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Bob Diamond, CEO of Atlas Merchant Capital LLC, predicts that President Trump's deregulation policies will lead to a wave of small-bank consolidation in the US, reducing the number of small banks from 4,500 to as low as 1,000. Many regional and community banks are facing challenges with technology and compliance costs, prompting speculation that mergers will be necessary for survival. Diamond believes that the Trump administration's regulatory changes will accelerate this consolidation process, as smaller banks struggle to improve their return on equity. [Extracted from the article]

Republican Senators Rand Paul and Cynthia Lummis are pushing for more transparency from the Federal Reserve, threatening to issue a subpoena if the central bank does not fully respond to their inquiries. Paul, as the new chair of the Homeland Security and Government Affairs Committee, has the power to issue subpoenas independently. Lummis, a crypto industry advocate, wants the Fed to disclose more information on its operations, including criteria for access to payment systems. Both senators are willing to work together on a potential subpoena if the Fed does not become more forthcoming. [Extracted from the article]

The Financial Services Agency in Japan has warned regional banks about the risks associated with investing in repackaged government bonds, which have been gaining popularity. These products bundle Japanese government bonds with derivatives to enhance returns, but the FSA is concerned about potential negative spread and the need for proper risk management. While some banks are attracted to these products because they do not have to mark them to market, the returns may be lower when fees are considered. The FSA has previously issued a similar warning and is urging banks to be cautious. [Extracted from the article]

The Financial Services Agency in Japan has warned regional banks about the risks associated with investing in repackaged government bonds, which have been increasing in popularity. The regulator emphasized the importance of proper risk management for these financial instruments, as they involve bundling Japanese government bonds with derivatives to enhance returns. The concern is that depending on how these products are structured, banks could face negative spread if the yield curve flattens, impacting their returns. This warning comes as these products have been gaining traction due to the avoidance of marking them to market, unlike holding JGBs directly. [Extracted from the article]

PNC Financial Services Group Inc. is expanding its physical branch network to compete with larger US banks and prepare for potential consolidation in the industry. The bank aims to reach 7-8% branch share in key areas where it operates, with recent focus on Houston and Atlanta. PNC has added new branches and plans to invest $1.5 billion in branch expansion, with Salt Lake City as the next target market. Despite slower deposit growth compared to larger competitors, PNC is pursuing scale through organic growth and potential acquisitions. CEO William Demchak emphasizes the importance of scale and succession planning within the company. [Extracted from the article]

Oldenburgische Landesbank AG, backed by Apollo Global Management Inc. and other investors, is reportedly seeking a valuation between €1.5 billion and €2 billion ($2.1 billion) in an initial public offering (IPO) by mid-April. The regional German lender had previously shelved plans for a listing two years ago due to industry concerns, but is now part of a growing number of firms preparing to go public in Germany. OLB was formed through the merger of several smaller German banks, with its current IPO advisory team including UBS Group AG, Citigroup Inc., Deutsche Bank AG, and Barclays Plc. [Extracted from the article]

PNC Financial Services Group Inc. is expanding its physical branch network to compete with larger US banks and potentially prevent the emergence of a new competitor of similar size. The bank aims to reach a 7% to 8% branch share in key areas where it operates, with recent branch openings in Houston and Atlanta. PNC's growth strategy includes opening over 200 new branches and investing $1.5 billion in branch development. Despite slower deposit growth compared to larger competitors like JPMorgan & Chase Co. and Bank of America Corp., PNC remains focused on achieving scale through organic growth and potential acquisitions. [Extracted from the article]

Beal Bank USA, part of billionaire Andy Beal's financial empire, borrowed billions from the Federal Reserve's discount window in late 2022, just before a regional banking crisis. While other banks collapsed, Beal Bank USA saw record profits in 2022, doubling its net income to $1.2 billion. The bank's borrowing from the Fed raised questions about emergency lending facility use and sparked speculation about the health of banks. [Extracted from the article]

Charles Schwab Corp. exceeded revenue estimates in the fourth quarter, with a 20% year-over-year growth to $5.3 billion. The company's adjusted earnings per share of $1.01 also surpassed predictions. Newly-appointed CEO Rick Wurster attributed the success to record net inflows into managed investing solutions. Schwab plans to expand by adding more branches and relocating existing locations to better serve customers. [Extracted from the article]

The article from Bloomberg.com discusses how US President Donald Trump's policies are expected to boost the economy and support both public and private markets, according to Franklin Templeton Investments' CEO, Jenny Johnson. Johnson highlights Trump's support of deregulation, proposed spending policies, and tax cuts as factors contributing to economic growth. She also mentions the impact of Trump's policies on the Federal Reserve's rate-cutting path and predicts a 5% US 10-year Treasury yield by the end of the year. Additionally, Johnson discusses the potential convergence of traditional finance and cryptocurrency under Trump's administration, as well as opportunities in secondary private equity and real estate debt in private markets. [Extracted from the article]

Charles Schwab Corp. exceeded revenue estimates in the fourth quarter, with a 20% year-over-year growth to $5.3 billion and adjusted earnings per share of $1.01. The company's full-year revenue growth of 4% surpassed its own guidance. Newly-appointed CEO Rick Wurster attributed the success to record net inflows into managed investing solutions. Schwab plans to expand by adding more branches and relocating existing ones to better serve customers. [Extracted from the article]

Two major regional banks, U.S. Bancorp and PNC Financial Services Group Inc., have forecasted muted net interest income for the first quarter due to uncertainties surrounding lower interest rates and lending demand. Both banks expect a decline in NII, with PNC predicting a 2-3% decrease and U.S. Bancorp anticipating relatively stable NII. Despite these challenges, both banks are more optimistic about the full year, with PNC projecting a 6% increase in total revenue and U.S. Bancorp expecting a 3-5% rise in total net revenue. The banks' shares were down in early New York trading, but they remain confident in their strategies for future growth and positive operating leverage. [Extracted from the article]

Bank of Japan Governor Kazuo Ueda announced that a decision on hiking rates will be made at the upcoming January policy meeting. Ueda highlighted the US economy and upcoming wage negotiations as key factors influencing the decision. Market reactions to Ueda's comments resulted in a slight strengthening of the yen against the dollar. The possibility of a rate hike is being closely monitored by BOJ watchers, with indications pointing towards a potential increase in borrowing costs. [Extracted from the article]

UBS Group AG has hired three salesmen in Japan to focus on selling high-yielding structured investments and tailored derivative products to local financial firms. The move is part of a broader effort to expand UBS's reach in the Japanese market and cater to the demand for risk-hedging and financing solutions among regional banks. International lenders are actively recruiting talent with ties to local financial institutions to capitalize on the growing interest in securities made of derivatives that offer additional returns. [Extracted from the article]

The Federal Reserve's interest-rate-setting committee will see new members in 2025, coinciding with concerns about inflation. Chair Jerome Powell indicated a more gradual approach to future rate cuts, dependent on inflation trends. The incoming members have varying views on the need for rate cuts, with uncertainty surrounding the impact of potential policy changes from President-elect Donald Trump. Dissents within the committee are seen as a healthy sign of diverse perspectives, according to experts like Don Kohn. [Extracted from the article]

Elon Musk has criticized the Federal Reserve for being "absurdly overstaffed," as part of his efforts to make the US government more efficient. Musk, who is set to lead a new agency called the Department of Government Efficiency, aims to implement $2 trillion in spending cuts. The Federal Reserve, with about 24,000 employees, has been a target of criticism from both Musk and US President-elect Donald Trump, who has questioned the central bank's policies and staffing levels. ECB President Christine Lagarde defended the hard work of her team in response to Trump's comments about the Fed. [Extracted from the article]

Federal Reserve Bank of Cleveland President Beth Hammack dissented at a recent central bank meeting, advocating for keeping interest rates steady to address inflation concerns. Hammack believes that current interest rates are close to a neutral level and should remain high enough to restrict economic activity. She emphasized the need for further evidence of inflation progress before considering rate cuts. Chair Jerome Powell echoed this sentiment, indicating that future rate reductions would depend on cooler inflation readings. Hammack's dissent marked the first by a regional bank president since 2022 and followed a similar move by Governor Michelle Bowman in September. [Extracted from the article]

Central banks in Asia are facing challenges following the Federal Reserve's hawkish stance, leading to currency selloffs and concerns about defending their currencies. Different approaches have been taken by central banks, with some intervening openly while others prefer more discreet methods. The dollar rally has complicated monetary easing efforts in Asia, potentially requiring central banks to focus on currency defense rather than rate cuts. [Extracted from the article]

Central banks in Asia are facing a challenging decision following the Federal Reserve's hawkish stance, which has led to a sharp decline in Asian currencies. Some central banks, like Indonesia's, are intervening to defend their currencies, while others, like the Reserve Bank of India, are taking more subtle approaches. The dollar rally has complicated monetary easing efforts in Asia, with weaker currencies potentially fueling domestic inflation. Despite this, central banks are likely to maintain their easing bias while navigating the impact of dollar strength. [Extracted from the article]

Central banks in Asia are facing a tough choice following the Federal Reserve's hawkish stance, leading to a decline in Asian currencies. The Indian rupee and Korean won hit record lows against the dollar, prompting questions about how far central banks will go to defend their currencies. Different approaches are being taken by Asia's central banks, with China's central bank offering support for the yuan. The Fed's focus on inflation has caused concern among currency traders in Asia, with expectations of reduced interest rate cuts next year. [Extracted from the article]

Private credit firms are expanding beyond corporate lending to finance auto loans, residential mortgages, chip manufacturing, and data centers, aiming to grow the market by trillions. The industry is shifting towards asset-backed finance and infrastructure debt, with firms like Apollo Global Management Inc. estimating a potential market size of $40 trillion. Private credit investors are increasingly focusing on consumer growth and infrastructure projects, seeking to provide junior capital or unitranche deals in these areas. [Extracted from the article]

The article from Bloomberg.com reports on the decline of Asian currencies following the Federal Reserve's hawkish cut, with the South Korean won reaching its weakest level since the financial crisis. The Fed's concerns about inflation led to a global market reaction, causing the ringgit and Thai baht to also fall. Central banks in Asia are facing pressure to protect their currencies against the strengthening dollar. The People's Bank of China defended the yuan, while investors await the Bank of Japan's rate decision for further insights. [Extracted from the article]

The article from Bloomberg.com reports on the tumble of Asian currencies following a hawkish cut by the Federal Reserve. The South Korean won, Malaysian ringgit, and Thai baht all weakened against the US dollar, with the Bloomberg Asia Dollar Index down by 0.2%. The decline in currencies was attributed to the Fed's inflation concerns and a strong dollar, prompting regional central banks to intervene to stabilize their currencies. [Extracted from the article]

Credit Agricole SA has appointed Olivier Gavalda as the new CEO to replace Philippe Brassac, who has reached the age limit for the role. Gavalda will take over amidst the bank's efforts to navigate potential bank deals in Italy and develop a new three-year strategy. The appointment comes as Moody's Ratings downgraded seven French lenders, including Credit Agricole, due to prolonged political turmoil. Gavalda, a lifelong veteran of the banking group, will need to address revenue challenges and continue the bank's policy of international diversification. [Extracted from the article]

Canyon Partners' Chief Investment Officer Todd Lemkin is leaving the firm after over two decades, with Jeff Kivitz set to replace him. The Dallas-based firm has also announced other leadership changes, including Davide Amico taking over as head of Europe and Jonathan Barzideh and Chaney Sheffield becoming co-heads of opportunistic credit. Lemkin, who focused on various sectors during his tenure, was promoted to co-CIO in 2017 and oversaw European investments and distressed bank loans. The firm recently agreed to sell a stake to Dai-ichi Life Holdings, with potential future acquisitions by the Japanese insurer. [Extracted from the article]

Credit Agricole SA has appointed Olivier Gavalda to replace CEO Philippe Brassac, with Gavalda set to start after a shareholders' meeting on May 14. The French lender is undergoing a transition in its general management amidst Moody's Corp downgrading seven French banks due to political turmoil. Gavalda, born in 1963, is currently a deputy CEO at Credit Agricole and will be working on a new three-year strategy as CEO. [Extracted from the article]

The article discusses how Philippe Brassac, CEO of Credit Agricole SA, is navigating a series of banking deals in Italy as he nears retirement. Brassac has strategically increased Credit Agricole's stake in Banco BPM to secure a seat at the negotiating table amidst a standoff between UniCredit, Banco BPM, and the Italian government. His actions are crucial in safeguarding commercial agreements and partnerships that have made Italy Credit Agricole's second-largest market. Italy is a significant revenue source for Credit Agricole, with the country accounting for about 18% of the publicly traded entity's revenue. [Extracted from the article]

The article discusses Philippe Brassac, the CEO of Credit Agricole SA, and his involvement in a banking standoff in Italy. Brassac, a long-time practitioner of judo, has been instrumental in expanding Credit Agricole's presence in Italy through strategic partnerships and acquisitions. His recent move to increase Credit Agricole's stake in Banco BPM has positioned him to negotiate terms of commercial agreements and protect the bank's interests in the country. Italy is a significant market for Credit Agricole, generating a substantial portion of its profits, particularly through its asset management arm, Amundi. [Extracted from the article]

Norway's core inflation rate saw its first increase in a year, surpassing analyst expectations and aligning with the central bank's forecast of no interest-rate cuts until March. The rise in underlying consumer-price growth, excluding volatile items like energy, reached 3% last month, higher than economists' median forecast of 2.8%. Despite speculation, policymakers are unlikely to ease measures earlier than March, with stable unemployment and better-than-expected economic output supporting a cautious approach by Governor Ida Wolden Bache and her colleagues. The Norwegian krone, the worst performer in the G-10 space this year, remained weaker than anticipated, with traders still predicting a 54% chance of a quarter-point reduction in January and 43 basis points of cuts by the end of March. [Extracted from the article]

Norway's core inflation rate experienced its first increase in a year, surpassing analyst expectations and aligning with the central bank's forecast of no interest-rate cuts until March. The rise in underlying consumer-price growth to 3% last month, excluding volatile items like energy, has led to speculation calming about potential easing measures by Norwegian policymakers. Despite a decline in headline inflation to 2.4%, driven by lower electricity prices, stable unemployment and better-than-expected economic output support a cautious approach by Governor Ida Wolden Bache and her colleagues at Norges Bank. [Extracted from the article]

Citizens Financial Group Inc. CEO Bruce Van Saun believes that losing the bid to acquire First Republic Bank was actually beneficial for the company's private bank and wealth-management operations. Despite the loss, Citizens hired 250 bankers from First Republic and is focusing on improving technology to better serve customers. The banking industry is closely monitoring the impact of President-elect Donald Trump's tariff policies on economic matters like inflation and the supply chain. Van Saun is optimistic about potential friendlier policies for banks under the new administration. [Extracted from the article]

Digital Edge DC, backed by Stonepeak Infrastructure Partners, is considering a loan of $400 million to $500 million to fund a data center project in Navi Mumbai, India. The company, based in Singapore, is in discussions with international and regional banks for the financing, which could have a tenor of five to seven years. This initiative reflects the increasing demand for data center services related to artificial intelligence in the region, with the project expected to be completed in phases by the first quarter of 2025. [Extracted from the article]

US banks have seen a decrease in unrealized losses in their portfolios, marking the first improvement since the industry turmoil of 2023. The top 30 regional banks reported a 25% decrease in losses from the second quarter and a 44% improvement from a year earlier. The decline in interest rates has helped restore some lost value from bonds, easing the threat posed by unrealized losses. Some banks, like KeyCorp, have sold off low-coupon investment securities to reduce losses and reinvest the proceeds for future income. Washington Federal parent WaFd Inc. has shown a positive number overall for accumulated other comprehensive income, crediting strategic decisions made in 2020. [Extracted from the article]

The article discusses how Stanley Druckenmiller's family office and other investment firms for the wealthy increased their allocations to US bank shares in the last quarter, anticipating a rally in financial stocks. This move was influenced by the potential benefits of Donald Trump's presidential election win, as he promised to lower taxes and cut regulations, creating a more favorable environment for banks. The article also highlights other notable investment decisions made by various money managers overseeing significant US equities, providing insights into the investment strategies of hedge funds and large family offices. [Extracted from the article]

Blackstone Inc. and Warburg Pincus are considering selling IntraFi, a fintech company that helps individuals protect their bank deposits. The potential sale could reach $12 billion or more, with interest from financial technology firms and the possibility of an initial public offering. IntraFi, founded in 2002, operates a marketplace used by over 3,000 financial institutions in the US to safeguard deposits up to $250,000. The company's revenue surged in 2023 after the collapse of several regional banks. [Extracted from the article]

Barclays Plc is focusing on expanding its presence in the Asia Pacific region, particularly in India and Japan, by increasing investment and hiring in markets and investment banking. The bank's CEO has outlined a plan to boost returns by investing in UK operations and prioritizing profitable businesses and clients in the investment bank. Barclays aims to reduce costs by £2 billion in the coming years while continuing to grow its wealth management business in India due to economic growth and wealth creation. [Extracted from the article]

Temenos AG shares rose after the company adjusted its mid-term targets to 2028, which investors viewed as more realistic. The new CEO, Jean-Pierre Brulard, emphasized a growth strategy focused on the US market and expects double-digit growth in the public cloud and subscription-as-a-service segments. Despite facing challenges, including short-seller allegations, Temenos aims to outperform market growth and maintain annual recurring revenue above $1.3 billion. The company's restructuring efforts, including layoffs, are part of a plan to streamline operations and improve performance. [Extracted from the article]

The article from Bloomberg.com discusses Atlas Merchant CEO Bob Diamond's views on the potential impact of President-elect Donald Trump's administration on banking regulations. Diamond believes that Trump's administration will likely lead to even lighter regulation, benefiting US banks in comparison to their UK counterparts. He suggests that US regional banks, which provide better services to smaller businesses, are a good investment, and that consolidation may be necessary for smaller lenders to survive. Diamond's perspective highlights the differences in regulatory approaches between the US and UK banking sectors. [Extracted from the article]

HSBC Holdings Plc's new global wholesale banking division, led by Michael Roberts, is undergoing a restructuring that will result in job cuts at the senior level. The restructuring, announced by CEO Georges Elhedery, aims to simplify the bank's operations rather than solely reduce costs. Roberts emphasized the need for a quick and thoughtful process, with details on the total number of affected jobs expected around the time of HSBC's full-year results in February. [Extracted from the article]

HSBC Holdings Plc's global wholesale banking division, led by Michael Roberts, is undergoing a restructuring that will result in job cuts at the senior level. The restructuring aims to simplify the bank's operations and address investor concerns about its competitiveness in a changing financial landscape. Roberts emphasized the need for a quick and thoughtful process, with the first round of job cuts expected to be announced in the coming weeks. The restructuring also includes geographical changes, but Roberts and CEO Georges Elhedery have stated that there are no plans to split up the bank. [Extracted from the article]

HSBC Holdings Plc's new global wholesale banking division, led by Michael Roberts, is undergoing a restructuring that will result in job cuts at the senior level. The restructuring, announced by CEO Georges Elhedery, aims to simplify the bank's operations rather than solely reduce costs. Roberts emphasized the need for a quick and thoughtful process, with the first round of job cuts expected to be announced in the coming weeks. The overhaul also includes a geographical shake-up, with separate units for Eastern and Western markets, and no intention to split up the bank despite investor speculation. [Extracted from the article]

A regional bank in Japan, Bank of Yokohama, is considering a return to investing in Japanese government bonds as interest rates rise. The bank shifted to foreign bonds in recent years due to low domestic yields caused by monetary easing. With the Bank of Japan raising rates and peers abroad lowering them, Japanese bonds are becoming more attractive to financial institutions. Bank of Yokohama is also hiring new staff to navigate these changing market conditions. [Extracted from the article]

Former Barclays Plc Chief Executive Bob Diamond believes that the consolidation of regional and community banks in the US presents a significant investment opportunity. With the recent collapse of several US lenders, Diamond sees a trend towards stronger banks acquiring smaller ones. He also notes that the outcome of the upcoming US presidential election could impact the regulatory environment for banking consolidation. Additionally, Diamond highlights the potential for cross-border consolidation in the European banking market, citing UniCredit SpA.'s potential takeover of Commerzbank AG as a positive development. [Extracted from the article]

Former Barclays Plc Chief Executive Bob Diamond views the consolidation of the US banking market as a significant investment opportunity, especially following the collapse of several US lenders with assets exceeding $500 billion last year. Diamond predicts that regional and community banks in the US will undergo restructuring and consolidation, with weaker institutions likely to be acquired by stronger ones over the next two to four years. He also suggests that the outcome of the upcoming US presidential election could impact the regulatory environment for industries like banking. Additionally, Diamond highlights the potential for cross-border consolidation in the European banking market, citing UniCredit SpA.'s possible takeover of Commerzbank AG as a positive development. [Extracted from the article]

The article discusses Bank of England Deputy Governor Sarah Breeden's call to address the stigma associated with using central bank liquidity facilities to ensure banks are not deterred from utilizing them when necessary. Breeden emphasized the importance of changing the perception that these facilities are only crisis management tools to enhance their effectiveness. She highlighted the need for pre-positioned collateral at central banks to provide quick liquidity injections during financial crises, aiming to remove the stigma of seeking help from central banks. The article also mentions the BOE's shift towards providing cash to commercial lenders through short-term loans secured against collateral, with the hope of reducing risks in financial markets. [Extracted from the article]

HSBC Holdings Plc's new CEO, Georges Elhedery, has announced a major restructuring of the company, leaving employees and investors with unanswered questions about job cuts, cost savings, and organizational changes. Elhedery's swift actions, including reshuffling senior management and selling businesses, aim to simplify and streamline HSBC's operations. The restructuring focuses on merging business units, creating new divisions, and empowering local managers, with a strategic pivot towards Asia remaining a key priority. However, uncertainties remain about the financial impact, potential restructuring charges, and the future of certain operations within the bank. [Extracted from the article]

Atlantic Union Bankshares Corp. has agreed to acquire Sandy Spring Bancorp for $1.6 billion in stock, with Sandy Spring investors receiving 0.9 shares of Atlantic Union stock for each share they own. This consolidation reflects a trend of mergers among small and midsize banks, driven by challenges such as tepid loan growth and narrow net interest margins. The deal will expand Atlantic Union's branch network in the mid-Atlantic region and increase its wealth assets under management by over $6.5 billion, positioning it as a prominent regional bank. [Extracted from the article]

The article from Bloomberg.com discusses how bank stocks have rebounded to pre-2023 levels due to a strong earnings season, indicating renewed investor confidence in the finance industry. Factors such as capital markets resurgence, reduced bank regulation, and Federal Reserve interest rate cuts have contributed to this positive trend. While universal banks and trusts have shown impressive results, some, like Citigroup, have faced challenges. Overall, the sector's performance is closely tied to Federal Reserve decisions and economic conditions. [Extracted from the article]