UK AND IRELAND
* HSBC Holdings PLC CFO Ewen Stevenson is seen as a strong potential candidate to succeed John Flint as CEO, Bloomberg News reported. HSBC, meanwhile, appointed Barry O'Byrne interim head of the global commercial banking division, taking over from Noel Quinn, who was named interim CEO after John Flint resigned from the role.
* The U.K. Serious Fraud Office included actual fraud charges to the indictment brought against three former Barclays PLC executives over the bank's controversial cash calls in 2008, in addition to the existing counts of conspiracy to defraud, Bloomberg News reported.
* The U.K. Competition and Markets Authority said Nationwide Building Society agreed to reimburse current account customers affected by its contravention of laws, related to overdraft fees, to the tune of £6 million.
* The U.K. Financial Conduct Authority said its analysis of the exchange-traded fund market found no activities that pose threats to financial stability. The analysis marks the first step in the regulator's investigation into the ETF market's resilience.
* U.K.-based Burford Capital Ltd. said its board is considering buying back shares after a report by U.S. hedge fund Muddy Waters LLC attacking its accounting practices resulted in a sharp fall in its share price. The company said the report is false and misleading. Swiss asset manager GAM Holding AG, meanwhile, sold all its bond holdings in Burford Capital, finews.com reported.
* Hargreaves Lansdown PLC has been taking in money at a slower pace in the wake of the crisis at Neil Woodford's LF Woodford Equity Income Fund, but its business has not been severely affected, the Financial Times reported. Approximately 291,520 of Hargreaves customers are exposed to the fund.
GERMANY, SWITZERLAND AND AUSTRIA
* The German government is looking for external consultation on the strategic prospects for Commerzbank AG, in which it holds a 15% stake, Börsen-Zeitung noted. The Federal Agency for Financial Market Stabilization has issued a tender for consultation on the government's holding in Commerzbank that calls for a "review and assessment" and strategic recommendations for the management of the investment based on the results.
* Switzerland-based UBS Group AG is considering a reshuffle of leadership at its investment banking unit, and it may entail hundreds of job cuts, insiders told Bloomberg News. The unit's co-heads, Piero Novelli and Rob Karofsky, are working on a revamp of the division.
* German prosecutors have indicted a former Deutsche Bank AG employee as part of an investigation into a tax evasion scheme that has already resulted in 13 people sentenced to prison, the Associated Press reported. The suspect, an Austrian citizen, was part of a group that traded carbon emissions certificates and claimed refunds on taxes that were never paid, according to prosecutors in Frankfurt.
* Deutsche Bank is tightening holiday rules and ending long-service benefits for its 50,000 staff outside Germany, angering an already nervous overseas workforce, the FT reported.
FRANCE AND BENELUX
* Savings accounts and other savings products should be made tax deductible in Belgium, Johan Thijs, CEO of KBC Group NV and chair of the country's Febelfin banking association, told De Tijd. Thijs' remarks came a week after ING België NV CEO Erik Van Den Eynden said an obligatory minimum base interest rate on savings accounts of 0.01% should be abandoned amid historically low interest rates. Thijs also said there could be some redundancies as the Belgian group grapples with low interest rates while trying to transform itself into a digital player.
SPAIN AND PORTUGAL
* Spanish lender Banco Santander SA launched exchange offers to acquire all issued and outstanding Series B shares and American depositary shares in Banco Santander México SA that it does not already own, representing about 25% of the Mexican unit's stock.
* Portugal's Banco BPI SA has become the first bank in the country to start charging its largest clients a fee on deposits to reflect negative ECB rates, Jornal de Negócios reported. The bank has started charging a 0.3% commission on the deposits of large institutional clients, while leading competitor Millennium BCP has said it is considering implementing a similar fee. As global trade tensions raise fears of an international recession, the ECB is expected to further cut its negative 0.4% deposit rate in September. The Portuguese central bank said it was monitoring the situation.
ITALY AND GREECE
* Italy's coalition government was thrown into a crisis yesterday after Deputy Prime Minister Matteo Salvini and his League party called for a snap election amid persistent policy differences with coalition partner Five Star Movement.
* UniCredit SpA Chairman Fabrizio Saccomanni died yesterday. Deputy Chairman Cesare Bisoni will assume the vacated role until a new chairman is appointed.
* Italy's Credito Emiliano SpA reported second-quarter reclassified consolidated profit of €56.6 million, up from €40.4 million a year earlier.
* Banca Popolare di Bari SCpA's rescue should begin in September with the sale of nonperforming loans with the possible intervention of Società Gestioni Attivi and then the merger with a local rival, most dailies including MF reported. The core capital ratio of Banca Popolare di Bari stood at around 7.22% at the end of July, lagging a minimum threshold of 9.45%, Reuters reported.
* A U.S. court denied Danske Bank A/S' request to dismiss a class-action lawsuit filed by investors in the bank's American depositary receipts who demanding compensation for losses they incurred in the wake of a money laundering scandal involving the Danish lender, Bloomberg News reported. The court reportedly ordered the bank to respond to an amended investor complaint by mid-September.
* Storebrand ASA has commenced a reorganization of its management and corporate structure. The Oslo-based banking and insurance group is establishing new digital and technology departments to strengthen its customer service platforms and offerings, e24.no wrote.
* Gazprom management committee Deputy Chairman Famil Sadygov told Reuters that applying domestic ratings in the Basel III reform in Russia would lower pressure on banks' capital and reduce lending rates. The Russian central bank wants lenders to use its own assessment procedures to comply with the Basel III rules, but Gazprom and other Russian top borrowers have been against this approach, while the Russian finance ministry said the capital buffers for banks under the new rules should be set based on ratings by domestic rating agencies.
* VTB Bank PJSC reported second-quarter net profit of 30.9 billion Russian rubles, down from 43.9 billion rubles a year earlier, also noting a drop in first-half attributable net profit to 77.5 billion rubles from 99.5 billion rubles a year ago. VTB Bank CEO Andrey Kostin said the lender is "poised to post strong results" in the second half and deliver on its full-year net profit target of 200 billion rubles.
* Public Stock Co. Orient Express Bank rejected an offer to sell its stake in Luxembourg-based International Financial Technology Group to U.S. fund Parus Marine for the equivalent of 2.6 billion Russian rubles and asked the fund the reconsider the price, valuing the stake at 3.7 billion rubles, RBC reported.
* The Serbian central bank slashed its key policy rate by 25 basis points to 2.5% amid a further decline in inflation.
* The central bank of Turkey ousted chief economist Hakan Kara, and eight other high-ranking officials, insiders told Bloomberg News. No reason was given for the removals.
* Hungary-based OTP Bank Nyrt. reported second-quarter consolidated profit after tax of 105.38 billion forints, up from 89.52 billion forints a year ago.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: Philippines cuts rates; APRA fines Westpac; AMP overhaul faces opposition
Middle East & Africa: Standard Bank eyes expansion; Consolidated Bank's rescue; Investec faces revolt
Latin America: Banco do Brasil, Banco Macro Q2 profits jump; BBVA to sell Paraguay unit
North America: Hedge fund Hoplite to shut down; NYDFS leads probe on payroll advance sector
Global Insurance: Commercial insurance pricing up; Aviva reviewing Asia ops; Sampo investment plan
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
'Case closed' on RBI's alleged link to Russian money laundering scheme, CEO says: Raiffeisen Bank International's internal review, prompted by a leak in early 2019, has not found proof of wrongdoing, Johann Strobl said, but the lender still faces a fine in another AML case.
Zurich CFO says P&C terms as well as pricing are improving: Improvements in nonlife insurance trading conditions are manifesting themselves in terms and conditions as well as pricing, according to group CFO George Quinn.
Aviva's Asian business 'starting point' in review of insurer, CEO says: Maurice Tulloch described Aviva's first-half performance as "okay" but said the company "can achieve much more."
Sheryl Obejera, Ed Meza, Danielle Rossingh, Gerard O'Dwyer, Beata Fojcik, Yael Schrage, Brian McCulloch, Praxilla Trabattoni, and Helen Popper contributed to this report.
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