In California, PacWest Bancorp will buy CU Bancorp for $705 million in cash and stock, and the resulting entity is expected to have about $25.0 billion in assets. The merger's terms also include a termination fee of $26.5 million, to be paid by CU Bancorp to PacWest under certain circumstances.
Gary Cohn met with Senate Banking Committee members yesterday — and his comments on Glass-Steagall surprised some of those in attendance. The Goldman Sachs Group Inc. alumnus and National Economic Council director is in favor of keeping investment banking and consumer lending separate, Bloomberg News reports, making him a wildcard in the debate over the law's revival.
For those looking for a bulleted list of Brexit-related challenges, the Association for Financial Markets in Europe just came out with one. Bank clients, for example, need to consider that "after Brexit, a bank which had signed a contract may no longer have the required approvals to lawfully perform the services it had committed to." And with just two years to get it all figured out, AFME CEO Simon Lewis says "market participants and regulators are already having to consider important decisions amid considerable uncertainty."
Investments in fintech startups have increased at a compound annual growth rate of 41% in the last four years, according to PricewaterhouseCoopers — with the global bankrolling exceeding $40 billion in total. And no wonder — participants in a PwC survey estimate 24% of their revenue to be at risk due to fintech.
Amid research budget slashing and analyst layoffs, one firm is raising money to help the buy-side "take back control of their inbox." Street Contxt has raised $15 million in total from investors such as Steven Cohen's Point72 Ventures and Jon Lonsdale's 8VC.
In Alabama, Warren Averett Asset Management LLC is absorbing Kinsight LLC to create a fee-only financial planning and investment advisory firm with more than $2.2 billion in assets under management.
In Maryland, the state attorney general shut down Philip Rousseaux and his companies at the end of March, but the "Money Guys," as they advertise themselves, have filed an appeal. The Baltimore Business Journal reports they are asking the court for an injunction and temporary restraining order that will let Everest Wealth Management and Everest Investment Advisors stay in business while litigation continues. They had been accused of using false performance figures and misleading clients about services and fees. Rousseaux says the firms have already lost a number of clients, employee salaries have been halved and he is in danger of filing for bankruptcy.
And if Jamie Dimon's passing mention of a currency trader's $100 million bet piqued your interest, The Wall Street Journal's sources add that the trader was a European client using JPMorgan Chase & Co.'s mobile app. And there was a hedge fund that did a forex trade worth four times more, also via mobile phone. Troy Rohrbaugh, JPMorgan's global head of macro markets, told the WSJ the bank will eventually launch mobile trading in metals and U.S. Treasury.
In other parts of the world
Asia-Pacific: Lloyd's commences India ops; APRA warns banks of higher capital demand
Europe: Lloyds blames tech for branch cull; investors flock to Deutsche Bank
Middle East & Africa: UK courts Saudi Arabia; top South Africa banks cut; KCB injunction sought
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng fell 0.52% to 24,273.72, and the Nikkei 225 was down 1.40% to 18,597.06.
In Europe, as of midday, the FTSE 100 was down 0.32% to 7,308.14, and the Euronext 100 fell 0.07% to 981.40.
On the macro front
The jobless claims report, the EIA natural gas report, the Treasury STRIPS report, the Fed balance sheet and the money supply report are due out today.
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