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Streetwise Streetwise newsletter: Banks expected to lose millions with repricing of Corus secondary offering

Here are the top reads on deals and financial services over the last 24 hours,

A syndicate of investment banks is expected to lose tens of millions of dollars after re-pricing the secondary offering of Corus Entertainment shares due to lower than expected demand. Story (Alexandra Posadzki, Tim Kiladze and Andrew Willis, for subscribers)

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RBC, TD beat estimates with solid earnings, shares move in opposite directions: Royal Bank of Canada and Toronto-Dominion Bank reported solid earnings for the second quarter, helping to dial down concerns that Canada’s banking sector is set to stagnate – or worse, face serious challenges. The two banks are Canada’s largest lenders, and they both beat their earnings expectations. The results should give investors some confidence after Canadian Imperial Bank of Commerce slashed its profit outlook for the full-year on Wednesday and noted that it now expects little-to-no earnings growth in fiscal 2019. Story (Tim Kiladze, for subscribers)

Mortgage stress tests protect Canada from potential housing crash and financial crisis, head of national housing agency says: Federal policy makers should not give in to calls to soften the mortgage stress test rule because it is protecting Canada from a potential housing crash and financial crisis, according to the head of Canada’s national housing agency. In a letter sent Thursday to the House of Commons Finance Committee, Evan Siddall, chief executive officer of Canada Mortgage and Housing Corp., offered an aggressive defence of Canada’s tougher mortgage qualification standard, saying it is needed to forestall potentially devastating economic consequences if house prices continue to rise and Canadians continue to become more indebted. Story (Janet McFarland, for subscribers)

MORE FINANCIAL SERVICES NEWS

JPMorgan cuts ties with OxyContin maker Purdue Pharma, sources say: JPMorgan Chase & Co. has cut ties with Purdue Pharma LP over the OxyContin maker’s alleged role in the U.S. opioid crisis, forcing it to find a new bank to manage cash and bill payments, people familiar with the matter said on Thursday. Story (Reuters, for subscribers)

Bank CEO Stephen Calk charged in Manafort bribery scheme to get Trump administration post: The head of a Chicago-based bank was charged in an indictment unsealed on Thursday with bribery and accused of corruptly approving high-risk loans to President Donald Trump’s former campaign chairman Paul Manafort in a scheme to land a top Trump administration post such as secretary of the U.S. Army. Story (for subscribers)

Deutsche Bank CEO pledges tough investment bank cuts as shares hit low: Deutsche Bank’s chief executive promised shareholders “tough cutbacks” at its underperforming investment bank on Thursday as he battled to convince them he can turn around Germany’s biggest lender, whose shares hit a record low. Story (Reuters, for subscribers)

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