The European Central Bank will require the euro area’s biggest banks to hold a capital buffer of at least 8 percent as it takes charge of financial supervision in the currency bloc, three people familiar with the situation said.
Deutsche Bank AG, Europe’s biggest investment bank by revenue, dropped in Frankfurt following a report that one of its co-chief executive officers will warn next week about a decline in the debt-trading business.
Deutsche Bank AG co-Chief Executive Officer Anshu Jain is cutting compensation to placate shareholders as Europe’s debt crisis slashes financial-industry jobs, leaving workers fewer opportunities to defect.
Erste Group Bank AG, Austria’s biggest lender, will sell about 660 million euros ($865 million) of new stock in the third quarter to help repay state aid. The shares dropped as much as 9.6 percent in Vienna.
UBS AG, Switzerland’s biggest bank, must pay about 1.4 billion Swiss francs ($1.5 billion) to U.S., U.K. and Swiss regulators for trying to rig global interest rates, triple the penalties levied against Barclays Plc.