trending Market Intelligence /marketintelligence/en/news-insights/trending/vAAHRgq12U-Aw-n9o9u_IA2 content esgSubNav
In This List

First Hawaiian IPO to value bank at $3B-$4B; 2 Tenn. banks to merge


Banking Essentials Newsletter May 29th Edition


Managed Services Insights: The client lifecycle management solution


Technology & Automation Insights: Elevating KYC and onboarding efficiency


Banking Essentials Newsletter: May 15th Edition

First Hawaiian IPO to value bank at $3B-$4B; 2 Tenn. banks to merge


's could be launched in thecoming weeks, say sources for Bloomberg News. And the pricing will likely valueit at $3billion to $4 billion, instead of the $5 billion previously expected.

In , Elizabethton-basedCitizens Bank (morethan $700 million in assets) will pay $19.8 million in cash to acquireKnoxville's American Trust Bankof East Tennessee ($141 million).

S&P GlobalMarket Intelligence updated its forecast for banks under $1 billion in assets. Small institutions areno exception to the more negativeoutlook for the banking industry, as the lower-for-longer interestrate environment pressures profitability. Scrutiny of commercial real estatelending and the prospects of a credit cycle turn will also weigh on the sector.S&P Global Market Intelligence is projecting a net interest margin of 3.61%and loan growth of 1.8% for the small bank group in 2016.

RBC Capital Markets analysts pegged banks' M&A sweetspot to be within the $7.0 billion to $9.9 billion asset range and said theyexpect a burst of activity following this period of self-imposed efficiency.

A Mexican popstar has added her name to WellsFargo & Co.'s troubles over reportedly deceptive tacticsemployees use to meet sales quotas. The LosAngeles Times reports AnaBárbara on June 30 sued the San Francisco-based bank for the unauthorizedopening of accounts, including a line of credit, under her name. She alsoclaims they were later used by an employee to steal $416,000. She wants morethan $1.5 million in damages.

Across thepond, the U.K. Parliament's Work and Pensions and Business, Innovations and SkillsCommittees issued areporton Sir Philip Green's £1 sale of BHS. Touching on 's informaladvisory , it said the bank"enabled [its] prestigious name to be cited as that of 'gatekeeper' to thetransaction [and] added lustre to an otherwise questionable process. … GoldmanSachs should have been either 'in' or 'out' of the deal, and demonstrably so."

ForeignSecretary Boris Johnson tried to shine a ray of hope in New York for banks withU.K. operations. He announced on Friday he expects passportingrights to be retained, the FinancialTimes reports.

Speaking ofBrexit, the FT points out that thequestion of nonbank liquiditywas put to the test — and possibly settled — in the post-referendum trading.

Asset manager                                                         

There's been alot of talk about hedge funds' fees not being worth the returns, but, for allof that, even more pension schemes around the world are invested in them. Theircontribution to AUM reached $839billion at the end of May. Citing Preqin data, the FT reports it was $721 billion in December 2013.


Here's anopinion in The Wall Street Journal aboutthe PayPal HoldingsInc.-VisaInc. partnership: The cost of the deal is a change toPayPal's businessmodel. No longer allowed to encourage users to link to bank accountsinstead of credit cards, it isn't even clear how PayPal will earn from Visa'scontactless point-of-sale tech.


FormerCredit Suisse GroupAG advisers fighting for deferred compensation gained a partial winwhen FINRA reminded member firms that the right to settle disputes in theregulator's arbitrationforum cannot bewaived. The New York Times reportsthe advisers had asked the agency to step in when Credit Suisse decided anyissues must be resolved through either JAMS or the American ArbitrationAssociation instead.

And theAmerican Bankers Association sent the OCC, the Federal Reserve and the FDIC itsrecommendations regarding stress tests for midsized banks. Among thesuggestions was the reuseof scenarios,so as to reduce burden and enable multi-year comparisons.

In other parts of the world

Asia-Pacific:CCB injects capital into NewZealand unit; Fosun's Ironshore files for IPO

Europe:HSBC acts on RWAs; BBVA planslayoffs; Bank Asya loses licence

Middle East& Africa: BLOM BANK confirmsHSBC talks; concerns about nonperforming insider loans in Nigeria

The day ahead

Earlymorning futures indicators pointed to a mixed opening for the U.S. market.

In Asia, theHang Seng climbed 0.13% to 21,993.44, while the Nikkei 225 slid 0.04% to16,620.29.

In Europe,around midday, the FTSE 100 was up 0.02% to 6,731.67 and the Euronext 100 0.67%higher to 875.16. 

On the macro front

TheDallas Fed's manufacturing survey is due out today. 

The Daily Dose is updated as of 7:30 a.m. ET. Some external linksmay require a subscription.