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☆ These 28 regional and community banks exceed regulators' threshold for high commercial real estate concentration risk: here's what's really at stake.
▼ + stars: | 2024-03-09 | by ( Laila Maidan | ) www.businessinsider.com time to read: +12 min

But where banks' exposure to commercial real estate is concerned, locating that fire may be difficult. Rising interest rates quickly increased the cost of borrowing for investors in commercial real estate, including offices and multifamily homes. It doesn't reveal details such as borrowers' track records, said Mark Hillis, a former chief risk officer for commercial real estate at JPMorgan. There's also varying concentration risk: the largest banks with commercial real estate exposure are more diversified, meaning that any losses won't be as devastating, Baker said. "We think very few banks will run into issues just from their commercial real estate exposure," Reidy said.

Persons: Michael Barr, Jerome Powell, Todd Baker, Mark Hillis, Clifford Rossi, Robert H, Rossi, Baker, There's, Hillis, multifamily, haven't, You'll, Banks, you'll, Rebel Cole, NYCB, Matt Reidy, Reidy, Cole Organizations: Federal Reserve, Business, York Community Bank, SEC, Richman Center for Business, Law, Columbia University, JPMorgan, Smith, Smith School of Business, University of Maryland, Mortgage Banker's Association, Bank, Signature Bank, First, Countrywide Bank, Washington Mutual, Citigroup, multifamily, Florida Atlantic University, Federal, Regulators, TCRE, Equity RCRE, Community Bank, Provident Bank NJ, Merchants Bank of Indiana, Apple Bank for Savings, Oceanfirst Bank, Independent Bank, Lakeland Bank NJ, Ozk, Washington Federal Bank WA, Axos Bank, Sandy Spring Bank, Columbia Bank NJ, Farmers, Merchants Bank of CA, Popular Bank, Pacific Premier Bank, United Bank, Trust, Rockland Trust, Umpqua Bank, ServisFirst Bank, Bell Bank, Stellar Bank, National Bank of, National Bank of Florida FL, New York Community Bank Locations: multifamily, Basel, CRE, California, Rockland, National Bank of Florida

NEW YORK (AP) — First National Bank of Pennsylvania discriminated against Black and Latino homebuyers in North Carolina for a period of at least four years, the Justice Department said Monday, the latest in a long list of banks who have been caught redlining. In its complaint, the DOJ alleges that First National closed branches in majority-minority neighborhoods, failed to provide mortgage services to Black and Latino potential borrowers, and ignored entire neighborhoods for potential lending. The case comes from when FNB bought Yadkin Bank, a regional bank in the Carolinas, in 2017. “The playing field isn’t level, and that is not what we want for the people of North Carolina,” said Josh Stein, North Carolina's Attorney General. The DOJ brought the largest redlining lawsuit in history in 2023 against Los Angeles-based City National Bank, which was also found to have discriminated against Black and Latino communities over a similar time period, from 2017 to 2020.

Persons: redlining, FNB, ”, Josh Stein, Biden, General Merrick Garland Organizations: National Bank of Pennsylvania, Justice Department, The Justice Department, Black, DOJ, National, FNB, Yadkin Bank, Biden Administration, Los, National Bank Locations: North Carolina, Charlotte, Winston, Salem, Black, Carolinas, Yadkin, North, Los Angeles

☆ Exclusive: Organic baby food startup Yumi has slashed its valuation after running low on cash
▼ + stars: | 2024-01-31 | by ( Ben Bergman | ) www.businessinsider.com time to read: +3 min

Yumi, a startup backed by a long list of prominent Silicon Valley investors that makes high-end organic baby food, is raising a down round that values the company at around $40 million, Business Insider has learned. The funding represents a substantial discount from Yumi's Series B round in 2021, which valued the company at more than $300 million, according to Pitchbook data. It also means Yumi has burned through more than twice as much cash, nearly $90 million dollars, as it is currently worth. Startup fundraising tumbled to a five-year low in 2023 with funding for e-commerce and shopping startups down 60%, according to Crunchbase data. Convoy, the freight startup that was once called the "Uber for trucking" and raised more than $1 billion, shut down in November.

Persons: Yumi, Evelyn Rusli, Angela Sutherland, Gerber, Sutherland, Rusli, Anne Wojcicki, Gabrielle Union, Warby Parker, Goldman Sachs, Christina Minnis, Kelly Coffey, Masha Drokova, Lauren Dillard Organizations: Business, BI, Walmart, New York Times, Wall Street Journal, New Enterprise Associates, Uber, City National Bank, One Ventures, Nasdaq, Startup, Convoy, Olive Locations: millennials

TD said it would be challenging to meet its medium-term adjusted earnings growth target range of 7%-10% in the new fiscal year. It reported adjusted earnings of C$1.83 per share, 7 Canadian cents shy of estimates. RBC reported adjusted earnings of C$2.78 per share, comfortably beating expectations of C$2.62, according to LSEG data. CIBC also beat profit expectations as it set aside smaller-than-expected loan provisions and is slashing costs through a 5% reduction in its workforce, or about 2,400 jobs. The lender, Canada's fifth biggest, reported adjusted earnings of C$1.57 per share, compared with expectations of C$1.53.

Persons: Mark Blinch, Gabriel Dechaine, Kelvin Tran, Victor Dodig, Dave McKay, Niket, Balu, Arasu Kannagi Basil, Shinjini Ganguli, Kirsten Donovan, Mark Porter Organizations: Royal Bank of Canada, REUTERS, Canadian Imperial Bank of Commerce, RBC, National Bank, CIBC, TD Bank, Bank Nova Scotia, Bank of Montreal, Scotiabank, Tuesday, Thomson Locations: Toronto, dealmaking, PCLs, Canada, United States, U.S, Bengaluru

Security cameras point towards pedestrians outside the Royal Bank of Canada (RBC) headquarters in Toronto, Ontario, Canada March 16, 2017. RBC, Canada's top lender, said in September that it had infused fresh capital into City National, without elaborating, as it struggled amid the U.S. regional banking crisis. Rizvanovic estimates roughly $7 billion of low-yielding debt securities were transferred from City National to RBC, and he said the return on invested capital should "improve meaningfully" following the move. Since RBC acquired it for $5.4 billion in cash and stock, City National has most recently received amounts between $450 million, $700 million and $600 million annually. The bank has previously said realized losses at City National will be eliminated at the RBC consolidated level.

Persons: Chris Helgren, Mike Rizvanovic, Kelly Coffey, Dave McKay, Nivedita Balu, Matthew Lewis Organizations: Royal Bank of Canada, REUTERS, Rights, National Bank, Los, City National, RBC, Reuters, Valley Bank, City, Thomson Locations: Toronto , Ontario, Canada, Los Angeles, United States, U.S, Santa Clara , California, Toronto

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☆ Inside a shake-up at the world's 'most feared law firm'
▼ + stars: | 2023-03-30 | by ( Casey Sullivan | ) www.businessinsider.com time to read: +30 min

It's been a tumultuous period for Quinn and the storied law firm he built over the past 37 years — now the world's largest litigation firm with hourly rates that can be north of $2,000. But behind the scenes, a shift at QE has been the talk of elite law firm circles. Indeed, the firm – known as a singular, even freewheeling, institution that brands itself as the "#1 Most Feared Law Firm in the World" — may appear to be less in the image of its founder as a generational shift brings changes. "We all thought it was important that the world understands this is not a one generation law firm." One former firm partner in California says he believes Quinn's inner circle generally got better deals.

☆ Exclusive: PNC, RBC interest in SVB cools as regulators seek rescue bids
▼ + stars: | 2023-03-12 | by ( ) www.reuters.com time to read: +2 min

[1/3] A man puts a sign on the door of the Silicon Valley Bank as an onlooker watches at the bank’s headquarters in Santa Clara, California, U.S. March 10, 2023. The Federal Deposit Insurance Corporation (FDIC) had given a Sunday afternoon deadline for bids for the failed bank, one of the sources said. PNC, one of the 10 largest U.S. banks by assets, wanted to pursue a bid for the entirety of Silicon Valley Bank, one of the sources added, but then studied a bid for parts of Silicon Valley Bank. RBC also explored a takeover of Silicon Valley Bank but it was unlikely to pursue it, three sources said. U.S. Treasury Secretary Janet Yellen on Sunday ruled out a government bailout of Silicon Valley Bank and said she was working with regulators to find a solution.

☆ City National Bank to pay $31M redlining settlement, DOJ’s largest ever
▼ + stars: | 2023-01-12 | by ( The Associated Press | ) www.nbcnews.com time to read: +4 min

The Justice Department accused Los Angeles-based City National Bank on Thursday of discrimination by refusing to underwrite mortgages in predominately Black and Latino communities, requiring the bank to pay more than $31 million in the largest redlining settlement in department history. City National is the latest bank in the past several years to be found systematically avoiding lending to racial and ethnic minorities, a practice that the Biden administration has set up its own task force to combat. The Justice Department says that between 2017 and 2020, City National avoided marketing and underwriting mortgages in majority Black and Latino neighborhoods in Los Angeles County. Other banks operating in those neighborhoods received six times the number of mortgage applications that City National did, according to federal officials. The settlement with City National is the largest settlement with the Justice Department.

Jan 12 (Reuters) - City National Bank, a unit of Royal Bank of Canada (RY.TO), agreed to commit more than $31 million to boost lending to Black and Hispanic home buyers in the Los Angeles area, in the U.S. Department of Justice's largest settlement over illegal redlining. The Justice Department accused City National of violating the federal Fair Housing Act by having "avoided" serving majority-Black and majority-Hispanic neighborhoods in the Los Angeles area between 2017 and 2020. The bank will also improve training, spend at least $1.75 million on advertising, community programs and financial education, and set up a fair lending oversight committee. Garland said the Justice Department is trying to vigorously enforce fair lending laws and ensure that lenders "provide equal opportunity for every American to obtain credit. City National, with $95.3 billion of assets, denied wrongdoing, but said it settled to avoid prolonged litigation.

Companies Royal Bank of Canada FollowJan 12 (Reuters) - The United States on Thursday filed a lawsuit against City National Bank, a unit of Royal Bank of Canada (RY.TO), under the federal Fair Housing Act. The lawsuit was filed with the federal court in Los Angeles, online court records show. RBC and City National had no immediate comment. A spokesman for the U.S. attorney's office in Los Angeles did not immediately respond to a request for comment. Reporting by Jonathan Stempel in New YorkOur Standards: The Thomson Reuters Trust Principles.

☆ Equifax fired at least two dozen employees after it used its own tool to suss out if workers had a second job
▼ + stars: | 2022-10-14 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Four of the big six US banks (JPMorgan, Morgan Stanley, Citigroup, and Wells Fargo) all report their Q3 earnings today. Our friends over at Markets Insider will have the immediate reaction to all the revenue numbers as they're posted. That's clearly the message at Equifax, which fired at least 24 workers for secretly having second jobs, Insider reported Thursday. "I'm not sure how Equifax can be trusted with data when it uses it to spy on its own employees," an Equifax employee told Insider. Read our full story on how Equifax used its own tool to figure out if employees were working second jobs.

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