TOP NEWS IN GLOBAL FINANCIALS
– Binance Holdings Ltd., the cryptocurrency exchange that allegedly mishandled customer funds, used its accounts at now-defunct Silvergate Bank and Signature Bank to move nearly $70 billion around the world, Bloomberg News reported, citing a court filing. Silvergate facilitated more than $50 billion in deposits for Binance-related parties while Signature handled more than $19 billion in funds, some of which flowed out to foreign entities, according to the report. A Binance spokesman told The New York Times that the transfers mentioned in the filings did not involve client funds and were done in the normal course of business operations.
– France's Société Générale SA agreed to sell its African subsidiaries in Congo and Equatorial Guinea to Vista Group, and those in Mauritania and Chad to Coris Group, according to a release. Under the agreements, the bank will divest its shares in Société Générale Congo, SGBGE, Societe Generale Mauritaniene SARL and SG Tchadienne de Banque.
➤ 16 banks adopt community bank leverage ratio guidelines for first time in Q1
More banks adopted the community bank leverage ratio reporting guidelines in the first quarter, including 16 institutions that had never been part of the framework.
➤ US corporate bankruptcies tick up in May; year-to-date total highest since 2010
S&P Global Market Intelligence recorded 54 corporate bankruptcy filings during May, a slight rise from 52 in April.
READ MORE about the liquidity crunch and the fallout for the financial sector in our new Issue in Focus.
AMERICAS
– New York-based asset management giant BlackRock Inc. agreed to acquire full control of Kreos, a London-based provider of growth and venture debt financing to companies in the technology and healthcare industries. The deal is expected to close in the third quarter. Since its inception in 1998, Kreos Capital has committed more than €5.2 billion across more than 750 transactions in 19 countries.
– JPMorgan Chase & Co. executive Jes Staley formally denied wrongdoing and involvement in the late financier Jeffrey Epstein's sex trafficking scandal, Reuters reported, citing filings in a Manhattan federal court. Staley also accused JPMorgan of waiving at least some claims against Epstein by keeping him as a client despite being aware of his alleged misconduct, according to the report.
– Coinbase Global Inc. believes it made sufficient effort to register as a broker but the US Securities and Exchange Commission did not give it a chance to pass the process. Coinbase's engagement with the SEC started with an "icy reception," the cryptocurrency exchange's co-founder, chairman and CEO, Brian Armstrong, said during the Piper Sandler Global Exchange & FinTech Conference.
Click here for more of the day's essential bank and financial services news in the US and Canada.
EUROPE
– Barclays PLC is reviewing options for its global payments activities, sources told Reuters. The British bank is reportedly considering whether some parts of the business may be expanded or combined with other payment providers through a merger or a joint venture. The review is in its early stages and is part of a broader assessment of Barclays' resources allocation, the sources said. A Barclays representative said growing its global payments business is a priority for the bank.
– Deutsche Bank AG is streamlining its mortgage financing business, a move that could lead to the reduction of several hundred jobs, Reuters wrote, referencing a Handelsblatt report that cited unnamed sources. The move is reportedly driven in part by the German lender's gloomy outlook on the mortgage market. A bank spokesperson told Handelsblatt that it will set up its mortgage business more efficiently and cost-effectively.
– Ireland's central bank is raising the countercyclical capital buffer rate for banks to 1.5% from 1%, effective June 2024. Governor Gabriel Makhlouf said the central bank expects local lenders to continue reporting higher levels of profitability, adding that the banking sector has "ample headroom above regulatory requirements in both capital and liquidity" and "very high levels of cash reserves."
Click here for more of the day's essential financial news in Europe.
MIDDLE EAST & AFRICA
– Kenya's parliament approved the appointment of economist and senior civil servant Kamau Thugge as the new central bank governor, Reuters reported June 7. Thugge, who was nominated by President William Ruto last month, will succeed Patrick Njoroge, who is retiring after serving two terms.
– Standard Chartered PLC is selling its Zimbabwe business to FBC Holdings Ltd., pushing ahead with its exit plans from seven markets in Africa and the Middle East, Bloomberg News reported June 8, citing a statement. FBCH will acquire 100% of the bank’s shareholding in the unit as well as the custodial services business, and the economic interest in Africa Enterprise Network Trust, the report said.
ASIA-PACIFIC
– The Australian government said it is planning to update a 1998 law to expand oversight of digital payments. The Australian Treasury announced proposals to allow the Reserve Bank of Australia and ministers to regulate new services such as digital wallets that could significantly disrupt the financial system.
– Citigroup Inc. CEO Jane Fraser met with the head of China's National Financial Regulatory Administration, Li Yunze, to express confidence in the economy and plans to expand Citi's business in China, Reuters reported. The regulator said it would open its financial sector further, which could benefit Citi's application to set up a domestic securities brokerage.
Click here for more of the day's essential financial news in Asia-Pacific.
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