ROME/MILAN – Banca Monte dei Paschi di Siena is exploring merger options, including with Banco BPM , while Italy’s Treasury Ministry has drafted a decree to sell its controlling stake in the bailed-out bank, two sources told . Rome owns 68% of the Tuscan bank following an 8-billion euro ($8.96 billion) rescue in 2017 and has promised the European Commission it will re-privatise the bank next year. The Treasury has drafted a decree, which requires…"Exclusive: Monte Paschi eyes BPM merger as Italy’s Treasury prepares exit – sources"
NEW YORK – Goldman Sachs Group Inc has already boosted capital measures and is working to meet the Federal Reserve’s benchmark for October, the Wall Street bank said in a statement on Monday. Investors and analysts were eager to hear Goldman’s announcement because the bank fared worse than rivals on the Fed’s stress test last week, sending its share price tumbling. The Fed examined big banks’ balance sheets to see if they had enough funds…"Goldman Sachs says it’s climbing toward Fed’s capital demands"
– Intesa Sanpaolo said on Thursday the acceptance period for its offer to buy rival UBI Banca will start on July 6 and end on July 28, after the Italian market regulator Consob approved the publication of the offer document. The unsolicited, all-paper offer announced by Intesa in February has received green lights from banking and insurance supervisors, while an antitrust review is still active with a verdict expected in July. Intesa is offering 1.7…"Italy’s Intesa says regulator approved document for UBI takeover bid"
ZURICH – Business conditions are improving after a tough start to the year, Credit Suisse Chief Executive Thomas Gottstein said in a presentation released on Wednesday. “Those early indications that we have seen now in the last couple of weeks have been actually quite promising and going in the right direction. We clearly had a lot of stress in the system in the second half of March but things really calmed down in April and…"Credit Suisse CEO sees business ‘going in right direction’"
BEIJING – In May 2019, China’s central bank announced a shock takeover of a lender, its first such move in 20 years, citing “serious credit risks”. Creditors in small Baoshang Bank were to take a hit, assets would be sold and an example set for governance. But a year on, regulatory and banking sources say, the rescue of a bank that had expanded rapidly, well beyond its own city base, has veered off its planned…"China’s troubled Baoshang rescue exposes fault lines in bank reform drive"
SAO PAULO – Most of Brazil’s small businesses, which account for more than half of its jobs and 30% of gross domestic product, are not getting the cash President Jair Bolsonaro pledged to help them through the coronavirus crisis, putting recovery at risk. Despite a $7 billion program to help small and medium-sized businesses pay their workers as lockdowns tipped Brazil into its steepest annual downturn since records began, banks have so far only 5%…"Brazil’s rescue plan flaws imperil small business recovery"
LISBON/LONDON – Portuguese lender Novo Banco is looking to sell its loss-making retail network in Spain as it faces pressure to prop up its balance sheet and prevent further losses, two sources told . Novo Banco has reached out to a pool of banks and is expected to select advisers in the coming weeks as it wants to carve out its Spanish business and launch an auction process later this year, the sources said. The…"Novo Banco seeks to offload Spanish retail network: sources"
ISTANBUL/LONDON – Financial fallout from the coronavirus crisis could hasten mergers or retreats by some of Turkey’s private and foreign-owned banks, ceding more ground to state-owned lenders, bankers and analysts say. Years of government pressure to defer dividends and drive Turkey’s stop-start growth have tested the patience of shareholders, who bankers and analysts say are unlikely to back new capital raisings or battles for market share. If private banks do consolidate or retrench, this would…"Turkish coronavirus slump could prompt private bank retreat"
MUMBAI/NEW DELHI – India may need to inject up to 1.5 trillion rupees ($19.81 billion) into its state-owned lenders as their pile of soured assets is expected to double during the coronavirus pandemic, three government and banking sources told . The government initially considered a budget of around 250 billion rupees for bank recapitalisations but that has risen significantly, a senior government source with direct knowledge of the matter said, with loan defaults likely to…"Exclusive: India may need to pump $20 billion into coronavirus-hit state banks – sources"
MILAN – UBI Banca has told Italy’s market regulator Consob that a proposed takeover offer by bigger rival Intesa Sanpaolo should no longer be considered as valid, the country’s fifth-largest bank said on Tuesday. UBI said it believed the COVID-19 outbreak constituted a “material adverse change” (MAC) which, under contractual clauses customarily included in acquisition deals, gives the buyer the right to walk away from the purchase before closing. “UBI felt it was its duty…"UBI tells Italy market regulator Intesa’s takeover bid no longer valid"