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☆ Bank Stocks Slump After Fed Raises Rates
▼ + stars: | 2023-03-22 | by ( Gina Heeb | ) www.wsj.com time to read: 1 min

Financial stocks dropped sharply Wednesday after the Federal Reserve raised interest rates by an expected quarter point and signaled that it isn’t overly concerned about economic risks tied to the collapse of several banks. The KBW Nasdaq index of commercial banks and the SPDR S&P Regional Banking ETF were both down about 4%, after earlier being down less than half that. Shares of two major regional banks, PNC Financial Services Group and U.S. Bancorp , were down more than 5%. JPMorgan Chase & Co. and Bank of America Corp. were down more than 2%.

☆ The stock market is amazingly in the green since the bank crisis broke out. Here's why
▼ + stars: | 2023-03-22 | by ( Michelle Fox | ) www.cnbc.com time to read: +5 min

Despite the banking crisis, the S & P 500 is actually higher than it was the day before Silicon Valley Bank's troubles dragged the banking sector down. Crisis causes Fed to 'grip the wheel' The bank crisis is also seemingly affecting the Federal Reserve 's policy of raising interest rates, experts said. Yet on Wednesday, the Fed announced a 25 percentage point increase , while expressing caution about the banking crisis. "The banking crisis basically caused the Fed to grip the wheel with two hands and take a more cautious approach to its rate tightening policy," Stovall said. "Other areas of the economy, including larger companies who may maintain access to bank credit and public markets (and perhaps consumer relative to commercial borrowers) might then escape with less negative impacts," he said.

☆ Treasury yields dip ahead of Fed interest rate decision
▼ + stars: | 2023-03-22 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +1 min

U.S Treasury yields fell on Wednesday as investors awaited the Federal Reserve's latest interest rate decision and guidance on the central bank's monetary policy path. Investors prepared themselves for the Fed's next interest rate decision, which is expected to be announced after the central bank's policy meeting concludes on Wednesday. A 25 basis point increase is widely anticipated. That would be the ninth consecutive interest rate hike and the second quarter-point increase in a row after a series of bigger rate hikes were implemented throughout 2022. Just a few weeks ago, many investors believed Fed officials would reaccelerate the pace of rate hikes and announce a 50 basis point increase.

☆ If you like big banks, there's an ETF for that.
▼ + stars: | 2023-03-22 | by ( Kevin Schmidt | ) www.cnbc.com time to read: +3 min

Roundhill Investments launched its new Big Bank ETF (BIGB) on Tuesday in response to the banking crisis. The fund includes no regional banks but holds equally weighted positions in six institutions: Bank of America , Citigroup , Goldman Sachs , JPMorgan Chase , Morgan Stanley and Wells Fargo . Comparably, the SPDR S&P Bank ETF (KBE) holds a 0.35% ratio. The launch of the ETF comes as larger banks are increasingly being seen as relative safe havens in the sector, while regional bank stocks remain volatile this week. "With these sector ETFs in general, and more concentrated ETFs, you really want to make sure you want to overweight them."

☆ Premarket stocks: The banking meltdown may have done the Fed's work for it
▼ + stars: | 2023-03-22 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

But in a strange twist, it’s possible that the banking meltdown actually did some work for the Fed in bringing down prices without raising interest rates. That could have the equivalent effect of the Fed hiking rates by half a point, said Goldman Sachs economists on Tuesday. Bank stocks rebound as Janet Yellen, Jamie Dimon work to restore confidenceThe collapse of Silicon Valley Bank and Signature Bank rippled through markets last week. The Treasury secretary reiterated that the federal government would be willing to rescue uninsured depositors at small banks if lenders suffer bank runs, raising the specter of contagion. The SPDR Regional Banking Equity Traded Fund, which tracks a number of small and mid-sized bank stocks, gained 5.8% for the day.

☆ Top banking analyst Mike Mayo just made two regional banks his prime picks to buy
▼ + stars: | 2023-03-22 | by ( Alex Harring | ) www.cnbc.com time to read: +3 min

Regional banks PNC and U.S. Bancorp could prove smart picks in the sector while it's still feeling pressure from the latest crisis, Wells Fargo said. Investors have zeroed in on regional bank stocks in recent days while trying to decipher whether plans to help First Republic shore up liquidity are enough to keep the bank afloat. The SPDR S & P Regional Bank ETF (KRE) has risen 6% this week, regaining some of the ground lost last week, when it slid 14%. U.S. Bancorp, the parent of U.S. Bank, completed its acquisition of Union Bank's regional franchise near the end of 2022. 'Highest quality banks' Mayo called both among the "highest quality banks," noting a strong history of underwriting.

(Andrew Kelly/Reuters/FILE)US stocks closed higher on Tuesday as shares of regional banks rebounded from record-breaking losses earlier in the month. Shares of troubled lender First Republic led the way, soaring 30%, making back a large portion of the losses from its 47% plunge in the prior session. The SPDR Regional Banking ETF (KRE), which tracks a number of small and mid-sized bank stocks, gained 5.8% for the day. Investors were also buoyed by news that JPMorgan Chase CEO Jamie Dimon was advising the beleaguered First Republic Bank on next steps and strategy. Wall Street will closely watch the Federal Reserve as the central bank announces its next monetary policy decision on Wednesday afternoon.

In this article FRCKRE Follow your favorite stocks CREATE FREE ACCOUNTwatch nowPeople make their way near a First Republic Bank branch on March 16, 2023 in New York City. First Republic has been seen as one the remaining regional banks most at risk for the same fate as SVB, due to the large percentage of uninsured deposits it had as of the end of the fourth quarter. JPMorgan Chase led a group of 11 banks last week that deposited a combined $30 billion into First Republic, but its stock has continued to decline. Stock Chart Icon Stock chart icon First Republic, 1-dayReuters reported on Tuesday that major bank leaders were having a pre-scheduled meeting in Washington, with First Republic as a topic of discussion, and that the regional bank was considering downsizing as a way to raise cash. Stock Chart Icon Stock chart icon Regional bank ETF, 1-day

☆ Wall Street ends green on bank bounce as Fed takes focus
▼ + stars: | 2023-03-21 | by ( Stephen Culp | ) www.reuters.com time to read: +5 min

Still, despite its recent resurgence, the S&P Banks index has lost more than 18% of its value just this month. "The Fed will raise interest rates by 25 basis points and the market won't care," Pursche added. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 20, 2023. The S&P 500 posted 5 new 52-week highs and 2 new lows; the Nasdaq Composite recorded 48 new highs and 114 new lows. Volume on U.S. exchanges was 11.75 billion shares, compared with the 12.63 billion average over the last 20 trading days.

☆ CNBC Daily Open: First Republic Bank is trying to save itself
▼ + stars: | 2023-03-21 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Markets might face a Minsky moment soon, warned Marko Kolanovic, JPMorgan Chase's chief market strategist and co-head of global research. With that in mind, investors might want to heed Kolanovic's warning that a Minsky moment could be on the horizon. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ CNBC Daily Open: Not everyone’s happy about UBS buying Credit Suisse
▼ + stars: | 2023-03-21 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

☆ Janet Yellen: Further rescues of depositors could be needed if smaller lenders suffer bank runs
▼ + stars: | 2023-03-21 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —The federal government could once again come to the rescue of uninsured bank depositors if smaller lenders suffer bank runs like the one that collapsed Silicon Valley Bank, according to prepared remarks from US Treasury Secretary Janet Yellen. And the US banking system remains sound,” Yellen said in the remarks, to be delivered at the American Bankers Association’s Washington DC Summit on Tuesday. “Our intervention was necessary to protect the broader US banking system. Regional bank stocks have been volatile ever since the bank failures, with some lenders such as First Republic experiencing dramatic declines. The industry-led rescue of First Republic, announced last week by some of the biggest US banks, represents a “vote of confidence in our banking system,” Yellen said.

☆ Traders, buying the dip in Schwab, are finding value in the beaten-up financial sector
▼ + stars: | 2023-03-21 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

Some traders are using the recent pullback in financial stocks to scoop up shares of what they call quality names at bargain prices. That includes Charles Schwab , down 23% this month, as turmoil rocks the broader financial sector, especially hitting regional banks. She views the slump in Schwab shares, up 7% Tuesday but still trading at 14 times earnings, as an opportunity to add to her list of quality financial stocks. Traders like Cerity Partners' Jim Lebenthal recommend playing the banking sector through regionals, or the SPDR S & P Regional Banking ETF . KRE 1M mountain Regional bank ETF slumps 25% in March After a short time in First Republic , Lebenthal said he sold the San Francisco-based regional bank given stepped-up bearish sentiment, taking a 10% loss.

☆ BlackRock's Rieder says more volatility could 'play through the financial system'
▼ + stars: | 2023-03-21 | by ( Patti Domm | In | ) www.cnbc.com time to read: +6 min

"My sense is there's still some volatility that's going to play through the financial system." "You've got clearly some additional economic contraction coming from a banking system that is going to pull back on some lending." I think spreads got too tight and I think the market was a little overzealous in all assets," Rieder said. Prior to the failure of Silicon Valley and Signature Bank, Rieder had anticipated the yield would range between 3.50% and 4.25%. Rieder expects the Fed will raise rates by a quarter point and could hike again by another 25 basis points before stopping.

☆ Asia Pacific shares join US gains as investors await key Fed decision
▼ + stars: | 2023-03-21 | by ( Juliana Liu | ) edition.cnn.com time to read: +2 min

Hong Kong CNN —Asia Pacific shares opened higher on Wednesday, tracking US gains, as investors awaited the US Federal Reserve’s next monetary policy decision later in the day. Hong Kong’s benchmark Hang Seng (HSI) index was trading 2.3% higher, leading gains in the region. The MSCI Asia Pacific index, which excludes Japanese companies, was broadly higher, rising 0.8%. On Tuesday, US stocks closed higher as shares of regional banks rebounded from record-breaking losses earlier in the month. The SPDR Regional Banking ETF (KRE), which tracks a number of small and mid-sized bank stocks, gained 5.8% for the day.

☆ Wall St ends higher as bank contagion fears ease, Fed eyed
▼ + stars: | 2023-03-20 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

UBS late on Sunday agreed to buy rival Credit Suisse (CSGN.S), for $3.23 billion, in a merger engineered by Swiss authorities to avoid more turmoil in the banking group. The S&P Banking index (.SPXBK) and the KBW Regional Banking index (.KRX) were higher following sharp losses last week. The collapse of Silicon Valley Bank and Signature Bank (SBNY.O) shook markets earlier this month. "Where it is another bank coming in, that is the kind of headline that helps underpin confidence in the banking system," Krosby said. The Credit Suisse takeover helped the market, but U.S.-listed shares of Credit Suisse were down sharply on Monday, while UBS Group shares were up.

☆ U.S. banks should defend by boosting liquidity, curbing risk -Morgan Stanley
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +2 min

[1/2] People take photos by the Morgan Stanley building in Times Square in New York City, New York U.S., February 20, 2020. "Expect management teams will open up the defense playbook," said a Morgan Stanley report led by Betsy Graseck. The bank said the sector is already in "systemic risk territory," as the U.S. Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) jointly invoked the systemic risk exception last week. Morgan Stanley also said U.S. banks should tighten lending standards, which will make it tougher to get a loan. "We don't think large banks will come in and entirely fill the vacuum that the regional banks leave, as most banks will want to tighten standards," it said.

Traders have raised bets of the Fed likely hitting a pause on rate hikes on Wednesday to ensure financial stability as bank sector troubles triggered by the collapse of Silicon Valley Bank and Signature Bank (SBNY.O) threaten to snowball. Over the weekend, UBS (UBS.N) agreed to buy rival Credit Suisse for $3.23 billion, in a merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. U.S.-listed shares of Credit Suisse plummeted 48.5% to hit a fresh record low, while UBS reversed premarket declines to rise 7.8%. PacWest Bancorp (PACW.O) jumped 21% after the bank said deposit outflows had stabilized, while New York Community Bancorp (NYCB.N) also gained 33% after the bank's unit agreed to buy deposits and loans from Signature Bank. The S&P Banking index (.SPXBK) and the KBW Regional Banking index (.KRX), which on Friday had logged their largest two-week drop since March 2020, rose 1.4% and 3.2%, respectively, in early trade.

Over the weekend, UBS (UBS.N) agreed to buy rival Credit Suisse for $3.23 billion, in a shotgun merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. U.S.-listed shares of Credit Suisse were down 58.4% in premarket trading and set to open at a fresh record low, while those of UBS were down 3.6%, as focus shifted to the hit to some Credit Suisse bondholders from the acquisition. "Investors are still worried about the banking industry, even though UBS has agreed to take over Credit Suisse. Regional bank First Republic Bank (FRC.N) was down 19.1% after paring some declines, while peer Western Alliance Bancorp (WAL.N) edged 0.7% lower. The S&P Banking index (.SPXBK) and the KBW Regional Banking index (.KRX) on Friday logged their largest two-week drop since March 2020.

☆ Futures fall as Credit Suisse rescue, liquidity steps fail to quell bank scare
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +3 min

SummarySummary Companies Futures down: Dow 0.99%, S&P 0.96%, Nasdaq 0.70%March 20 (Reuters) - U.S. stock index futures fell on Monday as steps taken by central banks to boost liquidity and a deal to rescue Credit Suisse failed to quell investor worries of severe turbulence in the banking sector. U.S.-listed shares of Credit Suisse and UBS were down 59.6% and 12.5%, respectively, in premarket trading. Separately, top central banks, faced with the risk of a fast-moving loss of confidence in the financial system's stability, moved on Sunday to bolster the flow of cash around the world. The S&P Banking index (.SPXBK) and the KBW Regional Banking index (.KRX) on Friday logged their largest two-week drop since March 2020. Treasury yields edged lower on Monday, with investors flocking to bonds on worries over the interest-rate path the U.S. central bank may take.

☆ This stock can rally more than 50% as people turn to larger regional banks after SVB collapse, Baird says
▼ + stars: | 2023-03-20 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

U.S. Bank could be a beneficiary as the bank crisis pushes depositors to move holdings to larger regional banks, according to Baird. George's price target of $52 implies the stock could rally 57.8% from where it closed Friday. The SPDR S & P Regional Banking ETF (KRE) ending last week down 14.3%, while US Bank lost 18.9% over the course of last week. George said US Bank and other "super regionals," a term for larger regional banks, will likely gain deposits as customers look away from smaller banks amid concerns of future bank runs. USB KRE 5D mountain US Bank and KRE ETF — CNBC's Michael Bloom contributed to this report.

☆ First Republic's stock could be stuck at $25 even if deposits start to return, Morgan Stanley says
▼ + stars: | 2023-03-20 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

First Republic 's stock is unlikely to see a significant rebound after the regional bank suffered major outflows of deposits, according to Morgan Stanley. The stock was trading near $115 per share before troubles emerged at the now failed Silicon Valley Bank, sparking a sell-off in regional bank stocks. FRC 1M mountain First Republic's stock has fallen sharply since the start of the regional banking crisis. Based on borrowing from the Federal Reserve that First Republic disclosed last week, deposit outflows at First Republic may have been roughly $86 billion, Morgan Stanley estimated. The outlook for First Republic is still highly uncertain, Gosalia said, and Morgan Stanley has an underweight rating and no formal price target for the stock.

Markets have scaled back expectations for an aggressive 50-basis-point interest rate hike from the Fed at its March 22 meeting, following the turmoil in the banking sector triggered by the collapse of Silicon Valley Bank and Signature Bank (SBNY.O) earlier this month. Over the weekend, UBS (UBS.N) agreed to buy rival Credit Suisse for $3.23 billion, in a merger engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. While the deal helped calm jitters about the banking sector, U.S.-listed shares of Credit Suisse plummeted 54.9% to hit a fresh record low. PacWest Bancorp (PACW.O) jumped 11.5% after the bank said deposit outflows had stabilized, while New York Community Bancorp (NYCB.N) gained 32.1% after the bank's unit agreed to buy deposits and loans from Signature Bank. The S&P Banking index (.SPXBK) and the KBW Regional Banking index (.KRX), which on Friday had logged their sharpest two-week drop since March 2020, rose 1.4% and 2.6%, respectively.

☆ JPMorgan advising First Republic on strategic alternatives, including a capital raise, sources say
▼ + stars: | 2023-03-20 | by ( Jesse Pound | ) www.cnbc.com time to read: +2 min

JPMorgan Chase is advising embattled First Republic Bank on strategic alternatives, sources told CNBC's David Faber. The alternatives may include a capital raise, the sources said, which could dilute current shareholders. First Republic shares were last down 30% in a volatile session. First Republic had an abnormally high number of uninsured deposits on its books, which was part of the problem with the now failed Silicon Valley Bank. That includes a Bank Term Funding Program that allows banks to more easily use their high-quality assets to raise cash.

☆ First Republic shares slide 18% Monday after a credit rating downgrade
▼ + stars: | 2023-03-20 | by ( John Melloy | ) www.cnbc.com time to read: +2 min

A trader works at the post where First Republic Bank stock is traded on the floor of the New York Stock Exchange (NYSE) in New York City, March 16, 2023. S&P cut its credit rating to B+ from BB+ on Sunday after first lowering it to junk status just last week. Shares of First Republic Bank , which have become the barometer of the regional bank crisis, slid once again Monday after Standard & Poor's cut the credit rating of the San Francisco-based institution. On Thursday, a group of major banks agreed to deposit $30 billion in First Republic to shore up confidence in regional banks. Credit Suisse executives noted that the U.S. regional bank crisis caused enough instability that forced the already shaky institution to merge with its rival.

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