Banks

European shares were on course for a fifth day of gains on Tuesday, powered by a strong rally in automakers after Peugeot suggested Fiat Chrysler was among the options for a merger, and as Bank of America Merrill Lynch talked up stocks in the sector.

European Union judges ruled on Tuesday that Italy's rescue plan for an ailing bank five years ago was legal, prompting calls for compensation for savers who subsequently faced stricter terms because Brussels had rigidly interpreted the bloc's rules.

Barclays urged shareholders on Tuesday to reject activist investor Edward Bramson's bid for a seat on the bank's board, saying he lacks the necessary experience and has different financial incentives to other investors.

HSBC is stepping up a root-and-branch overhaul of its global banking and markets division, naming 83 new managing directors in a 1,300-strong promotions spree aimed at revitalising its investment banking franchise.

Barclays Plc said on Tuesday it had hired Robert Peck, an investment banker focussed on the internet space who previously worked at Credit Suisse Group AG, the second internet banker it has hired in the past two months.

Two U.S. law firms have filed a lawsuit against Danske Bank on behalf of institutional investors over a 200 billion euro (171 billion pounds) money laundering scandal.

Fund managers have named bearish bets in European equities as the "most crowded" trade in Bank of America Merrill Lynch's survey for the first time in its history, suggesting sentiment for one of the world's most shunned markets may rise from here.

Deutsche Bank and Commerzbank faced concerns from workers unions, Chancellor Angela Merkel's office and top shareholders on Monday after confirming merger talks.

German lawmakers have criticised deputy finance minister Joerg Kukies and Goldman Sachs, alleging a conflict of interest in the U.S. investment bank advising state-backed Commerzbank on a possible merger with Deutsche Bank.