TOP NEWS IN GLOBAL FINANCIALS
– Coinbase Global Inc. said it is ready to take its legal fight with the US Securities and Exchange Commission to the US Supreme Court if needed, Bloomberg News reported, citing an interview with the company's lawyer, Paul Grewal. The SEC sued Coinbase June 6, accusing the company of running an illegal exchange and allowing trading of tokens that are actually unregistered securities. Meanwhile, a US appeals court ordered to SEC to say whether it has denied Coinbase's petition for rulemaking, Bloomberg reported.
– UBS Group AG will have a more than two-year grace period before higher capital requirements related to its takeover of Credit Suisse Group AG kick in. Swiss financial regulator FINMA confirmed that increases in the combined group's prudential capital surcharge will be phased in from early 2026 based on UBS' integration plan, it said in a regulatory filing. Additionally, UBS expects to finalize by June 7 an agreement with Swiss authorities to cover additional losses associated with its acquisition of Credit Suisse Group AG, according to a regulatory filing
➤ Largest 50 US banks by total assets, Q1 2023
Of the 50 largest US banks and thrifts, 37 reported quarter-over-quarter increases in total assets while 13 reported declines, according to S&P Global Market Intelligence data.
➤ Illinois records more bank branch closures than openings
In the 12 months ended April 30, banks recorded 64 net branch closings in Illinois as they shuttered 90 branches and opened 26, resulting in 3,730 active branches in the state, according to S&P Global Market Intelligence data.
➤ Median price to adjusted tangible book value falls to 106% for US banks in May
After bank stocks tumbled 18.6% in March and 6.9% in April, the beatdown continued in May.
READ MORE about the liquidity crunch and the fallout for the financial sector in our new Issue in Focus.
AMERICAS
– Citigroup Inc. CEO Jane Fraser told Chinese regulators during her visit to the Asian country that the US bank will continue to expand its business there, Reuters reported, citing a statement from China's new National Financial Regulatory Administration. Citigroup is "fully confident in China's economic and financial growth," the report quoted the statement as saying.
– The US SEC seeks to freeze assets held for US customers by BAM Trading Services Inc., operating as Binance.US, and for other emergency relief against the company and its China-based parent company Binance Holdings Ltd., affiliate BAM Management US Holdings Inc. and founder Changpeng Zhao. The move is meant to ensure that Binance.US customers' assets are protected and remain in the US pending litigation, according to an SEC news release.
– Brazil's Itaú Unibanco Holding SA is in preliminary discussions with Banco Macro SA for the sale of its Argentina operations, Reuters reported June 7, citing Itau’s disclosure in a securities filing. The private lender, which has a total of 71 branches in Argentina, said neither bank had reached a binding agreement yet, the news outlet reported.
Click here for more of the day's essential bank and financial services news in the US and Canada.
EUROPE
– Barclays PLC kicked off the sale process for a roughly €5 billion portfolio of mortgage loans in Italy, insiders told Bloomberg News. The move is part of the British bank's plan to exit retail banking in the country and dispose of its noncore consumer operations in continental Europe. The loan book mostly consists of performing loans to individuals as well as nonperforming mortgages and high-risk loans in Swiss francs. Interested buyers have until the end of June to submit nonbinding bids. A Barclays spokesperson declined to comment.
– Lloyds Banking Group PLC is preparing to launch a £600 million auction of The Telegraph newspapers and The Spectator magazine amid a dispute with their owners over a longstanding debt, industry sources told Sky News. The loans the British bank inherited as part of HBOS' 2008 rescue were written down years ago, so a sale could bring the lender a capital boost, according to the report. Lloyds declined to comment.
Click here for more of the day's essential financial news in Europe.
MIDDLE EAST & AFRICA
– The World Bank projected 5% growth in Kenya's economy in 2023 on the back of better agricultural output, Bloomberg News reported June 7, citing the lender's published Kenya Economic Update. The growth rate is forecast to improve to 5.2% in 2024 and 5.3% in 2025 on lower global commodity prices and robust private investment, the report said.
– Investor outlook for South Africa's economy remained bleak despite marginal economic growth in the first three months of the year, Reuters reported June 7. The South African rand weakened by about 0.42% from its previous close on Wednesday owing to downbeat investor sentiment as the unabated power crisis in the country continues to pose challenges to the economy, the report said.
ASIA-PACIFIC
– Chinese authorities asked the country's major banks, including Bank of China Ltd., Industrial and Commercial Bank of China Ltd. and Bank of Communications Co. Ltd., to cut their deposit rates for the second time in less than a year, Bloomberg News reported, citing unnamed sources. The lenders are evaluating the request for a rate cut on a range of products, including demand deposits by 5 basis points and three-year and five-year time deposits by at least 10 bps. The People's Bank of China declined to immediately comment.
– The monetary board of the Reserve Bank of Australia decided to increase the cash rate target by 25 bps to 4.10%. It also increased the interest rate paid on exchange settlement balances by 25 bps to 4%. The regulator noted that while inflation in Australia has passed its peak, it is still too high at 7%.
Click here for more of the day's essential financial news in Asia-Pacific.
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