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"We are making bold decisions to meet our commitments to our shareholders," Fraser, 56, said in a statement. The latest changes have already eliminated 35 committees, Fraser said, citing an example of efforts to reduce bureaucracy. Job cuts are expected, but the bank did not estimate the number of positions being eliminated or the financial impact, sources familiar with the matter said. "Investors are only going to give Citigroup credit for hard numbers meeting their goals," said Eric Compton, banking analyst at Morningstar. Citi is eliminating layers in former divisions Institutional Clients Group and Personal Banking and Wealth Management.

Persons: Jane Fraser, Fraser, Shahmir Khaliq, Andrew Morton, Peter Babej, Gonzalo Luchetti, Andy Sieg, Wells, JPMorgan Chase, Brian Mulberry, Eric Compton, Ernesto Cantu, Mark Mason, Tatiana Bautzer, Saeed Azhar, Medha Singh, Lananh Nguyen, Nick Zieminski, Jonathan Oatis Organizations: Citigroup, Citi, Bank of America, JPMorgan, Zacks Investment Management, Morningstar, Wealth Management, International, Thomson Locations: North America, New York

☆ Insider buying in US regional banks at 3-year high as execs look to bolster confidence
▼ + stars: | 2023-06-05 | by ( Shubham Batra | ) www.reuters.com time to read: +3 min

June 5 (Reuters) - Regional bank executives buying shares in their own companies hit a three-year high in the United States during the second quarter of 2023 as they rushed to restore investor confidence in their firms following the collapse of Silicon Valley Bank. US Bancorp (USB.N), East West Bancorp (EWBC.O), Zions Bancorp (ZION.O) and SoFi Technologies (SOFI.O) are some of the names from the 244 banks that saw heavy insider buying in the second quarter. The ratio of buyers to sellers in the regional banking sector has also hit a record high in the second quarter of 2023, according to the data. Bank stocks have stabilized in recent weeks, but haven't recovered their March losses. Bank deposits, however, started stabilizing from April.

Persons: Eric Compton, Ben Silverman, haven't, Shubham Batra, Shounak Dasgupta Organizations: Silicon Valley Bank, US Bancorp, East West Bancorp, Zions Bancorp, SoFi Technologies, Morningstar, Company, U.S . Securities, Exchange Commission, Bank, Thomson Locations: United States, Silicon, COVID, VerityData, Bank, Bengaluru

Depositors had pulled $100 billion from accounts at the bank in the panic triggered by the SVB and Signature failures, imperiling its survival. Both SVB and Signature failed last month. Both SVB and Signature grew quickly in recent years, outpacing the ability of regulators to keep up, especially with shrinking resources. Regulators closed Signature two days after SVB was shuttered. Signature lost 20% of its total deposits in a matter of hours on the day that SVB failed, FDIC Chair Martin Gruenberg has said.

☆ Quotes: Fed plans broad revamp of bank oversight in wake of SVB collapse
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +11 min

The assertion in the introduction that the Fed should focus on large bank capital requirements is disconnected from the report's conclusions. AMERICAN BANK ASSOCIATION PRESIDENT AND CEO ROB NICOLS"We take any bank failure seriously, and we will review the findings and proposed policy changes in these reports carefully, including where the conclusions may differ. JONATHAN MONDILLO, HEAD OF NORTH AMERICAN FIXED INCOME AT ABRDN"We're likely to see higher capital requirements. What that means for the overall markets is that the devil is in the details: how stringent those capital requirements will be. A potential First Republic Bank failure could similarly present a risk to the long-term investment strategy of high net-worth individuals."

Both SVB and Signature failed last month. Regulators shut SVB on March 10, a day after customers withdrew $42 billion and queued requests for another $100 billion the following morning. Both SVB and Signature grew quickly in recent years, outpacing the ability of regulators to keep up, especially with shrinking resources. Regulators closed Signature two days after SVB was shuttered. Signature lost 20% of its total deposits in a matter of hours on the day that SVB failed, FDIC Chair Martin Gruenberg has said.

☆ US Fed plans broad revamp of bank oversight in wake of SVB collapse
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +7 min

Many commentators linked the lessons learned from the earlier crisis to the ongoing concerns about First Republic Bank. INSTITUTE OF INTERNATIONAL BANKERS CEO BETH ZORC"The IIB commends the Federal Reserve's timeliness of producing its report on SVB. "There are similarities between SVB's situation and what is happening with First Republic Bank: both are affected by the rapid movement of very large sums of money." A potential First Republic Bank failure could similarly present a risk to the long-term investment strategy of high net-worth individuals." "It feels isolated, than the rest of the regional bank system, feels like it's in a different place than where FRC is."

That makes the business less than half the size of Bank of America Corp's (BAC.N) Merrill Wealth Management arm, the $18-billion behemoth Sieg ran until he left last month. Another challenge is that Citi has historically been undersized and a bit of a laggard in the space...especially in the wealth business where it’s all about existing relationships." In some ways, Citigroup is playing catchup after selling its old wealth business, Smith Barney, a decade ago to Morgan Stanley, which then leaned heavily into wealth management. That bet paid off - Morgan Stanley's wealth unit, led by Andy Saperstein, brought in record revenue last year. Two years ago, Citigroup unified its various wealth businesses into a single organization led by Jim O'Donnell that included its private bank and personal wealth division.

☆ TD world's most shorted banking stock, shares down -ORTEX data
▼ + stars: | 2023-04-05 | by ( Maiya Keidan | ) www.reuters.com time to read: +2 min

Around 4.1% of TD's outstanding shares were out on loan to hedge funds, while the second-most shorted bank stock, JP Morgan , only had $2.3 billion worth of shorts, showed the data. Hedge funds profit when they borrow a stock from an institutional investor and sell it back when the price falls, pocketing the difference, a practice known as short-selling. Turmoil in the banking sector began last month with the collapse of regional banks Silicon Valley Bank and Signature Bank, sparking a crisis of confidence. TD shares are down 15.7% since the beginning of the regional bank crisis and down 3.4% this week. Around 2.9% of BMO's outstanding shares were out on loan to hedge funds, or about $1.8 billion.

☆ TD world's most shorted banking stock, ORTEX data shows; shares fall
▼ + stars: | 2023-04-05 | by ( Maiya Keidan | ) www.reuters.com time to read: +2 min

☆ Morningstar: Buy these 10 cheap stocks that will maintain higher-than-average dividends as a looming economic slowdown makes it even harder to find strong returns
▼ + stars: | 2023-04-01 | by ( Lisa Kailai Han | ) www.businessinsider.com time to read: +4 min

But dividend-paying stocks provide stable and consistent cash flow, even during downturns. Morningstar analysts shared 10 top undervalued stocks to buy for long-term cash flow. 10 cheap dividend-paying stocks to buyWhen faced with a looming economic downturn, one traditional strategy for investors to use to hedge recessionary risks is to buy dividend-paying stocks. "Price risk remains elevated, as does the risk that companies may not be able to maintain current dividends due to economic strain." Below is the full list of top dividend-paying stocks identified by Shetty and Compton, along with each company's ticker and market capitalization.

☆ Citigroup technicals indicate rally may extend even as Wall Street remains wary
▼ + stars: | 2023-02-01 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

Feb 1 (Reuters) - Citigroup Inc's shares (C.N) are approaching a potential bullish technical signal which indicates that this year's 14% rally could continue, even as some analysts remain critical of the bank's fundamentals. The technical signal, called a "golden cross", forms if the stock's 50-day moving average goes above its 200-day moving average. On Jan. 23, Citi shares touched their highest since August. The one-month moving average of puts-to-calls traded has dropped to 1.07-to-1, down from 2.6 puts traded for every call late last year, according to Trade Alert data, signaling less bearishness. "The bank is still very much in the build-up of expenses and early stages of reinvesting in their franchises."

☆ Money managers say these 10 stocks are screaming buys despite rampant inflation and lingering recession fears, according to Morningstar
▼ + stars: | 2022-11-28 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +3 min

From the Fed's aggressive rate hikes to Russia's war in Ukraine, investors have reasons to worry. These 10 stocks are a screaming buy during volatile periods, according to Morningstar. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. Morningstar analysts say invest in companies that have grabbed significant market share like Alphabet (GOOGL) or Wells Fargo (WFG). Despite market headwinds and volatility, Morningstar lists "high-conviction" purchases for companies that money managers "have made meaningful additions to their portfolios."

☆ Bank regulators tell Citigroup to take urgent action to fix resolution plan
▼ + stars: | 2022-11-23 | by ( Hannah Lang | ) www.reuters.com time to read: +3 min

The regulators gave Citi a January 2023 deadline to submit its plan to address the shortcomings, while giving the all clear to seven other large banks that submitted resolution plans. The problems related to earlier concerns the Fed had identified with Citi’s data quality and data management in an October 2020 enforcement action against the bank. Eric Compton, a banking analyst at Morningstar, said regulators often highlight data management issues at banks because they can be interrelated, potentially having wide-ranging impact. “Citi is not the first bank to have its resolution plan dinged," he said. Those problems related to the banks' abilities to produce data in stressed conditions to implement their resolution plans.

☆ Citigroup profit falls on higher loan-loss reserves, weak dealmaking activity
▼ + stars: | 2022-10-14 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

Citi added $370 million to its loan-loss reserves in the latest quarter, compared with a reserve release of $1.16 billion a year earlier. Citi will likely take "3-5 years to hit more 'normalized' profitability measures", said Eric Compton, equity strategist at Morningstar. Citigroup is the most undervalued bank stock among big U.S. banks Citigroup is the most undervalued bank stock among big U.S. bankRevenue for Citi's Treasury and Trade solutions business, which processes nearly $3 trillion a day in 140 currencies and 160 countries, rose 40% to $3.2 billion as fees and trade loans grew. Net profit was $3.5 billion, or $1.63 per share, in the three months ended Sept. 30, compared with $4.6 billion, or $2.15 per share, a year earlier. Analysts on average had expected a profit of $1.42 per share, according to Refinitiv IBES data.

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