In this week's banking news roundup: U.S. Bancorp is reorganizing its payments business into two separate divisions; Flagstar Financial continues to fill out its leadership with an eye toward tech and risk management; First Horizon is adding $350 million in stock buybacks to its $1 billion share repurchase plan; and more.
US Bancorp splits payment services business, changes CFO reporting structure
Separately, U.S. Bancorp's chief financial officer, John Stern, is now reporting directly to Chairman and CEO Andy Cecere. Stern had been reporting to former CFO Terry Dolan, who was
Flagstar Financial boosts leadership in tech, risk management
The Long Island-based bank has named Christopher Higgins to be chief information officer, and named Rich Martin as head of credit review. Chairman, President and CEO Joseph Otting said in a prepared statement the new hires will help "navigate the challenges ahead" and accelerate progress toward achieving "ambitious goals."
Otting has been stacking the $114 billion-asset bank's team with
Higgins, who will report to Otting, previously served as chief information officer at U.S. Bank and MUFG in the Americas, where he led in tasks like post-merger systems conversions and enhancing risk management and technology.
Martin, who recently helped lead the integration of credit review departments at First Citizens Bank and Silicon Valley Bank after the latter's failure in 2023, will help the bank as it evaluates its loan portfolio and tightens underwriting. Flagstar has promised to downsize its commercial real estate portfolio going forward after that debt landed the bank in hot water earlier this year. —Catherine Leffert
First Horizon approves $1 billion share repurchase plan
"Our strong capital position provides the ability to continue to grow our balance sheet while returning excess capital to our shareholders," said Chairman, President and Chief Executive Officer Bryan Jordan in a prepared statement.
The $82.6 billion-asset bank had steadily repurchased some $500 million in shares throughout 2024. For the last year and a half, First Horizon has been
Oportun expects Q3 net loss
The online consumer lender, which has taken steps since November to improve profitability, said the forecast includes a $35 million mark-to-market adjustment on its asset-backed securities as their weighted average price increased after the Federal Reserve cut benchmark interest rates and credit spreads tightened.
Oportun expects quarterly revenue of $249 million to $251 million, within its previous forecast of $248 million to $252 million.
For 2025, the company is projecting earnings per share of 25 cents to 50 cents.
Oportun also signed an agreement to refinance a corporate financing facility with a new $235 million senior secured term loan. The loan will carry a 15% fixed rate and mature in November 2028.
The company, which focuses on borrowers with lower credit scores, has struggled as inflation and higher interest rates have pinched consumers' pocketbooks.
In September, Oportun signed an agreement to
Wells Fargo hires JPMorgan mid-cap banker Anderson in Chicago
A representative for Wells Fargo confirmed the hire and declined to comment further. A spokesperson for JPMorgan declined to comment.
Anderson has worked in New York and Chicago for JPMorgan and advised on deals in sectors including energy transition and business services.
Led by Chief Executive Officer Charles Scharf, Wells Fargo has been in hiring mode to build out a bench of investment bankers to better compete with rivals.
Anderson is the fifth managing director added to the bank's M&A group this year. — Liana Baker and David Carnevali, Bloomberg News
BofA names Brian Weinstein head of EMEA trading business
Weinstein, who has spent three decades at the firm, will continue to be based in London, according to a memo seen by Bloomberg. He will report to Jim DeMare, president of global markets, and Bernie Mensah, president of international, according to the memo, which was confirmed by a bank spokesperson.
Weinstein has worked at Bank of America for 30 years, in New York and London, most recently as co-head of global credit trading. Subject to regulatory approval, the company said he will also become the head of EMEA fixed-income, currencies and commodities trading. Brian Carosielli will assume sole leadership of global credit as his replacement. —Katherine Doherty, Bloomberg News
BNP Paribas said to lay off handful in credit sales, trading
A representative for BNP declined to comment on the departures. Malvern did not respond to requests for comment.
The exits come after BNP dismissed six members of the emerging-markets team this month, a unit revamped by the French bank just two years ago. Francisco Oliveira, the global co-head of macro and credit, was also let go last month, The Trade reported, after spending two decades at the French bank, according to his LinkedIn page. —Maria Elena Vizcaino and Gowri Gurumurthy, Bloomberg News
JPMorgan hires Deutsche Bank’s Rajendram for EMEA consumer M&A
Rajendram joins from Deutsche Bank, where he was also head of consumer and retail M&A for the region, according to an internal memo seen by Bloomberg News. He previously spent 16 years at Credit Suisse.
JPMorgan also named Hiten Davda as a managing director for a new role spearheading the bank's M&A capital markets efforts in EMEA, it said in the memo. Davda was most recently a portfolio manager leading the risk arbitrage activities at a global event-driven hedge fund in London. Davda also previously led the event-driven and special situations team at UBS Group in the British capital.
The new appointments came after JPMorgan named veteran banker Cassander Verwey as co-head of its EMEA mergers and acquisitions business last month. He serves as co-head alongside Dwayne Lysaght. —Dinesh Nair and Swetha Gopinath, Bloomberg News