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In This List

Merchants Bancorp of Indiana buying Illinois bank; HomeStreet to ax 127 bankers

Commercial Real Estate: 2020 Review

Banking Essentials Newsletter December Edition Part 2

Banking Essentials Newsletter - November Edition

Online Brokerage Space Should Remain Rich Source Of M&A


Merchants Bancorp of Indiana buying Illinois bank; HomeStreet to ax 127 bankers

At a House Financial Services Committee hearing, Comptroller of the Currency Joseph Otting said the OCC found around 20,000 accounts with compliance issues during a review of retail banks' sales practices. The review, which covered between 500 million to 600 million accounts from more than 40 national banks, found no "pervasive or systemic issues" regarding improper account openings. "We did find the need for banks to improve their policies, procedures and controls," Otting said.

In other bank regulation-related news, Capital One Financial Corp. CFO Richard Blackley said regulators should consider updating the U.S. capital framework to accommodate the current expected credit loss standard. During an investor presentation, Blackley said the standard change would impact targeted returns on equity and could restrict lending during a financial crisis.

Brazilian regulator Cade fined Morgan Stanley 30.3 million Brazilian reais and Royal Bank of Canada 12.6 million reais for foreign exchange manipulation, Reuters reports.

On the M&A front, Indiana-based Merchants Bancorp is buying Illinois-based FM Bancorp Inc. for $21.9 million. The deal is expected to close in the fourth quarter.

Macon, Ga.-based MidCountry Financial Corp. is selling its subsidiary, Minneapolis-based MidCountry Bank, to MidCountry Acquisition Corp., a corporation organized by investors in Minnesota.

Martins Ferry, Ohio-based United Bancorp Inc. is acquiring in-state peer Powhatan Point Community Bancshares Inc. in a stock and cash deal valued at around $6.8 million.

In fintech news, Los Angeles-based InvestCloud LLC, which develops financial digital solutions, has acquired London-based client engagement technology provider rplan Ltd. for $20 million.

Asset management company Blackstone Group LP has reportedly tapped JPMorgan Chase & Co. to help see if there is enough interest in the market to warrant a sale for the Australian data centers held by Blackstone's DCI Data Centers portfolio company, The Australian Financial Review's Street Talk reports.

And HomeStreet Inc. is streamlining its mortgage banking operations. The company is set to close, consolidate or reduce space in 19 single-family home lending centers and to let go around 127 full-time employees in the mortgage banking segment.

In other parts of the world

Asia Pacific: Woori Bank eyes Kyobo Securities; 2 Indian banks' HK branches under scrutiny

Europe: All eyes on ECB after Fed lifts rates; serious breach found at Swiss Raiffeisen

Middle East & Africa: Saudi Arabia, Bahrain raise rates after Fed hike; Oberbank withdraws from Iran

The day ahead

Early morning futures indicators pointed to a mixed opening for the U.S. market.

In Asia, the Hang Seng was down 0.93% to 30,440.17, and the Nikkei 225 fell 0.99% to 22,738.61.

In Europe, around midday, the FTSE 100 fell 0.47% to 7,667.60, and the Euronext 100 was down 0.45% to 1,058.74.

On the macro front

The jobless claims report, the retail sales report, the import and export prices report, the business inventories report, the Energy Information Administration natural gas report, the Federal Reserve balance sheet and the money supply report are due out today.

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