* The U.K. Financial Conduct Authority fined Deutsche Bank AG £163 million for serious failings in relation to anti-money laundering controls. The FCA said the failings allowed the German lender's Russian subsidiary to execute more than $6 billion of so-called mirror trades from Russia to overseas bank accounts. The German lender also agreed to pay a $425 million fine to the New York Department of Financial Services to settle charges that it helped Russian investors launder roughly $10 billion.
* European Banking Authority head Andrea Enria called for the establishment of a pan-European "bad bank," saying that the EU should set up an asset management company, or AMC, to help develop a market for nonperforming loans, according to Reuters. Separately, European Stability Mechanism head Klaus Regling said such a plan would probably require public sector support and would look to acquire up to €250 billion of NPLs, but would probably not involve the sharing of bank risks among EU states.
* The ECB has asked a number of banks to submit by February-end plans specifying ways to reduce their nonperforming loans, an insider tells Reuters.
* ECB Governing Council member Ewald Nowotny said the central bank will likely review its policy stance in June but will not make any decision about tapering its economic stimulus program, Reuters reports.
* Meanwhile, Agustín Carstens, incoming head of the Bank for International Settlements, told German daily Börsen-Zeitung that central banks should gradually remove stimulus and revert to a regime that is more in line with what is considered to be normal monetary policy, Reuters reports.
* European Securities and Markets Authority Chairman Steven Maijoor called for a tougher system for determining whether foreign clearing houses can operate across the EU, noting that there is currently no provision that allows ESMA to turn down a foreign clearing house on the basis of any material risk emerging from its review of a central counterparty application, Reuters reports.
* A consortium of London insurers and associated entities today published the test results of the resilience of the world's pre-eminent insurance market to a major catastrophic event. The simulated events resulted in extraordinary global insurance losses of approximately $200 billion. Reuters and the Financial Times have reports.
UK AND IRELAND
* Britain and the EU can simultaneously negotiate the terms of Brexit while also fleshing out the shape of their future relationship, according to the European Parliament's chief Brexit negotiator, Guy Verhofstadt.
* The Bank of England has so far injected £4.9 billion into firms through its purchase of corporate bonds and £20.7 billion into lenders through its term funding scheme to keep interest rates down, The Daily Telegraph reports.
* U.K. financial industry lobby group TheCityUK has reversed its Brexit stance, scrapping its previous campaign to remain in the EU and now believing that the U.K.'s departure from the EU is an unprecedented opportunity for the country to develop a powerful new set of trade and investment policies, The Daily Telegraph reports.
* Mastercard Inc. won a U.K. High Court legal battle against a group of retailers accusing the company of imposing on consumers interchange fees that restricted competition and infringed U.K. and EU laws, the Financial Times reports. The court ruled that the historical rates were necessary for the card issuer to function.
* Former UBS Group AG trader Tom Hayes, jailed for conspiring to manipulate LIBOR, launched a last-ditch appeal with the U.K. Criminal Cases Review Commission against his conviction, Reuters reports.
* AXA unit AXA UK Plc said its travel policies would cover those denied access to the U.S. due to a 90-day U.S. travel ban on people with passports from Iran, Iraq, Libya, Somalia, Sudan, Syria and Yemen, Reuters reports. Aviva Plc, meanwhile, extended its travel insurance cover for customers affected by the travel ban.
GERMANY, SWITZERLAND AND AUSTRIA
* Christian Sewing, head of private, wealth and commercial clients at Deutsche Bank, tells Handelsblatt that 2016 was the "turnaround year" for the bank and that he was confident that after all the restructuring measures, job cuts, settlements of major legal issues and bonus cuts it will become sustainably profitable from 2017 onward.
* Credit Suisse Group AG could face a money-laundering lawsuit at a Geneva court with regards to alleged nondisclosure of fraudulent actions of two former employees in 2008 that cost the bank CHF150 million, Sonntagszeitung writes.
* Swiss software firm Netcetera AG, developer of the SwissWallet online payment service, acquired a 100% stake in Austrian mobile payment-focused fintech Nexperts GmbH to enhance its digital payment solutions and expand in Europe.
* Banque Cantonale de Genève finalized the exchange of bearer shares into registered shares, replacing those categories with a single type of share, Handelszeitung notes.
* Bankhaus Bauer AG plans to grow its leasing and factoring business and took over ILS Intelligent Leasing Solutions GmbH from evoreal Holding GmbH & Co. KG and renamed the former elf Leasing GmbH, Börsen-Zeitung writes.
FRANCE AND BENELUX
* Amundi SA's shareholders approved a rights issue to finance its acquisition of UniCredit SpA unit Pioneer Global Asset Management SpA, Reuters reports.
* Insurer Matmut - Mutuelle assurance des travailleurs mutualistes SAM revisited its governance structure, replacing its current supervisory and executive boards with a more widespread structure comprising a board of directors and senior management, according to L'Agefi. The initiative is a result of a better integration of the group's various subsidiaries.
* Dutch insurer ASR Nederland NV has to reimburse clients in part for the cost of an insurance investment with excessive charges sold in early 1990s, Het Financieele Dagblad reports. Regulator Kifid ruled that customers had not been sufficiently informed about the costs.
* Luxembourg fund manager FundRock Management Co. SA, formerly RBS (Luxembourg), said it is opening a new office in Dublin to better serve its clients' needs following the post-Brexit market uncertainty.
SPAIN AND PORTUGAL
* Millennium BCP will likely dismiss an underwriting agreement after an assessment of subscription orders for the capital raise registered until Jan. 30 indicated that current shareholders are keeping their participations rights, Jornal de Negócios reports. A consortium of international banks had committed to absorb the securities in order to ensure the success of the offer.
* The two administrators from the former management of Caixa Geral de Depósitos SA who did not resign their positions will be offered to integrate the administration of state financial companies. Jornal de Negócios writes that by proposing career alternatives to Pedro Leitão and Ravara Marques, CGD wants to avoid paying financial compensations.
ITALY AND GREECE
* UniCredit SpA said it expects to post a net loss of €11.8 billion for full year 2016 as a result of efforts to clean up its balance sheet. The bank also said it would not meet minimum capital adequacy ratios for 2016, or the SREP requirements that came into force in January, meaning it would not be able to pay dividends to shareholders, coupons on Additional Tier 1 instruments or bonuses to employees until it meets those requirements.
* Banca Popolare di Vicenza SpA and Veneto Banca SpA are in need of a combined €5.7 billion in capital, according to their merger plan to be presented to the ECB, La Repubblica writes.
* Unione di Banche Italiane SpA is expected to incorporate the three bailed out banks it is in the process of acquiring in the autumn, MF reports.
* Cassa Centrale Banca Credito Cooperativo del Nord Est SpA applied with the Bank of Italy to lead one of the cooperative credit holding companies under which other coop lenders will be grouped, Il Sole 24 Ore says.
* Alpha Bank AE agreed to sell 100% of Serbian unit Alpha Bank Srbija a.d. Beograd to Serbia's MK Group of companies. The sale, which is in line with Alpha Bank's restructuring plan, is expected to be capital and liquidity accretive.
* Lyktos Participations SA, a company owned by former Piraeus Bank SA Chairman Michalis Sallas, participated in Pancretan Cooperative Bank Ltd.'s capital increase, acquiring 21.50% of the bank's capital, Naftemporiki reports.
* Fynske Bank A/S expects a basic profit of between 75 million Danish kroner and 80 million kroner for 2016, up from the previous forecast of 70 million kroner to 75 million kroner, FinansWatch reports.
* Several of Denmark's largest banks are putting the brakes on further branch closures, FinansWatch reports.
* PKO Bank Polski SA is looking into opening an outlet in London, Rzeczpospolita writes. A decision on whether the bank will open a full-fledged branch or a representative office will be taken within a few months, according to CEO Zbigniew Jagiello.
* JSC Halyk Savings Bank of Kazakhstan wants bad assets to be removed from JSC Kazkommertsbank before a potential purchase of the latter, according to Forbes, citing Halyk Bank's head, Umut Shayakhmetova. The two banks announced earlier in January that they were in merger talks, but did not provide further details.
* Inbank AS is acquiring a part of AS Eesti Krediidipank's shares together with Coop Eesti, with the intention to create a new bank in Estonia called Coop Pank. The transaction will take place in two parts, in which Inbank's share in the new bank will be slightly above 25%.
* JSC VTB Bank is considering divesting its holding Russia's Analytical Credit Rating Agency, Kommersant reports.
* JSCB NOVIKOMBANK agreed to transfer claims on loans worth "tens of billions of rubles" to RT-Capital, a subsidiary of its parent company Rostec, Kommersant says.
* Absolut Bank (PAO)'s board approved an increase of its authorized capital by 1.2 billion Russian rubles to 5.4 billion rubles, Banki.ru reports. The lender intends to issue 123,152,709 additional shares with a par value of 10 rubles apiece and offer price of 40.6 rubles per share via closed subscription. The shares will be acquired by existing shareholders.
* Fitch Ratings revised Zagrebacka Banka d.d.'s outlook to stable from negative, following a similar move on Croatia's long-term foreign- and local-currency issuer default ratings.
IN OTHER PARTS OF THE WORLD
Middle East & Africa: Bank Audi's 2016 profit rises 17%; African Union admits Morocco
Latin America: BTG mulls split listings for bank, PE ops; new chief at Bansefi
North America: Wells wrestles with shareholder proposals; Citi exiting mortgage servicing biz
North America Insurance: RLI to exit RV insurance market; Oregon invests in ACA outreach efforts
NOW FEATURED ON S&P GLOBAL MARKET INTELLIGENCE
Insurance risk market seen holding firm against falling yields: Investors in insurance-linked securities are refusing to accept further declines in yields, despite mismatch between capital and available risk.
Co-op Bank bonds take a tumble on wind-up report: Co-op Bank's bonds fell to record lows after a press report questioned the long-term viability of the Manchester-based lender.
Bankia aims for quick settlements on mortgage floor clauses to cut legal costs: Bankia is hoping for a quick resolution of its exposure to claims regarding the imposition of mortgage floor clauses.
Sheryl Obejera, Arno Maierbrugger, Meike Wijers, Esben Svendsen, Beata Fojcik, Thanasis Kakalis, Ali Kayalar, Heather O'Brian, Stephanie Salti, Praxilla Trabattoni and Mariana Aldano contributed to this report.
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