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☆ Citigroup CEO Jane Fraser says low-income consumers have turned far more cautious with spending
▼ + stars: | 2024-05-06 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Citigroup CEO Jane Fraser said Monday that consumer behavior has diverged as inflation for goods and services makes life harder for many Americans. Fraser, who leads one of the largest U.S. credit card issuers, said she is seeing a "K-shaped consumer." "We're seeing a much more cautious low-income consumer," Fraser said. That means Americans must live with higher rates for credit card debt, auto loans and mortgages for longer. "It's hard to get a soft landing," the CEO added, using a term for when higher rates reduce inflation without triggering an economic recession.

Persons: Jane Fraser, Fraser, CNBC's Sara Eisen Organizations: Citigroup, Federal Reserve

☆ Berkshire Hathaway’s big mystery stock wager could be revealed soon
▼ + stars: | 2024-05-03 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Berkshire Hathaway , led by legendary investor Warren Buffett, has been making a confidential wager on the financial industry since the third quarter of last year. The identity of the stock — or stocks — that Berkshire has been snapping up could be revealed Saturday at the company's annual shareholder meeting in Omaha, Nebraska. So the 93-year-old Berkshire CEO may decide to explain his rationale to the thousands of investors flocking to the gathering. The bet, shrouded in mystery, has captivated Berkshire investors since it first appeared in disclosures late last year. Under Buffett, Berkshire has trounced the S&P 500 over nearly six decades with a 19.8% compounded annual gain, compared with the 10.2% yearly rise of the index.

Persons: Berkshire Hathaway, Warren Buffett, Buffett, —, Bill Stone Organizations: Glenview Trust Co, Buffett Locations: Berkshire, Omaha , Nebraska, U.S, Glenview

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhy the Fed expects more bank failuresOf about 4,000 U.S. banks analyzed by the Klaros Group, 282 banks face stress from commercial real estate exposure and higher interest rates. The majority of those banks are categorized as small banks with less than $10 billion in assets. "Most of these banks aren't insolvent or even close to insolvent. They're just stressed," Brian Graham, Klaros co-founder and partner at Klaros. "That means there'll be fewer bank failures.

Persons: They're, Brian Graham, Klaros Organizations: Fed, Klaros

☆ NYCB shares jump after new CEO gives two-year plan for 'clear path to profitability'
▼ + stars: | 2024-05-01 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

The first-quarter loss, equal to 45 cents per share, compared to net income of $2.0 billion, or $2.87 per share a year earlier. When adjusted for charges included merger-related items, the loss was $182 million, or 25 cents per share, deeper than the 15 cents per share loss estimate from LSEG. "Since taking on the CEO role, my focus has been on transforming New York Community Bank into a high-performing, well-diversified regional bank," CEO Joseph Otting said in the release. "While this year will be a transitional year for the company, we have a clear path to profitability over the following two years." The bank will have higher profitability and capital levels by the end of 2026, Otting said.

Persons: Joseph Otting, Otting, Steven Mnuchin, NYCB Organizations: York Community Bank, New York Community Bank Locations: New

☆ JPMorgan Chase is caught in U.S-Russia sanctions war after overseas court orders $440 million seized from bank
▼ + stars: | 2024-04-24 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

A Russian court sided with state-run lender VTB Bank in its efforts to recoup $439.5 million from JPMorgan Chase that the American lender froze in U.S. accounts after the Ukraine invasion. The court ordered the seizure of funds in JPMorgan's Russian accounts and "movable and immovable property," including the bank's stake in a Russian subsidiary, according to a court order published Wednesday. It also boosted an ongoing American effort to convince European allies to release Russian state assets to assist Ukraine. JPMorgan said Russian courts have enabled similar efforts by Russian lenders against American or European banks at least a half dozen other times. JPMorgan said it faced "certain and irreparable harm" from VTB's efforts.

Persons: Jamie, JPMorgan Chase, VTB, Jamie Dimon, Biden, Joe Biden, JPMorgan Organizations: JPMorgan Chase, U.S . Senate Banking, Housing, Urban Affairs, Wall, Capitol, Washington , D.C, VTB Bank, JPMorgan, of Locations: Washington ,, Ukraine, Russian, St, Petersburg, U.S, Russia, Southern, of New York

At stake is the role of a wide spectrum of players, from fintech firms to card companies and established banks. Walmart's Fintech startup One is now offering BNPL loans in Secaucus, New Jersey. Buy now, pay later has gained popularity with consumers for everyday items as well as larger purchases. A Capital One Walmart credit card sign is seen at a store in Mountain View, California, United States on Tuesday, November 19, 2019. Meanwhile, Walmart said last year when its lawsuit became public that it would soon announce a new credit card option with "meaningful benefits and rewards."

Persons: Joe Raedle, Goldman Sachs, Omer Ismail, Hugh Son, BNPL, Jason Mikula, Amazon's, Karma, John Furner, John David Rainey, Dot, " Rainey, Rainey, Morgan Stanley, Walmart's, Yichuan Cao Organizations: Walmart, Getty, CNBC, New Jersey Walmart, Apple, Electronics, Adobe Analytics, Bank of Walmart, Robinhood, Walmart U.S, Coastal Community Bank, Capital, PayPal Locations: Hallandale Beach , Florida, Bentonville , Arkansas, Manhattan, Secaucus , New Jersey, New Jersey, U.S, Mountain View , California, United States

☆ Walmart-backed fintech One introduces buy now, pay later
▼ + stars: | 2024-04-23 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWalmart-backed fintech One introduces buy now, pay laterCNBC's Melissa Repko and Hugh Son join 'Power Lunch' to report on. Walmart’s fintech startup One beginning to offer buy now, pay later loans for big-ticket items at some stores in the U.S.

Persons: Melissa Repko, Hugh Son Organizations: Walmart Locations: U.S

☆ Morgan Stanley is about to report first-quarter earnings
▼ + stars: | 2024-04-16 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Ted Pick, CEO Morgan Stanley, speaking on CNBC's Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 18th, 2024. Morgan Stanley is set to report first-quarter earnings before the opening bell Tuesday. Pick's tenure has kicked off on a rocky note, as high interest rates have incentivized the bank's wealth management customers to move cash into higher-yielding securities. But if its rivals are any indication, Morgan Stanley could be helped by strong investment banking and trading results in the quarter. Analysts are likely to question Pick about reports that multiple U.S. regulators are investigating Morgan Stanley for potential shortfalls in how it screens clients for its wealth management division.

Persons: Ted Pick, Morgan Stanley, Wells, Goldman Sachs Organizations: LSEG Revenue, Banking, JPMorgan Chase, Citigroup, Monday . Bank of America, Analysts Locations: Davos, Switzerland, Wells Fargo

☆ Bank of America tops estimates on better-than-expected interest income, investment banking
▼ + stars: | 2024-04-16 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Bank of America on Tuesday reported first-quarter earnings that topped analysts' estimates for profit and revenue on better-than-expected interest income and investment banking. Revenue slipped 1.6% to $25.98 billion as net interest income declined from a year earlier. That's one of the key questions after JPMorgan Chase , Citigroup and Goldman Sachs all topped estimates with help from trading and investment banking. Bank of America's Chief Financial Officer, Alastair Borthwick, told analysts last month to expect investment banking revenue to rise by 10% to 15% from a year earlier, and for trading results to be roughly flat. Analysts will also be focused on the bank's net interest income, which has been declining in recent quarters as funding costs have climbed along with the rise in interest rates.

Persons: Brian Thomas Moynihan, Goldman Sachs, Alastair Borthwick Organizations: of America, Senate Banking, Housing, Urban Affairs, Capitol, Bank of America, Revenue, JPMorgan Chase, Citigroup, Goldman, Bank of America's Locations: Washington , DC

☆ Goldman Sachs reports earnings before market open — here's what the Street expects
▼ + stars: | 2024-04-15 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

David Solomon, Chairman & CEO Goldman Sachs, speaking on CNBC's Squawk Box at the World Economic Forum Annual Meeting in Davos, Switzerland on Jan. 17th, 2024. Goldman Sachs is scheduled to report first-quarter earnings before the opening bell Monday. Dormant capital markets and missteps tied to Solomon's ill-fated push into retail banking should give way to stronger results this year. Unlike more diversified rivals, Goldman gets most of its revenue from Wall Street activities. After pivoting away from retail banking, Goldman's new emphasis for growth has centered on its asset and wealth management division.

Persons: David Solomon, Goldman Sachs, StreetAccount Goldman Sachs, Goldman, outsized, Solomon, Philip Berlinski, Beth Hammack, Wells Fargo Organizations: LSEG Revenue, Trading, Rivals JPMorgan Chase, Citigroup, Wall, JPMorgan Locations: Davos, Switzerland

☆ What Goldman Sachs' earnings could mean for the sector at large
▼ + stars: | 2024-04-15 | by ( Hugh Son | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWhat Goldman Sachs' earnings could mean for the sector at largeCNBC's Hugh Son discusses earnings from Goldman Sachs and the other big banks.

Persons: Goldman Sachs, Hugh Son

☆ Citigroup tops estimates for first-quarter revenue on better-than-expected Wall Street results
▼ + stars: | 2024-04-12 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

Citigroup on Friday posted first-quarter revenue that topped analysts' estimates, helped by better-than-expected results in the bank's investment banking and trading operations. Revenue slipped 2% to $21.10 billion, mostly driven by the impact of selling an overseas business in the year-earlier period. Investment banking revenue jumped 35% to $903 million in the quarter, driven by rising debt and equity issuance, topping the $805 million StreetAccount estimate. Fixed income trading revenue fell 10% to $4.2 billion, edging out the $4.14 billion estimate, and equities revenue rose 5% to $1.2 billion, topping the $1.12 billion estimate. Now, analysts want to know if Citigroup can maintain its previous guidance for full-year revenue and expense targets.

Persons: Jane Fraser, Fraser, JPMorgan Chase, Goldman Sachs Organizations: Citi, Milken Institute Global Conference, Citigroup, LSEG Revenue, Revenue, Investment, Services, U.S, JPMorgan Locations: Beverly Hills , California

☆ JPMorgan Chase is set to report first-quarter earnings — here’s what the Street expects
▼ + stars: | 2024-04-12 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

Jamie Dimon, President and CEO of JPMorgan Chase, speaking on CNBC's "Squawk Box" at the World Economic Forum Annual Meeting in Davos, Switzerland, on Jan. 17, 2024. JPMorgan Chas e is scheduled to report first-quarter earnings before the opening bell Friday. Still, large banks are expected to outperform smaller ones this quarter, and expectations for JPMorgan are high. Analysts believe the bank can boost guidance for 2024 net interest income as the Federal Reserve is forced to maintain interest rate levels amid stubborn inflation data. Shares of JPMorgan have jumped 15% this year, outperforming the 3.9% gain of the KBW Bank Index.

Persons: Jamie Dimon, JPMorgan Chas, Goldman Sachs, Morgan Stanley Organizations: JPMorgan Chase, JPMorgan, LSEG Revenue, Trading, Federal Reserve, Analysts, Federal, KBW, Wells, Citigroup, Bank of America Locations: Davos, Switzerland, Wells Fargo

☆ What to expect from bank earnings as high interest rates pressure smaller players
▼ + stars: | 2024-04-11 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., February 7, 2024. Ever since the chaos of last year's regional banking crisis that consumed three institutions, larger banks have mostly fared better than smaller ones. That trend is set to continue, especially as expectations for the magnitude of Federal Reserve interest rates cuts have fallen sharply since the start of the year. On Monday, M&T Bank posts results, one of the first regional lenders to report this period. The focus for all of them will be how the shifting view on interest rates will impact funding costs and holdings of commercial real estate loans.

Persons: JPMorgan Chase, Goldman Sachs, there's, Christopher McGratty Organizations: New York Stock Exchange, JPMorgan, Bank of America, T Bank Locations: New York City, U.S, KBW

☆ New York Community Bank’s online arm is paying the nation’s highest interest rate
▼ + stars: | 2024-04-10 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

A New York Community Bank stands in Brooklyn on February 08, 2024 in New York City. New York Community Bank , the regional lender that needed a $1 billion-plus lifeline last month, is offering the country's highest interest rate for a savings account. The standout rate could be a sign that NYCB is facing funding pressure, Tumin said. "It looks like they're trying really hard to attract deposits," Tumin said. The bank announced a capital injection from investors led by former Treasury Secretary Steven Mnuchin's Liberty Strategic Capital on March 6.

Persons: NYCB, Ken Tumin, Tumin, Steven Mnuchin's Organizations: York Community Bank, New York City . New York Community Bank, Banking, Strategic Capital Locations: Brooklyn, New York City .

☆ Jamie Dimon says AI may be as impactful on humanity as printing press, electricity and computers
▼ + stars: | 2024-04-08 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

Jamie Dimon, CEO of JPMorgan Chase, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled Annual Oversight of Wall Street Firms, in the Hart Building on Dec. 6, 2023. Jamie Dimon, the veteran CEO and chairman of JPMorgan Chase , said he was convinced that artificial intelligence will have a profound impact on society. In his annual letter to shareholders released Monday, Dimon chose AI as the first topic in his update of issues facing the biggest U.S. bank by assets — ahead of geopolitical risks, recent acquisitions and regulatory matters. But his focus on AI, first mentioned in Dimon's annual letter in 2017, stood out. Enthusiasm for AI has fueled the meteoric rise of chipmaker Nvidia and helped propel tech names to new heights.

Persons: Jamie Dimon, JPMorgan Chase, Dimon, OpenAI's ChatGPT Organizations: JPMorgan, Banking, Housing, Urban Affairs Committee, Wall Street Firms, Nvidia

☆ Banks are in limbo without a crucial lifeline. Here’s where cracks may appear next
▼ + stars: | 2024-03-19 | by ( Hugh Son | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailBanks are in limbo without a crucial lifeline. Here’s where cracks may appear nextThe Fed is expected to start cutting rates this year, and that could mean hundreds of billions of dollars of unrealized losses on low-interest bonds. CNBC's Hugh Son joins 'Squawk Box' with more.

Persons: CNBC's Hugh Son

☆ Banks are in limbo without a crucial lifeline. Here's where cracks may appear next
▼ + stars: | 2024-03-19 | by ( Hugh Son | ) www.cnbc.com time to read: +8 min

Most of the banks deemed to be potentially challenged are community lenders with less than $10 billion in assets. These banks need to either raise capital, likely from private equity sources as NYCB did, or merge with stronger banks, Graham said. There are other signs of mounting stress among smaller banks. They ranged in size from $90 billion in assets to under $1 billion, according to Fitch. He predicts a surge in merger activity from lenders between $3 billion and $20 billion in assets as smaller firms look to scale up.

Persons: Klaros, Steven Mnuchin, Brian Graham, Graham, you've, PacWest, Banks, Jerome Powell, Powell, Fitch, Brendan Mcdermid, I've, Chris Caulfield, West, Spencer Stuart, You've, Frank Sorrentino, Stephens, It's, that's, Sorrentino Organizations: Silicon Valley Bank, Federal Reserve, Klaros Group, York Community Bank, ex, Fitch, Federal Deposit Insurance Corporation, Traders, New York Stock Exchange, Reuters, U.S, First Republic, Mercer Capital, Bank, Dominion Bank, Capital, Regulators Locations: Silicon, California, New York City, U.S, Toronto, West Monroe, FirstSun, Seattle

☆ Morgan Stanley names a head of artificial intelligence as Wall Street leans into AI
▼ + stars: | 2024-03-14 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

The Morgan Stanley digital sign is seen at the company's Times Square headquarters in New York, U.S., on Friday, Jan. 12, 2016. Morgan Stanley promoted a tech executive in its wealth management division to become the bank's first head of firm-wide artificial intelligence, CNBC has learned. Last year, Morgan Stanley became the first major Wall Street firm to create a solution for employees based on OpenAI's GPT-4, a project overseen by McMillan. While Wall Street firms broadly pared back jobs last year, they competed to fill thousands of AI positions, poaching employees from one another. Read the full Morgan Stanley memo announcing McMillan's new role:

Persons: Morgan Stanley, Jeff McMillan, Andy Saperstein, Dan Simkowitz, McMillan, Teresa Heitsenrether, Goldman Sachs, Marco Argenti Organizations: company's, CNBC, Wall, JPMorgan Locations: New York, U.S, York

☆ NYCB says it lost 7% of deposits in the past month, slashes dividend to 1 cent
▼ + stars: | 2024-03-07 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

New York Community Bank said Thursday it lost 7% of its deposits in the turbulent month before announcing a $1 billion-plus capital injection from investors led by former Treasury Secretary Steven Mnuchin's Liberty Strategic Capital. The bank had $77.2 billion in deposits as of March 5, NYCB said in an investor presentation tied to the capital raise. NYCB also said it's slashing its quarterly dividend for the second time this year, to 1 cent per share from 5 cents, an 80% drop. In a little more than a month, the bank changed its CEO twice, saw two rounds of rating agency downgrades and announced deepening losses. At its nadir, NYCB's stock sank below $2 per share Wednesday, down more than 40%, before ultimately rebounding and ending the day higher.

Persons: Steven Mnuchin's, NYCB, downgrades Organizations: York Community Bank, Strategic Capital, Moody's, Mnuchin's Liberty Strategic Capital Locations: New York

☆ Why private equity has been involved in every recent bank deal
▼ + stars: | 2024-03-06 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

Greg Nash | ReutersThe $1 billion-plus injection that New York Community Bank announced Wednesday is the latest example of private equity players coming to the need of a wounded American lender. Led by $450 million from ex-Treasury Secretary Steven Mnuchin's Liberty Strategic Capital, a group of private investors are plowing fresh funds into NYCB. That happened to Silicon Valley Bank, whose failure to raise funding last year was effectively its death knell. On Wednesday, headlines around noon that NYCB was seeking capital sent its shares down by 42% before trading was halted. "With private deals, you can talk for a while, and we almost got to the finish line before there was any publicity."

Persons: Jerome Powell, Steven Mnuchin, Greg Nash, Steven Mnuchin's, Warburg Pincus, HomeStreet, Steven Kelly, NYCB Organizations: Financial, Treasury, Reuters, York Community Bank, Strategic Capital, Centerbridge Partners, FirstSun, Wellington Management, Yale Program, Silicon Valley Bank Locations: Rayburn, Washington , U.S, NYCB, PacWest, Banc, California, it's, Silicon

☆ New York Community Bancorp woes: What you need to know
▼ + stars: | 2024-03-06 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailNew York Community Bancorp woes: What you need to knowChristopher Marinac, Janney Montgomery Scott director of research, and CNBC’s Hugh Son join 'The Exchange' to discuss New York Community Bancorp as trading on the bank’s stock was halted after declining more than 42% on the news that the company is seeking cash infusion.

Persons: Christopher Marinac, Janney Montgomery Scott, CNBC’s Hugh Son Organizations: New York, Bancorp, New, Community Bancorp

☆ New CFPB rule caps banks' credit card late fees at $8
▼ + stars: | 2024-03-05 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

The Consumer Financial Protection Bureau unveiled a new rule on Tuesday that it said would cap late fees that banks charge customers at $8 per incident. By cutting late fees to $8 from an average of around $32, more than 45 million card users would save an average of $220 annually, the CFPB said in a release. Regulations tied to that law granted issuers the ability to charge ever-increasing amounts of late fees. "For over a decade, credit card giants have been exploiting a loophole to harvest billions of dollars in junk fees from American consumers," CFPB Director Rohit Chopra said in the release. "Today's rule ends the era of big credit card companies hiding behind the excuse of inflation when they hike fees on borrowers and boost their own bottom lines."

Persons: Rohit Chopra Organizations: Banking, Housing, Urban Affairs Committee, Consumer Financial, Bureau

☆ Some NYCB deposits may be a flight risk after Moody’s downgrades ratings again
▼ + stars: | 2024-03-04 | by ( Hugh Son | ) www.cnbc.com time to read: +3 min

Late Friday, Moody's Investors Service cut the deposit rating of NYCB's main banking subsidiary by four notches, to Ba3 from Baa2, putting it three levels below investment grade. The downgrade could trigger contractual obligations from business clients of NYCB who require the bank to maintain an investment grade deposit rating, according to analysts who track the company. But the figures are from the day before Moody's began slashing the bank's ratings, sparking speculation about possible flight of deposits since then. For instance, while Fitch Ratings cut NYCB's credit ratings to junk last week, it kept the bank's long-term uninsured deposits at BBB-, one level above junk. To replace deposits, NYCB could raise brokered deposits, issue new debt or borrow from the Federal Reserve's facilities, but that would all probably come at a higher cost, McGratty said.

Persons: NYCB, Moody's, Keith Horowitz, Horowitz, John Pinto, Chris McGratty, NYCB didn't, McGratty Organizations: New York Community Bank, New, Community Bank, Moody's, Citigroup, Fitch, BBB, Federal, CNBC PRO Locations: New, Yonkers , New York, Baa2, Moody's

☆ Wall Street is worried about NYCB's loan losses and deposit levels as stock sinks below $4
▼ + stars: | 2024-03-01 | by ( Hugh Son | ) www.cnbc.com time to read: +3 min

Mike Segar | ReutersRegional lender New York Community Bank finds itself in an apparently worsening predicament just as the anniversary of last year's banking turmoil nears. "The disclosures add to our concern about NYCB's interest-only multi-family portfolio, which may require a long workout period unless interest rates decline." Days later, ratings agency Moody's cut the bank's credit ratings two notches to junk on concerns over the bank's risk management capabilities after the departure of NYCB's chief risk officer and chief audit executive. The bank's stock was briefly buoyed by a flurry of insider purchases indicating executives' confidence in the bank. Most of those deposits were insured, and it had ample resources to tap if uninsured deposits left the bank, it said.

Persons: Mike Segar, NYCB, Raymond James, Steve Moss, Moody's, Alessandro DiNello, DiNello, D.A, Davidson, Peter Winter Organizations: New York Community Bank, Reuters Regional, New, Community Bank, Silicon Valley Bank, Signature Bank Locations: Yonkers , New York, U.S, NYCB

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