In banking news:
Eau Claire, Wis.-based Citizens Community Bancorp Inc. found accounting errors in its financial statements. The recalculations will affect its earnings reports for the fiscal years that ended Sept. 30 of 2014 and 2015, as well as the fiscal quarters ended Dec. 31, 2015, and March 31 and June 30 of this year. A number of expense items had been overstated, and their more recent reversal has led to an overstatement of its latest quarterly net income.
In Iowa, Carroll County State Bank is buying three branches from First American Bank. SNL data shows Carroll had $553.4 million in assets as of Sept. 30; First American had $1.08 billion. Terms of their deal were not disclosed.
Meanwhile, the U.S. Department of Justice has finalized its so-called Swiss bank program that was set up to deal with legacy claims of helping clients evade U.S. taxes. It completed the review of banks that declared themselves to be in categories 3 and 4, reserved respectively for those that believed that they had committed no wrongful act and those that were able to demonstrate their compliance under the U.S. Foreign Tax Compliance Act. The DOJ has executed nonprosecution agreements with 80 banks since March 30, 2015, and has imposed a total of more than $1.36 billion in Swiss bank penalties. Category 1 was reserved for those institutions that had already been under U.S. investigation over tax-related criminal activity.
Separately, a senior official in the Swiss capital Bern told the Financial Times that Switzerland was seeking a new tax deal with the U.S. that would enable two-way exchange of bank information. Under the existing framework, U.S. officials receive information on Swiss bank accounts, but the Swiss government wants information to flow in the other direction as well.
Fifth Third Bancorp has applied to open an office in Western New York — the latest bank to take advantage of the disruption caused by the KeyCorp-First Niagara deal, notes Buffalo Business First. CNB Bank's Bank on Buffalo, for example, entered the region in the fall, and its fellow Pennsylvanian, S&T Bank, has upped its advertising and sponsorship activity in the area.
Nomura Holdings Inc. has been cutting costs, but CEO Koji Nagai told Bloomberg News the Japanese company is actually looking to hire for its U.S. investment banking division and other primary businesses. It may even get a team from one of its rivals.
Meanwhile, TransUnion has reached a settlement with the Consumer Financial Protection Bureau, resolving a civil investigative demand over how it marketed and sold consumer reports, credit scores or credit monitoring products. The accord still requires final approval, but the fintech firm is estimating a related $19.4 million hit to its fourth-quarter earnings.
And, when markets close today, they won't be reopening anymore for New York Mercantile Exchange's open-outcry trading floor. In an article in The Wall Street Journal, some wax nostalgic; others say "good riddance" to non-electronic trading.
In other parts of the world
Asia-Pacific: Mackenzie to buy China Asset Management stake; RBI to set up NBFC ombudsman
Europe: US expels Russian diplomats in hacking scandal; cyber insurance demand to rise
Middle East & Africa: Popularizing e-money in Africa; looming layoffs at Kenyan banks
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng rose 0.96% to 22,000.56, while the Nikkei 225 slid 0.16% to 19,114.37. In Europe, around midday, the Euronext 100 was down 0.04% to 930.40.
On the macro front
The Chicago purchasing managers' index and the Baker-Hughes Rig Count report are due out today.
The Daily Dose is updated as of 7:30 a.m. ET. Some external links may require a subscription.