Latest banking news

October 21, 2022 2:45 PM

U.S. Bancorp said it now expects to complete its deal for MUFG Union Bank in December. The bank also set a rollout for next week of a Visa credit card with a unique feature, while JPMorgan Chase said it has renewed a cobrand card-issuing agreement with the Walt Disney Co. Scroll through to see what you might have missed this week in banking, payments, credit unions and more.

U.S. Bank sets closing date for MUFG Union Bank deal ...

GEORGE FREY/BLOOMBERG

U.S. Bancorp said it expects to close its deal to acquire MUFG Union Bank on Dec. 1. The announcement follows approval of the deal by U.S. and Japanese regulators on Oct. 14 and Oct. 19, respectively. The date is subject to certain closing conditions outlined in the agreement between the banks, U.S. Bancorp noted. The $8 billion deal, which was announced in September 2021, was originally slated to close in the first half of this year. A systems conversion is planned for the first half of 2023, U.S. Bancorp said. — Allissa Kline

... and debuts light-up logo rewards card

U.S. Bank on Oct. 24 is introducing a Visa credit card offering premium rewards for everyday purchases with a novel LED feature that illuminates the bank's logo with each contactless purchase. The U.S. Bank Shopper Cash Rewards card gives users 6% cash back at any two of the nation's top 24 retailers, 3% back at one preferred gas station and charging station each and 1.5% back on all other purchases. Customers may switch their preferred retailers each quarter and also may earn 5.5% back on travel purchases booked through U.S. Bank's Rewards Center. The LED feature, the first of its kind, will be available while supplies last. The $95-a-year card is available with no fee for the first year. — Kate Fitzgerald

Chase plans limited-edition card for Disney's 100th anniversary

JPMorgan Chase and the Walt Disney Co. have renewed their 20-year agreement to continue issuing cobranded Visa credit and debit cards, which coincides with Disney's 100th anniversary. To commemorate the occasion, Chase is offering a limited-edition credit card which is also the first Disney payment card made of metal. All Disney credit and debit cards provide 10% savings on select Disney merchandise and experiences and users of the Disney Premier Visa card may earn 5% on streaming purchases of Disney+, ESPN+ or Hulu; and 2% on grocery, gas, dining and most Disney purchases and 1% everywhere else. — Kate Fitzgerald

MoneyGram backs Formula One racing team

Adobe Stock

MoneyGram international has signed a multiyear partnership with the American-licensed Formula One racing team founded by the car-racing veteran Gene Haas. The Dallas-based money transfer company will become the team's title sponsor with cars and livery rebranded MoneyGram Hass F1 beginning next year. MoneyGram said 80% of its transaction value is generated within 21 countries hosting events on Formula One's 2023 racing circuit. — Kate Fitzgerald

SVB Financial hires head of human resources

Silicon Valley Bank headquarters in Santa Clara.

SVB Financial Group, the holding company for Silicon Valley Bank in Santa Clara, California, hired Laura Cushing as chief human resources officer. Cushing, who had the same title at Loews Corp., succeeds Chris Edmonds-Waters, who led HR since 2007 and is shifting into an executive coaching role for SVB. "Laura has experience leading HR for some of the largest, most complex organizations, all while keeping people and culture at the center of her work," Greg Becker, president and chief executive of SVB, said in a press release. — Frank Gargano

BNP Paribas hires Barclays to sell South African financial unit

Christophe Morin/Bloomberg

BNP Paribas hired Barclays to sell the South African financial services business RCS as part of a wider scaling back on the continent, according to people familiar with the matter. The Paris-based lender started a formal process to dispose of the credit and financial-services provider that operates across South Africa, Namibia and Botswana, said the people, who asked not to be identified as the plans are still private. A spokeswoman for BNP Paribas declined to comment. Barclays declined to comment. The deal is part of the French bank's plan to exit certain African units, said the people, as the company focuses on expanding its European and Asian operations. BNP sold a majority stake in its Ivory Coast business to the country's government last month and offloaded a lender in Senegal in July. The group has also exited units in nations including Guinea, Burkina Faso and Mali, and the bank said previously it was reviewing "certain peripheral locations." RCS, founded 23 years ago, offers clients store cards, loans and insurance policies, according to its website. BNP bought RCS for 2.65 billion rand ($147 million) from Standard Bank Group and the clothing retailer Foschini Group eight years ago. Offers for RCS are anticipated within the next few weeks, the people said. — Loni Prinsloo, Bloomberg News, with assistance from Alexandre Rajbhandari.

Safe Harbor in Colorado names chief financial officer

Marijuana plants stand in a flower room at the grow facility for Sense of Healing dispensary in Denver, Colorado.

Matthew Staver/Bloomberg

Safe Harbor Financial in Arvada, Colorado, hired James Dennedy as chief financial officer. Dennedy was most recently the president, chief operating officer and board member for urban-gro, a professional services and design-build firm in Lafayette, Colorado. He will step into his new role on Oct. 24. "With the ongoing and rapid expansion of the medicinal and adult use cannabis markets in the United States, we see tremendous opportunity to further scale our capabilities and service offerings. … James will be instrumental in helping us achieve this growth," Sundie Seefried, founder and chief executive of SHF, said in a press release Friday. — Frank Gargano

SAFE Credit Union names chief lending officer

Tiffani Vargas.

SAFE Credit Union in Folsom, California, has a new chief lending officer, Tiffani Vargas. Vargas has been with the $4.5 billion-asset SAFE since 2018, most recently as senior vice president for real estate and consumer lending. She is a member of the board of directors for First Tee of Greater Sacramento and is does philanthropic work through the National Charity League. — Frank Gargano

HSBC expands private banking business to tap wealthy UAE clients

Hollie Adams/Bloomberg

HSBC Holdings is expanding its private banking business in the United Arab Emirates to cater to the fast-growing high-net-worth investors in the Gulf nation. HSBC Bank Middle East Global Private Banking will be focused on clients with investable assets of over $2 million, according to a statement. The addition of the UAE brings to 11 the number of international private wealth centers operated by HSBC, joining a network that includes Switzerland, Singapore, the U.K., Luxembourg, Guernsey, Hong Kong and the U.S., the bank said. The UAE will attract the biggest share of private wealth globally this year with a net inflow of 4,000 millionaires, according to the immigration consultancy Henley & Partners. Foreign residents make up more than 80% of the population of the oil-rich UAE. — Shaji Mathew, Bloomberg News