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Tuesday Express: CIT to buy Mutual of Omaha Bank; US SEC charges i-banker

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Tuesday Express: CIT to buy Mutual of Omaha Bank; US SEC charges i-banker

* CIT Group entered an agreement with Mutual of Omaha, whereby CIT's banking unit, CIT Bank NA, will acquire Mutual of Omaha Bank for a purchase price of $1 billion. The transaction is expected to close in the first quarter of 2020.

* In Illinois, credit unions Consumers Cooperative and Andigo are planning to merge later this year, resulting in an organization with more than $2.1 billion in assets.

* In Coral Gables, Fla., Marquis Bank is merging with Professional Bank in a deal expected to close in late 2019 or early 2020. The combined institution will have approximately $1.6 billion in assets.

* Faced with competition from private lending firms, Citigroup is now winding down its Citi Credit Opportunities team, which was put up in 2008, sources told Business Insider. John Peruzzi, who led the division, has already left the company. The move comes amid news of Citi slashing its trading division's workforce to cut losses and improve efficiency.

* The U.S. Securities and Exchange Commission has again deferred action on two Bitcoin exchange-traded funds seeking approval for trading, Bloomberg News reports. The regulator's decision on Bitwise Bitcoin ETF Trust and the VanEck SolidX Bitcoin Trust has been repeatedly delayed, to the dismay of the cryptocurrency sector.

* Bill Tsai, a junior investment banker, now faces insider trading charges from the SEC and the U.S. Attorney's Office for the Southern District of New York related to the $1.7 billion deal between Siris Capital Group and Electronics for Imaging. Tsai allegedly made $98,750 in profit from purchasing call options with pre-announcement knowledge of the deal obtained while working for the bank that advised Siris Capital. Tsai then sold the options after the deal was publicly disclosed.

* Federal Reserve officials are discussing if it is time to use a tool called countercyclical capital buffer, a measure designed to raise capital requirements for big banks at times of a potential economic downturn, The Wall Street Journal reports. Approved by the Fed's board of governors in 2016, the central bank previously voted against deploying the CCyB.

* New York-based hedge fund Warlander Asset Management stands to reap profits from a lawsuit it filed to have some $14.3 billion of Illinois bonds invalidated by the court, Bloomberg News reports, citing court filings lodged by Nuveen Asset Management and AllianceBernstein, who own part of the bonds. Warlander Asset Management and John Tillman, CEO of the Illinois Policy Institute, sued Illinois Gov. J.B. Pritzker and two other government officials, saying the issuance of the bonds violated the constitution.

* While tracking an index that shuts out weapons manufacturers, investment firm Vanguard Group's U.S. ESG Stock ETF erroneously bought shares of gunmaker Sturm Ruger, Bloomberg News reports. The FTSE Russell's US All Cap Choice index, on which Vanguard's ETF is pegged, inadvertently included 11 stocks that included Sturm Ruger during a rebalancing in June.

* A McKinsey & Co. study found that African Americans are missing out on up to $40,000 in savings due to lack of access to mainstream financial services, Reuters reports. The research indicates that more expensive services are offered in non-white-majority areas compared to those found in majority-white communities.

* Insurer FedNat Holding has entered into a cooperation agreement with shareholder Capital Returns Management, under which the activist investor agreed to standstill and voting provisions that will last for about a year.

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