Commercial banking

The movement of cash to money market funds from bank accounts will diminish lenders' ability to finance small and midsize firms, BlackRock Investment Institute said in a new paper. BlackRock and other money managers have spent much of this year readying to fill that void.

Net income was $2.06 billion in the third quarter, down 33% from a year earlier, amid sluggish banking activity, real estate write-downs and questions about whether dealmaking will rebound.

The second-largest U.S. bank says net interest income, a key source of revenue for the bank, rose 4.5% to $14.4 billion in the third quarter.

Mark Smith, most recently head of the firm's treasury and trade solutions division in Europe, the Middle East and Africa, will take on the treasurer role on an interim basis. 

The biggest U.S. bank is selling green bonds for the first time in over two years as sales of the debt accelerate at a record pace. 

Mitsubishi UFJ Financial Group has mandated banks to sell dollar-denominated additional tier 1 bonds, in what looks set to be the first such offering in the U.S. currency by any Japanese lender. 

The issuances may be driven by the companies' needs to meet their total loss-absorbing capacity requirements, which require banks to hold a certain amount of debt at the level of their holding companies that can be converted to equity in an emergency.

The San Francisco-based bank reported $13.1 billion in net interest income in the third quarter, up 8.3% from a year earlier, and raised its full-year guidance. Noninterest expenses rose more than expected, though, totaling $13.1 billion in the quarter.

Net interest income was $22.9 billion in the third quarter, above analysts' expectations. The biggest U.S. bank says it now expects to generate $88.5 billion from the revenue source this year.

In a tough commercial real estate market, sellers are stepping up efforts to entice buyers before plummeting property values force them to accept deeper discounts.