Latest banking news, Dec. 2, 2022

Farmers National in Ohio adds Cleveland sports legend to its board

Andre Thornton.

Former baseball All-Star Andre Thornton has joined the board of Farmers National Banc Corp. in Canfield, Ohio. Since retiring from the big leagues at the end of the 1987 season, Thornton has worked in sports promotion, restaurant management and warehouse and distribution operations. Currently he's president and chief executive of ASW Global, a supply-chain management company near Akron, Ohio. In a 14-year Major League Baseball, the last 10 with the then-Cleveland Indians, Thornton tallied 1,342 hits, 253 home runs and 895 runs batted in and was selected to play in two All Star games. His "extensive background in business and entrepreneurship" made him an attractive candidate for a board seat, Farmers National CEO Kevin Helmick said in a news release. The $4.12 billion-asset Farmers reported net income of $47.2 million for the first nine months of 2022. — John Reosti

U.S. Bank and NYCB finally close M&A deals

Wavebreak Media LTD/WavebreakmediaMicro - Fotolia

Two bank acquisitions have finally closed after long regulatory delays. U.S. Bancorp in Minneapolis completed its $8 billion acquisition of San Francisco-based MUFG Union Bank on Dec. 1, the companies announced this week. On the same day, New York Community Bancorp closed its $2.6 billion purchase of Flagstar Bancorp in Troy, Michigan. The U.S. Bank-Union Bank deal was announced in September 2021 and was originally slated to close in the first half of this year. The New York Community-Flagstar deal, announced in April 2021, was delayed twice as the companies sought a charter change and waited for regulators' blessing. Bringing Union Bank into the fold expands U.S. Bancorp's presence in California, Washington and Oregon. A systems integration and account conversion is expected to take place during the first half of 2023, the companies said. — Allissa Kline

JPMorgan adds real-time payments for mutual clients

JPMorgan Payments has partnered with Kyriba, a cloud finance and IT firm, to release an application programming interface that supports real-time bank reporting and visibility into cash positions in corporate treasury departments. By using more frequent data and processing business-to-business payments in real time, JPMorgan Payments hopes to enable faster decision- making on how cash balances can be invested. Hunt Cos., a real estate investment firm, was listed as an initial mutual client user at launch. "Modern financial controls, instant cash positioning and enterprise-wide liquidity management are table stakes for international corporations," Santiago Alcaraz, head of partnership and integrations at J.P. Morgan Payments Digital Channels, said in a news release. — John Adams

SVB backs resource for startup founders

Silicon Valley Bank headquarters in Santa Clara.

SVB, the parent company of Silicon Valley Bank in Santa Clara, California, is backing an online resource for early-stage startups. Those accepted to StartupOS, which opened to applications on Nov. 30, will be able to find mentors through the site. In the first quarter of 2023 they will have access to a network of investors. "One of the primary reasons startups are successful is because they were empowered from the beginning of their journey with access to the tools, sources of funding, and network needed to support the growth of their company," Paul Pluschkell, the chief executive of StartupOS and founder of StartupOS in partnership with SVB, said in a news release. The site will also feature learn-by-doing exercises to help founders validate ideas, build a minimally viable product and more. — Miriam Cross

Barclays CEO to stay ‘engaged’ with bank after cancer diagnosis

Jason Alden/Bloomberg

C.S. Venkatakrishnan said he will continue to be engaged with running Barclays during his treatment for non-Hodgkin lymphoma. "Nobody likes to hear this diagnosis," the chief executive said at the FT Global Banking Summit in a segment recorded Monday, the same day the bank revealed his diagnosis. While acknowledging that treatment won't be a "picnic," Venkatakrishnan said his condition allows him to be "actively engaged" with the bank. The executive said Monday in a regulatory filing he was planning to continue work while receiving treatment, which he expects to last 12 to 16 weeks. Venkatakrishnan also said the bank will continue invest in its trading capabilities with markets expected to stay volatile in the next year. On dealmaking, Venkatakrishnan said he expects slightly more activity in 2023, but not "anywhere close" to 2021. Barclays' corporate and investment bank made up about half of the group's earnings in the third quarter of this year. Asked about the U.K. government's plan to scrap a cap on bankers' bonuses, Venkatakrishnan said it was too early to say what the reform will change for his bank. —Leonard Kehnscherper and Tom Metcalf, Bloomberg News

SEC awards $20 million to whistleblower who gave critical info

The Securities and Exchange Commission seal

Bloomberg News

The Securities and Exchange Commission is awarding $20 million to a tipster who the agency said contributed to a successful enforcement action. The SEC said on Monday that the whistleblower shared "new and critical" information. In keeping with the agency's policy, the regulator didn't disclose details about the case. Congress established the SEC whistleblower program after the financial crisis, and the agency has paid out more than $1 billion since issuing its award in 2012. Whistleblowers are eligible for awards ranging from 10% to 30% of the amount of money collected in enforcement cases where penalties exceed $1 million. — Ben Bain, Bloomberg News

JPMorgan’s Dimon gets French Legion d’Honneur after Paris growth

Jamie Dimon.

Al Drago/Bloomberg

JPMorgan Chase CEO Jamie Dimon was awarded France's Legion d'Honneur after the US bank's decision to boost its French operations helped Paris expand its role as a European financial hub after Brexit. French President Emmanuel Macron presented Dimon with the award on Tuesday in Paris, the lender said in a statement Wednesday. The U.S. lender made Paris a key part of its post-Brexit footprint in continental Europe after the election of Emmanuel Macron in 2017. Dimon said the city was the bank's new European trading hub when he inaugurated new headquarters the French capital last year. He's backed that up by boosting the local workforce to 800 people from 260 in just two years. Other U.S. lenders have also directed investment toward Paris, allowing the French capital to get a chunk of London's trading business after the U.K. voted to depart the EU. Goldman Sachs moved its Paris operations to a new office near the Arc de Triomphe earlier this year, while Citigroup created a new trading floor at its site near the Champs Elysees. Bank of America moved some staff to Paris in 2019. — Alexandre Rajbhandari, Bloomberg News

RBC fires equity syndicate head for communications breach

Royal Bank of Canada signage outside a branch.

Royal Bank of Canada's investment banking arm fired John Reed, the head of equity syndicate, over communications that violated the firm's compliance guidelines, according to people with knowledge of the matter. An RBC representative declined to comment, while Reed didn't immediately respond to a request for comment. Wall Street regulators have been cracking down on how global financial firms and banks monitor employees' communications on unauthorized messaging apps, and have imposed fines of more than $2 billion related to compliance failures. Firms are required to scrupulously monitor communications involving their business to head off improper conduct. That system, already challenged by the proliferation of mobile-messaging apps, was strained further when the COVID-19 pandemic forced most of Wall Street to work from home. Reed's ouster follows the departure of Credit Suisse Group's most senior equity capital markets syndicate banker earlier this year after he was found to have used unauthorized messaging services when communicating with clients. Reed, who's based in New York, joined RBC in 2016 after spending nine years at Deutsche Bank, according to his Finra record. — Gillian Tan, Bloomberg News

HSBC cutting at least 200 senior managers globally: Report

Hollie Adams/Bloomberg

HSBC Holdings is cutting as many as 15% of its 2,000 senior operations managers worldwide, according to Reuters. The reductions are to streamline its management ranks and reduce costs, Reuters said, citing unnamed sources. The cuts, which are already underway, are global and across business units, largely affecting positions with the title of chief operating officer, it reported. The bank is shrinking its global footprint and focusing on building up its position in Asia. This week the lender announced an agreement to sell its Canadian unit to Royal Bank of Canada for $10 billion, and Bloomberg has reported HSBC is reviewing its New Zealand retail banking operations. A spokeswoman for HSBC declined to comment. — Tom Metcalf, Bloomberg News