Receiving wide coverage
Big not so bad
"Europe's main banking regulator is trying to clear the path for mergers between the continent's lenders as the belief grows that scale is the key to reviving the struggling sector," the Journal reports. "The regulator—an arm of the European Central Bank that covers the largest eurozone banks—is making this softer stance toward potential tie-ups known privately. It marks a departure for the regulator from its perceived stance of imposing prohibitively tough conditions on mergers."
"The loosening comes as the eurozone's fragmented banking sector struggles to make money. Low interest rates—which are set up by the ECB's own monetary-policy arm—
In Denmark, where people "have lived with subzero rates longer than anyone else,"
Wall Street Journal
One step forward
Investors are starting to trade derivatives tied to the Federal Reserve's secured overnight financing rate, or SOFR, its preferred replacement for the London interbank offered rate, "
"The CME Group this month began offering options on SOFR interest-rate futures and nearly two dozen SOFR options contracts have traded since the January 6 launch." "This is a good step forward towards developing SOFR derivatives markets," said Gil Holmes, co-head of North America rates trading at J.P. Morgan Chase.
Financial Times
Deutsche's newest scandal
Deutsche Bank has a new problem. It "paid $1.1 million to secure the wealth management business of a senior Saudi royal, according to an internal probe that led to two former staff being reported to criminal prosecutors," the FT reports. "Some of the pay and perks
"The scandal in the wealth management division, which involved payments to the wife of the royal's financial adviser, highlights the legal and reputational risks to a unit that is central to the German bank's turnround hopes."
Coming out party
On Wednesday Goldman Sachs CEO David Solomon "will stand before a crush of shareholders, analysts and journalists at the bank's
"Marcus, Goldman's consumer bank, is the epicentre for the company that Mr. Solomon and his team are trying to build — a place where innovation and customer experience matter more than the prestige that the bank once prized."
To the rescue
The president of SBI Holdings, Japan's largest online brokerage, is
Kitao's comments "come as Japan's financial regulator has begun planning the sector's biggest shake-up since the 1990s with a series of reforms that would allow regional banks to participate more broadly in their surrounding economies."
Elsewhere
It ain't over yet
Last week the Office of the Comptroller of the Currency permanently banned Wells Fargo's former CEO John Stumpf from the banking industry and fined him $17.5 million, while also charging five other former executives for their roles in the bank's massive fake accounts scandal. Wells has also "racked up well over $4 billion in penalties." But the bank's troubles are far from over. Reuters provides
Quotable
"Somewhere in the back of their minds, the ECB realizes that the negative rates environment is weighting on profitability of the banks,