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☆ First Republic's future to be discussed as major bank CEOs meet, sources say
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, March 21 (Reuters) - Major bank chief executives are gathering in Washington for a two-day scheduled meeting starting on Tuesday, with the future of First Republic Bank (FRC.N) to be discussed, sources familiar with the matter said. The quarterly meeting of the Financial Services Forum will include JPMorgan Chase & Co.'s (JPM.N) Jamie Dimon and Bank of America Corp's (BAC.N) Brian Moynihan, the sources said. First Republic Bank is among the banks that have been speaking to peers and investment firms about potential deals in the wake of U.S. regulators taking over Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) this month amid a flight of depositors, sources have said. Two sources familiar with the matter previously said that all options are on the table for First Republic, which could include a sale or equity infusion. JPMorgan Chase & Co (JPM.N) is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said.

☆ Saudi is far from the last Western bank bagholder
▼ + stars: | 2023-03-21 | by ( George Hay | ) www.reuters.com time to read: +5 min

LONDON, March 21 (Reuters Breakingviews) - Saudi Arabia has joined the Western bank bagholder club. The bank only made its play in November, when client money was already flowing out of Credit Suisse. Saudi National Bank bought 307.6 million Credit Suisse shares for 3.82 Swiss francs ($4.11) per share. The UBS offer of 3 billion Swiss francs ($3.23 billion) values Credit Suisse shares at 0.76 francs each, more than 80% lower than the price paid by the Saudi bank. Saudi National Bank's statement added that the potential impact to its capital adequacy ratio is about 35 basis points, with no impact on profitability.

☆ JPMorgan vs. Bank of America? Analysts say one of the stocks is set to soar 50%
▼ + stars: | 2023-03-21 | by ( Weizhen Tan | ) www.cnbc.com time to read: +5 min

It's not just regional bank shares that have been hit by the recent banking crisis — large-cap bank stocks have also tumbled. JPMorgan was down nearly 6% last week, while Bank of America tumbled 8% over the same period. It said big banks are a "big beneficiary" and fundamentals at JPMorgan Chase, Bank of America, Wells Fargo and Citi look "rather strong." For those looking to invest, CNBC Pro takes a look at what analysts are saying about JPMorgan Chase and Bank of America in particular. However, Bank of America has only 8% of uninsured deposits as a proportion of its total deposit liabilities.

LONDON, March 20 (Reuters) - Bank of America's electronic stocks desk has halted trading with a desk at Credit Suisse that uses computer-led strategies, "out of an abundance of caution effective today," an email seen by Reuters on Monday said. Bank of America (BAC.N) said it would no longer send trades to Credit Suisse's "ATS Crossfinder". That trading platform anonymously matches buy and sell orders for the same kinds of securities, according to the Credit Suisse (CSGN.S) website. Bank of America sent the email to traders and hedge fund clients on Monday morning. Credit Suisse declined to comment on the email and Bank of America also declined to comment.

☆ First Republic shares fall on fresh liquidity fears as peers rebound
▼ + stars: | 2023-03-20 | by ( Medha Singh | ) www.reuters.com time to read: +3 min

March 20 (Reuters) - Shares of First Republic Bank (FRC.N) slumped 13.1% on Monday, after a report the regional bank could raise more money fanned worries about its liquidity despite a $30 billion rescue last week. Shares of some of the big banks involved in the unprecedented support rose, reversing premarket losses. "Even though First Republic Bank says that they have the financial backing to survive, investors are concerned that they too will have to be taken over," said Jason Pride, chief investment officer of private wealth at Glenmede. The S&P 1500 regional banks index (.SPCOMBNKS) added nearly 4%, outperforming S&P 500 banks' (.SPXBK) 2.6% rise. A U.S. official told Reuters on Sunday that the deposit outflows that left many regional banks reeling in the wake of Silicon Valley Bank's failure had slowed and in some cases reversed.

☆ First Republic shares fall as private placement report stirs fresh liquidity fears
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +1 min

March 20 (Reuters) - Shares of First Republic Bank (FRC.N) slumped 16% on Monday, leading losses among U.S. lenders in premarket trading, after a report the regional bank could raise more money fanned worries about its liquidity despite a $30 billion rescue last week. S&P Global downgraded the bank deeper into junk status on Sunday and said the recent cash infusion from 11 large U.S. banks may not solve its liquidity problems. Shares of the banks involved in the unprecedented support also fell. On Sunday, Reuters reported that the lender was still trying to put together a capital raise but that no deal was imminent. PacWest Bankcorp (PACW.O) climbed 5.9% after the bank said deposit outflows had stabilized and its available cash exceeded total uninsured deposits.

☆ Buffett's Berkshire Hathaway speeds up stock buybacks
▼ + stars: | 2023-03-19 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

March 19 (Reuters) - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year. Berkshire's repurchases have also included Class B shares, which normally cost about 1/1500th as much as Class A shares. The Class A shares closed on Friday at $442,765, their low for the year, while the Class B shares closed at $293.51, near their low. Buffett owns 15.6% of Berkshire's stock. In his Feb. 25 annual letter to shareholders, Buffett defended buybacks, calling someone who views all repurchases as harmful "an economic illiterate or a silver-tongued demagogue."

He now faces renewed criticism over his agenda at the Fed, where he oversaw efforts to reduce regulations on regional banks. U.S. regional banks are expected to pay higher rates to depositors to keep them from switching to larger lenders, leaving them with higher funding costs. In 2008, regulators had to contend with billions of dollars in toxic mortgages and complex derivatives sitting on bank books. Currently, regional banks below $250 billion in assets have simpler capital, liquidity and stress testing requirements. "SVB is not a very complicated bank," said Dan Awrey, a Cornell Law professor and bank regulation expert.

[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.

Credit Suisse declined to comment on the banks' actions. MARKET TROUBLES LINGERBanking stocks globally have been battered since Silicon Valley Bank collapsed, raising questions about other weaknesses in the wider financial system. A view of the Park Avenue location of the First Republic Bank, in New York City, U.S., March 10, 2023. The supervisors were told deposits were stable across the euro zone and exposure to Credit Suisse was immaterial, a source familiar with the meeting's content told Reuters. "Japan's financial system remains stable as a whole," Kishida told a news briefing.

☆ Bank of America said to buy Signature Bank, tweets Bill Ackman
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: 1 min

☆ First Republic tumbles as $30 billion rescue fails to reassure investors
▼ + stars: | 2023-03-17 | by ( Medha Singh | ) www.reuters.com time to read: +3 min

[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) tumbled 17% in early 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. 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. "Judging by the market's reaction, it appears that maybe the damage has been done to the brand reputation of First Republic. First Republic said it borrowed up to $109 billion from the U.S. Federal Reserve between March 10 and March 15.

The rescue package came shortly after embattled Credit Suisse (CSGN.S) tapped an emergency central bank loan of up to $54 billion to shore up its liquidity. The ECB supervisors saw no contagion to euro zone banks from the market turmoil, a source familiar with the content of the meeting told Reuters, adding that supervisors were told deposits remained stable across euro zone banks and exposure to Credit Suisse was immaterial. "I don't think we are in the crux of a global financial crisis. The ECB pressed forward with its 50 basis point rate hike, arguing that euro zone banks were in good shape and that if anything, higher rates should bolster their margins. Japan's finance ministry, financial regulator and central bank said they would meet on Friday to discuss developments.

☆ Morning Bid: Shock and awe - or mayday?
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +4 min

A look at the day ahead in U.S. and global markets from Mike DolanMarkets are struggling with whether to be relieved by the sheer scale of Thursday's U.S. bank rescue or be terrified by it. But there was little confidence the rising financial stress would dissipate quickly from here. The discount window jump crashed through a prior record of $112 billion during the banking collapse of 2008. What's more, 75 basis points of Fed rate cuts are still priced between a peak of 5% in May to yearend. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

March 17 (Reuters) - European Central Bank supervisors met to tackle growing cracks in the banking system on Friday after a $30 billion lifeline for U.S. lender First Republic Bank (FRC.N) eased fears of its imminent collapse. The rescue package came less than a day after Credit Suisse (CSGN.S) clinched an emergency central bank loan of up to $54 billion to shore up its liquidity. The two deals helped restore some calm to global markets, after a torrid week for banking stocks. "French and European banks are very solid," ECB policymaker and French central bank governor Francois Villeroy de Galhau, told BFM business radio. Japan's finance ministry, financial regulator and central bank said they would meet on Friday to discuss developments.

☆ Futures waver as banking crisis worries persist
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +3 min

Shares of First Republic Bank (FRC.N), however, fell 3.8% in premarket trading as the bank suspended its dividend payout. Concerns about a global banking crisis have dominated market sentiment this week after the collapse of SVB Financial (SIVB.O) and Signature Bank (SBNY.O). While the focus remains on the health of the banking sector, investors also looked ahead to U.S. central bank's policy meeting next week to gauge how it will tame inflation amid a banking crisis. Yield on the two-year Treasury note, which best reflects interest rate expectations, rose to 4.15% as some tensions about the banking sector abate. Shares of Fedex Corp (FDX.N) rose 11.1% premarket after the delivery giant raised full-year earnings forecast after cost cuts.

The 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. Analysts say authorities appear eager to quickly deal with systemic risks, but worry the potential for a banking crisis is far from over. "Yellen was clear overnight that all bank deposits were protected, but the bank might not be there," he said. Within days, the market turmoil had ensnared Credit Suisse, forcing it to borrow from Switzerland's central bank. Credit Suisse shares closed 19% higher on Thursday, recovering some of their 25% fall on Wednesday.

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.

March 17 (Reuters) - Multi-billion dollar lifelines for troubled U.S. and European banks shored up investor confidence on Friday and bolstered sentiment in battered stocks, although concerns now centre on whether a global financial crisis has been fully averted. The 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, which went some way to calming panic about a global banking crisis. "I don't think we are in the crux of a global financial crisis, balance sheets are much better than they were in 2008, banks are better regulated," said Karen Jorritsma, head of Australian equities, RBC Capital Market. Within days, the market turmoil had ensnared Credit Suisse, forcing it to borrow from Switzerland's central bank. Policymakers have tried to emphasise that the current turmoil is different to the global financial crisis 15 years ago as banks are better capitalised and funds more easily available.

☆ How First Republic became such a hot mess
▼ + stars: | 2023-03-17 | by ( Allison Morrow | ) edition.cnn.com time to read: +2 min

“It’s the biggest example of a bank that could go down and shouldn’t go down — a first-class bank,” said a source close to the 48-hour deal to infuse First Republic with $30 billion in cash. San Francisco-based First Republic, the 14th-largest bank in the country, received the cash infusion from 11 rivals, including America’s largest lenders. When JPMorgan Chase CEO Jamie Dimon on Thursday reached out to Treasury Secretary Janet Yellen and Federal Reserve Board Chair Jerome Powell, “Very quickly the conversation turned to First Republic,” the source told CNN. Its rescuers are also struggling, with JPMorgan Chase (JPM) down 3% and Bank of America (BAC) falling 4%. Investors saw similarities between First Republic and the failed Silicon Valley Bank — another midsize Bay Area-based lender with a deep-pocketed client base.

☆ The Club's bank holdings help bolster First Republic, while our semis are set to climb on AI
▼ + stars: | 2023-03-17 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +6 min

The news: Wells Fargo and Morgan Stanley are part of a group of 11 banks that agreed Thursday to jointly deposit $30 billion in First Republic Bank (FRC). Wells Fargo plans to deposit $5 billion at First Republic, along with Citigroup (C), JPMorgan Chase (JPM) and Bank of America (BAC). Morgan Stanley and Goldman Sachs (GS) contributed $2.5 billion each. The uninsured deposits, which will yield market rates, are required to stay at First Republic for at least 120 days. Wells Fargo slid over 3%, to roughly $38 per share, while Morgan Stanley declined 2.4%, to just under $85 per share.

☆ Asian markets rebound after First Republic Bank gets rescued by US lenders
▼ + stars: | 2023-03-17 | by ( Laura He | ) edition.cnn.com time to read: +3 min

Hong Kong CNN —Asian markets rebounded Friday after First Republic Bank was rescued by a group of major US lenders, which eased worries about the current banking turmoil. First Republic Bank (FRC) is set to receive a $30 billion lifeline from a group of America’s largest banks, including JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (CBEAX), Citigroup (C) and Truist (TFC). “Following the recent global financial instabilities, First Republic Bank was expected to be the next domino to fall,” said Yeap Jun Rong, a market analyst at IG. Worries deepened on Wednesday after shares of Credit Suisse plummeted in Europe. Regulators on both sides of the Atlantic have taken emergency measures to shore up confidence, including protecting deposits at Silicon Valley Bank and Signature Bank and giving a $54 billion lifeline to Credit Suisse.

☆ Bank of America said to buy Signature Bank, tweets Ackman
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

March 17 (Reuters) - Bill Ackman in a tweet on Friday said Bank of America (BAC.N) is going to acquire Signature Bank (SBNY.O) on Monday, without citing the source of information. "I am hearing that @BankofAmerica is going to buy Signature Bank on Monday. loadingHowever, a source familiar with the matter told Reuters that Bank of America is not interested in buying Signature Bank. Signature Bank did not immediately respond to a Reuters request for comment. State regulators closed New York-based Signature Bank on Sunday, the third largest failure in U.S. banking history, two days after authorities shuttered Silicon Valley Bank in a collapse that stranded billions in deposits.

A round of financing on Sunday raised through JPMorgan had given First Republic access to $70 billion in funds. First Republic Bank's stock closed up 10% on news of the rescue but its shares fell 18% in after-market trading, after the bank said it would suspend its dividend. [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. It said it would exercise an option to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank, which confirmed it would provide liquidity to the bank against sufficient collateral. Since March 8, before last week's collapse of SVB, European banks have lost around $165 billion in market value, Refinitiv data shows.

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