DIRS.INFO The most relevant business & tech news

☆ Commercial Real Estate Can Be a Problem for Banks, and Also a Solution
▼ + stars: | 2023-06-01 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/commercial-real-estate-can-be-a-problem-for-banks-and-also-a-solution-cb88eb5

Persons: Dow Jones

☆ These Bank Alternatives Can Keep Cash Rolling In
▼ + stars: | 2023-05-29 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/these-bank-alternatives-can-keep-cash-rolling-in-1bed5b8

☆ Regional Banks Can’t Catch a Break
▼ + stars: | 2023-05-15 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Western Alliance said its deposits recently rose. Photo: patrick t. fallon/Agence France-Presse/Getty ImagesRegional bank stocks were further discounted this past week. It isn’t hard to find some positive indicators for regional banks’ business right now. For one, the Federal Deposit Insurance Corp. on Thursday said that its plan to make up for losses in the deposit insurance fund would charge banks based on their amount of uninsured deposits above $5 billion at the end of last year—which tilts the cost toward larger banks. That could help smaller banks offer more-competitive deposit rates.

☆ When Buying Now and Actually Paying Later Isn’t Enough
▼ + stars: | 2023-05-10 | by ( Telis Demos | ) www.wsj.com time to read: +1 min

Affirm has weathered rocky capital markets and increased its funding capacity from the prior quarter. Photo: Gabby Jones/Bloomberg NewsMore people are buying now and—despite what many have feared—also paying later. Buy now, pay later provider Affirm on Tuesday reported some reassuring things related to common concerns about the installment-payment business. Plus, Affirm has weathered rocky capital markets and increased its funding capacity from the prior quarter. In April, it closed a $400 million securitization deal that had been upsized from $250 million.

☆ PayPal Is Growing, but Not the Way It Used To
▼ + stars: | 2023-05-10 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

PayPal’s changing focus is sending investors for a loop. Photo: Justin Sullivan/Getty ImagesPayPal beat its revenue growth target in the first quarter and raised its forecast for the year. But the changing focus of the company is still sending investors for a loop. The payments company’s growth, which slowed after a surge during the early stages of the pandemic, is now being fueled by a couple standouts. Another major other driver is interest rates, which help the company earn more on the cash that users leave in their PayPal and Venmo accounts.

☆ PayPal Is Growing, but Not the Way it Used To
▼ + stars: | 2023-05-09 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

☆ Banks Are in the Grips of Investor Crisis of Confidence
▼ + stars: | 2023-05-07 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

WSJ’s Ben Eisen explains what the bank’s crisis means for customers, investors and the industry. Illustration: Preston JesseeFirst Republic Bank ’s seizure and sale to JPMorgan Chase was supposed to be a cathartic moment for American banks, the denouement of the financial system’s latest crisis of confidence. The relief lasted for barely a day. On Tuesday, shares of regional banks were plunging, with a handful of them dropping by double-digit percentages. At one point on Thursday, the KBW Nasdaq Regional Banking Index was down by 15% from the prior week, though it rallied back on Friday to finish the week down 8%.

☆ PacWest and the Bank Confidence Genie
▼ + stars: | 2023-05-04 | by ( Aaron Back | Telis Demos | ) www.wsj.com time to read: 1 min

The FDIC seized First Republic Bank early Monday and struck a deal to sell the bulk of its operations to JPMorgan Chase. WSJ’s Ben Eisen explains what led to the bank’s failure and what it means for customers, investors and the industry. Illustration: Preston JesseePacWest Bancorp is the latest lender to face an investor panic. What is becoming clear is that investors aren’t willing to give some banks much credit beyond the bare minimum. The immediate trigger for Thursday’s selloff in PacWest and other regional bank stocks appeared to be a Bloomberg story Wednesday afternoon saying the California lender is looking at “strategic options,” including a sale or breakup.

☆ With First Republic, JPMorgan’s Dimon Gets Over Financial Crisis Laments
▼ + stars: | 2023-05-01 | by ( Telis Demos | Aaron Back | ) www.wsj.com time to read: 1 min

JPMorgan Chase & Co. bought First Republic Bank early Monday after the Federal Deposit Insurance Corp. took over the troubled lender. Three of the four biggest U.S. bank failures have occurred in the past two months. Photo: Jeff Chiu/APWhen it comes to taking on troubled banks, this time may be different for JPMorgan Chase . The U.S.’s biggest bank has stepped up to acquire the deposits and most of the assets of First Republic Bank , which was closed by the Federal Deposit Insurance Corp. in the early hours of Monday morning. The deal has echoes of past rescues by JPMorgan, but may have a happier ending.

☆ Why Spending Less May Be Good News for Card Companies
▼ + stars: | 2023-05-01 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Stocks of card companies are continuing to sharply outperform banks in 2023. Photo: Steven Senne/Associated PressUsually investors in credit-card companies like to see people spending more and more. But in the game of expectations among consumers, lenders and the Federal Reserve, the opposite might be true right now. A number of card lenders in their recent earnings reports have cited some signs of slowing growth in consumer spending. Capital One Financial on Thursday said that spend per active account “is pretty flat to a year ago.” American Express and Citigroup both noted that while growth in U.S. consumer travel and entertainment spending remained strong through the first quarter, other categories were slowing later in the period.

☆ Why No Buyer Has Emerged for First Republic
▼ + stars: | 2023-04-27 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

The Federal Deposit Insurance Corporation is doing what it was designed to do when banks like Silicon Valley and Signature Banks go under: cover insured deposits. Photo illustration: Madeline MarshallIf another bank bought First Republic Bank for a single dollar, it could still end up costing that buyer tens of billions. For many years, First Republic had a sterling reputation as a fast-growth lender focused on a very desirable clientele—the affluent. One might think that such a franchise would fit well with any number of banks looking to grow businesses like wealth management. Yet with the bank’s market value now hovering at around $1 billion, down about 95% from the start of the year, no buyer has emerged.

☆ Regional Banks’ Deposit Remix Not as Good as the Original
▼ + stars: | 2023-04-22 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

A group of banks that saw deposit gains were consumer lenders such as Discover Financial Services. Photo: Rogelio V. Solis/Associated PressRegional banks have so far held on to deposits better than investors might have feared. Among banks that have reported earnings, deposits across all the large banks tracked by The Wall Street Journal declined by about 1.5% from the end of the fourth quarter to the end of the first. That is much less than the overall 3.3% decline reported by the Federal Reserve across all U.S. banks over that time period. Even just among the large regional banks tracked, the total decline was 2.4%.

☆ Apple Pay’s Long Road to Paying Off Is Getting Shorter
▼ + stars: | 2023-04-21 | by ( Telis Demos | Dan Gallagher | ) www.wsj.com time to read: 1 min

Apple Inc. hasn’t replaced your wallet yet, but it hasn’t given up trying. Its latest moves could put it much closer to success. Chief Executive Officer Tim Cook once proclaimed that his company would “forever change the way all of us buy things.” His boast was made in 2014, alongside the company’s biggest product launch in years—the iPhone 6. More than eight years later, most of us are still fishing plastic cards out of our wallets or typing numbers into a form when we shop.

☆ Managing Rich People’s Money Isn’t Always Easy
▼ + stars: | 2023-04-19 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Morgan Stanley procures its deposits via a network of affluent clients. But it isn’t just free money. Morgan Stanley ’s huge wealth management business generates significant net interest income, about 15% of its net revenue in the first quarter. So it was able to benefit from the same rising-rate forces still helping a lot of its large retail banking peers. That provided a ballast to its Wall Street unit, which like most peers, including Goldman Sachs , suffered from drop-offs in activity compared with a year earlier.

☆ Goldman Sachs Misses Out on Lending Bonanza
▼ + stars: | 2023-04-18 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Goldman Sachs CEO David Solomon has said the bank is scaling back its consumer lending business. This quarter illustrates why Goldman Sachs was so keen to get into consumer lending in the first place. But it still has to go backward on that front before it can go forward. Goldman didn’t have a bad quarter, as much of the year-over-year decline in revenue was due to unflattering comparisons with last year’s huge performance in fixed-income trading, deal making and capital raising. Return on equity in its global markets and banking business in the first quarter was still quite strong at an annualized 16.6%, well above the firm’s overall return of 11.6%.

☆ No All-Clear Signal for Banking
▼ + stars: | 2023-04-14 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/track-how-u-s-banks-are-faring-in-first-quarter-earnings-beaff0cc

☆ For Regional Banks, Surviving Won’t Be the Same as Thriving
▼ + stars: | 2023-04-12 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/for-regional-banks-surviving-wont-be-the-same-as-thriving-bfe214e5

☆ Bank Losses Can Be Gains for This Money Fund
▼ + stars: | 2023-04-11 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/bank-losses-can-be-gains-for-this-money-fund-fb9ba9da

☆ The Pandemic Didn’t End Card Rewards. It Made Them Stronger.
▼ + stars: | 2023-04-07 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Americans love their credit card rewards more than ever. For card companies, perhaps too much. When the Covid-19 pandemic halted travel—and travel spending—some speculated that it might also ground credit cards. Card companies had for years leaned on travel-related rewards and point systems to attract wealthier customers and bigger spenders. But as Americans began concentrating their spending on everyday purchases closer to home, a lot of volume shifted to debit cards.

☆ For Regional Banks, Does More Debt Mean Fewer Problems?
▼ + stars: | 2023-04-01 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Silicon Valley Bank might have benefited from more debt. A lot of discussion right now is about the bonds that American banks hold. One tidbit from lawmakers’ grilling of regulators should catch investors’ attention: a proposal to expand a requirement for issuing long-term debt. Today this debt requirement applies only to megabanks with over $700 billion in assets, the likes of JPMorgan Chase or Bank of America . Regulators are looking at expanding it to banks with over $250 billion of assets and even smaller, The Wall Street Journal has reported.

☆ How the Bank Mess Can Hit Home Buyers
▼ + stars: | 2023-03-29 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Mortgage bonds are a big driver of the unrealized losses on bond portfolios that banks are struggling with. As investors scan for potential spillovers from the present banking crisis, one place to look is in mortgage rates. There are several inputs into the rates that are offered to home buyers. If mortgage bonds are in demand, that can lead investors to buy more mortgages at lower interest rates. But if mortgage bonds aren’t much in demand, that puts upward pressure on mortgage rates.

☆ Carolina Lender Sees Opportunity in Silicon Valley Bank, With Assurances From Uncle Sam
▼ + stars: | 2023-03-27 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

The Federal Deposit Insurance Corp. has rid itself of a $50 billion-plus headache—to the benefit of an opportunistic North Carolina lender. Raleigh-based First Citizens Bancshares has agreed to acquire over $56 billion worth of one-time Silicon Valley Bank deposits, on which the FDIC had agreed to provide unlimited insurance. The deal is complex, but it boils down this way: First Citizens is taking on the deposits, which are obligations the bank has to pay other people. It is getting $72 billion worth of loans, or obligations by other people to pay the bank. The difference between those two is potential value for the bank.

☆ Welcome to the Superprime Banking Crisis
▼ + stars: | 2023-03-25 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Banks for rich people are different from other banks. They used to have more money. Banking’s last crisis featured subprime borrowers, specifically people with troubled credit who were given mortgages by bankers who ignored the risk that the borrowers wouldn’t realistically be able to afford them. Banks that got into trouble were ones that churned out such loans or gorged on them in securitized form.

☆ Unlimited Deposit Insurance Can’t Solve Everything
▼ + stars: | 2023-03-24 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Treasury Secretary Janet Yellen put a damper on hopes for one immediate solution to the present banking crisis when she said on Wednesday that she wasn’t considering trying to offer “blanket” insurance guaranteeing all deposits. But this will almost certainly not extinguish the idea. Secretary Yellen also said it was “worthwhile” for Congress to look at deposit insurance. Treasury already can, as it did with Silicon Valley Bank and Signature Bank, alongside the Federal Deposit Insurance Corp. use a “systemic risk exception” to cover all of an individual bank’s depositors with accounts above the $250,000 limit. And the idea of universal insurance is gaining traction, including among some smaller banks and their advocates, who already feel that megabanks are treated differently.

Search resuls for: "Telis Demos"

25 mentions found