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  • Dirk Notheis has stepped down as Germany country head at Morgan Stanley, amid an investigation into his alleged role in the federal state of Baden-Württemberg’s purchase of a stake in a German utility two years ago.
  • Alex Mallinson is said to have left as head collateralized debt obligations trader at the Royal Bank of Scotland, which he joined in 2002.
  • U.S. hedge fund Capula Investment Management plans to launch a fund to trade distressed European assets, to be managed by Steven Zander, formerly of Bank of America.
  • Ben Bernanke, the chairman of the Federal Reserve, testified before Congress that the London Interbank Offered Rate is “structurally flawed,” and poses “a major problem for our financial system and for the confidence in the financial system.”
  • Goldman Sachs has increased its efforts to build its private bank with a goal to boost loans to wealthy customers and corporations from $12 billion to $100 billion.
  • Ocwen Financial has cut the principal on mortgages through its shred-appreciation program by an average $75,000, and monthly payments by half.
  • Ben Logan, managing director at Markit, will leave the data provider July 20.
  • Moody’s Investors Service has downgraded 13 Italian banks, including UniCredit and Intesa Sanpaolo, the nation’s two largest, just two months after lowering the ratings on 26 of the country’s banks.
  • Luis Maria Linde, the new governor of Bank of Spain, said banks too weak to survive on their own would be shut down, but Economy Minister Luis de Guindos said there are no plans to close any lenders.