New York-based CIT Group Inc. unit CIT Bank NA agreed to acquire Mutual of Omaha Bank in a $1 billion cash-and-stock deal. The purchase price will be composed of cash and up to $150 million of CIT common shares. The deal is expected to close in the first quarter of 2020.
Coral Gables, Fla.-based Marquis Bank will combine with Professional Bank in a deal expected to close later in 2019 or at the beginning of 2020. Terms of the transaction were not disclosed. The combined entity will retain the Professional Bank name and will have approximately $1.6 billion in assets.
Elsewhere, in Illinois, Consumers Cooperative CU and Andigo CU are set to merge later in 2019. The combined organization, which will be headed by Consumers CEO Sean Rathjen, is expected to have over $2.1 billion in assets.
Citigroup Inc. is winding down its Citi Credit Opportunities team, which was formed in 2008, Business Insider reports.
The Securities and Exchange Commission again delayed its decision on approving two Bitcoin exchange-traded funds. The final decision on whether listing rules can change to allow listing and trading shares of SolidX Bitcoin Shares issued by the VanEck SolidX Bitcoin Trust, which has been pushed back multiple times, is now expected in October.
Additionally, the SEC charged Bill Tsai for insider trading based on confidential information related to Siris Capital Group LLC's plans to buy Electronics for Imaging Inc. The regulator said Tsai worked as a junior investment banker in the New York office of the bank that Siris Capital asked to provide financing and advice on the deal but did not identify the bank in its statement. The Wall Street Journal reports, citing Tsai's profile on LinkedIn, that he joined RBC Capital Markets as an investment banking analyst in July 2018. An RBC spokeswoman confirmed to the Journal that Tsai had worked for the bank in New York and now had been suspended.
New York City-based Warlander Asset Management LP, which owns $25 million of Illinois general-obligation bonds and filed a suit seeking to have $14.3 billion of Illinois bonds invalidated, may earn a massive profit if it wins the suit and the state defaults on its debt, Nuveen Asset Management LLC and AllianceBernstein LP have claimed in court filings, Bloomberg News reports. Nuveen and AllianceBernstein — which own about $2 billion of Illinois bonds, including those challenged in the suit — have argued that the credit default swaps bought by Warlander will pay off if the lawsuit causes a default. Credit default swaps on Illinois general-obligation bonds exceeded $300 million at the end of June, Bloomberg noted, citing data from International Swaps and Derivatives Association.
Vanguard Group Inc.'s biggest sustainable exchange-traded fund, Vanguard US ESG Stock ETF, bought shares of gunmaker Sturm Ruger & Co. Inc. after its underlying benchmark mistakenly included them, Bloomberg News reports. Vanguard's fund sold the shares Aug. 5 and the company apologized to shareholders for the mistake, but the error raises questions about the increasing growth of socially responsible investing and index strategies, the news outlet said.
In other parts of the world
Asia Pacific: China resumes open market operations; NZ legalizes cryptocurrency salaries
Europe: New Swiss fees on euro deposits; Talanx raises guidance; Aareal profit flat YOY
Middle East & Africa: Mizrahi Tefahot Q2 profit rises; Euroclear joins TASE; Discovery shares slump
Now featured on S&P Global Market Intelligence
Nonbank mortgage trouble stings some banks in Q2: Red flags continue to crop up for nonbank mortgage originators, hinting at credit risk for banks funding their operations.
Blackstone chief stays at top of US financial services pay rankings in 2018: Stephen Schwarzman, Blackstone Group Inc.'s chairman, CEO and co-founder, remained atop the list of highest-paid CEOs among asset managers and other financial services firms in 2018, despite a 44.9% year-over-year decrease in total adjusted compensation.
The day ahead
Early morning futures indicators pointed to a lower opening for the U.S. market.
In Asia, the Hang Seng dropped 2.10% to 25,281.30, while the Nikkei 225 shed 1.11 % to 20,455.44.
In Europe, around midday, the FTSE 100 fell 0.41% to 7,196.72, and the Euronext 100 dropped 0.54% to 1,029.18.
On the macro front
The consumer price index and the Redbook Index for retail sales are due out today.
Click here to read about today's financial markets, setting out the factors driving stocks, bonds and currencies around the world ahead of the New York open.
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