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Deutsche Bank state support chatter; Monte dei Paschi eyes debt swap

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Deutsche Bank state support chatter; Monte dei Paschi eyes debt swap

SWIFT disclosesattacks on 3 clients: Global financial messaging services provider SWIFTyesterday warned that more cyberattacks on banks could take place followinghacking incidents on three of its clients over the summer, Reuters reports.SWIFT Chairman Yawar Shah called on banks to tighten their security measures,saying the "rapidly evolving threat is a game changer."

* ECB President Mario Draghi yesterday called on eurozonegovernments to help the central bank boost the economy, stressing that theeconomic governance framework is "essential to avoid imbalances that wouldeventually risk destabilizing" the eurozone, Reuters reports.Draghi and ECB Executive Board member Benoît Cœuré also acknowledged thelimitations of the central bank's policy of low interest rates and quantitativeeasing. The Wall Street Journal also covers.

* ECB Governing Council member Philip Lane yesterday toldBloomberg TV that the central bank will explore strategies being used by theBank of Japan and other central banks to lift inflation while continuing to useits existing tools, Reuters writes.

* NomuraHoldings Inc. said many European banks are considering sellingJapanese yen bonds compliant with total loss-absorbing capacity, or TLAC rules,as they explore sources of funding outside the U.S. dollar and euro debtmarkets, Bloomberg News writes.

UK AND IRELAND

Draghi wants nospecial favors for UK on single market: ECB President Mario Draghi spokeagainst granting the U.K. any special favors on EU single market access inBrexit negotiations, Bloomberg reports.Draghi indicated that "any agreement that will be perceived asdiscriminatory against some subjects or in favor of other subjects" couldundermine stability of the bloc. Draghi also warned that prolonged Brexitnegotiations could hurt eurozone growth, TheDaily Telegraph says.

* The pound sterling depreciated to 86.85 pence per euro atsome point yesterday, near its lowest level in three years of 87.25 pence, amidspeculation that the U.K. may surrender its access to the EU single marketduring Brexit negotiations, Bloomberg reports.

* Central Bank of Ireland Governor Philip Lane said bankshave already started looking at the possibility of transferring theiractivities to Dublin from London following the U.K.'s decision to leave the EU,Bloomberg reports.

* Moody's expects the U.K.'s new ring-fencing regulations,which are set to take effect from 2019, to impact banks' credit fundamentals.Alessandro Roccati, a senior vice president at the agency, said Moody's expectsthe stand-alone profiles of the ring-fenced banks to be in line with orstronger than those of the existing banks and to reflect their less complex butless diversified business models.

* A London court heard yesterday that a corrupt relationshipbetween a former senior banker at HBOS Plc and a business consultant and their associatesresulted in the bank writing off £245 million in losses, the Financial Times reports.Lynden Scourfield, a former senior manager at HBOS' impaired assets division,reportedly required customers in his banking portfolio to use the services ofbusiness consultant David Mills before they could obtain further bank lending.

* BarclaysPlc appointed Karen Frank head of its international wealthbusiness, Reuters reports.Frank, who joined Barclays in 2012, will also become part of the bank'scorporate and international executive committee.

* HiscoxLtd. named Matt Webb to the newly created of group head of cyber.

* U.S.-based fintech firm R3, and seven otherbanks successfully traded bonds using a blockchain platform that enablesautomated coupon payments and redemption, among other features, Reuters reports.

* HSBC's chief legal officer, Stuart Levey, called for anoverhaul of financial crime regulations, saying current compliance rules havean unintended consequence of locking innocent customers out of the financialsystem, The Daily Telegraph reports.HSBC wants increased information sharing, with Levey saying the bank iscurrently "fighting financial crime with one arm tied behind ourbacks." 

GERMANY, SWITZERLANDAND AUSTRIA

Deutsche Bank stock dips amid state help chatter:A Deutsche Bank AGspokesman toldCNBC that CEO John Cryan has never asked the German government for support innegotiations with the U.S. Department of Justice regarding mortgage-backedsecurities and does not intend to do so, adding that the bank strongly seeksways to solve its problems by itself. German Chancellor Angela Merkel hasreportedly ruled out any state help for the bank, contributing to a slumpin Deutsche Bank's share price of over 6% to its lowest level in more than 20years yesterday.

* Meanwhile, Andreas Utermann, chief investment officer atAllianz Group'sAllianz Global Investors AG, said the German government would have no choicebut to support Deutsche Bank if the lender's financial situation gets badenough, Bloomberg reports.

* The restructuring of Commerzbank AG will cost the bank up to €1 billion inthe coming years, Handelsblatt writes,adding that the bank is likely to cancel its 2016 dividend and cut some 9,000jobs over the next few years.

* Allianz bought an undisclosed minority stake in British-Italianfintech firm MoneyFarm, Business Insider reports.

* PortigonAG denied that its predecessor, Westdeutsche LandesbankGirozentrale AG, was involved in cum-ex deals between 2006 and 2008 that wereexposed by tax authorities in the German state of North Rhine-Westphalia,although officials claim they have sufficient evidence, Handelsblatt reports.

* The IMF recommended that the Swiss National Bank cut itsalready ultra-low interest rates further, but stop its currency interventionsin order to ease deflationary pressures, Bloomberg writes.

* VontobelHolding AG will sellCEAMS Holding AG, Vescore Fondsleitung Ltd. and 1741 Fund Management Ltd.,three subsidiaries of asset management firm Vescore AG, which it recentlyacquired from Raiffeisen SchweizGenossenschaft.

* The mergers of subsidiaries of Swiss health insurancecompanies Sanitas Krankenversicherung,Helsana AG and ÖKKHolding into their parent companies will force about 570,000 clients to changehealth insurers, Handelszeitung writes.

* UNIQAInsurance Group AG plans to sell its Italian businesses, Reuters writes,citing a report by Austrian news agency APA. Italian insurerSocietà Cattolica di Assicurazione and private equity firmsApollo and Cinven are reportedly among the bidders for UNIQA's Italianoperations.

* OberbankAG, following UNIQA and Vienna Insurance Group AG, accepted 's amendedbuyback offer for Hypo Alpe Adria Bank International bonds, Der Standard reports.Oberbank also set the terms for its €105.9 million capital increase by issuingup to 3,070,200 new shares, Reuters notes

FRANCE AND BENELUX

Crédit Mutuel Arkéa acquires stakein asset manager:Crédit Mutuel ArkéaSACC acquired a 28% shareholding in asset management companyVivienne Investissement for an undisclosed amount, L'Agefi writes

* MMA, aSGAM Covéa branddedicated to companies, will create a joint venture with broker Finaxy Group, L'Agefi reports.

* BNP ParibasSA unit will starttalks with unions next week about a new payment system that would allow itsemployees to choose whether to receive bonuses in cash or in vouchers that theycould exchange for other noncash benefits such as computer equipment or acompany car, De Tijd reports.

SPAIN AND PORTUGAL

Rodrigo Rato's cardmisuse trial begins: A Madrid court yesterday began the trial of former IMFManaging Director Rodrigo Rato and 64 other officials at and its founding savingsbank, Caja Madrid, over allegations of misusing credit cards, Bloomberg reports.

* BancoPopular Español SA lowered by €45 million the provisions to coverpotential contingencies tied to cash collected under contractual floor clausesinserted in mortgage agreements from May 9, 2013 onward, Expansión writes.The bank estimated at the end of 2015 that potential liabilities could amountto €350 million.  

* Angola-based Banco BIC SA has not yet decided whether to sell its 2% stake in following theannouncement of CaixaBankSA's takeover bid for the Portuguese lender, according to Jornalde Negócios and DinheiroVivo.

*Millennium BCP willsoon ask shareholders to approve a 75-to-1 reverse stock split, Diário Económico reports.The stock split is a key condition for China-based Fosun to acquire a 16.7%stake in the Portuguese bank.   

ITALY AND GREECE

Monte deiPaschi mulls debt-for-equity exchange offer: said it is consideringthe possibility of launching a voluntary debt-for-equity exchange exercise forits bondholders as part of the bank's €5 billion recapitalization plan. Thebank said its new business plan would be approved by the board Oct. 24, while ashareholders' meeting will be scheduled by the end of November. Bloombergand Reutershave reports.  

* Ignazio Angeloni, a board member of the ECB's bankingsupervisory unit, called on EU countries to stick to the bloc's bank bailoutregulations, following reports that Monte dei Paschi's recapitalization plancould involve state aid, Reuters reports.Alessandro Penati, head of Italian bank rescue fund Atlante, later complainedabout the regulatory setup of the eurozone and the ECB, saying the system is"really absurd."

* UniCreditSpA is looking to raise up to €16 billion through a share issue andasset sales, likely including online broker unit , insiders tellReuters.

* BancaPopolare di Vicenza SpA will present Oct. 11 an industrial planfocusing on cost cuts and relaunching the lender at a commercial level, MF reports.The bank will soon kick off due diligence to identify the nonperforming loansits needs to sell.

* Unione diBanche Italiane SpA met with Roberto Nicastro, the head of the goodparts of four Italian banks bailed out last year, to try to reach a memorandumof understanding for the acquisition of three of the four institutions, Il Messaggero reports. UBI Banca is interested inBanca delle MarcheSpA, Banca Popolaredell'Etruria e del Lazio SC and Cassa di Risparmio della Provincia di Chieti SpA, whileNicastro is trying to convince Cariparma SpA to look into purchasing , the paper says.

* National Bank of GreeceSA is expected to announce a voluntary exit program with an aim toreduce staff by some 1,000 employees, accordingto Euro2day. The bank's restructuring plans involve about 2,000 job cuts inGreece by 2018-end.

* Ethniki Insurance named Angeliki Skandaliari deputy general manager,Euro2day reports.Skandaliari will be in charge of the software department, the projectmanagement department and group support.  

NORDIC COUNTRIES

DNB, Gjensidige name CFOs: DNB ASA named Kjerstin Braathen CFO, effective March 1, 2017.Braathen will succeed Bjørn Erik Næss, who is set to retire after nine years inthe role.

*Gjensidige ForsikringASA namedJostein Amdal CFO as part of changes in the group management that take effectOct. 1. The insurer will also cut approximately 190 full-time staff and supportroles across the group during 2017 and record a nonrecurring provision of about120 million Norwegian kroner in the third quarter to cover restructuring costs.

*Danske Andelskassers BankA/S plans to close its branches in Aars and Hadsund, Denmark,effective Oct. 7, Nordjyske writes.The affected operations will be merged into the bank's branch operations inHobro.

*PenSam Holding A/Sreached a seven-year agreement to outsource its group IT support operations totechnology firm KMD A/S, according toFinansWatch.

EASTERN EUROPE

Moody's cutsTurkish banks: Moody's yesterday concluded its review for downgrade of 17Turkish financial institutions by downgrading the long-term debt and depositratings of 14 entities and confirming the ratings of the remaining three. Amongthe downgraded ratings were those of Akbank TAS, Türkiye Garanti Bankasi AS, andT.C. Ziraat BankasiAS.

* Turkey's Savings Deposit Insurance Fund will again putlocal lender Adabank up for sale, Milliyet reports,citing Turkey's Official Gazette. A stake in the bank of nearly 94.4% will beput up for tender, which will be held Oct. 25. The fund put an estimated priceof $60 million for the bank.

* TürkiyeVakiflar Bankasi TAO signed a syndicated loanagreement for $224.5 million and €544 million with a 367-day maturity. The bankwill use the loan for trade finance purposes.  

* deputyhead Stanislav Kuznetsov said the bank is cooperating with the Federal SecurityService to develop digital umbrella against cyber-attacks and plans to offerthese services to other Russian lenders, Vedomostireports.

* PJSC BankAleksandrovsk completed the merger with SMB-Bank, Vedomosti writes.With capital of about 2 billion Russian rubles, the merged lender plans tofocus on developing its business in St. Petersburg and neighboring regions.

* Theshareholders of JSC JSCBInternational Financial Club plan a 5 billion Russian rubleadditional share issue to bolster the bank's capital by the end of 2016 after arecent central bank inspection identified problem loans worth over 10 billionrubles at the lender, Kommersant reports.

* The Russiancentral bank canceled the licenses of Voenno-Promyshlenny Bank and Central Commercial Bank.The value of household deposits at the two lenders amounted to almost 37billion Russian rubles, Prime reports.

* completed thesqueeze-out of Bank BPHSA minority shareholders, Rzeczpospolita and Parkiet report. Bank BPH's core business will beintegrated into Alior.

* The Polish Financial Supervision Authority askedBank Ochrony SrodowiskaSA to amend its financial recovery program and submit the updatedversion within 30 days, Rzeczpospolitawrites.The bank filed the original version of the program in March. 

IN OTHER PARTS OF THEWORLD

Asia-Pacific:

Middle East & Africa:

Latin America: Banco Sofisa launches tender offer for delisting; Inbursa buys smallstake in Spanish bank

North America: Scam at Wells aggravated by arbitration clauses, say senators;Stumpf may walk away with $74M regardless

North America Insurance: Nebraska insurer quits ACA exchange; insurance M&A struggles tokeep up with 2015 pace

NOW FEATURED ONS&P GLOBAL MARKET INTELLIGENCE

Derivatives netting could push clearing from London if euro tradeexiled: As it prepares for tough Brexit negotiations, the eurozonealready has its eye on London's clearing business. If euro clearing moves, theneed to net derivatives could force other business to follow.

Questions ofdepth as Irish exchange eyes Brexit boost to equities biz: The CEOof the Irish Stock Exchange is investing in facilities and staff as it tries tocoax business away from London in the wake of Brexit. But can the Dublin boursemove beyond its niche as a venue for debt and fund listings?

Deutscheheaded for rights issue as litigation eats capital, Mediobancasays: Deutsche Bank is heading for a capital hole of between €4billion and €5 billion in 2018, under pressure from litigation, Mediobancaanalysts said.

Data Dispatch:Some life insurers jumping on wearables: A review of rate filingsillustrates how some underwriters have begun to address wearable technology forfitness tracking, such as Fitbit, in their policies.

Leo Magno, Arno Maierbrugger,Meike Wijers, Gerard O'Dwyer, Beata Fojcik, Thanasis Kakalis, Ali Kayalar, YaelSchrage, Stephanie Salti, Praxilla Trabattoni and Helen Popper contributed tothis report.

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