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☆ JPMorgan says more banks could run out of reserves like SVB if pace of this deposit flight continues
▼ + stars: | 2023-04-03 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

"The current pace of deposit loss to MMFs raises questions over sustainability," JPMorgan strategist Nikolaos Panigirtzoglou wrote in a Friday client note. "If it continues for a prolonged period, more US banks could eventually run out of reserves and face liquidity issues similar to SVB, Signature Bank and Silvergate." The ongoing deposit flight has created a problem for banks that have to maintain a base of assets against their deposit totals. In the current case, the situation has seen banks dip into reserves to cover their capital requirements, a situation that JPMorgan called potentially dangerous. Bank reserves have declined sharply since the Fed began curtailing then ultimately reversing its quantitative easing.

While money funds are not strictly gauranteed or insured, the 85% invested heavily in government securities put up some stark competition for bank deposits that have lagged central bank policy rate rises over the past 18 months - causing much political ire in countries such as Britain. But, in contrast to money funds, the average rate across all of them, according to the Federal Deposit Insurance Corporation, is still just 0.37%. That's now changing due to safety and insurance fears at smaller banks stateside - as well as the compelling alternative at money funds that appear safer against that backdrop. Of this trillion, half went to government money market funds and the other half to larger banks, they reckoned. Noting that some $7 trillion of U.S. bank deposits remained uninsured, the JPM team concluded: "A FDIC guarantee of all U.S. bank deposits would certainly help, but it might not be enough to completely stop this deposit shift."

☆ Why the struggles of mid-sized US banks could be bad news for the Main Street economy
▼ + stars: | 2023-03-28 | by ( Carla Mozée | ) www.businessinsider.com time to read: +6 min

Households and businesses may find it harder to get loans from regional banks as people pull deposits from those lenders. "The greatest vulnerabilities with respect to credit creation going forward lie with non-mortgage bank lending to households and mortgage bank lending for non-financial non-corporate businesses," JPMorgan said. Regional banks are "very important" to the financial system, CFRA's Yokum said. Regional banks can potentially give better service, more customized products, potentially higher deposit rates," he said. Some hefty figures illustrate the "disproportionately large" role small banks hold in lending in the US.

[1/2] A JPMorgan logo is seen in New York City, U.S., January 10, 2017. While lenders regularly compete for customers, the loss of confidence that shook the banking system in the last two weeks sparked concerns about contagion that could lead to a broader panic. President Joe Biden, Treasury Secretary Janet Yellen and Citigroup Inc. C.N Chief Executive Jane Fraser have all made statements in recent days to reassure the public that the U.S. banking system is safe. "We all have a vested interest in keeping America's financial system strong and thriving," a JPMorgan spokesperson said. "It's the envy of the world with thousands of institutions of all sizes serving every corner of the country."

☆ 'Most vulnerable' U.S. banks lost $1 trillion in deposits in a year -JPMorgan
▼ + stars: | 2023-03-23 | by ( Nupur Anand | ) www.reuters.com time to read: +3 min

REUTERS/Dado Ruvic/Illustration/File PhotoNew YORK, March 23 (Reuters) - JPMorgan Chase & Co analysts estimate that the "most vulnerable" U.S. banks are likely to have lost a total of about $1 trillion in deposits since last year, with half of the outflows occurring in March following the collapse of Silicon Valley Bank. The team of JPMorgan (JPM.N) analysts led by Nikolaos Panigirtzoglou did not name any of the banks they categorized as "most vulnerable" or say how many they included in this group. Of the $17 trillion of total U.S. bank deposits, nearly $7 trillion are not insured by the Federal Deposit Insurance Corp (FDIC), the JPMorgan analysts wrote. Rising U.S. interest rates, and banks' sluggish moves to raise the rates they pay depositors, have also contributed to the outflows in the last year, the JPMorgan analysts said. Out of the $1 trillion in deposits that were pulled out of the most vulnerable U.S. lenders, half went to government money market funds, while the other half landed at larger U.S. banks, the analysts wrote.

LONDON, March 2 (Reuters) - Major central banks resumed their quest to ramp up interest rates in February after a tepid start to the year with price pressures proving more sticky than markets and many policy makers had hoped for. February saw six interest rate hikes across six meetings by central banks overseeing the 10 most heavily traded currencies. January had seen just one interest rate hike of 25 bps by Canada across three meetings by G10 central banks. "This (inflation) shock came for everyone together, but it might disappear at different rates," said Gabriel Sterne at Oxford Economics. "The disinflation trend is looking surprising good in Asia now for example where services inflation has already turned a corner."

☆ Greece's last king Constantine II to be buried privately in Athens
▼ + stars: | 2023-01-11 | by ( ) www.reuters.com time to read: +3 min

[1/5] Sons of Greece's former King Constantine II, Crown Prince Pavlos, Prince Nikolaos and Prince Philippos leave the Maximos Mansion following a meeting with members of the Greek government, in Athens, Greece, January 11, 2023. REUTERS/Alkis KonstantinidisATHENS, Jan 11 (Reuters) - Greece's former King Constantine II, who died on Tuesday night aged 82, will be buried privately at a former royal estate north of Athens, the Greek government said on Wednesday. Deposed by military rulers and spurned by his subjects who voted to ditch the monarchy in 1974, Constantine II was the only son of King Paul and Queen Frederica of Greece. Constantine II, godfather to Britain's Prince William and a second cousin to King Charles, would be buried privately in Tatoi, the summer palace of the former Greek royal family, where his ancestors are also laid to rest, the government said. Constantine II was 27 years old and had only recently ascended to the throne, in 1964, when he was forced into exile with a young family in late 1967.

☆ Constantine, the former and last king of Greece, dies at 82
▼ + stars: | 2023-01-10 | by ( The Associated Press | ) www.nbcnews.com time to read: +9 min

ATHENS, Greece — Constantine, the former and last king of Greece, who won an Olympic gold medal before becoming entangled in his country’s volatile politics in the 1960s as king and spent decades in exile, has died. Prince Constantine on his sailboat at the Olympics in 1960. With minimal nostalgia for the monarchy in Greece, Constantine became a relatively uncontroversial figure. Crown Prince Constantine, left, arrives at the Raiding Forces' Headquarters on July 5, 1956. Prince Charles and King Constantine II of Greece attend Sunday service at the Church of St Mary Magdalene on the Sandringham estate in King's Lynn, England, on Dec. 9, 2007.

☆ 10 money managers who quietly control the vast fortunes of Jeff Bezos, Sergey Brin, the Waltons, and other big-name billionaires
▼ + stars: | 2022-12-27 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +24 min

Many über-rich people don't outsource their wealth — they hire their own chief investment officers. He left SAC in 2005 for Dune Capital Management, but stayed in touch with Steve during his five-year term at the investment firm. Andrew oversees CPV's portfolio, which primarily comprises direct private investments such as Collectors Universe, a collectibles-authentication company, and the New York Mets. In 2011, Wildcat Capital Management was launched with Potter as president and chief investment officer. Since November 2021, Carland has also served as the interim chief investment officer for Builders Vision's asset arm.

The events of the year took many investors by surprise and made the task of predicting bitcoin's price that much harder. The crypto market was awash with pundits making feverish calls about where bitcoin was heading next. When asked about his $250,000 target earlier this month, the Draper Associates founder told CNBC $250,000 "is still my number" — but he's extending his prediction by six months. The entrepreneur says he's also done making bitcoin price predictions. Buehler said lack of risk management in the crypto industry, missing regulation and fraud have also been major factors affecting prices.

☆ J.P.Morgan sees global bond yields dipping in 2023
▼ + stars: | 2022-11-25 | by ( ) www.reuters.com time to read: +1 min

Nov 25 (Reuters) - Global bond yields will likely fall slightly in 2023 as the balance between demand and supply will improve by $1 trillion, strategists at J.P. Morgan said in a note. There will be a $700 billion contraction in global bond demand next year compared to 2022, while bond supply will likely drop by $1.6 trillion, J.P. Morgan strategists, led by Nikolaos Panigirtzoglou, estimated in the note issued on Thursday. "Based on the historical relationship between annual changes in excess supply and the Global Aggregate bond index yield, a $1 trillion improvement in the demand/supply balance would imply downward pressure on Global Aggregate yields of around 40 basis points," the Wall Street bank said. J.P. Morgan said that while major central banks trimming their balance sheets in 2022 was the single largest contributor to deterioration in bond demand, sell-offs by commercial banks and retail investors were also much higher than estimates. This year was one of the worst for bonds in history.

Even though more than half the money ever invested in bitcoin would now be underwater if it had stayed, crypto monitors insist it's somehow still attracting punters. Cryptocurrency and bitcoin investors seem to be showing few signs of dumping their crypto-related assets, stocks and exchange-traded funds (ETFs), despite the latest wave of turmoil and scandal to crash over the sector. Analysts at JP Morgan estimate that around $25 billion has flowed out of the crypto since May. He estimates that the stablecoin market cap peaked at around $170 billion earlier this year and has declined by around $25 billion since May. That is, $25 billion of redemptions flowing out of crypto, most likely to fiat currency, perhaps cash or cash-like products.

☆ Premarket stocks: Crypto is in crisis. It's not just because of FTX
▼ + stars: | 2022-11-14 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN Business —The stunning downfall of FTX, one of the largest cryptocurrency exchanges, sent shockwaves through the crypto universe last week. Sam Bankman-Fried, the 30-year-old crypto titan and chief executive of FTX, watched billions of his fortune evaporate in a bankruptcy filing that shook the trillion-dollar industry to its core. Those efforts mean capital is drying up – and that’s not just bad for crypto but other asset classes including stocks, too. Cryptocurrencies enjoyed huge injections of money during the pandemic era thanks to the Federal Reserve’s easy money policy. “In all, the slowdown in global money growth looks set to continue over the coming year, with some contraction looking likely in the US,” wrote JPMorgan strategist Nikolaos Panigirtzoglou in a note.

☆ JPMorgan says FTX collapse fallout could cut the value of cryptocurrencies in half before it's over
▼ + stars: | 2022-11-10 | by ( Carmen Reinicke | ) www.cnbc.com time to read: +3 min

The tumult stems from the potential collapse of crypto-exchange FTX, which was in the process of being acquired by Binance, amid a liquidity crisis. On Wednesday, Binance backed out of the deal, leaving FTX near collapse. At the end of this latest deleveraging cycle, the asset class could see its value cut in half. "A production cost of $13k implies 25% downside from here which would bring the crypto market cap to a low of $650 billion," said Panigirtzoglou. This will be with the goal to safeguard client assets, limit asset concentration and create more diligent risk management, including counterparty risk among crypto market participants.

☆ The FTX fiasco could spark an industry meltdown - and slash bitcoin's price by 25% to $13,000, JPMorgan strategists say
▼ + stars: | 2022-11-10 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +4 min

FTX's financial woes are likely to transform the crypto industry, JPMorgan strategists said. Bitcoin could plunge 25% to $13,000, and crypto firms might act more carefully in future, they said. "The number of entities with stronger balance sheets able to rescue those with low capital and high leverage is shrinking within the crypto ecosystem," the JPMorgan strategists said. "With the crypto market cap standing at just above $1tr before the FTX/Alameda Research collapse, our guess is that the crypto market will find a floor above $500bn in the current deleveraging phase," they added. Commentators have warned about dangerous amounts of debt and excessive risk-taking in the crypto industry before.

☆ A quiet US move in the Mediterranean may help put more pressure on Russia, but not everyone in NATO is happy about it
▼ + stars: | 2022-10-17 | by ( Constantine Atlamazoglou | ) www.businessinsider.com time to read: +8 min

The US lifted its 35-year-old arms embargo on the Republic of Cyprus in September. But the US decision has rankled Turkey, which is at odds with NATO ally Greece over the island. Increased cooperationThe Cypriot Underwater Demolition Team and US Naval Special Warfare Task Unit Europe train in Cyprus in September 2021. "This is a landmark decision, reflecting the burgeoning strategic relationship between the two countries, including in the area of security," Cypriot President Nikos Anastasiades said after the announcement. Cyprus is one of many points of contention between Greece and Turkey, whose worsening relations have worried other NATO members.

☆ Ether is down almost 20% since the merge. Here’s what’s going on
▼ + stars: | 2022-09-23 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +4 min

Twice during the week, as bitcoin dipped below the $19,000 level, ether hovered at $1,300 (about 70% below its all-time high). Many expected the merge to be a buy-the-rumor/sell-the-news event, and there are growing concerns in the crypto community about the post-merge Ethereum. Ahead of the merge, many investors were buying spot ether and shorting ether perpetual futures , in order to get tokens of the "forked" version of Ethereum for free, without the ether price exposure. Growing concerns Ahead of the merge, there were two main concerns the crypto community had begun exploring. "It looks like Ethereum Classic has been the main beneficiary post merge," JPMorgan's Nikolaos Panigirtzoglou said in a note this week.

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