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April 18 (Reuters) - Goldman Sachs Group Inc's (GS.N) profit fell 19% as dealmaking and bond trading slumped in the first quarter and it lost money on the sale of some assets in its consumer business. Goldman booked a $470 million loss on the sale of some loans from Marcus, dragging down first quarter results. The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. But deposits held in the Marcus business remain core to Goldman and are not under review, a source familiar with the matter had told Reuters earlier this year. Goldman's lackluster trading results contrast with those of Bank of America Corp (BAC.N), which also reported earnings on Tuesday.

Wells Fargo fared less favorably, down 0.3%, and regional banks including Zions (ZION.O) and First Republic (FRC.N) fell. Net interest income, a measure of how much a bank earns from lending, surged 49% to $20.8 billion. Meanwhile, Wells Fargo set aside $1.21 billion in the quarter to cover for potential loan losses, compared to a release of $787 million a year earlier. "While most consumers remain resilient, we've seen some consumer financial health trends gradually weakening from a year ago," Mike Santomassimo, Wells Fargo finance chief, told analysts. More banking results are due over the coming week, including Bank of America (BAC.N) and Goldman Sachs (GS.N) on Tuesday and Morgan Stanley (MS.N) on Wednesday.

Wells Fargo executives detailed the bank's exposure to CRE at length during a conference call with analysts. Deposits at Wells Fargo fell 2% to $1.36 trillion at the end of March, compared with $1.38 trillion at the end of last year. "Both Wells Fargo and JP Morgan delivered very, very solid results, blowing past the expected earnings. Reuters GraphicsAverage loans in the bank's commercial banking division rose 15%, while commercial loans rose roughly 7% from a year earlier. Wells Fargo is also still working to contain the fallout from a scandal over its sales practices that led to hefty fines and an asset cap imposed by the Fed.

[1/2] The Citigroup Inc (Citi) logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. First-quarter 2023 earnings from JPMorgan Chase & Co (JPM.N), Citigroup Inc (C.N) and Wells Fargo & Co (WFC.N) beat Wall Street expectations on Friday as consumer and corporate spending held up in the face of rate rises, although all three saw signs of a slowdown and made provisions accordingly. Net interest income, a measure of how much a bank earns from lending, surged 49% to $20.8 billion. Meanwhile, Wells Fargo set aside $1.21 billion in the quarter to cover for potential loan losses, compared to a release of $787 million a year earlier. "While most consumers remain resilient, we've seen some consumer financial health trends gradually weakening from a year ago," Mike Santomassimo, Wells Fargo finance chief, told analysts.

☆ Wells Fargo profit rises 32% as higher rates bolster interest income
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +3 min

April 14 (Reuters) - Wells Fargo & Co's (WFC.N) profit jumped 32% in the first quarter as it earned more from interest rate payments, helped by the U.S. Federal Reserve's tighter monetary policy, the lender reported Friday. The bank, however, set aside $1.21 billion in the quarter to cover for potential loan losses, compared to a release of $787 million a year earlier. The collapse of Silicon Valley Bank and Signature Bank last month prompted a rout in bank stocks as investors fretted over broader weaknesses in the industry. Deposits at Wells Fargo fell 2% to $1.36 trillion at the end of March, compared with $1.38 trillion at the end of last year. Overall, non-interest expenses fell to $13.68 billion from $13.85 billion a year earlier, mainly driven by lower operating losses.

☆ VIEW SVB meltdown triggers global drop in bank shares
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +2 min

March 10 (Reuters) - The failure of troubled tech-lender SVB Financial Group's (SIVB.O) efforts to raise capital through a stock sale rippled through global markets on Friday and sent shares of many banks tumbling. read moreShares of SVB, which does business as Silicon Valley Bank, were halted on Friday after tumbling as much as 66% earlier in premarket trading. The S&P 500 banks index (.SPXBK) dropped 0.63% on Friday after a 6.6% decline on Thursday, while the KBW Regional Banking index (.KRX) was down 2.3%. Europe's STOXX banking index (.SX7P) fell almost 5%, tracking toward its biggest one-day percentage slide since June 2022. If investors are concerned about deposit flow, why punish the stocks who have sticky, operational retail checking deposits?

The S&P 500 banks index (.SPXBK) dropped 6.6% on Thursday and was set to open lower again on Friday. The crisis at SVG was feeding growing investor concerns that banks will be vulnerable to the rising cost of money. In an unusual step, Commerzbank, one of Germany's largest banks, issued a statement, playing down any threat from SVB, saying it did not see "a corresponding risk for us". "The market is treating this as a potential contagion risk," said Antoine Bouvet, senior rates strategist at ING in London. A spike in interest rates has led to a sell-off in bonds, leaving banks exposed to potential losses on the securities they hold.

[1/2] European Central Bank and SVB (Silicon Valley Bank) logos are seen in this illustration taken March 10, 2023. SVB, which does business as Silicon Valley Bank, was not immediately available for comment. "Silicon Valley Bank is shedding light on vulnerabilities across the US banking sector, primarily in the bond holdings that many large institutions hold," said Karl Schamotta, Chief Market Strategist at Corpay. “The current liquidity run on Silicon Valley Bank is having a knock-on effect on the wider banking system," said Rick Seehra, Prudential Lead at Bovill. But banking experts said SVB's issues were unique and the worries about the broader sector were not warranted.

[1/3] The logo for Goldman Sachs is seen on the trading floor at the New York Stock Exchange (NYSE) in New York City, New York, U.S., November 17, 2021. The investment bank will outline the path to profit for its Platform Solutions unit, which houses Goldman's transaction banking, credit card and financial technology businesses, it said. It is also considering "strategic alternatives" for its consumer platforms, Solomon said, without specifying what those options would be. Chief Executive David Solomon's performance and his plans for growth will also be scrutinized by investors and analysts. Observers will focus on his plans to decrease Goldman's reliance on trading and investment banking, which can be whipsawed by market volatility.

Bed Bath said it was planning to raise just over $1 billion through sales of preferred stock and warrants and from securities when the warrants are exercised. Bed Bath will receive a waiver on its recent bank default should the proposed offering succeed, the company said. Bed Bath & Beyond also appointed Holly Etlin, a bankruptcy expert, as interim chief financial officer. "It’s a similar situation in which a deeply financially distressed company is attempting to sell securities," said Lynn LoPucki, a professor at the University of Florida. Sources have told Reuters that Bed Bath & Beyond has lined up liquidators to close additional stores unless a last-minute buyer emerges.

☆ Bed Bath & Beyond moves to raise $1 bln as bankruptcy clouds loom
▼ + stars: | 2023-02-06 | by ( Noor Zainab Hussain | ) www.reuters.com time to read: +2 min

Feb 6 (Reuters) - Bed Bath & Beyond Inc (BBBY.O) said on Monday it was planning to raise some $1 billion through an offering of preferred stock and warrants, in a last-ditch effort to stave off bankruptcy. Bed Bath said it was planning to raise about $225 million through an offering of Series A convertible preferred stock and an additional $800 million by issuing securities to buy shares of preferred stock in future installments. Bed Bath will receive a waiver on its recent bank default should the proposed offering succeed, the company said. On Monday, Bed Bath said it planned to close an additional 150 stores, on top of 250 previously announced store closures. Sources have told Reuters that Bed Bath & Beyond has lined up liquidators to close additional stores unless a last-minute buyer emerges.

☆ Insurer Travelers profit falls on winter storm costs
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: +1 min

Jan 24 (Reuters) - Property and casualty insurer Travelers Companies Inc (TRV.N) reported a 37% fall in quarterly profit on Tuesday, hurt by losses related to a winter storm that swept across the United States and Canada in the last week of 2022. The winter storm pushed up the insurer's catastrophe losses net of reinsurance to $459 million from $36 million last year. A dangerously frigid Arctic air mass gripped a vast expanse of the United States in late December, bringing floods, power outages, mudslides, evacuations and road closures. Travelers' profit was also hit by a fall in net investment income to $625 million from $743 million a year earlier. A ratio below 100% means the insurer earned more in premiums than it paid out in claims.

Jan 17 (Reuters) - Goldman Sachs Group Inc (GS.N) on Tuesday reported a bigger-than-expected 69% drop in fourth-quarter profit as it struggled with a slump in dealmaking and weakness in its wealth management business. Goldman is also curbing its consumer banking ambitions as Chief Executive Officer David Solomon refocuses the bank's resources to strengthen its core businesses such as investment banking and trading. Goldman's investment banking fees fell 48% in the latest quarter, while revenue from its asset and wealth management unit dropped 27% due to lower revenue from equity and debt investments. The bank reported a profit of $1.19 billion, or $3.32 per share, for the three months ended Dec. 31, missing the Street estimate of $5.48, according to Refinitiv IBES data. Fixed income, currency and commodities trading revenue was up 44%, while revenue from equities trading fell 5%.

"The consumers are spending, their wages are growing and frankly, there's still a lot of stimulus ... Social Security payments are going up at a high rate," Moynihan told Reuters. "Things like that are going to add more fuel that they can use to spend," he added. Moynihan said that for the first time in a long time deposits had come down a little bit for the industry. (For daily Davos updates in your inbox sign up for the Reuters Daily Briefing here.) Reporting by Lananh Nguyen in Davos and Noor Zainab Hussain in Bengaluru Additional reporting by Niket Nishant Editing by Mark PotterOur Standards: The Thomson Reuters Trust Principles.

Rising interest rates roiled markets last year and global investment banking revenue sank more than 50% from a year-earlier quarter, according to data from analytics firm Dealogic. SHARPLY LOWERAcross the board, investment banking fees were sharply lower. Morgan Stanley's revenue from investment banking business fell 49% in the fourth quarter while Goldman Sachs's investment banking fees fell 48%. JPMorgan's investment banking unit saw its revenue down 57%, Citigroup Inc's (C.N) investment banking revenue plunged 58% while Bank of America Corp (BAC.N) investment banking fees more than halved. Strength in trading helped offset a slump in investment banking, while interest rate hikes by the U.S. Federal Reserve helped income.

☆ Wall Street banks stockpile funds for possible recession, show resilience
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +4 min

REUTERS/Jeenah Moon/File Photo/File PhotoNEW YORK, Jan 13 (Reuters) - Wall Street's biggest banks stockpiled more rainy-day funds to prepare for a possible recession ahead and reported weak investment banking results, but said consumers remained healthy and higher rates boosted profits. Strength in trading helped offset a slump in investment banking, while interest rate hikes by the U.S. Federal Reserve helped income. However, Citigroup Inc (C.N) reported a 21% fall in profits with investment banking taking a hit. Global investment banking revenue sank to $15.3 billion in the fourth quarter, down more than 50% from a year-earlier quarter, according to data from Dealogic. Bank of America's investment banking fees more than halved in the quarter.

☆ Wells Fargo profit falls 50% on higher reserves, costs
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +3 min

Jan 13 (Reuters) - Wells Fargo & Co (WFC.N) on Friday reported a 50% decline in profit for the fourth quarter as the bank racked up more than $3 billion in costs related to a fake accounts scandal and boosted loan loss reserves for a potential economic slowdown. Provision for credit losses were $957 million in the quarter, compared with a $452 million release a year earlier. Provision for credit losses in the quarter included a $397 million increase in the allowance for credit losses primarily reflecting loan growth, as well as a less favorable economic environment, the bank said. Higher borrowing costs have also softened demand for mortgages and car loans, crimping banks' revenues. As part of his turnaround plan, Scharf aims to cut costs, scale back Wells Fargo's huge mortgage business and expand its investment banking business.

Insurers were already reluctant to underwrite asset and directors and officers (D&O) protection policies for crypto companies because of scant market regulation and the volatile prices of Bitcoin and other cryptocurrencies. Specialists in the Lloyd's of London (SOLYD.UL) and Bermuda insurance markets are requiring more transparency from crypto companies about their exposure to FTX. Exclusions may act as a failsafe for insurers, and will make it even more difficult for companies that are seeking coverage, insurers and brokers said. Crypto firms with financial exposure to FTX include Binance, a crypto exchange, and Genesis, a crypto lender, neither of which responded to e-mails seeking comment. The FTX collapse will also likely lead to a rise in insurance rates, especially in the U.S. D&O market, insurers said.

☆ Goldman Sachs to cut thousands of employees
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: 1 min

NEW YORK, Dec 16 (Reuters) - Goldman Sachs Group Inc (GS.N) is planning to cut a couple of thousand employees to navigate a difficult economic environment, a source familiar with the move said. The Wall Street bank had 49,100 employees at the end of the third quarter this year, after adding significant numbers of staff during the pandemic. Headcount will remain above pre-pandemic levels, which stood at 38,300 at the end of 2019, the source said. News platform Semafor earlier reported on Friday that Goldman Sachs Group will lay off up to 4,000 people as the Wall Street bank struggles to meet profitability targets, citing people familiar with the matter. Goldman Sachs declined to comment.

The layoffs are the latest sign that cuts are accelerating across Wall Street as dealmaking dries up. Goldman Sachs had 49,100 employees at the end of the third quarter after adding significant numbers of staff during the pandemic. The bank is weighing a sharp cut to the annual bonus pool this year, a separate source familiar with the matter said. Goldman Sachs declined to comment. The investment bank had first warned in July that it might slow hiring and cut expenses.

☆ FTX debtors file bidding procedures motion for sale of four businesses
▼ + stars: | 2022-12-16 | by ( Industry Insight | Saw Law Firms Move Past The Pandemic Into A More Client-Focused Service Environment | Thomson Reuters Institute | ) www.reuters.com time to read: +1 min

Companies FTX Japan KK FollowDec 16 (Reuters) - FTX and its affiliated debtors said on Friday the company had filed a motion with the Bankruptcy Court seeking approval of bidding procedures to sell four businesses. Debtors of the bankrupt cryptocurrency exchange intend to conduct auctions for Embed, LedgerX, FTX Japan and FTX Europe businesses, according to the statement. The move comes after FTX founder Sam Bankman-Fried was arrested on fraud charges on Monday. FTX filed for bankruptcy protection in Delaware in November after traders pulled $6 billion from the platform in three days and rival exchange Binance abandoned a rescue deal. Reporting by Noor Zainab Hussain and Mehnaz Yasmin in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

The effort, known as the Net Zero Asset Managers (NZAM) initiative, was launched in late 2020 to encourage fund firms to reach net zero emission targets by 2050 and limit the rise in global temperatures. As of Nov. 9, NZAM counted 291 signatories representing some $66 trillion in assets under management. As recently as May Vanguard was touting commitments it had made in line with NZAM's goals. Vanguard said the change "will not affect our commitment to helping our investors navigate the risks that climate change can pose to their long-term returns." "Vanguard was never serious about implementing its net zero commitment" Cuvelier said in a statement.

☆ Lazard CEO warns of more Wall Street layoffs
▼ + stars: | 2022-12-07 | by ( Manya Saini | ) www.reuters.com time to read: +2 min

[1/2] The Charging Bull or Wall Street Bull is pictured in the Manhattan borough of New York City, New York, U.S., January 16, 2019. Rivals Goldman Sachs Group Inc (GS.N) and Citigroup Inc (C.N) have also culled some staff. Elsewhere on Wall Street, BlackRock Inc (BLK.N), the world's largest asset manager, has also frozen hiring except in critical roles. "When I talk to our clients, they sound extremely cautious," Goldman Sachs CEO David Solomon told investors Tuesday. Reporting by Manya Saini and Noor Zainab Hussain in Bengaluru; Additional reporting by Lananh Nguyen in New York; Editing by Krishna Chandra Eluri, Lananh Nguyen and Anna DriverOur Standards: The Thomson Reuters Trust Principles.

☆ Wall Street cuts jobs as grim economic reality sets in - Lazard CEO
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: 1 min

Dec 7 (Reuters) - Wall Street banks are adjusting to a more sluggish economic environment by laying off staff even as they compete to retain and recruit top talent, Kenneth Jacobs, Chief Executive Officer of Lazard Ltd (LAZ.N), told investors at a conference Wednesday. "Reality is starting to set in," said Jacobs, who was speaking generally about job cuts that were being reported across the financial industry. Reporting by Lananh Nguyen in New York and Manya Saini and Noor Zainab Hussain in Bengaluru; Editing by Krishna Chandra EluriOur Standards: The Thomson Reuters Trust Principles.

☆ U.S banks warn of recession risk, inflation hurting consumers
▼ + stars: | 2022-12-06 | by ( ) www.reuters.com time to read: +1 min

NEW YORK, Dec 6 (Reuters) - The biggest U.S. banks are bracing for a worsening economy next year as inflation threatens consumer demand, according to executives Tuesday. "Those things might very well derail the economy and cause this mild to hard recession that people are worried about," he said. "Economic growth is slowing,” Goldman Sachs' chief executive David Solomon said. In banking, the job market remains "surprisingly tight" and competition for talent is "as tough as ever," he said. Reporting by Lananh Nguyen and Saeed Azhar in New York and Noor Zainab Hussain in Bengaluru; Editing by Lananh Nguyen and Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

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