Jul. 17, 2014, 4:54 AM
- Prior to its takeover of European bank supervision on November 4, the ECB will release collections of data on the euro zone's 128 most important lenders to insure the banks can withstand future crises.
- The published review in the second half of October will outline leverage measures, standardized ratios of non-performing loans and other statistics, giving the banks only two weeks to come up with plans to deal with capital shortfalls.
- Related stocks: SAN, DB, IRE, CS, ING, BBVA, BCS, RBS, HSBC, LYG
- ETFs: EUFN
Jul. 10, 2014, 9:44 AM
- When the going gets tough, the tough suspend trading. Portugal has halted trade in Banco Espirito Santo with the stock off 17.2% on the session and 54% over the last month. At issue are financial troubles for the bank's privately-owned holding company, Espirito Santo International. Its accounts are currently under review by an external auditor who has identified irregularities and concluded the company "is in serious financial condition."
- Santander (SAN -5.8%), UBS (UBS -1.8%), Deutsche Bank (DB -3.1%), Bank of Ireland (IRE -5.6%), Credit Suisse (CS -2.8%), ING (ING -3.2%), BBVA (BBVA -3.1%). U.K. banks: Barclays (BCS -3.8%), RBS (RBS -1.9%), HSBC (HSBC -1.9%), Lloyds (LYG -2%).
- European financial sector ETF: EUFN -2.4%.
Jul. 10, 2014, 2:41 AM
- Commerzbank (CRZBF, CRZBY) is now expected to pay between a $600-$800M settlement for its money transfer operations which evaded U.S. sanctions, CNBC reports. The bank is accused of transferring money on behalf of companies in Iran and Sudan.
- It was previously reported that the bank would have to pay more than $500M.
- Over the past five years, American authorities have found more than half a dozen foreign banks guilty of sanctions violations.
- The U.S. is still probing UniCredit (UNCFF), Credit Agricole (CRARY), Societe Generale (SCGLF), and Deutsche Bank (DB).
Jul. 9, 2014, 8:12 AM
- Responding to news on a couple of European lenders, JPMorgan upgrades Deutsche Bank (DB) to Overweight citing the recent capital raise, and downgrades BNP Paribas (BNPZY) to Neutral, citing lower capital returns following the $8.9B U.S. criminal settlement.
- Deutsche is up 1% premarket; BNP is lower by 1.3% in Paris action.
Jul. 8, 2014, 3:24 PM
- More talent exits the banking industry for private-equity, with Deutshce's (DB -1.9%) Jeffrey Mayer - the bank's head of North American corporate banking and securities - moving to Cerberus Capital later this summer, according to an internal memo.
- Mayer joined the bank in 2010 after a brief stint with UBS. Prior to that, he'd been with Bear Stearns for 19 years.
Jul. 8, 2014, 3:36 AM
- U.S. authorities are starting to discuss settlement options with Commerzbank (CRZBF, CRZBY) and Deutsche Bank (DB) for their money transfer operations which evaded U.S. sanctions, Reuters reports. The banks are accused of transferring money on behalf of companies in Iran and Sudan.
- Commerzbank, is likely to settle with a deferred prosecution agreement that would suspend criminal charges in exchange for a financial penalty and other concessions. The NYT reports the bank could likely pay at least $500M, although the the timing of the deal is still unclear. The bank set aside $1.3B at the end of 2013 as a provision for litigation risks, including a possible U.S. investigation.
- The new litigation comes after last week's BNP Paribas settlement for $9B.
Jul. 6, 2014, 9:46 AM
- France's finance minister Michel Sapin states that he is not worried about additional U.S. probes on other French banks, following last week's guilty plea by BNP Paribas for violating U.S. sanctions.
- "I think the risk is rather being perceived by other very big European banks," says Sapin.
- According to U.S. sources, French banks Societe Generale (SCGLF) and Credit Agricole (CRARY) and Germany's Deutsche Bank (DB) are also being investigated for having potentially violated U.S. sanctions.
Jun. 27, 2014, 10:37 AM
- Deutsche Bank's (DB -0.2%) asset management unit spent about $2.3B (including debt) acquiring cargo-container facility operator Maher Terminals in 2007, and has since written down the $1.1B in equity backing the initial deal, according to sources.
- Now, reports the WSJ, the bank is looking for buyers for all or part of the company, and one source expects a price tag (for the whole operation) of between $800M-$1B.
- Deutsche last month unloaded another albatross, selling the Cosmopolitan of Las Vegas to Blackstone for $1.7B after sinking $4B into the property.
Jun. 18, 2014, 5:02 PM
- The trustee units of Detusche Bank (DB), U.S. Bancorp (USB), Wells Fargo (WFC), HSBC, and Bank of New York Mellon (BK) face a lawsuit by an investor group led by BlackRock (BLK) and Pimco (and also including PRU and SCHW) over their role in overseeing and enforcing terms on more than 2K mortgage-backed bonds between 2004 and 2008.
- The group is seeking damages for losses on the paper that have surpassed $250B, reports the WSJ. At issue, say the plaintiffs, is the banks breaching their duty to bondholders by failing to force the lenders and bond issuers to repurchase poorly underwritten loans.
- A similar plaintiffs group has already won settlements from Bank of America and JPMorgan for their roles in originating and selling toxic mortgages.
Jun. 18, 2014, 10:25 AM
- The ECB's move to further cut rates (including taking the deposit rate into negative territory) and prep for QE may remove the incentive for reform in the EU, suggests Deutsche Bank (DB) co-CEO Anshu Jain in a rare critique of a central bank by a leading banker.
- "I do worry that the ECB may be creating preconditions that are taking the pressure off," he says, adding that while QE worked well in the U.S., Europe could be a different story.
Jun. 18, 2014, 7:30 AM
- JPMorgan's (JPM) Q1 investment banking revenue, according to Coalition, keeps the bank ahead of rivals like GS, DB, BAC, and C - all of whom tied for 2nd - but the amount of $5.9B was nearly 15% lower than the $6.9B posted a year ago.
- Revenue in fixed income, commodities, and currencies (FICC) of $3.2B put JPMorgan in the top spot in that category, but this figure was down more than 25% from 2013.
- In equities, JPMorgan's $1.4B in revenue tied it with Morgan Stanley (MS) for first place. In advisory business, it was Goldman Sachs and BAML - each bringing in about $1.5B - which led the way.
Jun. 17, 2014, 8:08 AM
- Deutsche Bank's (DB) Japanese securities unit - Deutsche Securities - spent ¥22.1M ($217K) entertaining officials from 45 funds managing public pensions between 2010 and 2012, according to a report seen by Bloomberg. Deutsche Securities COO Bret Dandoy approved expenses for at least some of this and Chairman Norimichi Kanari joined in the festivities on one occasion, according to the report.
- Japanese criminal law prohibits companies from picking up the tab for public servants with the intention of obtaining business, but both Dandoy and Kanari maintain they weren't aware pension officials were regarded as civil servants.
- Deutsche Securities salesman Shigeru Echigo is currently at trial over these charges and faces a one-year prison term.
Jun. 12, 2014, 8:52 AM
- UBS is lower by 1.8% in premarket action after a report from Autonomous Research suggests the bank could face $8B in fines and settlements related to currency-rigging charges.
- In all, Autonomous sees $35B in penalties, with UBS seeing the largest bill. Coming in at place and show are Deutsche Bank (DB) with $4.4B and Citigroup (C) at $4.3B.
- Autonomous is basing its estimates on the size of the fines handed out for Libor-rigging. "We acknowledge that our methodology is speculative, but it applies the theory that repeated wrongdoing attracts higher penalties, as witnessed elsewhere."
Jun. 6, 2014, 10:13 AM
- The U.K.'s FInancial Conduct Authority is looking to fine former Deutsche Bank (DB -2.6%) trader Christian Bittar about £10M ($17M) for trying to rig Euribor (benchmark European rates), reports Bloomberg, in what would be the largest-ever penalty against an individual.
- Without naming names, the FCA says it's looking to fine at least seven other traders for manipulating benchmark rates, with two facing fines of over £1M.
- Bittar was fired from Deutsche in 2011 after the bank claimed he colluded with another trader to boost the value of his trades, and he lost about €40M in bonuses after being let go. He's currently based Singapore and working at a hedge fund.
Jun. 5, 2014, 2:51 PM
- “The extent of Deutsche Bank’s (DB -3.2%) financial exposure to these matters could be material, and Deutsche Bank’s reputation may suffer material harm as a result," says the bank in the prospectus related to its capital raise.
- No criminal charges have been filed over currency market manipulation, but more than two dozen traders have been fired across a number of banks. What's more, prosecutors - having wrung a guilty plea and massive fine out of Credit Suisse and about to do the same with BNP Paribas - have now gotten the taste of blood, and may have found they like it.
- Deutsche today raised €8.5B in an equity offering and plans to raise another €6.75B through a rights offering expected to be completed this month.
Jun. 5, 2014, 7:55 AM
- The Stoxx 50 (FEZ) is up 0.8% after being about flat ahead of the ECB rate decision, at which the central bank cut all three of its benchmark rates, including taking the deposit facility rate into negative territory.
- Italy (EWI) with a 1.3% gain and France (EWQ) ahead 1% lead the way.
- The euro (FXE) tumbles about 40 pips, now off 0.3% on the session and buying $1.3563.
- Europe equity ETFs: RSX, VGK, EWG, FEZ, GREK, EWP, EWI, DFE, RUSL, IEV, RSXJ, EWL, ERUS, EWU, RUSS, EPV, EZU, EWD, HEDJ, NORW, EWQ, EPOL, EIRL, PLND, EWO, RBL, GXF, EWN, FEU, EWK, FDD, EWGS, FEP, EDEN, UPV, EWUS, DBGR, PGAL, ADRU, ENOR, GERJ, DXGE, FEEU, FGM, EURL, FKU, EFNL, EUDG, DXPS, FSZ, EURZ, FIEU, RUDR, DBEU, HEWG, DBUK
- Euro ETFs: FXE, EUO, ERO, DRR, EUFX, ULE, URR
- ECB chief Mario Draghi's press conference begins at 8:30 ET.
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