Financial Biz Recap: Tax Evasion and MetLife’s Transformation
Hundreds of billions of dollars worth of deposits in accounts across the globe could be affected by new U.S. regulations aimed at reducing tax evasion. Banks (NYSEARCA:KBE) are bracing for the new regulations and in response, some banks overseas are alerting customers their accounts will be closed, while U.S. banks are lobbying for changes to some of the proposals.
Pinnacle Financial Partners (NASDAQ:PNFP) decides to redeem 25% of the preferred shares the firm issued to Uncle Sam under the Troubled Asset Relief Program. The total will amount to $23.9 million. The bank holding company says that it expects to receive approval for the redemption of its balance of TARP preferred shares over the next year or so.
MetLife (NYSE:MET) is smart to sell its depository business to General Electric, Sandler O’Neill’s Ed Shields writes. Metlife is now considered a bank holding company; however selling its deposits should allow it to change its classification. State insurance commissioners rather than the federal government, which Shields says could unlock a range of new opportunities, would then regulate it.
HSBC (NYSE:HBC) says it has renewed its private label credit card agreement with Saks (NYSE:SKS), Darvin Furniture, Big Lots (NYSE:BIG) and Berkshire Hathaway’s (BRK.A) Jordan’s Furniture. Good news for Capital One (NYSE:COF), which is buying the bank’s U.S. card business and runs the risk of losing some of its partners.
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