* The world's largest banks will need to plug a larger total capital shortfall to meet final regulatory requirements fully taking effect by the start of 2027, according to the Basel Committee on Banking Supervision.
* The EU will grant an extension to the March 29 Brexit date only if it raises the chances of the divorce deal being ratified by the U.K., Michel Barnier, the EU's chief Brexit negotiator, said. U.K. Prime Minister Theresa May is expected to ask the EU at a summit later in the week to delay the U.K.'s departure from the bloc.
* Consultancy firm Ernst & Young LLP has raised its estimate of assets financial services firms have committed to move out of the U.K. into Europe due to Brexit to roughly £1 trillion from £800 billion, the Financial Times reported.
UK AND IRELAND
* The U.K. Financial Conduct Authority imposed a roughly £27.6 million fine on UBS Group AG unit UBS AG over the misreporting of millions of transactions in nearly a decade. UBS agreed to resolve the issue and therefore qualified for a 30% discount in the overall penalty, which otherwise would have been more than £39.4 million.
* Lloyds Banking Group PLC could be required to pay compensation of more than £300 million to Standard Life Aberdeen PLC for the latter's loss of business following a ruling that Lloyds was not entitled to terminate investment management agreements with SLA, Sky News noted.
* Barclays PLC Chairman John McFarlane said he believes the presence of activist investor Edward Bramson on the British bank's board "would be detrimental to the company and shareholders as a whole," the Financial Times reported. McFarlane also said an attempt by Bramson to significantly scale back Barclays' investment bank will force the lender into a "prolonged round of review and/or restructuring at a time when focus should remain on successful execution."
* U.K. broker/dealer TP Icap PLC said it plans to assign extra broking staff to its EU offices outside London to allow the company to continue serving EU clients from the U.K. in the event of a no-deal Brexit. CEO Nicolas Breteau said TP Icap could move staff over the next year and a half, Reuters noted.
* With the completion of its acquisition by Bermuda's RenaissanceRe Holdings Ltd. not far off, Tokio Millennium Re (UK) Ltd. is parting ways with a few of its senior staff members, including CEO Stephan Ruoff and CFO Maurice Kane, along with COO and the head of the company's U.S. brand, Masahiro Koike.
GERMANY, SWITZERLAND AND AUSTRIA
* Joachim Wuermeling, a member of the executive board of Germany's central bank, has emphasized the regulator's neutral role in assessing bank mergers amid discussions between Deutsche Bank AG and Commerzbank AG about a potential merger. German Chancellor Angela Merkel, meanwhile, said the government will not get involved in the discussions, saying that the banks alone must make the decision whether to merge and must assess all challenges, opportunities and risks related to a deal, Handelsblatt reported.
* Cost-cutting options and balance sheet risks will be central to the merger talks between Deutsche Bank and Commerzbank, insiders told Bloomberg News.
* Raimund Röseler, chief executive director of Germany's financial market supervision authority, expressed skepticism about the potential merger, telling Handelsblatt that Deutsche Bank and Commerzbank have to be careful not to again create a bank that is too big to fail.
* Former Deutsche Bank Co-CEO Anshu Jain and predecessor Josef Ackermann, who headed the bank between 2012 and 2015 and 2002 and 2012, respectively, were "personally involved" in risky lending to U.S. President Donald Trump's real estate business at that time, The New York Times reported.
* German reinsurer Munich Re Co. raised its net profit guidance by roughly €200 million to €2.5 billion in 2019 and to €2.8 billion by 2020, Reuters reported. The company also plans to repurchase shares for a maximum total price of €1 billion, excluding incidental expenses, from May 2 until April 29, 2020, at the latest. The shares correspond to about 3.1% of the company's share capital and about 4.6 million shares, based on the March 18 share price.
* Jörg Gasser, former Secretary of State for International Finance, has been appointed CEO of the Swiss Bankers Association, succeeding Claude-Alain Margelisch, effective May 1.
FRANCE AND BENELUX
* Dutch insurer NN Group NV said it will move the handling of its legal aid insurance policies to DAS in the summer following a disagreement with its long-term legal aid services provider SRK, Het Financieele Dagblad reported.
SPAIN AND PORTUGAL
* Banco Bilbao Vizcaya Argentaria SA sold €1 billion of contingent convertible bonds carrying a 6% coupon. Demand for the instruments reportedly reached €3.2 billion, Expansión noted.
* Former UBS Group AG investment banking head Andrea Orcel has hired Spanish law firm De Carlos Remón to advise him on his dispute with Banco Santander SA, Reuters reported, citing the law firm. Santander previously withdrew an offer to make Orcel its new CEO, saying it could not meet his pay expectations.
* Banco Santander sold close to €15 billion of Italian, Portuguese and Spanish public debt, which it inherited as a result of its purchase of Banco Popular Español SA in June 2017, Expansión wrote.
* Novo Banco SA CEO António Ramalho said "all audits are welcome" in response to political pressure over the bank's request for another €1.15 billion capital boost from the bank resolution fund, Jornal de Negócios reported. Ramalho spoke after PSD party leader Rui Rio said audits at the state-rescued bank should include the period overseen by the current management team, Jornal Económico reported.
ITALY AND GREECE
* Italy plans to renew its GACS state guarantee scheme for up to three years in a bid to help local banks reduce their exposures to bad loans, Reuters wrote, citing a draft law decree. The draft bill includes stricter measures aimed at protecting investors, Bloomberg noted.
* Italy is also studying amendments to the country's securitization rules in order to help banks shed unlikely-to-pay loans, Reuters said.
* Italian central bank Director General Salvatore Rossi said he will not seek another mandate when his term expires in May, Reuters reported. Fabio Panetta, Bank of Italy's deputy director general, seems like the strongest candidate to succeed Rossi but another candidate could be State Auditor General Daniele Franco, Il Sole 24 Ore said.
* The General Court of the EU ruled that a rescue plan for ailing Italian lender Banca Tercas SpA in 2014 was legal, annulling a European Commission decision that rejected the plan for the bank.
* Mediobanca - Banca di Credito Finanziario SpA is in pole position to take over Kairos, the asset management unit put on sale by Swiss private bank Julius Bär Gruppe AG, MF reported, adding that Dea Capital, in addition to Centerbridge, Apax Partners and Hellman & Friedman, is also potentially interested. Lombard Odier is also looking at the Kairos dossier, Il Sole 24 Ore said.
* Nordea Bank Abp issued $1.25 billion of perpetual Additional Tier 1 conversion notes, which have a coupon of 6.625%.
* U.S. law firms Grant & Eisenhofer P.A. and DRRT filed a case before the Copenhagen City Court against Danske Bank A/S on behalf of international investors over the Danish lender's alleged ties to a massive Russian money-laundering scheme. The claimant group, which is seeking $475 million in damages, is asserting fraud claims stemming from the scheme and its purported multi-year cover-up by the lender and its senior leadership.
* Danish financial regulator Finanstilsynet wants to withdraw the voting rights of shareholders in Totalbanken A/S, as several shareholders are teaming up to take over the bank, without having sought the necessary permission to do so from the regulator, Berlingske Business reported.
* Nursultan Nazarbayev is stepping down as president of Kazakhstan, effective March 20, after nearly 30 years of ruling the oil-rich nation, The Associated Press reported. Nazarbayev, who is expected to keep wielding power and will remain chairman of Kazakhstan's Security Council, did not cite a specific reason for his decision.
* Russian banks, retailers and payment systems failed to reach a joint agreement regarding the reduction of fees charged for processing payment cards, news agency RBC reported.
* AO Gazprombank will launch an online, low-cost bank for small and medium-sized businesses, Kommersant reported.
* Russia's State Duma passed in first reading a bill that would allow foreign entities to connect to the country's financial messages transfer system, which was set up as an alternative to the global financial messaging network SWIFT to counter potential Western sanctions, Reuters wrote.
IN OTHER PARTS OF THE WORLD
Asia-Pacific: State Bank of India, Bank of China sign MOU; SBI opens new unit
Middle East & Africa: Attijariwafa Bank FY'18 net income rises YOY; Alexander Forbes gets new CFO
Latin America: Banco de Bogotá profit soars; HSBC rebuilds Brazilian operation
North America: Goldman sets workforce diversity goals; Citi starts Frankfurt broker/dealer ops
Global Insurance: NFIP changes; Axa Equitable share sale; 2 insurers reveal Boeing exposure
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Sheryl Obejera, Arno Maierbrugger, Danielle Rossingh, Esben Svendsen, Beata Fojcik, Yael Schrage, Brian McCulloch, Praxilla Trabattoni and Helen Popper contributed to this report.
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