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UK PM confirms resignation; EU election results; Groupe BPCE gets new chair


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Investment Banking Essentials Newsletter April Edition - 2022


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UK PM confirms resignation; EU election results; Groupe BPCE gets new chair

* The European Parliament's two largest political parties failed to secure a combined majority in the chamber amid a rise in support for liberal and green parties, while nationalists also saw strong results in major countries such as France and the U.K., according to provisional results of the elections held from May 23 to 26. The European People's Party won 179 seats in the 751-seat European Parliament and remains the largest group in the chamber, while the center-left Progressive Alliance of Socialists and Democrats came in second with 150 seats.

* U.S. President Donald Trump's lawyers reached an agreement with the U.S. House of Representatives' intelligence and financial services committees to postpone the enforcement of subpoenas against Deutsche Bank AG and Capital One Financial Corp. that require the companies to release the U.S. leader's financial records, CNN reported.

* Australian law firm Maurice Blackburn Lawyers launched a class action lawsuit against JPMorgan Chase & Co., Citigroup Inc., Barclays PLC, Royal Bank of Scotland Group PLC and UBS Group AG for allegedly colluding to manipulate foreign exchange rates between January 2008 and October 2013.


* British Prime Minister Theresa May confirmed that she will resign as leader of the Conservative party, effective June 7. The process for electing May's successor will begin the week after her resignation and she will continue to serve as caretaker prime minister until a replacement is selected.

* Bank of England Deputy Governor Sam Woods said the regulator is considering imposing more floors on the level of capital that lenders have to hold to offer mortgages amid eroding capital levels and growing risks in lending practices at banks and building societies in the U.K., the Financial Times wrote.

* U.K.-based peer-to-peer lender Lendy Ltd. filed for voluntary administration, appointing Damian Webb, Phillip Rodney Sykes and Mark John Wilson as administrators. The move comes after the U.K. Financial Conduct Authority placed the company under special supervision in March over concerns that it may not be able to meet minimum standards required of regulated firms.

* The Irish central bank has increased its scrutiny of U.K. investment fund liquidity as part of its preparations for Brexit, the FT reported. The regulator is concerned that uncertainties regarding the U.K.'s departure from the EU could result in destabilizing outflows from mutual funds.


* Deutsche Bank's head of corporate and investment banking, Garth Ritchie, could leave the German lender after becoming disillusioned with CEO Christian Sewing's proposed plans to make radical cuts to the investment unit, insiders told the Financial Times. Ritchie is also frustrated with a lack of shareholder support, according to the sources.

* Swiss bank St. Galler Kantonalbank raised gross proceeds of CHF176.5 million through a capital increase.

* Switzerland-based fund manager GAM Holding AG is set to select an internal candidate for its new CEO, with Tim Rainsford, head of sales, considered to be the top choice for the role, insiders told Reuters. Meanwhile, the SFM UK Management fund, which is linked to billionaire Hungarian-American investor George Soros, now holds a 3% stake in GAM Holding, Reuters wrote.

* B. Metzler seel. Sohn & Co. Holding AG, or Bankhaus Metzler, plans to focus on its core competencies asset management, capital markets, corporate finance and private banking and will relinquish the retail business in the asset management unit in which total assets declined from €76 billion to €74 billion last year but rose again to €79 billion by the end of the first quarter of 2019.

* Bank Alpinum AG, as Liechtenstein-based bank owned by Iranian-Swiss businessman Yousef Sherkati, will no longer do business with Iranian clients, even with those who are not affected by sanctions, in order to find a new correspondence bank for U.S. dollar transactions, Finews wrote.

* Clientis Zürcher Regionalbank Genossenschaft will leave banking group Clientis AG at the end of the year and change its name into Bank Avera.


* France-based Groupe BPCE's supervisory board named Pierre Valentin chairman, replacing Michel Grass. The French banking group also appointed Thierry Cahn vice chairman of the board.


* Fitch Ratings raised its outlook on Portugal to positive from stable, citing the expected continued decline in the country's public debt.

* Dulce Mota, the recently appointed chief executive at Portugal's Caixa Económica Montepio Geral 4141072, could be replaced by her predecessor in the post, Carlos Tavares, according to an Expresso report cited by Jornal de Negócios. Tavares currently serves as chairman of the savings bank.

* Portugal's Novo Banco SA is selling another €1 billion in nonperforming loans as part of ongoing efforts to cleanse its balance sheets, Expresso reported. The latest sale consisted of outstanding debts held by the Sogema and Ongoing companies.


* Italian insurer Generali agreed to sell its U.K. branch's life runoff portfolio to a Reinsurance Group of America Inc. subsidiary. The portfolio mainly consists of annuity business and corresponds to about €680 million in best estimates liabilities as of year-end 2018.

* Meanwhile, Generali will not refinance €1.25 billion of bonds maturing in 2020 in a move that, along with the €250 million reduction in subordinated bonds, will allow the insurer to reach next year the lower end of the €1.5 billion to €3.0 billion debt reduction target for 2021, all dailies including Milano Finanza wrote.

* The provisional results of the European Parliament elections prompted Greek Prime Minister Alexis Tsipras to call for snap national elections that could take place June 30, Reuters reported. Tsipras' party is trailing the opposition New Democracy party by about nine points, according to the unofficial results of the EU polls.

* A Florence appeals court annulled sanctions imposed by regulator Consob on Luca Bronchi, former director general of Nuova Banca dell’Etruria e del Lazio SpA, most dailies including Il Sole 24 Ore reported.


* Danske Bank has become involved in an international VAT fraud case, with at least 1.2 billion kroner from VAT fraud cases in Italy, Germany and Spain allegedly channeled through an account in the Danish lender, Finans reported.

* The European Commission is investigating how the Swedish financial regulator Finansinspektionen handled the supervision of Swedbank AB (publ) in connection with suspected money laundering in the Baltics, Dagens Industri reported.

* Nasdaq Inc.'s indirect subsidiary, Nasdaq AB, withdrew its offer to purchase all of the issued shares of Norwegian stock exchange operator Oslo Børs VPS Holding ASA after its bid failed to meet the minimum acceptance condition for completion.


* Slovenian lender Nova Ljubljanska banka d.d. reported first-quarter group profit attributable to owners of the parent of €57.9 million, compared to €57.7 million in the same period a year ago.

* PKO Leasing SA acquired a 94.4% stake in Polish vehicle fleet operator Prime Car Management SA during the first phase of a tender launched for all shares of the company, exceeding the 66% subscription rate needed for the tender to be valid, PAP reported.

* Russia's JSC Tinkoff Bank decided to close its mortgage brokerage service Tinkoff Mortgage, citing its unprofitability in Russia's concentrated mortgage market, dominated by several players, Kommersant reported. The last day for accepting new mortgage loan applications is May 31, and existing customers will be serviced through Aug. 31.

* JSC CB PRIVATBANK's former majority shareholder Ihor Kolomoisky hopes he could reach an out-of-court agreement with Ukrainian authorities over the lender's 2016 nationalization with the help of Rothschild bank, Reuters reported.

* Meanwhile, the Ukrainian central bank said it filed an official appeal against the April rulings of Kiev Administrative Court that overturned Privatbank's 2016 nationalization.

* Poland's Supreme Administrative Court upheld an earlier court ruling that confirmed the legality of the Polish Financial Supervision Authority's 2014 decision to ban Abris Capital Partners from exercising voting rights in Polish lender Nest Bank, formerly operating as FM Bank, and forcing it to sell its majority stake in the bank, Parkiet reported.


Asia-Pacific: HDFC Bank sells stake in unit; South Korea rejects 2 internet bank bids

Middle East & Africa: Old Mutual CEO exits; Ghana's GCB to start i-bank unit; Angola cuts key rate


Theresa May resignation opens door to 'hard Brexiters' Johnson and Raab: The resignation of Theresa May as U.K. prime minister potentially opens the way for a more hardline Brexiter, such as former Foreign Secretary Boris Johnson, to take over.

Sheryl Obejera, Arno Maierbrugger, Meike Wijers, Esben Svendsen, Beata Fojcik, Yael Schrage, Stephanie Salti, Sophie Davies and Helen Popper contributed to this report.

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