The Federal Deposit Insurance Corp. is suing several financial institutions as it moves to recoup an estimated $748.9 million in losses from the failure of San Juan, Puerto Rico-based Doral Bank. The FDIC is arguing that these institutions — which included Bank of America NA, JPMorgan Chase Bank NA, Citibank NA, and Royal Bank of Canada — colluded to manipulate the London Interbank Offered Rate, which negatively impacted Doral's loan portfolio and derivative holdings.
In other litigation news, Raleigh, N.C.-based First Citizens BancShares Inc. is suing Smithfield, N.C.-based KS Bancorp Inc. and its board. First Citizens wants the court to stop KS Bancorp's attempt to defend itself from hostile bids by terminating its newly adopted 10-year shareholder plan.
In Brexit planning news, Bank of America Corp. will be keeping its lease on its London headquarters until 2032, a spokesman told American Banker. In addition, "two people with knowledge of the plan" told the publication that Chicago-based Northern Trust Corp. is looking for a new London headquarters because its lease on its current headquarters is set to expire in 2022.
In other banking news, the Independent Community Bankers of America is urging the Senate Finance Committee to hold a hearing to examine whether credit unions should still be exempt from corporate income tax. In a letter to the committee chairman, Sen. Orrin Hatch, R-Utah, the trade group described the credit union tax subsidy as the "elephant in the room" that "has outlived its purpose."
In M&A news, Johnson Investment Counsel Inc. has bought Riazzi Asset Management LLC, which offers individual separate portfolio planning services, the Dayton Business Journal reports. The deal, effective April 1, will add $143 million in assets to Johnson Investment.
The Securities and Exchange Commission charged former bitcoin-denominated platform BitFunder and its founder, Jon Montroll, with operating an unregistered securities exchange and defrauding users of that exchange.
The SEC also published an interpretive guidance on cybersecurity disclosures, saying that companies should make "accurate and timely disclosures" of material events, including those related to cybersecurity. It also stated that companies should take steps to prevent corporate insiders from trading the company's securities until the appropriate disclosures of said risks have been made.
Meanwhile, Toronto-based Canadian Imperial Bank of Commerce posted earnings per share of C$2.95 in the fiscal first quarter of 2018, lower than the year-ago figure of C$3.50.
In other parts of the world
Asia Pacific: South Korea to invest in startups; India probes auditors in bank fraud
Europe: Barclays to double dividend; Axa FY'17 profit up 7%; Deutsche Bank's Brexit move
Middle East & Africa: Samba Q4'17 profit rises 11.38% YOY; South Africa ups VAT; Zambia cuts rate
The day ahead
Early morning futures indicators pointed to a higher opening for the U.S. market.
In Asia, the Hang Seng fell 1.48% to 30,965.68, and the Nikkei 225 was down 1.07% to 21,736.44.
In Europe, around midday, the FTSE 100 was down 0.92% to 7,214.69, and the Euronext 100 fell 0.48% to 1,018.76.
On the macro front
The jobless claims report, the leading indicators report, the Energy Information Administration's natural gas and petroleum status reports, the Kansas City Fed manufacturing index, the Fed balance sheet and the money supply report are due out today.
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