Wednesday's Headlines: European bank results underline risk concerns
Earnings posted by two of Europe's biggest banks this week underline concerns about the region's investment banking outlook, DealBook reports.
UBS warned that future profits would miss a previously set target, while Deutsche Bank's results fell short of analyst expectations. In both cases, weak investment banking revenue hurt results.
"While banks have experienced a recovery in investment banking profits since the financial crisis, they are under pressure by regulators to reduce risk, and they continue to face market turbulence caused by the European sovereign debt crisis and the budget deadlock in the United States," says DealBook, adding that economic growth in Europe shows signs of slowing down.
BNP Paribas opens global prime-brokerage platform to serve clients in 50 markets. [Dow Jones Newswires]
UBS denies rumors that US brokerage business is for sale. [Reuters]
PNC Financial to buy or lease 27 branches around Atlanta from Flagstar Bancorp. [Biz Journals]
Santander posts big drop in profits on claims related to faulty insurance policies. [Wall Street Journal]
Sky Capital founder found guilty of 8-year, $140 million investor fraud. [Bloomberg]
Former TCW hedge fund manager Gundlach trial takes place in LA this week. [Hedge Fund Net]
Citigroup wants $430 million lawsuit by Madoff trustee firm dismissed. [BusinessWeek]
China's Founder Securities, a Credit Suisse partner, sets $1 billion IPO. [IFR]
SEC adopts new rules to make trading by banks and hedge funds more transparent. [Reuters]