EU to seek bank's feedback on proposal, delaying capital rules implementation - report
EU Regulatory Delays: The European Commission is planning to consult the banking industry in March regarding a proposal to further delay the implementation of new trading regulations under the Fundamental Review of the Trading Book (FRTB), influenced by the U.S. regulatory pace and pressures from member countries like France.
Impact on Banks: Major banks such as Deutsche Bank, BNP Paribas, and Intesa Sanpaolo are expected to benefit from these delays as they prefer using internal models for their trading books rather than the standardized models proposed by the EC.
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- Bond Issuance Size: Leeds Building Society successfully issues £500 million in floating rate Series 15 covered bonds, maturing in 2029, which is expected to enhance its capital structure and support future loan growth.
- Interest Rate and Amount: The bond carries an interest rate of 4.2242%, with a total interest amount projected to reach £5,323,649.32 over a 92-day interest period, indicating a stable revenue outlook.
- Issue Date and Value Date: The value date for the bonds is set for April 7, 2026, with the interest period commencing on May 1, 2026, ensuring timely liquidity to meet market demands.
- Market Impact: The issuance of such bonds not only provides necessary funding support for Leeds Building Society but may also attract more investor attention to its future financing activities, thereby enhancing its market position.

Reclassification Announcement: Deutsche Bank AG has been reclassified as an LBMA market-making member.
Effective Date: This change will take effect from Friday, March 20, 2026.
- Market Classification: The Deutsche Bank has been classified as a non-LBM (London Bullion Market) market maker.
- Implications: This classification may affect its operations and standing in the financial markets, particularly in relation to trading and liquidity.
- Settlement Amount: Bank of America has agreed to pay $72.5 million to settle a class action lawsuit alleging that it facilitated Jeffrey Epstein's sex trafficking operations, although the bank denies any wrongdoing.
- Legal Context: This settlement marks the fourth major bank resolution related to Epstein victims, following JPMorgan's $290 million and Deutsche Bank's $75 million settlements, highlighting the legal risks faced by financial institutions in such cases.
- Victim Compensation: The settlement will compensate all women who were sexually abused or trafficked by Epstein or associated individuals between June 30, 2008, and July 6, 2019, aiming to provide financial restitution and psychological closure for the victims.
- Regulatory Implications: The resolution of this case may prompt financial regulators to reassess banks' responsibilities in customer background checks, particularly concerning high-risk clients, potentially leading to stricter compliance requirements.
- Enhanced Risk Assessment: The ECB is set to conduct a new round of checks on banks it supervises, focusing on their exposure to private credit loans in response to concerns over loan quality following recent high-profile corporate failures, thereby aiming to bolster financial system stability.
- Ongoing Regulatory Measures: This upcoming assessment will complement similar efforts planned for 2024 and 2025, with regulatory officials emphasizing that recent developments have made risk evaluations at banks increasingly critical to ensure they can accurately identify their links to private credit funds.
- Bank Exposure Levels: KBW analysts estimate that European banks' exposure to private credit may range from 1% to 2%, but this figure could be higher for larger lenders such as Deutsche Bank, BNP Paribas, and Société Générale, indicating that these institutions face greater risks.
- Market Reaction: In Tuesday morning trading, Deutsche Bank's stock fell by 1.6%, BNP Paribas dropped by 2.7%, while Banco Santander and ING Group saw declines of 1.8% and 1.4%, respectively, reflecting market concerns regarding the risks associated with private credit exposure.
- Equity Structure Adjustment: Akari Therapeutics announced the conversion of its American depositary shares (ADS) into ordinary shares, aiming to simplify shareholder structure and enhance liquidity, although specific implementation details remain undisclosed.
- Market Reaction Anticipation: This move may influence investor perceptions of the company's stock, particularly regarding liquidity and shareholder rights, although there is currently no clear market reaction data available.
- Strategic Implications: By converting to ordinary shares, Akari may seek to attract more investors, thereby strengthening its capital base to support future R&D projects, although specific funding uses have not been clarified.
- Future Developments Monitoring: Investors should monitor subsequent announcements for more information regarding the conversion process and its potential impact on the company's financial condition.









