Rise of stablecoins could spark bank runs, market volatility: European Central Bank

Last modified September 22, 2020. Published September 22, 2020.
The European Central Bank on Tuesday warned that the rise of stablecoins could pose significant risks for the financial system, including liquidity disruptions and market volatility, if the issuances aren’t carefully regulated.

NatWest executive warns against negative rates as UK central bank mulls recovery options

September 22, 2020.
NatWest Group CEO Alison Rose said negative rates in the U.K. could exacerbate problems for banks, issuing her warning as the country’s monetary policy leaders consider further stimulus efforts.

ECB to accept sustainability-linked bonds as collateral in boost for green finance

September 22, 2020.
The European Central Bank will accept bonds connected to sustainability performance targets as collateral beginning next year, in an initiative by the European Union’s monetary authority to further support the green finance sector.

Danske faces shareholder suits seeking more than $1B over money laundering scandal

September 22, 2020.
With new complaints filed Monday, shareholders’ claims against beleaguered Danske Bank stemming from a 2018 money laundering scandal have now passed the $1 billion mark, one of the firms involved in the suit said.

‘Lower for longer’ rates could lead to overvalued banks, EU regulators warn

September 22, 2020.
Europe’s top banking regulators cautioned banks Tuesday that sustained low interest rates will contribute to growing valuation risks at banks in the European Union and challenge their profits and solvency in the near term.

Open-banking startup Tink acquires OpenWrks’ platform as it expands into UK

September 21, 2020.
Swedish open-banking firm Tink acquired the aggregation platform of U.K.-based OpenWrks, the startup said on Monday, taking another step in an effort to expand across Europe.

European financial officials call for cuts to banks’ data-reporting requirements

September 21, 2020.
The European Central Bank wants to streamline banks’ reporting requirements and help lenders across the European Union work more efficiently with regulators, in response to complaints that the current regime is needlessly complicated.

EU banks get 18 months to ease off UK clearinghouses

September 21, 2020.
European banks and other financial market participants will have until June 2022 to reduce their exposure to U.K. derivatives clearinghouses, the European Commission said Monday, as the country nears its December deadline for transitioning from the European Union.

Ping An launches its first UCITS vehicle to give global investors a way into China

September 21, 2020.
Chinese insurer Ping An Group said on Monday that its offshore asset management unit launched its first Undertakings for Collective Investment in Transferable Securities umbrella fund to provide global investors opportunities to invest in China's equity and fixed income markets.

Danish financial watchdog calls Danske’s handling of debt overcollection ‘reprehensible’

September 21, 2020.
Denmark’s scandal-plagued Danske Bank faced harsh criticism from the country’s financial watchdog on Monday, with the regulator concluding that the bank “disregarded its obligation to act fairly and loyally toward customers” in addressing its debt overcollection issues.

Berkshire Hathaway expands specialty insurance lines into France

September 21, 2020.
Berkshire Hathaway moved to expand its specialty insurance arm into France on Monday, appointing two financial industry veterans to take the helm of the company’s introduction of its executive and professional lines in the new market.

Next Insurance seeks $250M raise on $2.25B valuation: Bloomberg

September 18, 2020.
Next Insurance could double its valuation to about $2.25 billion in its next financing round, when it will seek to raise around $250 million from investors, according to Bloomberg.

EU covered bond issuance to drop due to more stimulus, fewer mortgages: S&P

September 18, 2020.
New issuances of covered bonds in Europe, where they are most common, are expected to fall in the second half of 2020, as central bank stimulus provides a competitive new source of funding for banks, S&P Global said.

Italians flock to unit-linked life insurance plans, bucking usual crisis trend

Last modified September 18, 2020. Published September 18, 2020.
Life insurers in Italy saw strong sales of unit-linked plans in the first half of 2020, marking a shift from previous economic crises when policyholders poured money into savings accounts, Fitch said.

JPMorgan to move 200 London bankers with no-deal Brexit growing likely: Bloomberg

September 18, 2020.
JPMorgan Chase will move about 200 bankers from London to several other European cities due to the increasingly likely prospect of the U.K. leaving the European Union without a financial services deal, Bloomberg reported.

Euronext, CDP Equity in exclusive talks with LSEG to acquire Borsa Italiana

September 18, 2020.
Euronext and CDP Equity revealed Friday that they are now in exclusive talks with the London Stock Exchange Group to acquire Borsa Italiana, Italy’s only major stock exchange, which was sought after by two other bidders.

AI fraud detection ‘arms race’ poses ethical dilemma for insurers

September 18, 2020.
An Israel-based company promises insurers state-of-the-art weaponry in the fight against fraud: artificial intelligence that reveals the “genuine emotional state of a person” when they file a claim.

European insurance group calls for light touch on AI regulation

September 18, 2020.
European insurers called for an industry-driven approach to regulating the use of artificial intelligence, asking that government intervention be used only in the highest-risk situations involving the new technology.

Judge OKs big banks’ settlement with eurodollar investors over LIBOR rigging

September 18, 2020.
A U.S. federal judge approved an aggregate $187 million settlement agreement resolving an antitrust class action against seven of the world’s largest banks that claimed the banks colluded to misreport and manipulate LIBOR rates, harming eurodollar investors.

Troubled Swedbank faces new money laundering probe by Swedish regulators

Last modified September 18, 2020. Published September 18, 2020.
Swedbank acknowledged on Friday that it was subject to a new investigation from Sweden’s financial watchdog regarding violations in connection to suspected money laundering and other financial market abuse.