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☆ JPMorgan's No. 2 explains how the fintech threat made the nation's largest bank even bigger
▼ + stars: | 2023-06-02 | by ( Kaja Whitehouse | ) www.businessinsider.com time to read: +3 min

JPMorgan Chase, the nation's largest bank by assets, is getting bigger every day. The bank's second-in-command said the fintech threat is driving some of its expansion plans. 2, Daniel Pinto, suggested that the looming fintech threat is also responsible for JPMorgan's retail banking expansion in Europe. It plans to spend $15.3 billion on tech in 2023, up $14 billion from last year. Last month, JPMorgan agreed to pay about $10.6 billion to buy First Republic Bank after the smaller bank was seized by regulators.

Persons: JPMorgan Chase, Daniel Pinto, Jamie Dimon's, fintechs, Dimon's, Pinto, Bernstein, JPMorgan Organizations: JPMorgan Chase, JPMorgan, Morning, Bloomberg, First, Bank Locations: Europe, United States, Germany, America

[1/4] Holly O’Neill, President of Retail Banking at Bank of America speaks during a Newsmaker interview with Reuters in New York City, New York, U.S., May 31, 2023. "The consumer is still very healthy," Holly O'Neill, Bank of America's president of retail banking, said at a Reuters Newsmaker event. U.S. consumer spending increased more than expected in April, boosting the economy's growth prospects for the second quarter. Consumer spending on Bank of America cards fell 1.2 percent in April compared with a year earlier, the first year-on-year decline since February 2021, its data showed. The biggest shot O'Neill took in her career was moving to the consumer bank after serving as chief operating officer of the private-banking division.

Persons: Holly O’Neill, Mike Segar, Holly O'Neill, O'Neill, Erica, Lananh Nguyen, Saeed Azhar, Nupur Anand, Nick Zieminski Organizations: Retail Banking, Bank of America, Reuters, REUTERS, Bank of America Corp, Bank of, JPMorgan Chase &, First, Bank, Thomson Locations: New York City , New York, U.S

☆ Republican DeSantis strives for personal touch on 2024 kick-off tour
▼ + stars: | 2023-06-01 | by ( James Oliphant | ) www.reuters.com time to read: +5 min

Earlier, DeSantis and his wife, Casey DeSantis, hosted an event at a welding company in Sioux City, in Iowa's extreme west. Now they were downriver in Council Bluffs, a city of about 60,000, and had two more events ahead before flying to New Hampshire and South Carolina for the remainder of a three-state, 12-city tour. Iowa voters are well known for demanding to see candidates up close. That means he will need to stump in places like Council Bluffs again and again before February. In her remarks, she showed herself as a fierce advocate for DeSantis’ Florida record while reminding listeners that the two are parents of three young children.

Persons: Ron DeSantis, DeSantis, Donald Trump, Casey DeSantis, Matt Windschitl, ” Windschitl, ” He’s, ” DeSantis, slacks, “, ”, Casey, John, ’, Doug Krasne, James Oliphant, Leslie Adler Organizations: Florida, Wednesday, Republican, Trump, Bluffs, Christian, Yale University, Harvard Law School, U.S . Navy, John Deere, DeSantis ’, Thomson Locations: , Iowa, Iowa, Sioux City, New Hampshire, South Carolina, Des Moines, Florida, Israel’s, Galilee, DeSantis ’ Florida

☆ Commercial real estate will suffer a recession if banks don't start lending again, warns property billionaire Ross Perot Jr.
▼ + stars: | 2023-06-01 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

The commercial real estate sector is at risk of a recession, warned Ross Perot Jr. The real estate billionaire said banks needed to lend to the industry to avoid a sharp downturn. "The key to commercial real estate today though will be banking," the real estate billionaire and son of two-time presidential candidate Ross Perot told Bloomberg on Wednesday. Several commentators including Elon Musk and Bill Ackman have sounded the alarm on commercial real estate in recent weeks. "That is why we will have a real estate recession if the banks do not start lending."

Persons: Ross Perot Jr, —, Ross Perot, Elon Musk, Bill Ackman, stoking, Hillwood Organizations: Service, Bloomberg, Silicon Valley Bank, Signature Bank, First, Perot Jr, Perot Locations: Silicon, First Republic, —

☆ JPMorgan is closing 25% of First Republic’s branches
▼ + stars: | 2023-06-01 | by ( Matt Egan | ) edition.cnn.com time to read: 1 min

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☆ Exclusive: JPMorgan to close 21 First Republic Bank branches
▼ + stars: | 2023-06-01 | by ( Nupur Anand | ) www.reuters.com time to read: +1 min

NEW YORK, June 1 (Reuters) - JPMorgan Chase & Co (JPM.N) will shut 21 branches of First Republic Bank by the end of the year as it integrates the failed lender into its operations, a JPMorgan spokesperson said on Thursday. The locations account for about a quarter of First Republic's 84 branches across eight states. "These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office," the spokesperson said. After that, they will be eligible to apply for other roles at JPMorgan, which currently has 13,000 vacancies. JPMorgan is the largest U.S. lender, with more than 296,000 employees and 4,800 branches.

Persons: Nupur Anand, Lananh Nguyen, Christopher Cushing Organizations: YORK, JPMorgan Chase &, First Republic Bank, JPMorgan, Thomson Locations: New York

☆ Why Ukraine Might Struggle to Maintain U.S. M1 Abrams Tanks
▼ + stars: | 2023-05-31 | by ( Wall Street Journal | ) www.wsj.com time to read: 1 min

How Jamie Dimon Turned Chase Into the Most Powerful Bank in the U.S. When JPMorgan Chase bought First Republic Bank in May, all eyes were on its CEO, Jamie Dimon. Here’s how the executive’s strategy for managing risk propelled him to the top of the banking world. Photo illustration: John McColgan

Persons: Jamie Dimon, JPMorgan Chase, John McColgan Organizations: Bank, JPMorgan, First Republic Bank Locations: U.S

WASHINGTON, May 31 (Reuters) - U.S. banks saw total deposits decline by a record 2.5% in the first quarter of 2023, and industry-wide profits were relatively flat after taking into account the effects of two large bank failures, the Federal Deposit Insurance Corporation said Wednesday. The FDIC said the $472 billion in deposit outflows in the first quarter was the largest it had recorded since it began collecting such data in 1984. The decline was primarily from uninsured funds, as insured deposits actually rose $255.1 billion, or 2.5%, amid the failures of Silicon Valley Bank and Signature Bank. The decline in deposits was offset by increased wholesale funding, which rose 14.4% in the first quarter. The results showed banks shrinking the amount of unrealized losses on their books and maintaining strong capital ratios.

Persons: Martin Gruenberg, Gruenberg, Pete Schroeder, Sinead Carew, Nick Zieminski Organizations: Federal Deposit Insurance Corporation, FDIC, Valley Bank, Signature Bank, First Republic Bank, Comerica, Citizens, Thomson

☆ Here's why the $5 trillion piled up in money market funds might not flow back into the stock market
▼ + stars: | 2023-05-31 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

Money market funds have seen a surge of inflows over the past year as interest rates soared. With more than $5 trillion in money market funds, some investors believe those funds will eventually flow back into the stock market. People moving funds from banks getting less than 0.5% to money market funds offering several percent higher is another," NDR said. "Having money in money market funds is one step closer to the stock market than a checking account," NDR said. Money market assets represent just 13% of the US stock market capitalization, compared to 46.9% in February 2009 and 24.0% in February 2003 — two periods when the stock market went on to stage multi-year rallies.

Persons: Ned Davis, — Organizations: Service, Ned Davis Research, Valley Bank, First Republic Bank, NDR, Money

☆ Investors are losing hope for a Fed pause and bracing for another interest-rate hike instead. Here's what 8 experts have predicted.
▼ + stars: | 2023-05-31 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +6 min

Investors are losing hope that the Federal Reserve will pause its interest-rate hikes in June. For example, several market experts have warned the commercial real estate industry is at risk if the Fed keeps raising borrowing costs. "But I do think it's possible they're going to raise a little more. Ed Yardeni, market veteran"The market has been remarkably resilient, mostly because the economy has been remarkably resilient," Yardeni said in a CNBC interview. "So I think they're where they want to be – and I think they're going to keep it here."

Persons: They're, —, Mohamed El, David Solomon, Goldman Sachs, Solomon, It's, Jamie Dimon, Dimon, Ed Yardeni, Yardeni, Doom, Roubini, Mark Zandi, Zandi, Mark Nash, Nash Organizations: Federal, Service, Bank, Signature Bank, First Republic, Fed, Erian, Allianz, CNBC's, JPMorgan, CNBC, Bloomberg, NYU Stern, Jupiter Asset Management

Meanwhile districts reported that the pace of inflation had slowed, with prices rising "moderately" and contacts in most parts of the country expecting a similar pace of price increases in the coming months. But many Fed policymakers since then have signaled they may rather wait before undertaking any further policy tightening. Fed policymakers have said credit conditions are a key input to their calculations for monetary policy-setting. About half of districts reported no change in economic activity in recent weeks, the report showed, while four reported small increases and two reported "slight to moderate declines." At the St. Louis Fed, banking contacts said loan demand had softened and they expected further weakening ahead.

Persons: Louis, Ann Saphir, Andrea Ricci, Chizu Organizations: Federal, Silicon Valley Bank, Signature Bank, Cleveland Fed, Minneapolis Fed, St, Louis Fed, Thomson Locations: U.S, Silicon

☆ JPMorgan Chase CEO Jamie Dimon hints at future in politics
▼ + stars: | 2023-05-31 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

Dimon has built a banking empire at JPMorgan Chase and his advice is sought by presidents, prime ministers and central bankers. Now that he’s conquered the business world, Dimon is signaling an openness to at least explore an eventual second act in politics. “I love what I do,” Dimon told Bloomberg, adding he’s “quite happy” in his current job. Since becoming CEO in 2005, Dimon has vaulted to the top of the business world. Dimon steered JPMorgan through the 2008 financial crisis, the Covid-19 pandemic and now the banking crisis.

Persons: Jamie Dimon, Dimon, he’s, “, ” Dimon, Sen, Elizabeth Warren, he’d, ”, Donald Trump, CNN’s Poppy Harlow, that’s, “ I’m, we’re Organizations: New, New York CNN, JPMorgan Chase, Bloomberg Television, JPMorgan, Bloomberg, Wall, Trump, Democrat, Republican, CNBC, Democratic, CNN’s, Republicans, Global China Summit Locations: New York, America, Shanghai, China

☆ Premarket stocks: The banking crisis isn't over
▼ + stars: | 2023-05-31 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

New York CNN —Amid the US debt ceiling turmoil, a potential recession and the upcoming Fed meeting, Wall Street has a lot on its plate. Even as US lawmakers race to prevent a catastrophic default, the lingering effects of the regional banking crisis have not been completely extinguished. CEO Jamie Dimon said that his company’s emergency intervention had ended the immediate turmoil of the banking crisis. The SPDR Regional Banking ETF (KRE), which tracks a number of small and mid-sized bank stocks, is down about 3% so far this month and over 30% lower so far this year. Analysts are concerned that as rates get higher, the borrowing environment becomes tougher for regional banks, hurting their ability to lend.

Persons: New York CNN —, JPMorgan Chase, Jamie Dimon, ”, Janet Yellen, ” Fitch, “, What’s, Goldman Sachs, Joe Biden, Kevin McCarthy, Biden’s, Matt Egan Organizations: CNN Business, Bell, New York CNN, First Republic Bank, Silicon Valley Bank, Signature Bank, JPMorgan, First Republic, Fitch, Governors, Federal Reserve, Banking, PacWest Bancorp, Western Alliance Bancorp, Republican, Treasury Department, CNN, Saudi, Wall Street Journal Locations: New York, Banking, EY, ”, Saudi Arabia, Russia, OPEC, China, Vienna

☆ Elizabeth Holmes Reports to Federal Prison
▼ + stars: | 2023-05-30 | by ( The Associated Press | ) www.nytimes.com time to read: 1 min

NOW PLAYINGElizabeth Holmes Reports to Federal Prison0:57Biden Confident After Debt Limit Talks: ‘America Will Not Default’1:35Senators Grill Ex-C.E.O. of Silicon Valley Bank1:17OpenAI C.E.O. Calls for Government Regulation of Artificial Intelligence1:00Federal Reserve Raises Interest Rates by Another Quarter Point0:59‘Taxpayers Are Not on the Hook’ for First Republic Collapse, Biden Says1:15Fox News Settles Defamation Lawsuit With Dominion0:25Fed Vice Chair Calls SVB a ‘Textbook Case of Bank Mismanagement’1:21Yellen Calls for Review of Financial Regulations After Bank Collapses1:09Fed Raises Interest Rates a Quarter of a Point0:55Yellen Reaffirms Support for Small Financial Institutions1:12

Persons: Elizabeth Holmes, Biden Organizations: Federal, Grill, Artificial, Taxpayers, Fox News, Dominion, Bank, Small Financial Locations: Silicon Valley

☆ Wall Street's succession summer
▼ + stars: | 2023-05-30 | by ( Kaja Whitehouse | ) www.businessinsider.com time to read: +5 min

But first, it's the summer of succession — and no, we're not talking about the TV show. Wall Street CEOs pretend that succession planning is another chore, like hashing out the annual budget or organizing an earnings call. But behind the boring press announcing their succession plans is often a story of intrigue and drama. And then, of course, there's Jamie Dimon, Wall Street's longest-serving CEO. Earlier this week, Insider highlighted 17 young analysts poised to shine.

☆ GOP lawmaker says Kevin McCarthy is 'emasculating himself' by striking a debt ceiling deal with Biden and calls for his removal as House speaker
▼ + stars: | 2023-05-30 | by ( Sonam Sheth | ) www.businessinsider.com time to read: +3 min

GOP Rep. Dan Bishop called for Kevin McCarthy's removal as House speaker after he struck a debt ceiling compromise with Biden. "All you're hearing from the mainstream media is Kevin McCarthy is an adult. Kevin McCarthy is a leader. Kevin McCarthy is responsible," Bannon said. Biden announced the debt ceiling deal on Sunday, saying it would take the threat of a "catastrophic default off the table."

Persons: Dan Bishop, Kevin McCarthy's, Biden, it's, Bishop, McCarthy, emasculating, —, Joe Biden, who's, excoriated McCarthy, Steve Bannon, Donald Trump's, Kevin McCarthy, Bannon, they're, Biden White, overreach Organizations: Republicans, Service, North Carolina Rep, Caucus, Republican, GOP, Democratic, North, White, Biden Locations: North Carolina

☆ Why does Wall Street expect a rate hike in June?
▼ + stars: | 2023-05-28 | by ( Krystal Hur | ) edition.cnn.com time to read: +4 min

CNN —Wall Street expects the Federal Reserve to raise interest rates in June. Not only that, it finally believes the central bank when it says it likely won’t cut rates this year. Futures traders expected a roughly 66% chance of a quarter point rate hike in June as of Friday afternoon, according to the CME FedWatch Tool. That’s a drastic about-face from even earlier this month, when Wall Street expected the central bank to slash rates multiple times this year starting as early as this summer. “If it comes in hotter than expected, it almost locks a rate hike in” for June, said Heppenstall.

☆ JPMorgan cutting about 500 jobs this week
▼ + stars: | 2023-05-27 | by ( ) www.reuters.com time to read: +1 min

May 26 (Reuters) - JPMorgan Chase & Co (JPM.N) is cutting about 500 employees this week across its various departments, according to a person familiar with the situation who asked not to be identified discussing personnel matters. JPMorgan is the largest U.S. lender. On Thursday, a JPMorgan source said the lender was laying off nearly 1,000 First Republic Bank employees after acquiring the failed bank earlier this month. First Republic became the largest U.S. lender to fail since 2008 after it was seized by regulators and sold to JPMorgan in early May. JPMorgan's workforce stood at 296,877 at the end of the first quarter, up 8% from a year earlier, according to a filing.

☆ Famed economist David Rosenberg says home prices are set to fall further as buyers retreat to the sidelines and a hawkish Fed means stubbornly high mortgage rates
▼ + stars: | 2023-05-26 | by ( William Edwards | ) www.businessinsider.com time to read: +5 min

With mortgage rates unlikely to budge and incomes unlikely to grow, prices are due to drop. Housing affordability is calculated by accounting for three variables: home prices, mortgage rates, and incomes. Ian Shepherdson, the chief economist at Pantheon Macroeconomics who said in the 2005 that a housing downturn would spark a recession, made the same argument in recent weeks. Now that's quite striking because mortgage rates are no longer at peak, but applications are still falling. This would send interest rates — and therefore mortgage rates, which trade closely with Treasury rates — higher, further hurting demand and affordability, Moody's Chief Economist Mark Zandi recently told Fortune.

☆ JPMorgan Chase cut about 500 jobs this week, including technology and operations roles
▼ + stars: | 2023-05-26 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

JPMorgan Chase & Co. headquarters in New York, US, on Wednesday, Jan. 18, 2023. JPMorgan Chase cut about 500 positions this week, mostly among technology and operations groups, according to people with knowledge of the move. Like many financial firms, JPMorgan periodically trims staff during the year, even as it hires thousands more workers to fill roles. This week, JPMorgan offered positions to about 85% of First Republic's roughly 7,000 workers. The bank declined to comment about its personnel decisions.

☆ It’s Not Just the Debt Ceiling
▼ + stars: | 2023-05-26 | by ( Jeff Sommer | ) www.nytimes.com time to read: +3 min

These include:The potential for economic drag from the more restrictive fiscal policy that House Republicans are demanding from President Biden as a prerequisite for an increase in the debt ceiling. Oddly, the debt ceiling crisis provided temporary relief for many of the nation’s banks, economists for Moody’s Investor Service found in a recent study. “The debt ceiling impasse has been a tailwind for the banks,” Jill Cetina, associate managing director for Moody’s, said in an interview. But once the debt ceiling is lifted and the Treasury begins to raise money by selling large quantities of bonds, those purchases by investors in the open market will drain money from banks. “This may not be what you would expect, but the resolution of the debt ceiling crisis will be a headwind for banks,” she said.

☆ How risky bank debt makes customers safer
▼ + stars: | 2023-05-25 | by ( Liam Proud | ) www.reuters.com time to read: +6 min

LONDON, May 25 (Reuters Breakingviews) - Bank watchdogs are mulling changes to deposit insurance schemes after a string of lenders failed. That’s a problem for depositors, since long-term debt acts as a buffer for customers too. Forcing the issuance of more long-term bank debt could make them cheaper too. The trickier part is figuring out who ultimately bears the cost of loss-absorbing debt. Relying more on loss-absorbing debt could make such giant ad-hoc bills less likely in the future.

☆ JPMorgan lays off 15% of First Republic employees, or about 1,000 workers
▼ + stars: | 2023-05-25 | by ( Emmalyse Brownstein | ) www.businessinsider.com time to read: +3 min

JPMorgan is laying off roughly 1,000 employees of First Republic Bank, which it acquired on May 1. On Monday JPMorgan said it will also be closing some First Republic bank branches. JPMorgan has notified roughly 1,000 employees of First Republic Bank, which it acquired earlier this month, that they won't be staying on with the bank. "The vast majority of First Republic employees will be offered employment at JPMorgan Chase – either through a transition period, or in many cases full-time," a JPMorgan spokesperson said in a statement. JPMorgan agreed to buy First Republic Bank after the FDIC seized control on May 1.

☆ How JPMorgan plans to spend $15 billion this year on technology, including AI development, cyberattacks, and wage inflation
▼ + stars: | 2023-05-25 | by ( Emmalyse Brownstein | Hayley Cuccinello | ) www.businessinsider.com time to read: +3 min

It said it plans to spend $15.3 billion on tech this year, up $1 billion from last year. The bank's tech spending is estimated to grow by $1 billion this year to $15.3 billion, including salaries for engineers, stepped-up cybersecurity efforts, and AI innovation. The regional banking crisis, meanwhile, could end up costing it $6 billion, including the cost of First Republic Bank. He did, however, outline the qualities he thinks would make for a good replacement CEO, including grit and courage. JPMorgan unleashed hundreds of slides on Monday to reassure investors that its growth and spending strategy is on the right track.

☆ 2024 Republican presidential candidates
▼ + stars: | 2023-05-24 | by ( Zachary B. Wolf | ) edition.cnn.com time to read: +8 min

CNN —The first Republican primary debate won’t occur until August. But the 2024 presidential primary campaign is well underway. Here are the currently declared Republican presidential candidates, sorted by their place in the most recent CNN poll of the potential GOP primary electorate. But those investigations have been ongoing for years now, and it’s not clear any allegations will hurt his strength among many Republican voters. Like most GOP candidates, he will struggle to find oxygen in a field that so far has been dominated by Trump.

Persons: Donald Trump, Trump, Ron DeSantis, DeSantis, Mike Pence, Pence, insurrectionists, He’ll, Nikki Haley, Haley, Joe Biden, Tim Scott, Scott, Chris Christie, Christie, – Christie, Vivek Ramaswamy Vivek Ramaswamy, Charlie Neibergall, Ramaswamy, Asa Hutchinson, Hutchinson, Doug Burgum, Burgum, Larry Elder Larry Elder, Mario Tama, Gavin Newsom, Chris Sununu, Larry Hogan, David Chalian, ” “, ” Chalian, Chalian Organizations: CNN, Republican, Florida Gov, GOP, Disney, Trump, United Nations, White Republican, South, White, Iowa Faith, North, Getty, California, New Hampshire Gov, Maryland Gov, DeSantis, Hutchinson Locations: There’s, New York, Fulton County , Georgia, Florida, Riding, Southern, South Carolina, New Jersey, Covid, Arkansas, North Dakota, California

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