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☆ Stock futures are flat following Monday's relief rally: Live updates
▼ + stars: | 2023-03-20 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Stock futures held steady in overnight trading Monday after the market staged a relief rally on the hope that the banking turmoil would be contained. S&P 500 futures and Nasdaq 100 futures were also little changed. Investors also welcomed news that JPMorgan Chase could be advising embattled First Republic Bank on strategic alternatives. First Republic Bank sold off another 47% during the session, extending its month-to-date decline to 90% as the collapse of Silicon Valley Bank made investors worried about other banks with large uninsured deposit bases. The SPDR Regional Banking ETF (KRE) rose 1% Monday after dropping 14% last week, with PacWest, First Citizens and Fifth Third Bancorp among the names leading the rebound.

☆ Elon Musk sees 'serious risk' of another Great Depression if the Fed doesn't stem the collapse of regional banks after SVB failure
▼ + stars: | 2023-03-20 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

Elon Musk sees danger ahead for the US economy if the Fed doesn't contain the regional banking crisis. Financial blog Zero Hedge said on Twitter that unchecked pain among smaller banks could lead to a great depression. "This is a serious risk," Musk tweeted in response. "This is a serious risk," Musk responded to Zero Hedge. First Republic Bank has emerged as a high-profile hot spot in the unfolding regional banking crisis.

☆ UBS to take over Credit Suisse, central banks act on liquidity
▼ + stars: | 2023-03-19 | by ( Reuters Staff | ) www.reuters.com time to read: +13 min

LONDON/NEW YORK (Reuters) -UBS sealed a deal to buy rival Swiss bank Credit Suisse in an effort to avoid further market-shaking turmoil in global banking, Swiss authorities said on Sunday. FILE PHOTO: The logo of Credit Suisse is pictured in front of the Swiss Parliament Building, in Bern, Switzerland, March 19, 2023. The reports that UBS is acquiring Credit Suisse will likely magnify Credit Suisse’s problems by moving them to UBS... The Credit Suisse issues are not new and needed to be resolved years ago. A legal challenge by Credit Suisse shareholders, who will claim that their property has been illegally confiscated, is guaranteed.

☆ A leading fund manager warns that regional banks could cause 'financial Armageddon' — unless the government makes 2 crucial moves immediately
▼ + stars: | 2023-03-19 | by ( James Faris | ) www.businessinsider.com time to read: +8 min

Financial stress stemming from Silicon Valley Bank's collapse could spread, a top fund manager said. But that in itself is becoming an under-the-radar issue, he noted, as large banks' strength is now coming at the expense of regional banks — even those without issues. Since most regional banks aren't classified as "systemically important," their clients would be out of luck in the event of a bank failure, Hatfield noted. Unless the FDIC insures all deposits at all banks, Hatfield said that there will be no reason to put money in a non-protected regional bank. So they'll have a negative interest margin, they'll lose money, they'll get downgraded, and they'll go out of business."

☆ Dow futures rise more than 100 points after UBS buys Credit Suisse to stem bank crisis: Live updates
▼ + stars: | 2023-03-19 | by ( Hakyung Kim | ) www.cnbc.com time to read: +3 min

S&P 500 futures and Nasdaq-100 futures climbed 0.3%. UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or $3.2 billion, with the combined bank to have $5 trillion in assets. But traders may be anxious for more to be done by regulators to stem the slide in regional banks. The SPDR Regional Banking ETF (KRE) tumbled 14% last week. "I think there's there's been an overreaction to the regional banks ... And that likely represents an opportunity," said Hogan.

☆ Warren Buffett in discussions with Biden officials on banking crisis
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +1 min

[1/2] Warren Buffett, Chairman, CEO and largest shareholder of Berkshire Hathaway takes part in interviews before a fundraising luncheon for the nonprofit Glide Foundation in New York September 8, 2015. REUTERS/Lucas Jackson/File PhotoWILMINGTON, Delaware, March 18 (Reuters) - Berkshire Hathaway Inc's (BRKa.N) Warren Buffett has held discussions with senior Biden adminstration officials about the banking crisis, a source familiar with the matter told Reuters on Saturday. Bloomberg News reported earlier that Buffett had been in touch with administration officials in recent days about the regional banking crisis, Bloomberg News reported on Saturday. The source declined to elaborate on the details of the discussions. The collapse of Silicon Valley Bank and Signature Bank this month has shaken confidence in the banking system and prompted a sell-off in banking stocks.

☆ Wall Street ends sharply lower on bank contagion fears
▼ + stars: | 2023-03-17 | by ( Stephen Culp | ) www.reuters.com time to read: +3 min

For the week, while the benchmark S&P 500 ended higher than last Friday's close, the Nasdaq and the Dow posted weekly declines. "(The sell-off) is a bit of an overreaction," said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. Those concerns have spread to Europe, as Credit Suisse (CSGN.S) shares stumbled over liquidity worries, prompting policymakers to scramble to reassure markets. First Republic Bank (FRC.N) plunged after the bank announced it was suspending its dividend, reversing Thursday's surge that was sparked by an unprecedented $30 billion rescue package from large financial institutions. First Republic's peers, PacWest Bancorp (PACW.O) and Western Alliance (WAL.N), both ended the session sharply lower.

The boost was shortlived and fears of a banking crisis gripped the market on Friday, with shares of First Republic Bank (FRC.N), which also suspended its dividend payout, dropping 24.5%. The KBW regional banking index (.KRX) and the S&P 500 banks index (.SPXBK) fell over 9% each in the week. Investors are now looking ahead to the Federal Reserve's interest rate decision, due next week, to gauge how it will tame inflation. Money market participants now see a 67% chance of the Fed raising rates by 25 basis points on March 22. . Declining issues outnumbered advancers by a 5.46-to-1 ratio on the NYSE by a 3.56-to-1 ratio on the Nasdaq.

Shares of First Republic fell 20.7% in early trading after the bank suspended its dividend payout. The KBW regional banking index (.KRX) and the S&P 500 banks index (.SPXBK) fell over 2% each. "Deposits have fled from regional banks like First Republic into the big banks who are now bailing them out by putting the deposits back in. "Until you stop the deposit flight from regional banks into the systemically important banks that are too big to fail, it doesn't matter how much money you pour into the bucket." The S&P index recorded two new 52-week highs and four new lows, while the Nasdaq recorded seven new highs and 75 new lows.

☆ Big changes in the S&P 500 Friday highlight the power of index providers
▼ + stars: | 2023-03-17 | by ( Bob Pisani | ) www.cnbc.com time to read: +6 min

Ever wonder why Walmart is classified as a consumer staples stock in the S&P 500, but similar retailers such as Target, Dollar General and Dollar Tree are classified as consumer discretionary stocks? Target, Dollar General and Dollar Tree will move from the consumer discretionary corner of the stock market, and join Walmart as consumer staples companies. Consumer staples will get bigger; consumer discretionary will get a little smaller. If you're an investor in a broadly diversified total market index fund like the S&P 500, the changes will make little difference to you. "Are they reflecting changes in consumer demand or the changes in the marketplace structure?"

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☆ Insiders were stepping up and buying this week at these regional banks and niche financials
▼ + stars: | 2023-03-17 | by ( Yun Li | ) www.cnbc.com time to read: +4 min

The banking crisis drove regional bank stocks sharply lower this week, but many insiders took advantage of the turmoil to scoop up shares of their own institutions in what may prove a vote of confidence. Shares of regional banks slumped as the collapse of Silicon Valley Bank left investors worried that other regional banks might face similar balance sheet issues, a possible mismatch between long-dated assets and short-dated liabilities. Regional banks had regained some ground Thursday in anticipation of a group of 11 banks stepping in to First Republic by depositing $30 billion for at least 120 days . Charles Schwab Notably, Charles Schwab CEO Walt Bettinger bought 50,000 shares Tuesday, worth nearly $3 million, for his personal account. Valley National Bancorp Ira Robbins (CEO) bought 5,000 shares Wednesday Jennifer Steans (Director) bought 150,000 shares Tuesday Eric Edelstein (Director) bought 20,000 shares Tuesday Melissa Schultz (Director) bought 15,000 shares Tuesday Jeffrey Wilks (Director) bought 8,000 shares Tuesday Marc Lenner (Director) bought 5,000 shares Tuesday Suresh Sani (Director) bought 5,000 shares Tuesday Valley National Bancorp saw a rush of insider buying this week, including purchases by its CEO and several directors.

☆ Silicon Valley Bank's collapse has made the Fed's job way harder, top economist says
▼ + stars: | 2023-03-17 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

The Federal Reserve will struggle to achieve a "no landing" scenario now that Silicon Valley Bank has collapsed, according to Apollo Global Management's chief economist. Torsten Sløk said he's expecting the regional banking crisis to lead to a fall in lending levels. "The slowdown that was already underway because of the Fed raising rates might come faster," he told Bloomberg. Its stock then cratered 87% in two days before it was taken over by regulators – and the share prices of other regional banks like First Republic and Western Alliance have also plunged since its collapse. The banking crisis has led to some of Wall Street's top names raising alarm bells about the Fed – which is still upping borrowing costs in a bid to tame inflation.

We're buying 50 shares of Emerson Electric (EMR) at roughly $80.54 and 130 shares of Halliburton (HAL) at roughly $30.20. In essence, the Oscillator measures the buying or selling pressure in the market at the current point in time. EMR YTD mountain Emerson Electric (EMR) YTD performance Emerson's stock decline has made its valuation favorable too. HAL YTD mountain Halliburton (HAL) YTD performance We understand the narrative, but the industry is still catching up from years of underinvestment and if producers want to be capital efficient, then they need to use Halliburton's technology. With HAL shares down about 28% since we sold 375 shares in mid-January, we are upgrading our rating back to a 1.

☆ First Republic shares fall more than 20% despite deposit infusion, dragging down other regional banks
▼ + stars: | 2023-03-17 | by ( Fred Imbert | ) www.cnbc.com time to read: +1 min

People are seen inside the First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike SegarShares of First Republic were under pressure Friday despite the beaten-down regional bank receiving aid from other financial institutions. ET, the stock was down about 24% and was the worst performer in the SPDR S&P Regional Banking ETF (KRE) — which dropped 5%. PacWest and Western Alliance also lost more than 13% each, while KeyCorp slid 8%. Those losses come even after 11 other banks pledged to deposit $30 billion in First Republic as a vote of confidence in the company.

☆ Stock futures are flat after banks bolster deposits at First Republic: Live updates
▼ + stars: | 2023-03-16 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

U.S. stock futures were flat on Thursday night. S&P 500 and Nasdaq 100 futures dipped 0.03% and 0.09%, respectively. Shares of First Republic Bank slid about 24% in after-hours trading, a sharp reversal from its nearly 10% surge in the regular session. These gains came after a group of banks said it would aid First Republic with $30 billion in deposits as a sign of confidence in the banking system. We urge people to be a little bit cautious, particularly until we hear what the Fed has to say," Hatfield added.

☆ 'Big Short' investor Steve Eisman says it'll be bad news for stocks if the banking crisis causes the Fed to pause: 'You should be scared'
▼ + stars: | 2023-03-16 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Investors should be worried if the Federal Reserve doesn't raise interest rates next week, according to Steve Eisman. "If the Fed is scared, you should be scared," the "Big Short" investor told CNBC. Traders upped their bets on a Fed pause after the US's regional banking crisis rocked markets. "If the Fed doesn't raise rates … maybe it'll be positive for a couple hours or a couple of weeks," he added. The central bank is in a difficult position because inflation could flare up again if it does stop tightening, according to Eisman.

☆ First Republic Bank plunges 30% on report that it's evaluating strategic alternatives including a potential sale
▼ + stars: | 2023-03-16 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

First Republic Bank plunged 30% on Thursday following a report that it was considering a sale. The bank has been roiled by the collapse of its regional banking peer, Silicon Valley Bank. Almost 70% of First Republic's deposits have no FDIC insurance and the bank has $4 billion in unrealized bond losses. First Republic Bank has many similarities to Silicon Valley Bank, including the fact that nearly 70% of First Republic Bank's deposit base doesn't have FDIC insurance. First Republic Bank is also sitting on $4 billion in unrealized losses on its held-to-maturity bond portfolio, which is what sparked the initial downfall for Silicon Valley Bank last week.

☆ Wall Street closes higher as First Republic helps lift banks
▼ + stars: | 2023-03-16 | by ( David Carnevali | ) www.reuters.com time to read: +3 min

SummarySummary Companies European Central Bank raises key policy rateFirst Republic Bank shares reverse course and turn higherMeta, Snap climb as U.S. threatens TikTok banNEW YORK, March 16 (Reuters) - A strong rebound by financials helped Wall Street's main indexes close firmly positive on Thursday, after some of the country's largest lenders came to the rescue of embattled First Republic Bank. "Banks are looking out for one another," said Huntington Private Bank chief investment officer, John Augustine. Shares of JP Morgan and Morgan Stanley were up 1.94% and 1.89% respectively, while the lifeline buoyed First Republic Bank (FRC.N), which gained 9.98%. The KBW regional banking index (.KRX) gained 3.26%, while the S&P 500 banking index (.SPXBK) advanced 2.16%, as both sub-indexes reversed losses. Concerns about banks have rattled the stock market in recent days after the collapse of SVB Financial fueled contagion fears.

☆ First Republic Bank tumbles, drags down shares of other regional lenders
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +2 min

March 16 (Reuters) - First Republic Bank (FRC.N) fell about 30% on Thursday, leading shares of other regional lenders lower, as fears of a banking crisis loomed large. "Short sellers are attacking banks they think are weak, unfortunately First Republic has not done a very good job of pushing back. The regional banking sector has been reeling from the collapse of Silicon Valley Bank on worries that nervous customers may rush to withdraw their deposits, potentially triggering a liquidity crisis. Bloomberg reported on Wednesday that First Republic was weighing options to shore up its liquidity and that larger rivals might show interest in taking over the bank. "So when you're looking at regional banks, this net interest margin situation is much more damning."

☆ ETFs show that investors are confused about where the markets are going
▼ + stars: | 2023-03-16 | by ( Bob Pisani | ) www.cnbc.com time to read: +3 min

A common tool to gauge the market's intent is following inflows and outflows in large ETFs. There have been outflows from corporate bond ETFs like Vanguard Short-Term Corporate Bond (VCSH), high yield funds like SPDR High Yield ETF (JNK), bank loan ETFs like SPDR Senior Loan ETF (SRLN) and bank stock ETFs like Invesco KBW Bank ETF (KBWB). The Credit Suisse issue was somewhat different. Europeans at the conference were surprised that there was a focus on Credit Suisse. The common thread of the commentary was that Credit Suisse had never recovered from the financial crisis, that it had been in decline for nearly 20 years.

☆ Sell any bounce in the banks, warns BCA Research
▼ + stars: | 2023-03-16 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +1 min

With unprecedented volatility in the market this week, thanks to the recent U.S. bank closures and fear of contagion spreading across Europe, the BCA Research team is doubtful banks can stay profitable in the foreseeable future. The KBW Regional Banking Index is higher by just 0.2% Thursday. There also could be an opportunity for investors to use potential bounces to underweight the industry, she added. KBWR 1D mountain KBWR Regional Bank index "We believe that this remains the most prudent course of action, selling banking exposure into a potential bounce," she wrote. "To capture the best exit point, we are putting banks on a downgrade watch from current neutral position."

☆ US stocks fall as turmoil in regional banks resumes and Credit Suisse gets a lifeline
▼ + stars: | 2023-03-16 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

US stocks dropped Thursday, with regional banking stocks still moving lower. The Federal Reserve launched its latest rate-tightening campaign 1 year ago. The index on Wednesday briefly erased its advance for 2023, with markets shaken up by a rout in bank stocks. In the wake of the Silicon Valley Bank failure, regional bank stocks largely fell again on Thursday. Thursday marks one year since the Federal Reserve embarked on its most aggressive run of rate hikes in decades.

☆ Four regional bank stocks for the brave to buy, according to UBS
▼ + stars: | 2023-03-16 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

The selloff in regional banks is overdone, with four names looking especially attractive at these levels, according to UBS. While bank stocks moved higher on Thursday, volatility has risen this week. Regional banks were particularly hard hit. Investors also need to remember that not all regional banks are equivalent, she added. "Thus, we believe that investors should not look at unrealized securities losses in a static manner," Najarian wrote.

March 15 (Reuters) - Swiss regulators pledged a liquidity lifeline to Credit Suisse (CSGN.S) in an unprecedented move by a central bank after the flagship Swiss lender's shares tumbled as much as 30% on Wednesday. They said the bank could access liquidity from the central bank if needed. Credit Suisse said it welcomed the statement of support from the Swiss National Bank and FINMA. Hoping to quell concerns, FINMA and the Swiss central bank said there were no indications of a direct risk of contagion for Swiss institutions from U.S. banking market turmoil. The logo of Swiss bank Credit Suisse is seen in front of an office building in Zurich, Switzerland October 26, 2022.

☆ Wall Street down as Credit Suisse sparks fresh bank selloff
▼ + stars: | 2023-03-15 | by ( David Carnevali | ) www.reuters.com time to read: +4 min

I don’t think we are at 2008-2009 stages by any means when it comes to the contagion stuff," said Themis Trading co-manager of trading, Joe Saluzzi. Still, Credit Suisse troubles piled more pressure on U.S. banking sector after U.S. authorities relieved investors with emergency measures to prevent contagion after the collapse of SVB Financial (SIVB.O) and Signature Bank (SBNY.O). Some investors believe aggressive U.S. interest rate hikes by the Federal Reserve caused cracks in the financial system. Shares of Western Alliance Bancorp (WAL.N) and bank and brokerage Charles Schwab Corp (SCHW.N) bucked the trend to close in the green. Big U.S. banks including JPMorgan Chase & Co (JPM.N), Citigroup (C.N) and Bank of America Corp (BAC.N) dropped, dragging on the S&P 500 banking index (.SPXBK).

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