over quarter and 3.9% year over year to $8.11 billion for Bank of America Corp., Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co. and Morgan Stanley.
Most US banks with more than $100B in assets outperform Q3 analyst expectations: Most U.S. banks with more than $100 billion in assets had outperformed analysts' third-quarter expectations as of Oct. 18, with only Wells Fargo & Co. and M&T Bank Corp. missing analysts' EPS estimates.
First BanCorp. deploys capital stockpile in $1.1B deal: With its $1.1 billion, all-cash deal for Santander BanCorp., First BanCorp. took a big step toward fulfilling widespread investor expectations that it would use its strong capital position in a transaction to boost shareholder returns.
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Hang Seng shed 0.82% to 26,566.73, and the Nikkei 225 rose 0.34% to 22,625.38.
In Europe, around midday, the FTSE 100 increased 0.08% to 7,217.66, and the Euronext 100 fell 0.66% to 1,085.66.
On the macro front
The Federal Housing Finance Agency House Price Index and the U.S. Energy Information Administration Petroleum Status Report are due out today.
Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.
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