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Banco BPI clears voting cap hurdle for CaixaBank takeover; Santander drops bid for Williams & Glyn


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Banco BPI clears voting cap hurdle for CaixaBank takeover; Santander drops bid for Williams & Glyn

S&PGlobal Market Intelligence offers our top picks of banking news stories andmore published throughout the week.

Santander walks awayfrom potential Williams & Glyn deal

* BancoSantander SA is said to have pulled out from talks to acquire 'sWilliams & Glyn business because of a disagreement over the price of thebusiness. The Spanish lender, however, could reportedly return to thenegotiating table at the right price.

Banco BPI voting capremoved

* CaixaBankSA placed585 million shares, representing 9.9% of its share capital, at €2.26 apiece tofinance its takeover bid for Banco BPI SA. CaixaBank has its offer for Banco BPI to€1.134 in cash per share from €1.113 after the Portugueselender's shareholders approved the removal of a 20% cap on the bank's voting rights, a keycondition for CaixaBank's bid.

Brexit: To fear ornot to fear

* U.K. TreasurySelect Committee Chairman Andrew Tyrie  that the business at risk fromBrexit could be significant after data from the U.K. Financial ConductAuthority showed that roughly 5,500 U.K.-registered financial firms rely on "outbound"passports to conduct business with the rest of the EU.

* Moody's,meanwhile, said the impact of the U.K.'s withdrawal from the European EconomicArea and the subsequent loss of British companies' passporting rights wouldlikely be manageablefor most U.K.-based financial firms and EU companies that have a presence inBritain in terms of credit fundamentals. The rating agency also considersit unlikely that all permissions granted to British financial firms will belost if the U.K. withdraws from the EEA, as EU law already provides for limitedrecognition of non-EU regulatory regimes for the purpose of undertakinginvestment and banking business.

Over in Greece

* Trading in Attica Bank SA's shares wassuspended Sept. 16after the Bank of Greece suspended its license to grant new loans. Thecentral bank also blocked the nomination of Panagiotis Roumeliotis, formerhead of the Athens airport, to be Attica Bank's new CEO, and threatened to placethe lender under administration if its shareholders refused to accept TheodorosPantalakis for the top role. The central bank eventually the suspensions after the bank'sboard electedPantalakis as CEO.

Deal talks

* StandardChartered Plc is said to be considering a of Standard CharteredPrivate Equity in a bid to simplify the group and reduce its risk profile. SCPEmanagers, led by Joseph Stevens, would take control of the unit, which managesmore than $2 billion of its parent's cash and a further $3 billion ofthird-party funds.

* BancaGenerali SpA reportedly hired Goldman Sachs to advise it on abidfor UniCreditSpA's 55.4% stake in online lender . However, the twoparties remain at odds on pricing due to FinecoBank's holdings of UniCreditbonds.

* PKO BankPolski SA entered into exclusive negotiations to   unitRaiffeisen-Leasing PolskaSA. RBI is also in exclusive talks with regarding the latter'spotential purchaseof Raiffeisen Bank PolskaSA.

In other news

* Deutsche BankAG is reportedly planning to securitize billions of dollars of corporate loans as itfaces a $14 billion fine to settle civil claims over the alleged misselling ofMBS in the U.S. The deal is being structured as a synthetic collateralized loanobligation, with the deal volume expected to be lower than a similarsecuritization involving $5.5 billion of loans in 2015.

* RBS has commenced windingdown its global shipping finance business. The bank has been tryingto sell the Greek shipping business — the most prominent part of RBS' shippingassets — for more than a year; however, offers for the Greek shippingportfolio, valued at approximately $3 billion, did not meet RBS' expectations.

* In its first assetquality review, the National Bank of the Republic of Belarusfound that three ofthe country's largest banks — andstate-owned and BelinvestbankJSC — to bein potential noncompliance with capital requirements and asked them to submitplans to ensure their capital adequacy. The IMF, meanwhile, said that thecountry's banking system faces significant challenges from falling capitaladequacy ratios and rising nonperforming loans, and stressed that Belarus needsto transition to independent and risk-based oversight of its financial sector.

* The ECB dismissed arequest by the Romanian central bank for permission to change its stance onbanks that fail to adhere to capital rules. BancaNationala a României had asked the ECB for approval to withdraw banks' licensesif they do not meet minimum capital reserve requirements, or in"exceptional circumstances" to grant temporary exemptions. TheRomanian central bank had also asked to be allowed to apply "exceptionalminimum obligatory reserves" to certain banks that had capital problems.

* According to aBank of England paper, extending stress tests beyond the core banking sector to the otherparts of the financial system could help determine weaknesses that couldundermine the sector's stability.

Featuredduring the week on S&P Global Market Intelligence

* : Shares in the London-listed, Asia-focused duo areoutperforming their European peers, even after first-half revenue and earningsdeclined year over year.

* : Chart Watch: Figures show that returnon average equity declined sharply year over year in the first half of 2016.

* ECB inconflict of interest, says head of German central bank: DeutscheBundesbank President Jens Weidmann told four European newspapers that the ECBshould not be responsible for both monetary policy and banking supervision, buthe ruled out any imminent changes to the central bank's brief.