TOP NEWS IN GLOBAL FINANCIALS
– Goldman Sachs Group Inc. could incur a big write-down for its $2.4 billion 2021 acquisition of financial technology lender GreenSky Inc., with bids coming in well below what the US investment bank had hoped for in trying to unload the business after mounting losses, CNBC reported, citing people with knowledge of the matter. KKR & Co. Inc., Apollo Global Management Inc., Sixth Street Partners, Warburg Pincus and Synchrony Bank joined the first round of bids in early June, and Goldman has been "pushing back" on the price, the people told the news outlet. Goldman will continue talks with a smaller group of bidders this week, hoping to push up the price, according to the report.
– Pan-European stock exchange Euronext NV said it will sell its 11.1% stake in LCH SA to LCH Group Holdings Ltd. for €111 million. Completion of the transaction is expected to take place in early July, Euronext said, adding that it expects to incur in the third quarter a non-underlying, tax-exempt capital gain of around €40 million.
➤ Big investment banks set for weak Q2 in advisory, underwriting as job cuts rise
Big US and European investment banks face another quarter of weak revenue and further job cuts in their advisory and underwriting operations.
➤ Fla. insurer of last resort now top 10 US homeowners writer amid market turmoil
Ongoing tumult in Florida's property market has turned Citizens Property Insurance Corp. into one of the largest writers of homeowners insurers in the country.
READ MORE about the liquidity crunch and the fallout for the financial sector in our new Issue in Focus.
AMERICAS
– PacWest Bancorp unit Pacific Western Bank agreed to sell a portfolio of Lender Finance loans with a total commitment of about $3.54 billion, including an outstanding principal balance of $2.21 billion, to certain Alternative Credit strategy funds managed by Ares Management Corp. The first tranche closed June 22, with Ares acquiring an aggregate outstanding principal balance of $2.07 billion and assuming $187.1 million of the $1.33 billion unfunded commitment in the portfolio, according to a regulatory filing. The sale is expected to improve the bank's liquidity and capital ratios.
– JPMorgan Chase & Co., Goldman Sachs, Morgan Stanley and other global banks with investment banking businesses in China have been lobbying for roles in the stock market listing of agricultural chemicals company Syngenta AG, China's biggest-ever IPO, the Financial Times reported.
Click here for more of the day's essential bank and financial services news in the US and Canada.
EUROPE
– Germany's Commerzbank AG said its second-quarter operating result will be negatively impacted by €342 million in additional provisions expected to be booked by unit mBank SA as a result of the European Court of Justice's ruling on Swiss franc mortgage loans in Poland. The additional amount takes the total provisions that mBank has booked in relation to the matter to 7.517 billion zlotys, or around €1.7 billion. The German lender said it continues to aim for a 2023 net result well above that of 2022. Commerzbank booked a consolidated profit of €1.44 billion for full year 2022.
– Denmark-based Danske Bank A/S will sell its fully owned subsidiary Danske IT, headquartered in India, to digital services and consulting firm Infosys as part of a strategic partnership aimed at supporting the lender's digital and technology transformation.
Click here for more of the day's essential financial news in Europe.
MIDDLE EAST & AFRICA
– The Central Bank of Seychelles said deflation in the nation will last for a short period amid the weakening of the local currency against the dollar, Bloomberg News reported. Seychelles is the only African nation besides Burkina Faso that reported a general decrease in the cost of goods and services in May, according to the report.
– Zambia has closed a debt restructuring agreement with its state creditors for up to $6.3 billion including over $4 billion owed to China, BBC News reported. Hakainde Hichilema, president of the southern African country, said on Twitter that the deal "is a turning point for Zambia as it unburdens" the nation from unsustainable debt.
ASIA-PACIFIC
– Japan's Mitsubishi UFJ Financial Group Inc., through its MUFG Bank Ltd. and PT Adira Dinamika Multi Finance Tbk units, agreed to acquire 80.6% of Indonesian car loan provider PT Mandala Multifinance Tbk for approximately 7.042 trillion Indonesian rupiah. With the acquisition, MUFG Bank will become Mandala Multifinance's largest shareholder with a 70.6% stake in the company, while Adira Dinamika will hold a 10% stake.
– India's Hinduja Group Ltd. is said to be in talks to invest 100 billion rupees in IndusInd Bank Ltd., The Economic Times reported, citing ETNow. The Indian central bank might give Hinduja Group the approval to hike its stake in the lender to 26%, and the deal could be completed by the second half of fiscal 2024, according to the report.
Click here for more of the day's essential financial news in Asia-Pacific.
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