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☆ Silicon Valley Bank Gets Back to Lending, Albeit at Slower Pace
▼ + stars: | 2023-07-05 | by ( Yuliya Chernova | ) www.wsj.com time to read: 1 min

Silicon Valley Bank, which was recently acquired by First Citizens BancShares, has resumed lending to the startup and venture market, though less aggressively than in the past. SVB’s slowdown in lending is contributing to a sharply decelerating venture-debt market, which means there are fewer sources of financing at the very time more startups are struggling.

Organizations: Valley Bank, First Citizens

NEW YORK, June 29 (Reuters) - A U.S. bankruptcy judge said Thursday that he would allow SVB Financial Group to sell its investment banking division, once the company has ensured that it is not releasing any liabilities related to the collapse of its Silicon Valley Bank unit. James Bromley, an attorney for SVB Financial, told Glenn that it would remove the liability releases from the deal by Friday. SVB Financial owned Silicon Valley Bank before it was seized by the U.S. Federal Deposit Insurance Corporation (FDIC) in March, and it is attempting to sell its remaining assets in bankruptcy. Glenn also criticized the FDIC during the court hearing, saying he would not allow the agency to block SVB Financial from getting information about its seizure of about $2 billion from SVB Financial' s bank accounts. Silicon Valley Bank's failure in March triggered the worst U.S. banking crisis in 15 years.

Persons: Martin Glenn, Jeff Leerink, Glenn, James Bromley, SVB, you'd, I'm, Erik Bond, Dietrich Knauth, Alexia Garamfalvi, Diane Craft Organizations: YORK, SVB, Bank, Bankruptcy, SVB Securities, Baupost, Silicon Valley Bank, U.S . Federal Deposit Insurance Corporation, FDIC, Citizens, Thomson Locations: Manhattan, Silicon, U.S, backstop

☆ Here are Wednesday's biggest analyst calls: Delta, Netflix, Pinterest, Nvidia, Pepsi, Deere, Nike and more
▼ + stars: | 2023-06-28 | by ( Michael Bloom | ) www.cnbc.com time to read: +7 min

Goldman Sachs reiterates Snowflake as buy Goldman said it's standing by its buy rating after the company's investor day. JPMorgan reiterates Pepsi as overweight JPMorgan said Pepsi is a "safe haven" heading into earnings in July. Wells Fargo upgrades Pinterest to overweight from equal weight Wells Fargo said it sees "above-consensus revenue growth" for Pinterest. Deutsche Bank downgrades Walgreens to hold from buy Deutsche Bank downgraded the stock after its disappointing earnings results earlier this week. Deutsche Bank initiates Western Alliance as hold Deutsche Bank said the regional bank's "funding pressures persist."

Persons: Goldman Sachs, Goldman, Snowflake, it's, Wells, Wells Fargo, Daiwa downgrades Uber, EBITDA, Deere, Canaccord, Oppenheimer, Morgan Stanley, CarMax, Needham, CFRA, KeyBanc Organizations: Nvidia, JPMorgan, Pepsi, Nike, Netflix, Deutsche Bank, Walgreens, RBC, Western Alliance, KMX, Delta, Barclays, Bank of America, Old Dominion, of America, Dominion, ZoomInfo Technologies, Lincoln, EV Locations: China, NVDA, Canada, Old

☆ Buy this regional bank stock that has 50% upside, Atlantic Equities says
▼ + stars: | 2023-06-28 | by ( Brian Evans | ) www.cnbc.com time to read: +2 min

First Citizens ' acquisition of Silicon Valley Bank will be fruitful for the bank's stock, according to Atlantic Equities. Atlantic Equities' forecast implies nearly 50% upside from Tuesday's close of $1,183.76. FCNCA YTD mountain First Citizen's stock has climbed more than 56% this year. Analyst John Heagerty highlighted the acquisition of Silicon Valley bank as a potential catalyst for the stock's growth, and noted the purchase "provides clear scale benefits and geographic diversification." "The SVB acquisition has transformed FCNCA's operations both in terms of the strategic benefits and the financial upside," he noted.

Persons: BancShares, John Heagerty, Heagerty, — CNBC's Michael Bloom Organizations: Bank, First Locations: Silicon, 2Q23E

☆ Stocks making the biggest moves midday: Pinterest, Carnival, General Mills, Netflix and more
▼ + stars: | 2023-06-28 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Pinterest — Shares climbed more than 5% in midday trading. The Wall Street firm said it anticipated more subscribers and the potential discontinuation of its lowest-priced, ad-free plan, which is being tested in Canada. AeroVironment also said it anticipates full-year revenue of $630 million to $660 million, beating the $600 million expected by analysts. ZoomInfo also received positive coverage from Morgan Stanley, which reiterated an overweight rating on the stock. Snowflake — Shares added 5.5% after the data cloud company reiterated its full-year guidance during an investor day Tuesday.

Persons: Wells, Mills, Betty Crocker, Oppenheimer, AeroVironment, ZoomInfo, Needham, Morgan Stanley, Goldman Sachs, Arcline, BancShares, —, Alex Harring, Brian Evans, Jesse Pound, Michael Bloom Organizations: New York Stock Exchange, Norwegian Cruise, Royal, Refinitiv, Nvidia, Journal, Netflix, Joby, Reuters, KKR . First Locations: Norwegian, Royal Caribbean, China, Canada, Refinitiv, North Carolina

☆ Bankrupt SVB Financial still exploring options for venture capital arm
▼ + stars: | 2023-06-21 | by ( ) www.reuters.com time to read: +1 min

June 21 (Reuters) - Bankrupt SVB Financial Group said on Wednesday it is continuing to evaluate strategic alternatives for SVB Capital, its venture capital and credit investment arm, as well as other assets and investments. The disclosure comes days after the company agreed to sell its investment banking division, SVB Securities, to a group led by the segment's chief executive officer. SVB Financial had collapsed into bankruptcy after former unit Silicon Valley Bank's failure in March triggered the worst U.S. banking crisis in 15 years. A hearing to approve the sale of SVB Securities is scheduled for June 29 in the United States Bankruptcy Court for the Southern District of New York. The deal will close shortly thereafter, SVB Financial said.

Persons: Niket, Devika Organizations: SVB Financial, SVB Capital, SVB Securities, SVB, Citizens, Bank, Jitters, KBW, United States, Southern, of, Thomson Locations: U.S, backstop, of New York, Bengaluru

Money market funds Assets in retail money market funds grew to $1.99 trillion, according to the latest data from the Investment Company Institute . Further, even as money market funds offer relative safety, they can still face some risk. Don't confuse money market funds with money market accounts. Though money market accounts – which are offered by banks – are protected by the Federal Deposit Insurance Corporation, up to $250,000, money market funds are not. Certificates of deposit and high-yield savings accounts Liquidity should be a big factor for investors eyeing bank products like CDs and high-yield savings accounts.

Persons: Jamie Hopkins, Hopkins, Don Grant, Jordan Benold, Lehman, Danika Waddell, BancShares, Waddell Organizations: Federal, Carson Group, Sabre, Investment Company Institute, Investors, –, Lehman Brothers, Federal Deposit Insurance Corporation, Xena, BMO, Ally Financial, CIT Bank, Synchrony, Ally, Capital

☆ 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

☆ SVB agrees to sell its investment banking division
▼ + stars: | 2023-06-18 | by ( ) www.reuters.com time to read: +1 min

June 18 (Reuters) - SVB Financial Group (SIVBQ.PK) said on Sunday it has entered into an agreement to sell its investment banking division, SVB Securities, to a group led by Jeff Leerink and backed by funds managed by The Baupost Group. The bidder group led by Leerink, who is chief executive of SVB Securities, will acquire the investment banking business for a combination of cash, repayment of an intercompany note, and a 5% equity instrument, the company said. First Citizens BancShares Inc (FCNCA.O) bought all the loans and deposits of the failed bank in March, leaving some $90 billion in securities with the FDIC for sale. The lender continues to evaluate strategic alternatives for its division, SVB Capital, and company's other assets and investments, it said. Reporting by Akanksha Khushi in Bengaluru; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

Persons: Jeff Leerink, Leerink, Akanksha, Leslie Adler Organizations: SVB Financial, SVB Securities, Baupost, Federal Deposit Insurance Corporation, Silicon Valley Bank, BancShares Inc, SVB, Suisse, UBS, Thomson Locations: SVB, reverberated, Bengaluru

The sources cautioned that no deal is certain and asked not to be identified because the matter is confidential. Spokespeople for nCino did not immediately respond to requests for comment, while Insight Partners declined to comment. Shares of nCino ended trading in New York on Friday up 24% at $31.69 on the news, giving the company a market value of about $3.6 billion. Based in Wilmington, North Carolina, nCino offers cloud-based software to banks and financial institutions that helps digitize their processes, including around lending and deposit-taking. The company subsequently attracted several venture capital investors beyond Insight Partners, including Wellington Management, Salesforce Ventures, Bessemer Partners and T. Rowe Price.

Persons: nCino's, nCino, Rowe Price, Milana Vinn, David French, Daniel Wallis, Jonathan Oatis Organizations: nCino, Insight Partners, Wellington Management, Salesforce Ventures, Bessemer Partners, Thomson Locations: New York, Wilmington , North Carolina, North Carolina

☆ As regional bank stock rally regains steam, investors should watch out for these spoilers
▼ + stars: | 2023-06-13 | by ( Christina Cheddar Berk | ) www.cnbc.com time to read: +6 min

With the Federal Reserve expected to pause its rate-hiking campaign at this week's meeting, regional banks stocks have made a comeback, but that doesn't mean all the trouble is in the rearview mirror. Still, the upward march resumed on Tuesday, begging the question of what's ahead for bank stocks. As the Treasury sells tens of billions of dollars in Treasury bills, it could pressure bank deposits. Graseck predicts that a reacceleration of deposit outflows would snuff out the bank stock rally. In addition, regional bank earnings estimates, which had been cut severely in March and April, had leveled off in May.

Persons: Jack Ablin, Ablin, outflows, SVB, Aditya Bhave, Bhave, Morgan Stanley, Betsy Graseck, Graseck, Nicholas Colas, Huntington Bancshares, Matt O'Connor, KeyCorp, Albin Organizations: Federal Reserve, Fed, Cresset, Silvergate, Silicon Valley Bank, Signature Bank, PacWest Bancorp, Bank of America, Treasury, DataTrek Research, Citizens Financial Group, Truist, Morgan Stanley U.S, Financials, CRE Conference, Deutsche Bank, TFC Locations: Silicon, Federal, U.S, 2Q23, New York

☆ Tiny tech bank defies US massacre of the minnows
▼ + stars: | 2023-06-08 | by ( John Foley | ) www.reuters.com time to read: +6 min

One example is $1 billion Live Oak Bancshares (LOB.N), which flouts many preconceptions about what it means to be a tiny U.S. bank. But if those failures demonstrated that rapid growth brings escalating risk, Live Oak is a counterexample. Because of the way that programme is structured, around 40% of Live Oak’s lending carries a government guarantee. The company spun out its cloud-based banking software division nCino (NCNO.O) in 2014; that firm is now worth $2.8 billion, more than twice Live Oak’s value. That more earthly valuation might reflect Live Oak’s biggest risk: that it starts to look more like the rest of the pack.

Persons: it’s, Chip Mahan, SVB, It’s, Huntley Garriott, Goldman Sachs, reckons, ’, Keefe, Mahan, Liam Proud, Streisand Neto Organizations: YORK, Reuters, Wachovia, Valley Bank, U.S, Regional, Silvergate, Reuters Graphics Reuters, government’s, Business Administration, SBA, Federal, Truist, PNC Financial Services, redwoods, Twitter, Thomson Locations: United States, North Carolina, U.S

☆ Evercore ISI raises market outlook and gives 'Momentum Masters' stocks to play it
▼ + stars: | 2023-06-05 | by ( Alex Harring | ) www.cnbc.com time to read: +4 min

The S & P 500 could see more upside ahead after breaking out above a key level as artificial intelligence drums up market excitement, according to Evercore ISI. His new target implies the stock market could rally 3.9% from where it finished last week. That puts Emanuel above the median and average S & P 500 targets on Wall Street after previously being right around them. The S & P 500's recent breakout above the 4,200 points is a sign that AI-driven momentum first seen in the technology-heavy Nasdaq Composite is now apparent in the S & P 500. Momentum masters He called this investing landscape a "Momentum Market" that requires more risk management a probabilistic thinking.

Persons: Julian Emanuel, Emanuel, he'll, Russell, —, selloff, Zscaler, BancShares, — CNBC's Michael Bloom Organizations: ISI, American Association of, Investors, Big Tech, Nasdaq, Silicon Valley Bank, Federal Deposit Insurance Company, P Bank ETF, Banking Locations: Silicon

☆ HSBC to rename British arm of Silicon Valley Bank next month- Sky News
▼ + stars: | 2023-05-29 | by ( ) www.reuters.com time to read: +1 min

May 29 (Reuters) - HSBC (HSBA.L) is set to announce next month that the UK arm of Silicon Valley Bank will be renamed HSBC Innovation Banking, Sky News reported on Monday. The British government and the Bank of England facilitated a private sale of SVB UK to HSBC in March, in a move which would protect deposits without taxpayer support. Startup-focused lender SVB Financial Group became the largest bank to fail since the 2008 financial crisis. SVB is undergoing bankruptcy proceedings after California's regulators shuttered Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The regulators then agreed to backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire Silicon Valley Bank.

☆ Insiders are loading up on regional bank stocks in a big way, Raymond James analysis shows
▼ + stars: | 2023-05-22 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

Insiders are snapping up regional bank stocks following the crisis in the sector, according to a Raymond James analysis. During the period between March 10 and May 15, shares purchases totaled 2.3 million shares, while shares sold reached 335,000 shares. Since the first quarter of 2005 to the first quarter of 2023, only seven quarters notched positive net insider transactions. It's also the greatest number of net insider transactions since the end of 2009. Raymond James recently reiterated an outperform rating on the stock, citing its rising earnings power, though it also lowered its price target to $26.

May 22 (Reuters) - First Citizens BancShares Inc (FCNCA.O), which acquired Silicon Valley Bank following its collapse, sued HSBC Holdings PLC (HSBA.L) on Monday, accusing it of poaching more than 40 of the failed bank's employees in order to launch its own U.S. venture banking business. The lawsuit filed in San Francisco federal court says HSBC violated federal law by hiring away the workers so it could gain access to Silicon Valley Bank's (SVB) trade secrets including information about clients in the tech and healthcare sectors. First Citizens in the lawsuit said it is seeking more than $1 billion in damages. First Citizens later in March purchased SVB's assets and deposits for up to $500 million in stock - a fraction of what the bank was worth before it failed. In April, HSBC had said it had hired dozens of Silicon Valley Bank employees to help the bank establish a dedicated practice focused on serving companies in technology and healthcare and investors who support them.

☆ Analysts say these 11 top-performing stocks are set to soar even more — giving one over 85% upside
▼ + stars: | 2023-05-18 | by ( Weizhen Tan | ) www.cnbc.com time to read: +2 min

The year is nearing its halfway mark, and global stocks have been doing much better than they had in volatile 2022. CNBC Pro screened for stocks that are beating the market nearly halfway into the year — and that analysts love. Only one stock had a 100% buy rating: Japan's Kansai Electric Power Company , a nuclear electric power generation firm. U.S. semiconductor firm Onsemi also made the screen, with analysts giving it 28% potential upside and a nearly 60% buy rating. Italian bank UniCredit had the highest potential upside in the list, at 85%, on top of a decent 88% buy rating.

☆ 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.

☆ Major investors loaded up on regional bank stocks during a turbulent first quarter
▼ + stars: | 2023-05-16 | by ( Yun Li | ) www.cnbc.com time to read: +3 min

Einhorn's Greenlight Capital took small stakes in New York Community Bancorp and First Citizens Bancshares in the first quarter, with each bet worth about $20 million, according to a regulatory filing. New York Community Bancorp's subsidiary, Flagstar, acquired Signature Bank assets after that bank was shuttered , while First Citizens bought a large portion of Silicon Valley Bank assets . New York Community shares are up nearly 20% this year, while First Citizens' stock has jumped more than 68% on the year. 'Big Short' Burry of "Big Short" fame snapped up a slew of regional banks last quarter, including New York Community Bancorp , Capital One Financial , Western Alliance , PacWest Bancorp and Huntington Bancshares during the first quarter. To make matters more confusing, the conglomerate dumped its remaining stakes in Bank of New York Mellon and U.S. Bancorp .

Morgan Stanley analyst warned of potentially big swings for some of the regional banks it covers as the fallout for the crisis continues. Analyst Manan Gosalia downgraded Commerce Bancshares and Prosperity Bancshares to underweight from equal weight. Commerce Bancshares' new price target of $48 implies shares declining 3.5% from Monday's close. Meanwhile, the analysts' new price target of $60 per share for Prosperity Bancshares implies a 1% loss from where shares closed on Monday. To be sure, the analyst said that in the case deposit outflows do accelerate, Commerce Bancshares and Prosperity Bancshares would end up outperforming their peers due to their "generally more resilient funding profiles."

☆ Here are Tuesday's biggest analyst calls: Netflix, Carvana, Walmart, Western Alliance, Deere & more
▼ + stars: | 2023-05-16 | by ( Michael Bloom | ) www.cnbc.com time to read: +6 min

Here are Tuesday's biggest calls on Wall Street: JPMorgan reiterates Netflix as overweight JPMorgan said paid password sharing should be a financial tailwind for Netflix. Mizuho reiterates SoFi as buy Mizuho said it's standing by shares of SoFi. Citi reiterates Deere as buy Citi said it's standing by its buy rating on shares of Deere. Citi upgrades Williams Companies to buy from neutral Citi said the petroleum stock is oversold. Citi reiterates FedEx as buy Citi said it's standing by its buy rating FedEx shares.

☆ ‘Big Short’ Michael Burry bought shares in a slew of regional banks last quarter amid banking crisis
▼ + stars: | 2023-05-15 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

Michael Burry, known for calling the subprime mortgage crisis, bought shares in a number of regional banks last quarter, betting the industry could weather the crisis, according to a new regulatory filing. The famed investor said in mid-March, after the collapse of Silicon Valley Bank , that he expected the banking crisis to be over soon without severe damage. However, on May 1, First Republic was seized by regulators to become the biggest bank collapse since the 2008 financial crisis. Burry bought $2 million worth of First Republic Bank shares last quarter, the filing, which reflects Scion's holdings as of March 31, showed. Burry was depicted in Michael Lewis' book "The Big Short" and the subsequent Oscar-winning movie of the same name.

☆ David Einhorn's Greenlight Capital bets on pair of regional banking stocks
▼ + stars: | 2023-05-15 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

David Einhorn joined other big investors in shares in several regional bank stocks last quarter in a bet that the financial institutions would survive the industry crisis that felled Silicon Valley and First Republic banks. That's the bank whose subsidiary, Flagstar, acquired Signature Bank assets after that bank was shuttered. Einhorn's additions come amid a broad selloff of regional bank stocks on concern more institutions could fail as depositors withdrew assets and the value of banks' bond holdings narrowed. "Big Short" investor Michael Burry also bought regional bank stocks last quarter. Outside of the bank stocks, Einhorn notably increased exposure to Concentrix , Gulfport Energy and Tenet Healthcare .

☆ Blackstone, Apollo were among about 20 bidders for SVB's assets
▼ + stars: | 2023-05-11 | by ( ) www.reuters.com time to read: +1 min

May 10 (Reuters) - Blackstone Inc (BX.N) and Apollo Global Management (APO.N) were among about 20 bidders for some assets of collapsed Silicon Valley Bank, the Federal Deposit Insurance Corporation (FDIC) said on Wednesday. PNC Financial Services (PNC.N), Valley Bank, Citizens Bank and BankUnited (BKU.N) were also among the bidders, the FDIC said in a summary document, adding that one or more bidders submitted more than one bid. The bids, which closed on March 10, were followed by First Citizens BancShares (FCNCA.O) purchasing all the loans and deposits of SVB later that month. That was since eclipsed by First Republic Bank which was seized by regulators in early May and sold to JPMorgan Chase & Co (JPM.N). The deal announced in March said First Citizens would acquire SVB's assets of $110 billion, deposits of $56 billion and loans of $72 billion.

☆ First Citizens BancShares records $9.8 bln gain from Silicon Valley Bank purchase
▼ + stars: | 2023-05-10 | by ( ) www.reuters.com time to read: 1 min

May 10 (Reuters) - First Citizen BancShares Inc (FCNCA.O) on Wednesday reported a gain of $9.82 billion in the first quarter from its acquisition of failed lender Silicon Valley Bank in March. The windfall helped drive a surge in its profit to $9.50 billion, or $653.64 per share, for the three months ended March 31 from $264 million, or $16.70 per share, a year earlier. The Raleigh, North Carolina-based lender's first-quarter deposits stood at $140.05 billion, also rising nearly 57% from the end of last year. More than a third of those deposits came from Silicon Valley Bank, which First Citizens had scooped up with the backing of U.S. regulators. Reporting by Siddarth S in Bengaluru; Editing by Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

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