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Activist shareholders push banks in Michigan, Florida to sell


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Activist shareholders push banks in Michigan, Florida to sell

is in the news, and little ofit is good for online lenders.Goldman Sachs GroupInc. and JefferiesLLC have reportedly suspended plans to buy its loans, and even small banksare skittish over digital lenders' "completely foreign" . In afollow-up to news ofinternal control lapses, Bloomberg News' sources said Jefferies itself hadasked LendingClub to disclosemore to its borrowers, particularly in regard to its data collectionpractices.

And the U.S.Treasury Department yesterday came out with policy recommendations for the industry and said it waswilling to help in the drafting of legislation.

In the broker/dealer scene, the terminationof the $6.3 billion Office Depot-Staples mergeris bad news for financial advisers Barclays and

bought AutomatedTrading Desk in 2007 for $680 million, and is now in talks to it to , say sourcesfor Bloomberg News. According to the FinancialTimes, the purchase would be in line with Citadel's efforts to get out of paymentfor order flow.

And havingquit certain commoditiesbusinesses, MorganStanley is moving the related trading unit — about 150 people — toTimes Square from Purchase, N.Y. — closer to the rest of its tradingoperations, Reuters reports.

In banking news, TS Banking Group isacquiring .If the purchase closes, Okey-Vernon will be rebranded as TS Bank.

Elsewhere,large shareholders are pushing their banks to sell. David Kelley told the Traverse City Record-Eagle he's beenapproached by two potentialbuyers of TraverseCity State Bank. The Michigan-based bank, however, says it hasn'treceived any offers.

And activistinvestor CapGen wrote to the board of Seacoast Banking Corp. of Florida, pointing out itshould think of selling, since buying has so far to improve performance.

CEOPeter Kraus has spoken before about the " battle" in asset management. In an interview withthe Financial Times, he added thatmutual funds have allowed themselves to get toobig. At a certain level, he argued, "incentives shift from trying tooutperform [a] benchmark to not wanting to underperform."

Speaking ofactive stockpicking, guess what Pershing Square LP's Bill Ackman, 's Daniel Loeb,Paulson & Co.Inc.'s John Paulson and Omega Advisors Inc.'s Leon Cooperman had in common in2015? Their earnings got beatenby the quants', the Financial Timesreports, citing Institutional Investor's Alphamagazine. The New York Times pileson, reporting that regulators have been so busy pulling compensationdown at banks, they seem to have missed the fact that 's Ken Griffin made $1.7billion last year — 63x Jamie Dimon's pay at JPMorgan Chase & Co.

And , which gothit by its first SECpenalty in October 2015, is hiring , former co-chief of the SECenforcement division's asset management unit, as .

Oil has rallied, but worries have yet to ease. Sources for the Financial Times say energy firms withtoo much leverage are stillin trouble and that many can no longer refinance. Oppenheimer's BenChittenden thinks it's "early innings" in the spread of creditdeterioration to C&I and auto loans, of which there "is increasingevidence."

And Apple Pay has in Canada. The service is nowavailable to customers of RoyalBank of Canada, CanadianImperial Bank of Commerce, ATB Financial and Canadian Tire Bank. According to the Financial Post, , and are joiningsoon. A source for the publication adds the agreement with the banksinvolves lowerfees for Apple, similar to its U.K. and Australia arrangements.

In other parts of the world

discovered suspicious trades in its futures market in London and assisted inthe arrest of two men linked to a Russianorganized crime group, the FinancialTimes reports.

The day ahead

U.S. markets are expected to start the day's tradingon a lower note as the Nasdaq composite index, the S&P 500 and the DowJones Industrial Average were trading below fair value in early morning futurestrading.

In Asia, the Hang Seng dropped 0.93% to 20,055.29, and theNikkei 225 rose 0.08% to 16,579.01.

In Europe as of midday, the FTSE 100 was down 0.23% to6,142.68, and the Euronext 100 had fallen 0.91% to 851.30.

On the macro front

The Bank Reserve Settlement report, the MBA mortgageapplications report, the EIA petroleum status report and the Treasury budgetare due out today.

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