Today\u2019s need-to-know storiesECB official criticises Germany\u2019s UniCredit bid opposition<\/p>\n
ECB vice-president Luis de Guindos has criticised Germany\u2019s opposition to UniCredit\u2019s bid for Commerzbank, warning that political resistance to cross-border banking deals undermines the EU single market and its savings and investments union.<\/p>\n
\u201cIt\u2019s very difficult for governments to argue that they are in favour of the savings and investments union if they then say \u2018Well, no, we are against this specific transaction,\u2019\u201d de Guindos told the FT in an interview.<\/p>\n
UniCredit has built a stake of almost 30 per cent in Commerzbank and has launched an all-share takeover bid valuing the German lender at more than \u20ac35bn. <\/p>\n
German Chancellor Friedrich Merz and Commerzbank\u2019s management have strongly opposed the Italian lender\u2019s approach.\u00a0<\/p>\n
\u201cYes, we need large banks in Europe for complex financing, for IPOs, for support. Investment hubs worldwide also need large banks. But that doesn\u2019t mean that every kind of takeover is welcome without restriction,\u201d Merz said in a speech in Berlin last week.<\/p>\n
\u201cWe firmly reject hostile and aggressive approaches,\u201d he added.<\/p>\n
US senators to consider long-awaited crypto bill<\/p>\n
US senators will this week consider long delayed legislation to create a federal regulatory framework for cryptocurrency, in a move that could resolve a dispute between banks and digital asset groups.<\/p>\n
Senate Banking Committee chair Tim Scott has scheduled a May 14 executive session to consider the Digital Asset Market Clarity Act, which aims to define when crypto tokens should be treated as securities, commodities or another category.<\/p>\n
The crypto industry says the bill is vital to the future of digital assets in the US, while banks are pressing for tighter curbs on stablecoins.\u00a0<\/p>\n
The Clarity Act faces opposition among many congressional Democrats who argue it is weak on anti-money laundering standards and preventing political conflicts of interest.\u00a0<\/p>\n
The Bill would need support from at least seven Democrats in the full senate to gain approval.\u00a0<\/p>\n
Fed identifies geopolitics and oil shock fears as biggest threats <\/p>\n
Geopolitical tensions and an oil price shock triggered by the Iran war are the two biggest perceived risks facing the US financial system, according to the Federal Reserve\u2019s latest financial stability report.<\/p>\n