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Home Capital posts Q2 net loss; Invesco eyes retail funds biz

Home Capital Group Inc. reported a net loss of C$111.1 million, compared to a net income of C$66.3 million a year ago. The Toronto-based lender incurred incremental costs totaling C$213.6 million related to the liquidity event that saw Home Capital liquidating its mortgage assets and arranging an emergency C$2 billion loan facility. Home Capital also notched additional C$5.8 million restructuring costs related to its cost-cutting initiative Project Expo as well as costs connected to the Ontario Securities Commission matter and related class action of C$7.0 million, net of expected insurance recoveries.

The Office of the Comptroller of the Currency filed a motion to dismiss the Conference of State Bank Supervisors' complaint seeking to prevent the OCC from issuing special-purpose national bank charters to financial technology companies. The bank regulator cited lack of jurisdiction and failure to state a claim upon which relief can be granted as basis for its motion. In a court filing, the OCC said the complaint was "a fatally premature" attempt to "remedy a speculative harm" from future actions that the OCC "may never take."

In connection with the sale of some of its assets to Freedom Mortgage Corp., New York Community Bancorp Inc. will shut down its Cleveland-based residential mortgage banking business, effective Sept. 29. This would lead to a total of 224 job cuts — 210 in the Westbury, N.Y.-based company's facility at 1801 E. 9th Street in Cleveland and 14 employees currently working at 7570 Northcliff Avenue in Brooklyn, Ohio.

In merger news, Lima, Ohio-based Superior Credit Union Inc. is combining its operations with Cincinnati-based Cinco Family Financial Center Credit Union, reports. The deal has received state and federal regulators' approvals and is expected to close Oct. 31.

New York-based Atria Wealth Solutions, a newly formed wealth management solutions holding company, is acquiring CUSO Financial Services LP and sister company Sorrento Pacific Financial LLC. CUSO Financial Services and Sorrento Pacific will continue to be based and operate from San Diego.

Atlanta-based Invesco Ltd. is in talks to purchase Guggenheim Partners' retail funds business for about $2 billion, sources for The Wall Street Journal say. The two companies are also discussing other options, including the potential sale of just Guggenheim Partners' platform of exchange-traded funds. Guggenheim Partners' retail mutual funds and exchange-traded funds hold about $65 billion in assets under management.

And Global Payments Inc. is buying the communities and sports divisions of The Active Network LLC, a software provider owned by Vista Equity Partners Management LLC, for around $1.2 billion, including a tax asset. The stock-and-cash deal is expected to close in the fourth quarter. Vista Equity Partners will retain ACTIVE Network's outdoors division.

Reuters reports that Atlanta-based fintech startup Kabbage Inc. received $250 million in equity funding from Japanese technology conglomerate SoftBank Group Corp. — in what CB Insights noted as the largest equity investment in such lenders outside of China. Kabbage, which operates in North America and Europe, plans to launch in Asia within the next 18 months.

Meanwhile, the Basel Committee postponed to early October from mid-September its next meeting on global capital rules to give officials additional time to overcome European banks' objections on the minimum capital level big banks must hold, according to Reuters.

In other parts of the world

Asia-Pacific: Suncorp full-year net profit up 3.6%; Chinese P2P lender raises funds from GIC

Europe: Crédit Agricole, UniCredit Q2 profits up YOY; AXA, Aviva H1 profits also rise

Middle East & Africa: Iraq's landmark bond draws strong demand; Nedbank, KBC H1 profits fall YOY

The day ahead

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

In Asia, the Hang Seng decreased 0.28% to 27,531.01, and the Nikkei 225 declined 0.25% to 20,029.26.

In Europe, around midday, the FTSE 100 was up 0.19% to 7,425.78, and the Euronext 100 was up 0.18% to 998.75.

On the macro front

The chain store sales report, the Challenger job-cut report, the Gallup good jobs rate report, the Bloomberg Consumer Comfort Index, the ISM non-Mfg index, the factory orders report, the PMI services index, the EIA natural gas report, the Fed balance sheet and the money supply report are due out today.

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