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☆ Factbox: US banks outline expected costs to replenish FDIC's deposit insurance fund
▼ + stars: | 2023-08-03 | by ( ) www.reuters.com time to read: 1 min

The Federal Deposit Insurance Corp (FDIC) logo is seen at the FDIC headquarters in Washington, February 23, 2011. REUTERS/Jason Reed/File PhotoAug 3 (Reuters) - U.S. banks have started to detail the expected impact to their costs from the "special assessment" fee they have to pay to replenish the Federal Deposit Insurance Corporation's deposit insurance fund. In May, the banking regulator said large U.S. lenders would bear most of the costs to replenish the fund. Here is what banks have disclosed so far:Source: Bank quarterly filingsCompiled by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

Persons: Jason Reed, Jaiveer Singh, Shounak Dasgupta Organizations: Federal Deposit Insurance Corp, REUTERS, Deposit Insurance, Bank, Thomson Locations: Washington, U.S, Bengaluru

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 20, 2023. Chart shows that the U.S.'s long-term foreign currency rating was downgraded by Fitch to AA+ in 2023, following a similar move from S&P in 2011. ET, Dow e-minis were down 104 points, or 0.29%, S&P 500 e-minis were down 24 points, or 0.52%, and Nasdaq 100 e-minis were down 132.25 points, or 0.84%. Among other early movers, Starbucks (SBUX.O) eased 1.9% after the world's largest coffeehouse chain missed market expectations for quarterly comparable sales. Reporting by Johann M Cherian and Bansari Mayur Kamdar in Bengaluru; Editing by Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.

Persons: Brendan McDermid, Fitch, Mark Haefele, Wells Fargo, Johann M Cherian, Saumyadeb Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Wall, AAA, Standard, UBS Global Wealth Management, Fitch, AA, Dow e, Nvidia, Microsoft, Devices, U.S, Caterpillar, CVS Health Corp, DuPont de Nemours, Investors, Thomson Locations: New York City, U.S, States, Wells, Bengaluru

☆ Wells Fargo expects to pay $1.8 billion to help refill FDIC fund
▼ + stars: | 2023-08-01 | by ( ) www.reuters.com time to read: +1 min

Wells Fargo Bank branch is seen in New York City, U.S., March 17, 2020. REUTERS/Jeenah Moon/File PhotoNEW YORK, Aug 1 (Reuters) - Wells Fargo (WFC.N) said on Tuesday it expects to pay $1.8 billion to help replenish a government deposit insurance fund that was drained of $16 billion this year after three banks collapsed. Under a Federal Deposit Insurance Corporation (FDIC) proposal, Wells Fargo estimates it will face a pretax "special assessment" of $1.8 billion, which it will pay when the FDIC finalizes the rule, it said in a regulatory filing on Tuesday. Banking giants are likely to bear most of the costs of replenishing the fund, the FDIC said in May. Wells Fargo also said that separate proposals on U.S. capital rules could lead it to rejig its balance sheet.

Persons: Wells, Wells Fargo, Nupur Anand, Lananh Nguyen, Matthew Lewis, Cynthia Osterman Organizations: REUTERS, Federal Deposit Insurance Corporation, FDIC, . Banking, Thomson Locations: Wells Fargo Bank, New York City, U.S, New York

☆ Long Covid has led to financial hardship for patients, research finds. Experts say these changes can help
▼ + stars: | 2023-07-26 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

O'Rourke herself suffers from long Covid symptoms. "We absolutely have to commit to social support, disability aid, for people living with long Covid" and other chronic illnesses, O'Rourke said. The Urban Institute's research, and feedback from experts, points to three changes that may help bolster social supports for long Covid sufferers. Moreover, people who develop long Covid may have a longer amount of time before they have to return to work. More than a year after contracting Covid, about 18% of those with long Covid still hadn't returned to work, recent study by the New York State Insurance Fund found.

Persons: Meghan O'Rourke, O'Rourke, we're, Long, Michael Karpman, Lisa McCorkell, hadn't Organizations: Urban Institute, Social, Assistance, SNAP, Social Security, Led, Capitol, Urban, New York, Insurance Fund

☆ US consumer watchdog warns no more 'rubber stamp' for bank mergers
▼ + stars: | 2023-07-20 | by ( Douglas Gillison | ) www.reuters.com time to read: +3 min

Bank executives, meanwhile, complain that regulators' foot-dragging and uncertainty caused by looming regulatory reforms have depressed merger activity among healthy banks to historic lows. That drew the ire of Democratic Senator Elizabeth Warren, who helped create the CFPB and backed Chopra for the director role. Chopra called in May for the FDIC to adopt changes to bank merger guidelines. He declined to discuss possible changes but said the approval process was already evolving, citing a review of bank merger guidelines undertaken in 2022. Reporting by Douglas Gillison; Editing by Michelle Price and Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

Persons: Rohit Chopra, Banks, Chopra, Janet Yellen, Michael Hsu, JPMorgan Chase, Elizabeth Warren, Douglas Gillison, Michelle Price, Jamie Freed Organizations: Consumer Financial Protection Bureau, Reuters, Federal Deposit Insurance Corporation, Bank, JPMorgan, Democratic Party, First, FDIC, Bank of America, Thomson Locations: First Republic, Wells Fargo

☆ Bain Capital raises $1.15 bln for first fund dedicated to insurance investments
▼ + stars: | 2023-07-19 | by ( David French | ) www.reuters.com time to read: +2 min

July 19 (Reuters) - Bain Capital has raised $1.15 billion for its first fund dedicated to investing in the insurance industry, as the private equity firm aims to create and invest in companies in the sector, a senior executive told Reuters. The fund exceeded its initial $750 million target through backing from high-net-worth individuals, institutional investors and family offices. It will be deployed through Bain Capital Insurance, a dedicated investment arm the firm launched in 2021. Matt Popoli, global head of Bain Capital Insurance, told Reuters that the new capital pool, Bain Capital Insurance Fund, would give his 20-strong team the ammunition to back middle-market insurance firms overlooked by others. Popoli said the fund will also invest in niche insurance brokers, which can be acquired for cheaper valuations than large rivals.

Persons: Matt Popoli, Popoli, Bain, David French, Rashmi Organizations: Bain Capital, Reuters, Bain Capital Insurance, Bain Capital Insurance Fund, Marsh & McLennan Companies, Thomson Locations: North America, Europe, Mercer, Marsh, New York

LONDON, July 7 (Reuters) - Unsure which way the cookie crumbles from here - investors are being tempted to drop the bond. The broadest measures of government and corporate bonds have just stuck in mud. Two-year government bond yields are soaring. With June U.S. jobs growth going up yet another gear, U.S. Treasury yields hit 16-year highs above 5%, German equivalents hit their highest in 15 years and British gilt yields scaled 2008 peaks. For all but longer-term pension and insurance funds or banks, bonds may be neither fish nor fowl for a while to come.

Persons: hasn't, Stocks, midyear underperformance, Mike Dolan, Josie Kao Organizations: Global, Bloomberg U.S, Treasury, Bank of, JPMorgan, Europe, Reuters, Twitter, Thomson

☆ Be patient with this red-hot tech stock, as it soars to new all-time high
▼ + stars: | 2023-06-26 | by ( Kevin Stankiewicz | In Kevinstankiewicz | ) www.cnbc.com time to read: +3 min

Stick with Palo Alto Networks Palo Alto Networks (PANW) is well on its way to becoming the first cybersecurity company to reach a $100 billion market capitalization, Morgan Stanley said Monday. Jeff Marks, the Club's director of portfolio analysis, said Monday that investors should be patient with Palo Alto shares as the stock hit a fresh all-time high Monday, climbing to around $247 apiece. Watch Wells Fargo Wells Fargo (WFC) will be in the spotlight after Wednesday's close when the Federal Reserve releases the results of its annual bank stress tests. Wells Fargo stock was up slightly Monday morning, trading around $40.60 a share. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .

Persons: Jim Cramer, —, Morgan Stanley, Jeff Marks, Watch Wells, Marks, Jim Cramer's, Jim Organizations: CNBC, Alto Networks Watch Wells, Wall, Natural Resources, Coterra Energy, Halliburton, HAL, —, Pfizer, Alto Networks, Palo, Watch, Federal Reserve, Silicon Valley Bank, Deposit Insurance Corporation, Wells Locations: Wells Fargo, Silicon, Wells

☆ Premarket stocks: Why it might be time to get optimistic about the market
▼ + stars: | 2023-06-26 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

US stocks, meanwhile, have managed to pull up from their recent bear market into bull territory. Still, there’s good reason for investors to be optimistic, says Indrani De, head of global investment research at FTSE Russell. That makes sense, since tech and energy stocks have largely been driving markets upward over the last few weeks. For instance, leading venture capital firm Sequoia Capital held just more than $1 billion at SVB, according to the FDIC document. The FDIC document shows that Circle held $3.3 billion at SVB, a figure that the stablecoin company previously disclosed.

Persons: New York CNN —, Indrani De, Bell, De, froth, Matt Egan, SVB, Zhipin Organizations: CNN Business, Bell, New York CNN, FTSE Russell, Energy, Communications Services, Technology, Tech, Consumer Staples, FDIC, Bloomberg, Silicon Valley Bank, Bloomberg News, Sequoia Capital, PayPal, Google, Apple, Internet Locations: New York, Russia, disinflation, Silicon, Beijing

☆ FDIC accidentally reveals details about Silicon Valley Bank’s biggest customers
▼ + stars: | 2023-06-23 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN Business —The FDIC mistakenly revealed to Bloomberg News details on the biggest customers at Silicon Valley Bank, the failed bank whose depositors were rescued through emergency action by regulators. According to Bloomberg, that document was accidentally released unredacted by the FDIC in response to a Freedom of Information Act request. For instance, leading venture capital firm Sequoia Capital, held just more than $1 billion at SVB, according to the FDIC document. The FDIC document indicates the Chinese firm held about $903 million at SVB. The FDIC, charged with insuring deposits at banks, apparently did not intend to release the details on SVB’s biggest customers.

Persons: SVB, Zhipin, Dennis Kelleher, ” Kelleher, Mike Pence, ” Organizations: New York CNN Business —, Bloomberg, Silicon Valley Bank, Bloomberg News, FDIC, Sequoia Capital, PayPal, Google, Apple, Sequoia, CNN, Better Markets, Internet, Better, Main Street Locations: Silicon, Beijing

☆ SVB's Asian customers who lost deposits remain on the hook for loans - WSJ
▼ + stars: | 2023-06-19 | by ( ) www.reuters.com time to read: +1 min

June 19 (Reuters) - Silicon Valley Bank's customers in Asia whose deposits were recently seized by the U.S. Federal Deposit Insurance Corp (FDIC) are under pressure to repay loans to First Citizens Bank, The Wall Street Journal reported on Monday. According to the report, when SVB failed in March, the FDIC stepped in to protect all of the California bank's U.S. deposits and arranged a sale of the lender's U.S. customer accounts, branches and loans to First Citizens Bancshares. SVB, FDIC and First Citizens Bank did not immediately respond to a request for comment. California regulators shuttered Silicon Valley Bank in March and First Citizens BancShares (FCNCA.O) purchased the bank with the help of FDIC in a deal that drained $20 billion from an insurance fund financed by banks and run by the government. Reporting by Tiyashi Datta in Bengaluru Editing by Marguerita ChoyOur Standards: The Thomson Reuters Trust Principles.

Persons: SVB, Tiyashi Datta, Marguerita Choy Organizations: U.S . Federal Deposit Insurance Corp, First Citizens Bank, Street, FDIC, California bank's, Bank, Thomson Locations: Asia, California bank's U.S, U.S, Cayman Islands, China, Singapore, California, Bengaluru

☆ Ukraine has 'plan B' to continue exports if grain deal collapses - minister
▼ + stars: | 2023-06-02 | by ( Pavel Polityuk | ) www.reuters.com time to read: +3 min

Summary Future of Black Sea grain deal looks uncertainUkraine's farm minister floats "Plan B"Exports could continue without Russia, he saysOfficial suggests government insurance guaranteesKYIV, June 2 (Reuters) - Ukraine would be ready to continue exporting grain across the Black Sea as part of a "plan B" without Russian backing if Moscow pulls the plug on the current grain export deal and it collapses, Ukraine's farm minister said on Friday. The United Nations and Turkey brokered the Black Sea Grain Initiative between Moscow and Kyiv last July to help tackle a global food crisis aggravated by Russia's February 2022 invasion of Ukraine, a leading global grain exporter. He said in an interview in Kyiv: "That's not how it works and then we will be ready for a plan B, which depends on us, depends on the U.N. "Plan B... excludes the fourth party (Russia) in this relationship," he said. He said Ukraine still hoped the current Black Sea grain initiative would work despite the current difficulties while any new option would need a new agreement or format.

Persons: Russia's, Mykola Solsky, Solsky, Pavel Polityuk, Tom Balmforth, Hugh Lawson Organizations: United, Reuters, Ukrainian, Thomson Locations: Russia, Ukraine, Moscow, United Nations, Turkey, Pivdennyi, Kyiv, Ukrainian

☆ Sen. Elizabeth Warren presses regulators for answers on First Republic takeover
▼ + stars: | 2023-05-18 | by ( Chelsey Cox | ) www.cnbc.com time to read: +3 min

Sen. Elizabeth Warren, D-Mass., greets Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation, during the Senate Banking, Housing, and Urban Affairs Committee hearing in Dirksen Building on Tuesday, March 28, 2023. WASHINGTON — Sen. Elizabeth Warren is asking federal financial regulators for answers over what she called a "deeply troubling" deal that saw JPMorgan Chase take over First Republic Bank. "Our financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund." Instead, the insurance fund was allowed to take a multibillion-dollar loss after billions of dollars worth of the bank's uninsured deposits were rescued during the deal, Warren said. "The FDIC appeared to prioritize First Republic's uninsured deposits at the bank before the Insurance Fund," she said.

Senator Elizabeth Warren is questioning federal bank regulators on their decision to sell First Republic Bank to the nation's largest bank, JP Morgan Chase. In a letter sent to the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation Wednesday, Warren said the deal was "deeply troubling," and sought details on how the agencies decided to arrange that particular sale, allowing JPM to grow even larger. This is a troubling outcome, leaving me with numerous questions," she wrote. The FDIC announced this month it had seized First Republic and sold it to JPM in a deal that it estimated would cost its deposit insurance fund $13 billion. Warren also pressed the matter with Michael Hsu, the acting Comptroller of the Currency, at a hearing Thursday.

☆ SVB Financial defeats FDIC effort to seize incoming tax refunds
▼ + stars: | 2023-05-17 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

Judge Martin Glenn in Manhattan handed a victory to SVB Financial in broader dispute over FDIC's efforts to recoup its costs in rescuing the failed Silicon Valley Bank, preventing the regulator from claiming future tax refunds that SVB Financial valued at $300 million. FDIC sought to escrow those funds while the regulator determines whether they properly belong to the seized bank or the bankrupt parent company. Glenn ruled that FDIC had no authority to intercept checks that were clearly written out to "SVB Financial." He ordered FDIC to return the intercepted checks by Friday, and to send any future tax refunds checks to SVB Financial. FDIC argued that the tax refunds may be owed to the seized bank, which is now run by First Citizens BancShares, under a tax agreement between the bank and its former parent company.

☆ Failed bank execs see blame everywhere, except in the mirror
▼ + stars: | 2023-05-16 | by ( Allison Morrow | ) edition.cnn.com time to read: +4 min

New York CNN —More than two months after the collapse of Silicon Valley Bank and Signature Bank triggered a financial earthquake, three former executives spoke publicly for the first time in testimony before a Senate committee Tuesday. Here are the key takeaways from the Senate hearing:Everyone else messed upThe executives conducted a masterclass in deflecting blame for their banks’ failures. In his testimony, Becker said he was “truly sorry” for the bank’s collapse, blaming a “series of unprecedented events.”Greg Becker, former CEO of Silicon Valley Bank, left, testifies next to Scott Shay, former chairman and co-founder of Signature Bank, and Eric Howell, former president of Signature Bank, during a Senate hearing. “Rumors and misconceptions spread quickly online,” sparking the bank run, Becker told lawmakers. Spoiler alert: Becker didn’t commit to returning any money and Shay said he had no intention to do so.

☆ 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.

☆ Regional Banks Can’t Catch a Break
▼ + stars: | 2023-05-15 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Western Alliance said its deposits recently rose. Photo: patrick t. fallon/Agence France-Presse/Getty ImagesRegional bank stocks were further discounted this past week. It isn’t hard to find some positive indicators for regional banks’ business right now. For one, the Federal Deposit Insurance Corp. on Thursday said that its plan to make up for losses in the deposit insurance fund would charge banks based on their amount of uninsured deposits above $5 billion at the end of last year—which tilts the cost toward larger banks. That could help smaller banks offer more-competitive deposit rates.

☆ What life after Larry looks like at BlackRock
▼ + stars: | 2023-05-15 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

BlackRock CEO Larry Fink Spencer Platt/Getty Images1. Who's next at BlackRock? On Wall Street, you'd be tough to find a founder and their company more synonymous with each other than Larry Fink and BlackRock. And while it's clear he doesn't want to remain at BlackRock forever, what's not clear is who would step in to fill the void. If that isn't enough for you, Rebecca also mapped out how BlackRock organizes its top leadership, identifying the 150 most powerful people and their reporting lines. Click here to learn more about BlackRock's succession plans for Larry Fink.

☆ U.S. government posts smaller $176 bln April surplus as revenues shrink
▼ + stars: | 2023-05-10 | by ( David Lawder | ) www.reuters.com time to read: +3 min

Revenues for April totaled $639 billion, the second-highest level since the April 2022 record of $864 billion, but a decrease of 26%. A U.S. Treasury official said the bulk of the decline was due to lower non-withheld individual tax receipts, reflecting lower stock market capital gains in 2022. Individual withheld tax receipts for April grew 3% from a year earlier to $252 billion, while non-withheld taxes fell 34% to $358 billion. Corporate tax receipts also fell 11% to $85 billion and the Federal Reserve again had no earnings in April, after contributing $10 billion to April 2022 receipts. But the official declined to comment on the outlook for current and future revenues, including whether higher refund levels would continue.

☆ Warren Buffett says letting Silicon Valley Bank customers go under would’ve been 'catastrophic’
▼ + stars: | 2023-05-06 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

Shareholders watch Warren Buffett and Charlie Munger from the overflow room during the Berkshire Hathaway annual meeting on Saturday, May 6, 2023, in Omaha, Neb. Berkshire Hathaway CEO Warren Buffett said Saturday that regulators avoided a financial disaster by making sure that Silicon Valley Bank customers didn't lose money in the firm's collapse. "It would've been catastrophic" if regulators hadn't done that, Buffet said during his annual shareholder meeting. Allowing uninsured depositors to lose money would've "started a run on every bank in the country," he said. Protecting uninsured depositors contributed to the estimated $20 billion hit that the FDIC's Deposit Insurance Fund took in the SVB receivership.

The latest case in point: The Federal Deposit Insurance Corp (FDIC) chose JPMorgan Chase & Co (JPM.N) as the winning bidder in an auction to buy collapsed lender First Republic Bank on Monday. FDIC officials, however, say would-be buyers risk losing out if they allow the value of an acquisition target to deteriorate over time while waiting for an FDIC receivership. SWEETENERSU.S. bank mergers were already sluggish as interest rates rose and recession loomed, analysts at Raymond James wrote in an Apr. The first quarter was the quietest opening to a year for bank deals in a generation, they said. Market volatility stops bank buyers from pulling together enough money to cover writedowns on struggling assets, which would be triggered by a traditional acquisition, said David Sandler, co-head of financial services investment banking at Piper Sandler Companies (PIPR.N).

☆ Morning Bid: Apple comforts as payrolls loom
▼ + stars: | 2023-05-05 | by ( ) www.reuters.com time to read: +5 min

Apple upped its dividend and authorized another $90 billion share repurchase program, same as a year ago. Apple's stock has outperformed most of Wall Street in 2023, up 28% year-to-date. After a torrid 2022, that narrow index is up 35% so far this year - far outstripping the Nasdaq 100's (.NDX) 18% gain and accounting for the bulk of the more modest 6% rise in the S&P500 <.S&P500>. And after three hefty daily retreats in a row for the S&P500 this week, futures are up 0.4% ahead of Friday's open. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ FDIC plans to hit big banks with fees to refill deposit insurance fund - Bloomberg News
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +1 min

[1/2] A sign reads “FDIC Insured” on the door of a branch of First Republic Bank in Boston, Massachusetts, U.S., March 13, 2023. REUTERS/Brian Snyder/File PhotoMay 4 (Reuters) - The U.S. Federal Deposit Insurance Corporation is planning to exempt smaller lenders from kicking in extra money to replenish the government's bedrock deposit insurance fund, and instead saddle the biggest banks with much of the bill, Bloomberg News reported on Thursday, citing people familiar with the matter. The FDIC is planning to release a highly anticipated proposal for refilling its deposit insurance fund as soon as next week, the report added. The FDIC and its flagship deposit insurance fund have been active since the Great Depression to provide an orderly resolution for failed banks and to reimburse certain customer accounts. The regulator estimates the failure of Silicon Valley Bank will cost the deposit insurance fund $20 billion.

May 1 (Reuters) - Regulators seized First Republic Bank (FRC.N) and sold its assets to JPMorgan Chase & Co (JPM.N) on Monday, in a deal to resolve the largest U.S. bank failure since the 2008 financial crisis and draw a line under a lingering banking turmoil. Shares of JPMorgan rose 2% on Monday, while those of mid-tier banks fell and the KBW Regional Banking Index (.KRX) closed down 2.7%. [1/3] People walk past a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. "This is not the world financial crisis, this is not the savings and loan crisis. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, it added.

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