TOP NEWS IN BANKING & FINANCIAL SERVICES

* Incoming Citigroup Inc. CEO Jane Fraser has decided to create a new global operating team to ensure accountability among its top leaders, Reuters reported, citing a memo. The team will comprise Fraser's executive management team, the group's treasurer and heads of various Citi units, according to the report. Fraser added that Citi Commercial Bank Global Head Sunil Garg will be the next Citibank CEO, after current Citigroup CEO Michael Corbat's retirement, Reuters noted.

* U.S. Treasury Secretary Janet Yellen intends to discuss the market volatility related to retail trading in GameStop Corp. and other stocks with the heads of the Securities and Exchange Commission, the Federal Reserve, the Federal Reserve Bank of New York and the CFTC, Reuters reported.

➤ Gauging the Reddit raider impact on Robinhood

While the situation is still rapidly unfolding, the Reddit saga could, among other things, be a win for Fidelity and change the equation for venture capital investors in trading apps.

➤ Specialty lenders' early Q4'20 results show improvement

Capital One Financial's 2020 fourth-quarter results improved sharply on a year-over-year basis. Meanwhile, World Acceptance, which reported a net loss in the fourth quarter of 2019, posted $2.25 per share in net income.

EARNINGS SPOTLIGHT

* Evercore Inc. and Santander Consumer USA Holdings Inc. released their most recent financial results today.

BANKING

* Bank of America Corp. and JPMorgan Chase & Co. each processed over $1 billion in the latest round of the Paycheck Protection Program, according to the U.S. Small Business Administration's recent data. The SBA has so far approved 891,044 loans, worth $72.74 billion, through Jan. 31, an increase from the 400,580 loans totaling $35 billion in the prior week.

* To further rein in expenses, Cullen/Frost Bankers Inc. decided to eliminate 68 positions in the previous month, Chairman and CEO Phillip Green said during the company's 2020 fourth-quarter earnings call.

* Meanwhile in California, Cal Poly FCU plans to merge into in-state peer SchoolsFirst FCU, American Banker reported. Challenges of offering adequate banking technology and facilities concerns led to the combination of the two credit unions, according to the report, citing a Cal Poly FCU notice to members.

FINANCIAL SERVICES

* BlackRock Inc. Chairman and CEO Larry Fink said at a Brookings Institution event that customized portfolios will usher in a "revolution" in Wall Street's adoption of sustainable investing. Sometimes known as direct indexing, the practice allows asset managers to create portfolios designed to track an index while excluding any company's stock that the investor does not want included or tilting it toward a preferred exposure.

* Robinhood Markets Inc. raised stock trading limits of five companies, including GameStop and AMC Entertainment Holdings Inc., Reuters reported. The company increased the limit on GameStop shares to 100 from 20. The firm also eased restrictions on Express Inc., Naked Brand Group Ltd., and Nokia Corp.

* Robinhood CEO Vlad Tenev, in light of the recent market volatility, said the financial system should consider a real-time settlement in U.S. equities trading. In a blog post, Tenev said "[t]here is no reason why the greatest financial system the world has ever seen cannot settle trades in real time."

* Additionally, Robinhood will continue with its IPO plans, with an offering likely to happen in the second quarter, Barron's reported, citing unnamed sources.

* More current and former female employees of Pacific Investment Management Co. LLC are accusing the company of gender discrimination, harassment and bullying, Pensions & Investments reported.

* Point72 Asset Management LP raised $1.5 billion from investors to make the most out of investment opportunities, the Financial Times reported, citing a person familiar with the company. The news comes after the hedge fund's holdings saw a 10% decline in January, partly due to losses attributed to its investments with Melvin Capital Management LP.

* Private equity firm J.C. Flowers & Co. LLC agreed to make a majority investment in auto refinance marketing company iLendingDIRECT Inc. The financial terms of the deal, which is expected to close in the first half of this year, were not disclosed.

* Cryptocurrency exchange and custodian Gemini Trust Co. LLC launched a new savings account for consumers. The account, known as Gemini Earn, will allow clients to redeem their cryptocurrency at any time.

POLICY AND REGULATION

* In an interview, Federal Reserve Bank of Boston First Vice President and COO Kenneth Montgomery said the Fed made substantial progress last year in constructing the real-time payments system FedNow, American Banker reported. Montgomery, who is spearheading the effort, added that the service's core clearing and settlement functions would be available to financial institutions by 2023.

* Lawmakers in Oregon are considering bills that would allow cities to deposit cash in banks other than for-profit institutions, Public News Service reported. James Davis, the chair of the Oregon Public Bank Alliance, said the move would enable other institutions to provide bigger loans at lower interest rates, according to the report.

MARKETS

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