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Streetwise Streetwise newsletter: Stress test responsible for $15-billion drop in new mortgages; trading revenues at U.S. banks don’t bode well for Canadian peers

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

Stress test responsible for drop of as much as $15-billion in new mortgages, study finds: The federal government’s new mortgage stress test was responsible for a drop of as much as $15-billion in residential mortgage borrowing last year, according to a report to be released Tuesday. Story (Janet McFarland. for subscribers)

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A drop in trading revenues at U.S. banks doesn’t bode well for their Canadian peers: Lower market volatility took a bite out of the equity trading revenues at some of the big U.S. investment banks and analysts say a similar theme could play out north of the border, as well. Story (Alexandra Posadzki, for subscribers)

CIBC shuffles executive ranks, names CEO’s brother as new head of Wood Gundy: Canadian Imperial Bank of Commerce is making significant leadership changes that span wealth management, capital markets and retail banking, including naming CEO Victor Dodig’s brother as head of retail brokerage Wood Gundy. Ed Dodig is moving from capital markets to become an executive vice-president responsible for private wealth and CIBC Wood Gundy, according to internal memos obtained by The Globe and Mail. The move is one of eight executive and management changes announced internally last week. Story (Clare O’Hara, Tim Kiladze and James Bradshaw, for subscribers)

Lundin Mining to buy Brazilian mine from Yamana in $1-billion deal: Lundin Mining Corp. is buying a copper gold mine from Yamana Gold Inc. worth US$1-billion, the latest big deal during a hectic period for mergers and acquisitions in the mining sector. Toronto-based Lundin is buying the Chapada mine in Brazil that produced just under 59,000 tonnes of copper last year and 121,000 ounces of gold. Story (Niall McGee, for subscribers)

Aritzia’s new take on share buybacks inspires First Capital Realty to help shareholder unload $1.2-billion stake: The new spring lines from fashion retailer Aritzia Inc. feature a floral-pattern Sunday Best Cropsey Romper that rivals may knock off, along with an innovative $437-million deal for a long-time backer that Bay Street bankers are already emulating. Aritzia offered a new take on an old-fashioned financing tool, a share buyback, to pave the way for a recent stock sale by private equity fund Berkshire Partners LLC. Within weeks, real estate company First Capital Realty Inc. used the same approach to help a long-time shareholder unload a $1.2-billion stake. Story (Andrew Willis, for subscribers)

Uber’s horrendous losses make its high equity valuation a fantasy: Uber Technologies Inc. needs to stop subsidizing fares if it’s ever going to make a profit and keep attracting investors. But judging from the company’s initial public offering (IPO) prospectus, published last week, that day isn’t coming any time soon – and may never come. Even Uber admits its operating expenses will “increase significantly in the foreseeable future, and we may not achieve profitability.” Opinion (Eric Reguly, for subscribers)

Gerri Sinclair of Kensington Capital: ‘When people tell me I can’t do something, I want to do it even more’: Gerri Sinclair is a managing director at Kensington Capital Partners and leader of its Vancouver office, where she’s in charge of directing the $100-million BC Tech Fund. She is also a digital strategy adviser at Vancity Credit Union. Interview (Brenda Bouw, for subscribers)

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Citigroup profit rises on surge in investment banking: Citigroup Inc reported higher-than-expected earnings on Monday despite declining revenue as the New York-based lender cut costs, grew its investment-banking business and expanded net-interest margin. Story (for subscribers)

U.S. online lenders reducing risk to guard against recession: U.S. online lenders such as LendingClub Corp, Kabbage Inc and Avant LLC are scrutinizing loan quality, securing long-term financing and cutting costs, as executives prepare for what they fear could be the sector’s first economic downturn. Story

Goldman Sachs shares fall as revenue declines in multiple businesses: Goldman Sachs Group Inc. offered new tidbits about its sweeping operational overhaul when reporting first-quarter results on Monday, but investors focused on revenue declines across nearly all its main businesses, sending shares lower. Story (for subscribers)

MORE DEALS NEWS

Saudi Aramco buys stake in South Korean refiner unit for US$1.2-billion: The biggest shareholder in South Korean oil refiner Hyundai Oilbank said on Monday that state-owned Saudi Aramco has agreed to buy a 17-per-cent stake in its oil processing operations for 1.4 trillion won (US$1.2-billion). Story

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