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Biden unveiled a plan that includes tax credits and down payment assistance to improve housing affordability. Eligible homebuyers would get this tax credit for two years, meaning you could get a total of $10,000 in tax credits for buying a house. Down payment assistanceAnother piece of Biden's plan for more affordable homeownership is the $25,000 in down payment assistance he wants Congress to provide to first-generation homebuyers. What hopeful homebuyers should knowAs a whole, this plan could substantially improve housing affordability, enabling more Americans to become homeowners. And even for homebuyers who qualify for tax credits or other assistance, saving up for a down payment remains a big barrier to homeownership.

Persons: Biden, —, Dan Green, homebuyers Biden, hasn't, doesn't, Green, Daryl Fairweather, Fairweather, White, homebuyers Organizations: Biden, Service, Federal Housing Finance Agency, Consumer Financial, homebuilders, Loan, Program, Bank of America Mortgage, Democrats

☆ Life insurers binge on US financing aimed at helping housing
▼ + stars: | 2023-12-05 | by ( Koh Gui Qing | ) www.reuters.com time to read: +8 min

It has been predominantly used by life insurers, because they need to boost their investment returns with cheap funding to meet long-term liabilities. They provide the cheap funding to banks and insurers in exchange for collateral to ensure they get their money back. Insurers are entitled to tap FHLB funding. Insurers’ borrowing from FHLBs picked up in 2008 financial crisis, as those that spread themselves thin with aggressive investments scrambled for cash. They did not explain why insurers need FHLB funding to invest in mortgages.

Persons: Sarah Silbiger, Ryan Donovan, CMBS, Lawrence White, White, Graphics JUICING, Cynthia Beaulieu, Cornelius Hurley, Hurley, FHLBs, ’, Michael Ericson, Jack Dolan, Koh Qui, Greg Roumeliotis, Anna Driver Organizations: REUTERS, Loan, Federal Housing Finance Agency, of Federal Home Loan, FHLBs, FHLB, National Association of Insurance, New York University, MetLife Inc, Equitable Holdings Inc, Corebridge, Brighthouse Financial, MetLife, TIAA, Equitable, Graphics, Wellington Management, Boston University School of Law, Coalition, Silicon Valley Bank, First, American, of, Insurance Coalition, Reuters, Thomson Locations: Washington , U.S, U.S, Boston, Silicon, First Republic, Chicago, New York

REUTERS/Sarah Silbiger/File Photo Acquire Licensing RightsWASHINGTON, Nov 7 (Reuters) - The U.S. regulator charged with overseeing the Federal Home Loan Banks said in a report on Tuesday the system is overdue for an overhaul in its mission and structure. The Federal Housing Finance Agency emphasized in the report that there needs to be a clearer distinction between the purpose of the FHL banks and the Federal Reserve, which is the primary emergency lender for banks. The agency said FHL banks were created by Congress in 1932 to provide liquidity to banks for affordable housing and other economic development. Tuesday's report was the culmination of a year-long project by the agency to review the FHL banks. FHL Banks are 11 regional government-chartered institutions that raise money for low-cost lending to their members.

Persons: Sarah Silbiger, Loan Banks, Banks, Ryan Donovan, Pete Schroeder, Aurora Ellis Organizations: REUTERS, Rights, Federal, Loan, Federal Housing Finance Agency, Federal Reserve, of Federal Home Loan, Thomson Locations: Washington , U.S, U.S

Sept 18 (Reuters) - Cadence Bank (CADE.N) CEO Dan Rollins calls the regional banking crisis from earlier this year "March madness." Interviews with half a dozen regional bank executives and economists show the March banking crisis has had a lasting impact on the regional banking industry and the economy. Torsten Slok, chief economist at Apollo Global Management, said the banking crisis had "a magnifying effect" on the Fed's tightening but its full impact would come with a lag. The failure triggered a crisis of confidence, with depositors moving their money from regional banks to the perceived safety of the largest lenders. The KBW Regional Bank Index (.KRX) is down about 20% since early March despite a summer rebound.

Persons: Dan Rollins, Rollins, Mark Zandi, ”, Zandi, Torsten Slok, Slok, Cadence's Rollins, Steve Wyett, Wyett, Banks, Cadence’s Rollins, Randy Chesler, Chesler, Moody's Zandi, Jeff Jackson, Raj Singh, Singh, Paritosh Bansal, Anna Driver Organizations: Cadence Bank, Moody’s, Apollo Global Management, Bank, Reuters Graphics, Valley, Regional, BOK, Federal, Loan, Thomson Locations: . Federal, Silicon, Tulsa , Oklahoma, Kalispell , Montana, Wheeling , West Virginia

☆ Bond investors show confidence in Schwab after cost-cutting
▼ + stars: | 2023-08-23 | by ( Matt Tracy | ) www.reuters.com time to read: +3 min

The company logo for Financial broker Charles Schwab is displayed at a location in the financial district in New York, U.S., March 20, 2023. The announcement led to a 5% fall in Schwab shares on Tuesday but did not hurt investor appetite for its new bonds. "The strong response shows bond investors, at least in the near term, have gotten over their worries about the credit fundamentals of top-tier regional banks after the banking crisis in March," said Richard Wolff, head of U.S. syndicate at Societe Generale (SOGN.PA). Schwab's bond trade also drew attention as new investment grade bond supply this month has so far been lower than expected. Counting Schwab's $2.35 billion in bonds, investment-grade bond volume sits at just $3.45 billion for the week and $67.1 billion so far in August, according to Informa Global Markets data.

Persons: Charles Schwab, Brendan McDermid, Schwab, Richard Wolff, Dan Krieter, Brian Mulberry, David Del Vecchio, Natalie Trevithick, Matt Tracy, Nupur Anand, Shankar Ramakrishnan, Sonali Paul Organizations: REUTERS, Societe Generale, BMO Capital, Zacks Investment Management, Federal Home Loan Bank, Payden, Informa, Thomson Locations: New York, U.S, Los Angeles

☆ Charles Schwab to reduce headcount to bring down costs
▼ + stars: | 2023-08-21 | by ( ) www.reuters.com time to read: +2 min

The company logo for Financial broker Charles Schwab is displayed at a location in the financial district in New York, U.S., March 20, 2023. REUTERS/Brendan McDermid/file photo Acquire Licensing RightsAug 21 (Reuters) - U.S. brokerage firm Charles Schwab (SCHW.N) said on Monday it plans to lower its headcount in a bid to counter cost pressures, joining a list of Wall Street firms take a similar path. Schwab has had to turn to supplementary funding sources to counter an uncertain economic environment. Charles Schwab also said it was currently assessing its real estate footprint, and that it planned to close or downsize certain corporate offices. The U.S. brokerage firm said it anticipated most costs related to layoffs would be incurred in the second half of 2023.

Persons: Charles Schwab, Brendan McDermid, Schwab, Jaiveer Singh Shekhawat, Krishna Chandra Eluri, Maju Samuel Organizations: REUTERS, Wall, Federal Home Loan Bank, Thomson Locations: New York, U.S, America, Westlake , Texas, Bengaluru

"So why not be in a situation where you're just much more ready in case you...need to access this discount window?" An analysis of Fed data by Reuters, though, shows a lot still needs to be done to meet that goal. All told, about 3,800 banks borrowed from the discount window during the 11-year period detailed in the central bank data. The biggest banks also stepped up to borrow so as to reduce discount window stigma. Minneapolis Fed President Neel Kashkari said small banks should think of the discount window as a backup.

Persons: Brittany Hosea, Jerome Powell, I’ve, Lorie Logan, Banks, Goldman Sachs, Huberto Ennis, Michelle Bowman, Brad Tidwell, SVB, Austan Goolsbee, Richmond Fed's Ennis, Neel Kashkari, Ann Saphir, Michael S, Andrea Ricci Organizations: Bank, REUTERS, Federal Reserve, Reuters, Dallas, U.S, Fed, Reuters Graphics Reuters, Richmond Fed, National Credit Union Association, Chicago Fed, Federal Home Loan Bank, Minneapolis, Home Loan Bank, Thomson Locations: Santa Clara , California, U.S, Silicon, Washington, While California, Texas, Logan's, New Mexico, Louisiana, Henderson , Texas

☆ Schwab's profit drops less than expected on asset management strength
▼ + stars: | 2023-07-18 | by ( ) www.reuters.com time to read: +2 min

Charles Schwab relies primarily on clients' uninvested cash to fund its interest-earning businesses such as purchase of fixed-income assets and lending. Schwab has had to turn to supplementary funding sources to counter this churn. Last month, the Westlake, Texas-based company said it was relying on more expensive funding sources, like borrowing from the Federal Home Loan Bank, to supplement its cash flow. Meanwhile, inflows into the company's funds boosted asset management and administration fees by 12% to $1.17 billion. Excluding one-time costs, Schwab's profit fell 25% to $1.49 billion, or 75 cents per share, for the three months ended June 30.

Persons: Charles Schwab, Schwab, Walt Bettinger, Niket, Sriraj Kalluvila, Shounak Organizations: U.S . Federal Reserve, Federal Home Loan Bank, Thomson Locations: Westlake , Texas, Bengaluru

☆ US regulators consider to limit major lenders' borrowings from FHLBs - Bloomberg News
▼ + stars: | 2023-06-30 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Sarah Silbiger/File PhotoJune 30 (Reuters) - U.S. officials are considering to limit the ability of large banks to use Federal Home Loan Banks (FHLBs) as a financial backstop, as part of a broader proposal to overhaul the system, Bloomberg News reported on Friday. The Federal Housing Finance Agency might still adjust its plans before announcing the recommendations in the coming months, the report added. Federal Home Loan Banks are 11 U.S. government-chartered institutions that raise money for low-cost lending to their member regional banks. For many of the member banks, they are a preferred final stop for cash before banks in need turn to the Federal Reserve itself as a last resort. Federal Housing Finance Agency did not immediately respond to a Reuters request for comment.

Persons: Sarah Silbiger, Jaiveer Singh, Shweta Agarwal Organizations: REUTERS, Loan, Bloomberg, Federal Housing Finance Agency, Silicon Valley Bank, Signature Bank, Credit Suisse, Federal, Loan Banks, Federal Reserve, Thomson Locations: Washington , U.S, Silicon, U.S, Bengaluru

☆ US regulators consider to limit major lenders' borrowings from FHLBs, Bloomberg reports
▼ + stars: | 2023-06-30 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Sarah Silbiger/File PhotoJune 30 (Reuters) - U.S. officials are considering to limit the ability of large banks to use Federal Home Loan Banks (FHLBs) as a financial backstop, as part of a broader proposal to overhaul the system, Bloomberg News reported on Friday. The Federal Housing Finance Agency (FHFA) might still adjust its plans before announcing the recommendations in the coming months, the report added. Federal Home Loan Banks are 11 U.S. government-chartered institutions that raise money for low-cost lending to their member regional banks. For many of the member banks, they are a preferred final stop for cash before banks in need turn to the Federal Reserve itself as a last resort. Federal Housing Finance Agency did not immediately respond to a Reuters request for comment.

Persons: Sarah Silbiger, FHFA, Jaiveer Singh, Shweta Agarwal Organizations: REUTERS, Loan, Bloomberg, Federal Housing Finance Agency, Reuters, Silicon Valley Bank, Signature Bank, Credit Suisse, Federal, Loan Banks, Federal Reserve, Thomson Locations: Washington , U.S, Silicon, U.S, Bengaluru

☆ Charles Schwab forecasts up to 11% drop in second-quarter revenue
▼ + stars: | 2023-06-14 | by ( Sri Hari N S | ) www.reuters.com time to read: +2 min

June 14 (Reuters) - Charles Schwab (SCHW.N) expects its second-quarter revenue to drop by 10% to 11% due to a contraction in its net interest margin and softer trading activity, the brokerage firm said on Wednesday. The majority of these borrowings could be repaid before the end of 2024, Schwab said. Analysts have warned of a compression in net interest margins for financial firms, as the Fed's rate hikes drain excessive liquidity. Further increases in interest rates could add to pressure on Schwab's earnings, William Blair analysts Jeff Schmitt and Tyler Mulier wrote in a note. Fed policymakers on Wednesday left interest rates steady but signaled they would rise by half a percentage point by the end of the year.

Persons: Charles Schwab, Schwab, William Blair, Jeff Schmitt, Tyler Mulier, Blair, Niket Nishant, Sri Hari, Vinay Dwivedi, Maju Samuel Organizations: Federal Home Loan Bank, Federal, Thomson Locations: The Texas, Sri, Bengaluru

"When you get into higher interest rates ... you look to your collateral," Rodeheaver said in an interview. "We are tightening on price and profitability ... That is going to slow lending a bit." "The economy has started to slow in an orderly fashion" in response to higher interest rates, Jefferson said, calling tighter credit conditions "part of the transmission mechanism of monetary policy." Powell, however, said he felt the impact of the credit shock "remains uncertain," and his own baseline outlook does not include a recession. Bank lending dipped about 1.7% in the two weeks following SVB's collapse, but has risen since then and recouped about a third of the decline.

☆ First Republic Bank Shows That the Banking Crisis Might Not Be Over Yet - The New York Times
▼ + stars: | 2023-05-01 | by ( Peter Coy | ) www.nytimes.com time to read: +2 min

The problem now, as I wrote in early March when Silicon Valley Bank was taken over by regulators, is that the math has gone bad for them. They’re losing their cheap funding and they’re still stuck with low-yielding investments that they acquired when interest rates were historically low. Market forces have already brought down Silicon Valley Bank, Signature Bank and First Republic Bank, the slowest antelopes in the herd. In terms of assets, not adjusted for inflation, those are three of the four biggest bank failures in U.S. history. The SPDR S&P Regional Bank exchange-traded fund, which tracks the stocks of the regional banks, has fallen 28 percent since the start of the year.

☆ First Republic Joins the Living Dead
▼ + stars: | 2023-04-26 | by ( Aaron Back | ) www.wsj.com time to read: 1 min

Photo: Samuel Corum/Bloomberg via Getty ImagesFirst Republic Bank appears to have gotten out of immediate liquidity trouble, but it has dug itself a deep profitability hole. To cover deposit outflows, the lender had to borrow heavily at high rates from the Federal Reserve, the Federal Home Loan Bank and JPMorgan Chase & Co., in addition to the $30 billion that JPMorgan and 10 of the other largest banks deposited at the bank in an effort to rescue it. Total borrowings peaked at $138.1 billion on March 15, declining to $104 billion as of April 21, the bank said in its quarterly earnings statement on Monday.

Illustration: Preston JesseeBanks are turning to an obscure government-linked lender to shore up their balance sheets following the industry’s rockiest period in years. The Federal Home Loan Bank system—established during the Great Depression to help promote mortgage lending and now a source of liquidity for banks of all stripes—issued a record $495 billion of debt in March to fund loans, which are called advances, the system’s Office of Finance said. Banks ramped up borrowing that month as customers pulled out deposits and investors panicked over failures that threw the stability of the U.S. financial system into question.

☆ Citi lays out the possible outcomes for First Republic after banking crisis
▼ + stars: | 2023-03-23 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

The path forward for First Republic after this month's banking crisis remains unclear, but Citigroup identified some possible scenarios for the embattled San Francisco-based bank. While the bank hasn't specified its deposit outflows, Citi noted that they've been substantial. In fact, CNBC's David Faber reported this month that JPMorgan is advising First Republic on strategic alternatives , including a capital raise or possible sale. Again, without knowing the actual level of deposit outflows, the underlying situation could vary quite a bit from our estimates," Cyganovich continued. "Given the challenges of the first two outcomes above, some form of government intervention seems increasingly likely, albeit in what form remains unclear," the analyst wrote.

☆ First Republic shares slide 18% Monday after a credit rating downgrade
▼ + stars: | 2023-03-20 | by ( John Melloy | ) www.cnbc.com time to read: +2 min

A trader works at the post where First Republic Bank stock is traded on the floor of the New York Stock Exchange (NYSE) in New York City, March 16, 2023. S&P cut its credit rating to B+ from BB+ on Sunday after first lowering it to junk status just last week. Shares of First Republic Bank , which have become the barometer of the regional bank crisis, slid once again Monday after Standard & Poor's cut the credit rating of the San Francisco-based institution. On Thursday, a group of major banks agreed to deposit $30 billion in First Republic to shore up confidence in regional banks. Credit Suisse executives noted that the U.S. regional bank crisis caused enough instability that forced the already shaky institution to merge with its rival.

☆ JPMorgan advising First Republic on strategic alternatives, including a capital raise, sources say
▼ + stars: | 2023-03-20 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

JPMorgan Chase is advising embattled First Republic Bank on strategic alternatives, sources told CNBC's David Faber. The alternatives may include a capital raise, the sources said, which could dilute current shareholders. First Republic shares were last down 30% in a volatile session. First Republic had an abnormally high number of uninsured deposits on its books, which was part of the problem with the now failed Silicon Valley Bank. That includes a Bank Term Funding Program that allows banks to more easily use their high-quality assets to raise cash.

☆ S&P downgrades First Republic further into junk status as the bank's $30 billion rescue may not be enough to solve liquidity problems
▼ + stars: | 2023-03-20 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

First Republic Bank's credit rating was cut for the second time in less than a week by S&P Global Ratings. The Federal Home Loan Bank System provides cash to banks and other lenders and is made up of 11 regional banks. S&P Global noted First Republic last week reported a cash position of $34 billion, not including the $30 billion in deposits from the 11 banks. PacWest said it "continues to have solid liquidity," with more than $10.8 billion in available cash, and that cash exceeds total uninsured deposits. Western Alliance said it remains in a strong position, with immediately available liquidity of over $20 billion as of March 16.

New York CNN —Global banks just suffered their worst week since 2008. Credit Suisse and First Republic: Two more banks wobbled but remained upright through the week. Meanwhile, First Republic bank received a $30 billion lifeline on Thursday from some of the largest banks in the United States. US-traded shares of Credit Suisse were down nearly 7% and First Republic shares plunged by about 33% on Friday. That doesn’t mean that banks taking money from the FHLB and participating in the Federal Reserve’s emergency Bank Term Lending Program, which lent out $12 billion to banks this week, are in big trouble.

[1/2] A person walks past a First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike SegarMarch 17 (Reuters) - Shares of First Republic Bank (FRC.N) lost almost 33% on Friday, totaling a loss of around 80% in the last 10 sessions, despite a rescue package with $30 billion in deposits injected by large U.S. banks. Founded in 1985, First Republic had $212 billion in assets and $176.4 billion in deposits as of the end of last year, according to its annual report. The rescue package came less than a day after Swiss bank Credit Suisse (CSGN.S) clinched an emergency central bank loan of up to $54 billion to shore up its liquidity. The ratings agency had downgraded its outlook on the U.S. banking system to negative earlier this week.

[1/2] A person walks past a First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike SegarMarch 17 (Reuters) - Shares of First Republic Bank (FRC.N) extended losses to 32% in afternoon trading on Friday after being briefly halted as $30 billion in deposits injected by large U.S. banks failed to quell investor worries about the beleaguered lender. First Republic suspended its dividend and disclosed it has $34 billion in cash excluding the new deposit injection. Founded in 1985, First Republic had $212 billion in assets and $176.4 billion in deposits as of the end of last year, according to its annual report. The ratings agency had downgraded its outlook on the U.S. banking system to negative earlier this week.

March 16 (Reuters) - First Republic Bank's (FRC.N) shares fell 17% in extended trading on Thursday, despite an unprecedented show of support in the bank from nearly a dozen of the world's largest financial institutions. The bank's shares, which had closed 10% higher after a volatile day that saw trading halted 17 times, slumped in after-market trading. Jason Ware, chief investment officer for Albion Financial Group, said the Dimon-led banking sector intervention on Thursday was a "shot in the arm of the system" but likely more was needed. A First Republic Bank branch is pictured in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. The bank's shares have been hit hard in recent days in the aftermath of the collapse of Silicon Valley Bank.

Employees have been working around the clock to onboard as many startups as possible in the wake of the implosion of Silicon Valley Bank. Silicon Valley Bank, which had more than $175 billion in deposits and served nearly half of US VC-backed startups, was taken over by US regulators on March 10. "That said, I am worried that this bias towards a Big Four bank is a double-edged sword," Shekar added. "SVB did not think like a big bank. They could understand your operating plan when a big bank would balk at it," Ashley Tyrner, CEO and founder of FarmBoxRX, told Insider.

☆ Premarket Stocks: Who do we blame for the fall of SVB?
▼ + stars: | 2023-03-16 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Blame the Fed: SVB’s downfall was largely caused by a record $42 billion bank run that left the bank in desperate need of cash. But the Fed’s rate hikes had undermined the value of bonds, a critical source of capital for SVB. “The Federal Reserve failed as a bank supervisor,” he wrote. On Capitol Hill, frequent Fed critic Sen. Elizabeth Warren has been quick to blame Federal Reserve Chair Jerome Powell for a lack of oversight. Blame SVB: Others say the blame should be placed on the banks themselves.

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