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☆ US regional banks are still under pressure. That’s likely to continue
▼ + stars: | 2024-04-18 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

New York CNN —Despite overcoming a crisis in 2023, the pain isn’t over for America’s regional banks. Shares of New York Community Bank have tumbled 71%, Bank OZK shares have slid 16% and Webster Financial shares have lost 11%. Regional banks reported wide losses on their profits during the first quarter. PNC projects that its net interest income will fall between 4% to 5% in 2024 from last year. “I’m worried about a handful of [regional banks],” Bair told CNBC on Tuesday.

Persons: that’s, Jerome Powell, “, ” Powell, Sheila Bair, “ I’m, ” Bair, ” Tesla, Tesla, Elon Musk, Chris Isidore, Musk, Chancellor Kathaleen McCormick, Read, Samantha Delouya, —, Maximilian Kotz, Leonie Wenz, Noah Diffenbaugh Organizations: CNN Business, Bell, New York CNN, Regional Banking, New York Community Bank, Bank OZK, Webster Financial, PNC Financial, T Bank, US Bancorp, Citizens, PNC, Valley Bank, Signature Bank, First Republic Bank, Federal Reserve, Wilson Center, Federal Deposit Insurance Corporation, CNBC, Tesla, Securities and Exchange Commission, United Nations, Potsdam, Climate, CNN, Stanford University Locations: New York, Delaware, ” Delaware

☆ Premarket stocks: What customers are telling banks they care about in this election year
▼ + stars: | 2024-03-11 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Fears about the health of the real estate market, and a confusing economic landscape, leave commercial banks questioning what comes next. The commercial real estate market is definitely under some pressure because of the rising rate environment. So I think banks are watching all that closely and working closely with regulators. How long do you think commercial real estate woes will weigh on banks? It definitely persists, and it depends on the banks’ weighting of real estate as a percentage of their portfolio.

Persons: New York CNN — It’s, Bell, Chris Giamo, we’ll, They’re, It’s, That’s, Philip Wang, —, Xavier Becerra, Julie Su, Eva Rothenberg Organizations: CNN Business, Bell, New York CNN, Silicon Valley Bank, TD Bank, Sunday, Healthcare, UnitedHealth, CNN, Human Services, Labor Locations: New York, Silicon, United States, Canada

☆ Why do people keep uninsured money in banks?
▼ + stars: | 2024-02-12 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +10 min

Somehow, the same issue plaguing last year’s failed banks is back in focus at the latest bank in crisis: massive loads of uninsured deposits. To be sure, the risk isn’t anywhere close to that of the banks that failed last year: About 94% of domestic deposits at Silicon Valley Bank were uninsured and 90% of Signature Bank’s deposits were uninsured, according to the Federal Reserve. The money is guaranteed by the Federal Deposit Insurance Corporation, which is funded by fees paid by major US banks. About 40% of all money in the US, or $8 trillion, sitting in banks is uninsured, said Lawrence White, a professor at New York University’s Stern School of Business. “It also risks violating the FDIC’s statutory requirement to resolve failed banks and protect insured depositors in the least expensive way possible.”Sometimes, he said, rescuing those uninsured depositors may be the cheapest way to protect insured depositors at banks.

Persons: NYCB, Brian Snyder, James Lee, David Wessel, Lawrence White, University’s, Banks, Ting Shen, ”, Kori Suzuki, JPMorgan Chase, Michael Ohlrogge, Maxine Waters, Elizabeth Warren, “ Organizations: New, New York CNN, New York Community Bancorp, Investors, Silicon Valley Bank, Federal Reserve, Bank, Xinhua, Federal Deposit Insurance Corporation, FDIC, Reuters, Brookings Institution, International Monetary Fund, University’s Stern School of Business, US Treasury, Bloomberg, Getty, Securities and Exchange Commission, Valley Bank, Signature Bank, JPMorgan, Bank of America, Citigroup, First Republic Bank, New York University’s School of Law, Financial Services, Banking Committee, CBS, Bank Coalition of America Locations: New York, Silicon, United States, New, ”, Washington , DC, San Francisco , California, Sen

☆ The commercial real estate crisis will prompt the Fed's first rate cut in May, top economist says
▼ + stars: | 2024-02-09 | by ( Yuheng Zhan | ) www.businessinsider.com time to read: +3 min

Yet, nearing mission-accomplished on inflation won't be the reason the central bank cuts rates, according to one top economist. Instead, Komal Sri-Kumar, president of Sri-Kumar Global Strategies, says that the ongoing commercial real estate crisis will force the Fed to cut rates as early as May. Lessons from the 2008 crisis show that the Fed should cut sooner rather than later to avoid the worst of the pain, Sri-Kumar said. The fears stem in part from exposure to commercial real estate. "The commercial real estate problem is also now in Europe.

Persons: —, Komal, Kumar, Lehman, Janet Yellen, it's, China's, Jerome Powell, Tom Lee Organizations: Service, Sri, Kumar, Business, Lehman Brothers, York Community Bank, Evergrande Locations: China, Europe, Japan

☆ Short sellers increasing their bets against regional banks amid NYCB's woes
▼ + stars: | 2024-02-08 | by ( Hakyung Kim | ) www.cnbc.com time to read: +4 min

New York Community Bank 's ongoing struggles have increased investors' anxiety around the regional bank sector. Official short-selling data from the exchanges that would encompass the latest regional bank fallout has not yet been released. The short crowding on NYCB shares surged to 70% in the week ended Feb. 2, up from 45% the prior week. S & T Bancorp 's short crowding score has jumped to 83% in the week ended Feb. 2, which marks a 37% increase from the prior week. and CrossFirst Bankshares ' short crowding scores have risen 30% each to 69% and 71%, respectively.

Persons: Hong Li, Li, Simmons, CrossFirst, Norman Lowery, —, Michael Bloom Organizations: York Community Bank, Citi Research, Citi, T, P Global, T Bancorp, LSEG, Financial Corp, CrossFirst, Financial, CFB Locations: Midwest, CFB YTD

☆ Premarket stocks: Wall Street is worried about another regional banking crisis
▼ + stars: | 2024-02-06 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

But while the last crisis was all about interest rate risk, this one revolves around the $20 trillion commercial real estate market. What’s happening: After decades of growth bolstered by low interest rates and easy credit, commercial real estate has hit a wall. The increase was driven partly by expected losses on commercial real estate loans, it said. “As losses from a [commercial real estate] loan portfolio accumulate, they can spill over into the broader financial system,” they wrote. “There’s some smaller and regional banks that have concentrated exposures in these areas that are challenged and we’re working with them,” he said.

Persons: It’s, Goldman Sachs, Anna Cooban, Janet Yellen, Jerome Powell, Gary Gensler, ”, Chip Somodevilla, She’s, Powell, “, ” McDonald’s, McDonald’s, Jordan Valinsky, Samantha Murphy Kelly, “ We’ve Organizations: CNN Business, Bell, New York CNN, New York Community Bancorp, US Regional Bank, Japan’s Aozora Bank, Deutsche Bank, Canadian Public Pension Investment Board, Boston Properties, US Securities and Exchange, Financial, Biden, Senate, CBS, Verizon, Old Telephone Service, landlines, UK, Consumers, CNN, California Public Utilities Commission Locations: New York, Manhattan, Boston, Washington ,, East, United States, California, France, California ”

☆ Fitch says US regional bank challenges to persist in 2024
▼ + stars: | 2023-11-15 | by ( ) www.reuters.com time to read: +2 min

A street sign for Wall Street is seen in the financial district in New York, U.S., November 8, 2021. REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsNov 15 (Reuters) - Rating agency Fitch said on Wednesday that U.S. regional banks will face continued challenges in 2024, with those lacking scale or focused on commercial loan growth disproportionately pressured. Fitch said that a delay in meaningful loosening of monetary policy would likely translate into "sustained competition for deposits" and "stubbornly weak loan growth." Large regional banks focused on commercial loan growth saw the weakest credit demand, which in some cases reached double digit declines on an annualized basis, Fitch said. In third quarter earnings, a string of regional banks reported pressure on net interest income (NII), the difference between what banks earn from lending and pay out on deposits, which hit some of their shares.

Persons: Brendan McDermid, Fitch, Bill Gross, Pritam Biswas, Megan Davies, Shounak Dasgupta, Jonathan Oatis, Cynthia Osterman Organizations: Wall, REUTERS, Valley Bank, Federal Reserve, Thomson Locations: New York, U.S, SVB, Bengaluru

☆ ECB's Enria says reforming some banks is 'disappointingly slow'
▼ + stars: | 2023-10-30 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

LONDON, Oct 30 (Reuters) - The European Central Bank has made "disappointingly slow" progress in tackling core issues at some banks it supervises, while too little integration in the sector remains a "dangerous fault line," ECB top banking supervisor Andrea Enria said on Monday. "But a failure to tackle weaknesses that have been identified could lead to existential threats for banks, as we saw at Credit Suisse and some US regional banks in the Spring of 2023," he added. More cross-border consolidation among banks would put the sector on a stronger footing, but there is a lack of support for this from EU states, he said. But if the system breaks down again, repairing it could prove to be very difficult and expensive." Reporting by Huw Jones; Editing by Chris Reese and Hugh LawsonOur Standards: The Thomson Reuters Trust Principles.

Persons: Andrea Enria, Enria, Huw Jones, Chris Reese, Hugh Lawson Organizations: European Central Bank, ECB, Credit Suisse, Silicon Valley Bank, Federal Reserve, Basel Committee, London School of Economics, Thomson Locations: Silicon, Basel

REUTERS/Brendan McDermid Acquire Licensing RightsNEW YORK, Oct 18 (Reuters) - Several U.S. regional banks beat analysts third-quarter profit expectations on Wednesday as higher interest rates allowed them to charge more for loans, although rising loan loss provisions and deposit retention costs crimped margins. Shares of several regional banks fell, including M&T Bank and US Bancorp. Regional banks remain a focus of investor scrutiny. The KBW regional banking index (.KRX) is down nearly 24% year-to-date, while the S&P regional bank (.SPCOMBNKS) has also dropped 33% in the same period. Citizens Financial Group (CFG.N) and First Horizon Corp (FHN.N) both reported a decline in their third quarter profit weighed down by rising credit loss provisions and deposit costs.

Persons: Brendan McDermid, Chris Marinac, Janney Montgomery Scott, Marinac, Citizen Financial's, Chibuike Oguh, Michelle Price, David Gregorio Our Organizations: New York Stock Exchange, REUTERS, U.S, T Bank, US Bancorp, T Bank Corp, Wall, Bank, Citizens Financial, Horizon Corp, Citizens, Citizen, Thomson Locations: New York, U.S, Silicon

☆ Gold is losing its dazzle as bond yields and the dollar surge
▼ + stars: | 2023-10-06 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

Investors tend to prefer government bonds over gold when yields are high, because they offer regular coupon payments. Why nursing schools are turning away thousands of applicantsAt a time when registered nurses are going on strike to protest staffing shortages, thousands of applicants who want to enter or advance in the profession are being turned away from nursing schools, reports CNN’s Tami Luhby. Staffing shortages are the main reason why nursing schools are not able to accept more students who want to become registered nurses. The Girl Scouts are discontinuing a cult-favorite cookieThe Girl Scouts are discontinuing a popular cookie just a year after its debut sparked a frenzy, reports my colleague Jordan Valinsky. Raspberry Rally won’t be sold this upcoming cookie-sales season, which runs January to April 2024, Girl Scouts of the USA has announced.

Persons: Richard Galanti, they’re restocked, Matt Dmytryszyn, “ There’s, ”, CNN’s Tami Luhby, preceptors, Preceptors, Judith Jarosinski, Read, Jordan Valinsky Organizations: CNN Business, Bell, CNN, Federal Reserve, Barrick Gold, Kinross Gold, Northam, Costco, American Association of Colleges of Nursing, Salisbury University’s School of Nursing, Girl Scouts, Scouts, USA, Girl Scouts ’, eBay Locations: Salisbury, Maryland

☆ Wall Street’s mood is improving — but it’s far from upbeat
▼ + stars: | 2023-09-14 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

CNN —Wall Street’s optimism has edged up in recent weeks after an August slump to levels not seen since the collapse of several regional banks earlier this year. CNN’s Fear & Greed Index, which tracks seven different barometers for market sentiment, has oscillated between “neutral” and “greed” territory this month after plunging to a “fear” reading mid-August. The broad-based S&P 500 index has roared 16% higher this year, propped up by Wall Street’s infatuation with artificial intelligence that’s driven a powerful rally in tech stocks. While the Fed’s policy meeting is taking place next week, there’s a laundry list of factors stoking uncertainty in the market. September has historically been the worst month for stocks, and it could live up to its reputation this year.

Persons: it’s, August’s selloff, ”, Eric Sterner, Wall, Michael Arone, Arone, Chris Isidore, “, Gary Quirk, Quirk, epitomize, Birkenstock Organizations: CNN Business, Bell, CNN, Apollon Wealth Management, Federal Reserve, Stocks, State Street Global Advisors, American, of, United Auto Workers, Stellantis, Jeep, Dodge, Chrysler, Samsung, UAW, Wall Street, US Securities and Exchange Commission, New York Stock Exchange, Financial Locations: Kokomo , Indiana, New York, United States

☆ How big banks won the banking crisis
▼ + stars: | 2023-09-05 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Before the Bell: Now that the dust is hopefully settling on this year’s regional banking crisis, are there clear winners and losers in the banking sector? David Kotok: There’s no question the [global systemically important banks, G-SIB] won and the middle-sized banks — let’s call that banks with between $50 billion and $250 billion in assets — were the losers. So if you stand back from the immediate 2023 banking crisis, and you say, how many banks were there 20 years ago in the United States, how many banks are there today? The UK economy is bigger than we thoughtThe UK economy recovered from the Covid-19 pandemic much faster than previously thought, reports my colleague Hanna Ziady. For many office workers around the United States, it also means more return-to-office mandates.

Persons: JPMorgan Chase, Bell, David Kotok, he’s, SIB, Jamie Dimon, J.P, Morgan, hasn’t, Hanna Ziady, John Springford, Andy Jassy, CNN’s Jeanne Sahadi, unaddressed, Merck Organizations: CNN Business, Bell, New York CNN, Silicon Valley Bank, UBS, JPMorgan, Republic Bank, Cumberland Advisors, —, Credit Suisse, First, Federal Reserve, Office, National Statistics, ONS, Centre, European Reform, Labor, Amazon, Business Locations: New York, Silicon, First Republic, United States, Jekyll, America, Hanna Ziady ., Germany, Canada, Japan, Italy, France, Britain

☆ Will Chinese deflation help cure the West’s inflation problem?
▼ + stars: | 2023-08-22 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —The Chinese economy has hit a rough patch. What’s happening: Chinese consumer spending, factory production and investments in long-term assets like property or machinery all slumped last month. On Monday, the Chinese government surprised investors by deciding not to cut an important interest rate that influences mortgages. The beauty company is “mindful of the headwinds that have emerged in China’s economy,” said the report. And even still, many regional banks have struggled to prevent deposit outflows.

Persons: ”, Jason Pride, Michael Reynolds, Lisa Shalett, Edward Moya, Estee Lauder, Moya, “, Elisabeth Buchwald, Moody’s, ‘ Barbie ’, “ Barbie ”, Jordan Valinsky, Greta Gerwig, “ Oppenheimer, “ Barbie Organizations: CNN Business, Bell, New York CNN, Federal Reserve, Morgan Stanley Wealth Management, European, Apple, Intel, Ford, Starbucks, Nike, Saudi, Comerica Inc, National Bancorp, UMB Financial Corp, Bank of New York Mellon, State, Northern Trust, & $ Locations: New York, China, Europe, Beijing, Asia, Russia, Saudi Arabia, Silicon

☆ Goldman Sachs' investing playbook through year-end: 3 leaders share their advice, including how to cash in on a potential double-digit rally in stocks
▼ + stars: | 2023-07-26 | by ( Laila Maidan | ) www.businessinsider.com time to read: +5 min

This analogy was the segue into Goldman Sachs' 2023 mid-year investment outlook. "Do not change lanes unnecessarily," said Sharmin Mossavar-Rahmani, head of the investment strategy group and chief investment officer of wealth management at the firm. Historically, when stocks draw down 20% or more, returns are favorable in the following 12 and 24 months, she added. "What is really fascinating when you've had this kind of narrow breadth, the market actually continues to rally," Mossavar-Rahmani said. On the one hand, private sector balance sheets remain healthy, prices in the global housing market remain stable due to an undersupply, and there has been a gradual recovery in the services sector.

Persons: Goldman Sachs, Robert Tibshirani, Sharmin, Jan Hatzius, you've, Rahmani, Hatzius, it's, Julian Salisbury, Salisbury Organizations: Drivers Locations: China, Salisbury, Banks

☆ Banc of California set to merge with rival PacWest
▼ + stars: | 2023-07-25 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +3 min

New York CNN —PacWest Bancorp (PACW) is set to merge with Banc of California in a $400 million equity deal, according to a joint announcement the banks released Tuesday afternoon, ahead of their second-quarter earnings results. The move aims to restore confidence in the sector after the collapse of three regional banks earlier this year. Banc of California reported a much smaller decline in net income of $2.4 million last quarter. PacWest has been under considerable pressure after Silicon Valley Bank failed in March, sending shock waves across regional banks in the United States. Once the deal closes, PacWest shareholders are set to receive 0.66 of a share of Banc of California for each share they own.

Persons: “, ”, Jared Wolff, Wolff, PacWest, SVB, Warburg Pincus Organizations: New, New York CNN — PacWest, Western Bank, Beverly, Santa, Bank, Federal Reserve, Centerbridge Partners, Wall Locations: New York, Banc, California, Santa Ana, United States

☆ After the turmoil in regional banks, here comes new regulation
▼ + stars: | 2023-06-05 | by ( Jeffrey Cane | ) www.businessinsider.com time to read: +4 min

Biggest US banks could see 20% boost in capital requirements, Wall Street Journal reports. Midsize regional banks underwent extreme stress earlier this year, with First Republic and two others failing, yet the biggest banks in the US may be the ones hit with tougher regulatory rules. The proposals are expected as soon as this month and will vary based on the bank's businesses, according to the Journal. After the financial crisis of 2007-2008, regulators worldwide sought to bolster banks' capital requirements. And the recent turmoil in the US regional banks only underscored the current strength of the mega banks, suggesting that the focus on increasing capital at the biggest institutions was misplaced.

Persons: JPMorgan Chase, Goldman Sachs –, Banks, Morgan Stanley, Jamie Dimon, Jane Fraser Organizations: Wall Street, Morning, First, Street Journal, Banks, JPMorgan, Federal Reserve, Basel III, Committee, America Locations: First Republic, Basel

☆ 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

☆ US regional bank stocks fall after Yellen says more bank mergers necessary
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, May 19 (Reuters) - Shares of U.S. regional lenders fell on Friday after CNN reported that U.S. Treasury Secretary Janet Yellen told bank chief executives that more mergers may be necessary following a series of bank failures. Yellen also reaffirmed the strength and soundness of the country's banking system at the meeting with bank CEOs on Thursday in the aftermath of the collapse of Silicon Valley Bank, Signature Bank, and First Republic Bank. The KBW Regional Banking Index (.KRX) fell 3%, with shares of PacWest Bancorp (PACW.O) and Western Alliance (WAL.N) among the biggest losers as they shed 4% each. The regional bank crisis has been partly blamed by some on aggressive interest rates by the U.S. Federal Reserve, which forced some lenders to seek new capital to make up for a fall in the value of assets linked to interest rates. The debt ceiling dispute has weighed on market sentiment, including for regional bank stocks.

May 17 (Reuters) - Shares of U.S. regional lenders jumped on Wednesday on growing investor confidence that the worst of the banking crisis was likely over, following news of strong deposit growth at Western Alliance Bancorp (WAL.N). Arthur Hogan, chief market strategist at B. Riley Wealth, said Western Alliance's deposit growth disclosure was good news for worried investors. "Western Alliance, one of the most hard-hit banks, came out with a filing showing deposit increase. Western Alliance shares, which are down 41% year-to-date, surged 10% to $34.81, erasing losses recorded over the last two weeks. Other regional lenders closed higher: PacWest Bancorp (PACW.O), whose stock has lost nearly 76% of its value year-to-date, spiked 22%.

☆ Experian's outlook highlights North America lending woes
▼ + stars: | 2023-05-17 | by ( Eva Mathews | ) www.reuters.com time to read: +2 min

May 17 (Reuters) - Experian Plc's (EXPN.L) annual revenue growth forecast on Wednesday signalled a challenging economic backdrop, especially in North America, where the failure of three U.S. regional banks has hurt confidence in the sector. Experian's key customers include banks, non-traditional lenders and insurance providers, which use its credit reports and scores to analyse and make decisions around credit risk, fraud prevention and lending terms. "Tighter lending conditions (especially in North America) are impacting some of Experian's business lines with more direct volume exposure, including its core credit bureau and marketplace, which together account for about 17% of group revenue," Bank of America analysts said. About 67% of Experian's group revenue comes from the North America region. For the year ended March 31, Experian's organic revenue growth of 7% to $6.59 billion compared with analysts' consensus of $6.64 billion.

☆ US regional bank shares jump on Western Alliance deposits growth
▼ + stars: | 2023-05-17 | by ( ) www.reuters.com time to read: +1 min

May 17 (Reuters) - Shares of U.S. regional lenders climbed premarket on Wednesday, looking to break out of range-bound trading as an update on Western Alliance Bancorp's (WAL.N) deposit levels soothed concerns that the U.S. banking crisis was getting worse. Western Alliance shares shot up 11% to $35.18, on course to erase losses recorded over the last two weeks if gains hold. Western Alliance and other regional lenders have seen their stock valuations battered by worries around a broader crisis and funding costs, with consumers moving money into bigger banks after three mid-sized U.S. lenders collapsed in the last two months. The bank's shares have seesawed in the last few sessions, rallying nearly 18% on Monday only to give back those gains a day later. Shares of Comerica Inc (CMA.N), Zions Bancorp (ZION.O) and KeyCorp (KEY.N) were also up between 1.3% and 3.5%.

☆ Analysis: Overexposed US regional banks could sell commercial property loans
▼ + stars: | 2023-05-17 | by ( Matt Tracy | ) www.reuters.com time to read: +5 min

Still, previously unreported data from New York-based real estate data provider Trepp, shared with Reuters, show many regional banks' holdings exceed thresholds stipulated by regulators. While big banks have recently warned about CRE exposure, the new Trepp data underscores how acute and widespread the problem is across the banking sector. The regulatory guidance requires that banks exceeding these thresholds "should employ heightened risk management practices," including potential sales of specific loans. Meanwhile, New York Community Bancorp (NYCB.N) and Flagstar Bank [RIC:RIC:FBCANK.UL] were among the top five banks listed by Trepp that exceeded the CRE loan threshold. In Tuesday congressional testimony, FDIC chair Martin Gruenberg warned CRE loan portfolios "face challenges" should market conditions persist.

☆ US regional banks rise in attempt to shake off crisis of confidence
▼ + stars: | 2023-05-15 | by ( ) www.reuters.com time to read: +2 min

... Read moreMay 15 (Reuters) - Shares of U.S. regional lenders gained on Monday led by a rebound in PacWest Bancorp (PACW.O), as investors tried to look past the crisis of confidence brought on by the collapse of three banks in a span of two months. PacWest rose 8.4%, while Western Alliance Bancorp (WAL.N), Fifth Third Bancorp (FITB.O), Comerica Inc (CMA.N) and KeyCorp (KEY.N) were up between 2% and 6%. The KBW Regional Banking Index (.KRX), which had lost 13.7% so far this month, rose 2%. Then in May First Republic collapsed, creating a vicious cycle that put pressure on regulators to intervene. However, investors have remained wary of any reassurances from analysts and regulators on the stability of the regional banks despite deposits rising.

☆ In the Market: Why US regional banks are doomed to a doom loop
▼ + stars: | 2023-05-15 | by ( Paritosh Bansal | ) www.reuters.com time to read: +4 min

REUTERS/Brian SnyderMay 15 (Reuters) - Banking regulators have been pushed by market volatility in recent weeks into doing things that they haven't really wanted to do, like letting the largest U.S. bank get even bigger. Take the case of the Federal Deposit Insurance Corp (FDIC), one of the main banking regulators. These banks provide credit to vast sections of the U.S. economy, and deposit flight has forced them to pull back on lending. They have provided banks with lifelines that give them enough cash to meet deposit withdrawals, for example. Treasury Secretary Janet Yellen said on Saturday that nearly all banks had access to sufficient liquidity but pressure on earnings may lead to some midsize bank deals.

☆ Former Silicon Valley Bank CEO: ‘I am truly sorry’
▼ + stars: | 2023-05-15 | by ( Allison Morrow | ) edition.cnn.com time to read: +3 min

“I never envisioned myself or SVB being in this situation,” former CEO Greg Becker writes, adding that he is “truly sorry for how this has impacted SVB’s employees, clients, and shareholders.”Becker is scheduled to testify at 10 a.m. ET Tuesday alongside two former executives of Signature Bank, which collapsed two days after SVB. But SVB’s collapse rumbled across global financial markets and sparked a selloff that has gripped US regional banks for more than two months. In its autopsy of the bank’s collapse, the Fed, which was SVB’s primary regulator, blamed both the central bank’s supervisory shortcomings and SVB management’s missteps. “You have nobody to blame for the failure at your bank but yourself and your fellow executives,” Warren wrote in a letter to Becker in March.

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