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☆ Customers are pulling their cash from NYCB, but it’s no bank run
▼ + stars: | 2024-03-07 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +3 min

New York CNN —Customers of New York Community Bank (NYCB) pulled $6 billion worth of deposits between February 5 and March 5, leaving the bank’s deposit base 7% lower, at $77 billion. However, the pattern is not indicative of a bank run, which these days can drain a lender of funds in mere hours. Shortly ahead of its demise, depositors at Silicon Valley Bank tried withdrawing $42 billion in one day over fears they wouldn’t be able to access their funds if the bank failed. On Thursday’s call, NYCB also announced it’s slashing its dividend to one penny a share. Increasing both means the bank has fewer funds available to lend, which as a result would limit its profitability.

Persons: NYCB, Steven Mnuchin’s, Alessandro DiNello, ”, ” DiNello Organizations: New, New York CNN, New York Community Bank, Silicon Valley Bank, Liberty Strategic Capital, NYCB, Wall, Moody’s Investors Service, Fitch Locations: New York, Silicon

☆ Premarket stocks: Fed Chair Powell is about to get grilled by Congress. Here’s what markets want to hear
▼ + stars: | 2024-03-06 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Fed Chair Jerome Powell has a chance to provide more insight when he testifies before Congress on Wednesday and Thursday. Those reports pushed back market bets on when the Fed will start cutting interest rates. Investors will closely listen for any hints from Powell about what the Fed is looking for, data-wise, before it begins to lower interest rates. Powell will also be asked about the economic pain Americans are feeling as a result of elevated inflation and interest rates. When interest rates fall, holding income-paying assets (like bonds) becomes less appealing than owning the precious metal.

Persons: Jerome Powell, there’s, ”, Powell, —, Emanuel Cleaver, Dave Sekera, Claudia Sahm, ” Powell, Krystal Hur, Samantha Murphy Kelly, “, ” Mengmeng Zhang Organizations: CNN Business, Bell, New York CNN, Federal, Investors, Missouri Democrat, Politico, Morningstar, Morningstar . New York Community Bank, Fitch, Moody’s Investors Service, Federal Reserve, Costco, Apple, Counterpoint Research, Huawei, Counterpoint Locations: New York, Missouri, Morningstar ., China

☆ Some NYCB deposits may be a flight risk after Moody’s downgrades ratings again
▼ + stars: | 2024-03-04 | by ( Hugh Son | ) www.cnbc.com time to read: +3 min

Late Friday, Moody's Investors Service cut the deposit rating of NYCB's main banking subsidiary by four notches, to Ba3 from Baa2, putting it three levels below investment grade. The downgrade could trigger contractual obligations from business clients of NYCB who require the bank to maintain an investment grade deposit rating, according to analysts who track the company. But the figures are from the day before Moody's began slashing the bank's ratings, sparking speculation about possible flight of deposits since then. For instance, while Fitch Ratings cut NYCB's credit ratings to junk last week, it kept the bank's long-term uninsured deposits at BBB-, one level above junk. To replace deposits, NYCB could raise brokered deposits, issue new debt or borrow from the Federal Reserve's facilities, but that would all probably come at a higher cost, McGratty said.

Persons: NYCB, Moody's, Keith Horowitz, Horowitz, John Pinto, Chris McGratty, NYCB didn't, McGratty Organizations: New York Community Bank, New, Community Bank, Moody's, Citigroup, Fitch, BBB, Federal, CNBC PRO Locations: New, Yonkers , New York, Baa2, Moody's

☆ NYCB stock tumbles to lowest level since 1996
▼ + stars: | 2024-03-04 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +2 min

New York CNN —Shares of New York Community Bank (NYCB) fell 23% Monday, hitting their lowest level since 1996. The issues caused a $2.4 billion loss to shareholders last quarter, NYCB said. That caused the stock to plunge, bringing it to its lowest level since 1997. NYCB’s troubles are having a mixed effect on other regional bank stocks. Shares of Valley National Bank (VLY) closed 5.6% lower on Monday, while Zions Bancorporation (ZION) closed 1% higher.

Persons: NYCB, Alessandro DiNello, Zions Organizations: New, New York CNN, New York Community Bank, Fitch, Moody’s Investors Service, First Republic Bank, Silicon Valley Bank, Signature Bank, National Bank Locations: New York, Silicon, NYCB, ZION

☆ The American Dream is under siege
▼ + stars: | 2024-03-02 | by ( Matt Egan | ) edition.cnn.com time to read: +15 min

Parents of young children are making difficult choices to afford child care — or they’re opting to evade it by dropping out of the workforce altogether. Even as the inflation rate has cooled across the US economy, child care remains a sore spot for many families. The weekly price of day care for a toddler surged 9% in 2023, according to Care.com, a marketplace for child care. Of course, Allison is hardly alone in feeling like the American Dream has been more difficult — and expensive — to attain than imagined. “The American dream is being taken away from the younger generation by the housing affordability challenges,” said Lawrence Yun, chief economist at the National Association of Realtors.

Persons: Hana Husković, Price, Hana, Michelle, they'll, ” Hana, “, It’s, they’ll, ’ Allison Powell, Liam Kelly, ” Allison, Allison Powell, Corinne ., ”, Allison, I’ll, homebuyers, Lotfi Karoui, Goldman Sachs, Lawrence Yun, Yun, Priscilla Almodovar, Fannie Mae, ” Almodovar, that’s, Almodovar, they’d, Homebuilding, Mark Zandi, Biden, ” Lael Brainard, Brainard, ” Brainard, ‘, Rachael Gambino, Garrett Mazzeo, Rachael, Deborah Brunswick, John General, ” Rachael, won’t, they’ve, – Organizations: New, New York CNN, Bureau of Labor Statistics, Wall, CNN, Federal, Intercontinental Exchange, ICE, Bloomberg, Getty, Rust Belt, National Association of Realtors, North, NAR, That’s, Baby Boomers, Homeowners, Federal Reserve, Moody’s Analytics, White, National Economic Council, American, Target, Starbucks, Facebook Locations: New York, United States, Atlanta, Peachtree Corners , Georgia, Decatur, Decatur , Georgia, Carolina, Yugoslavia, Italy, Mexico, Oakland , California, Livermore, San Francisco, California, Los Angeles, San Diego, Francisco, Miami, Honolulu, Rust, Des Moines , Iowa, Dayton , Ohio, Cleveland , Ohio, Scranton , Pennsylvania, Los Angeles , California, North America, America, States, Lansdale , Pennsylvania, Philadelphia

A New York bank is under severe pressure Friday close to one year after absorbing a large chunk of another bank 30 miles away that had failed. That pressure has been compounded at the Hicksville, New York, bank because it grew massively almost overnight after absorbing the failed Signature Bank. That put New York Community Bancorp at a new level that requires higher regulatory scrutiny, a transition that has been rocky. One of those failed banks, Signature, was acquired by New York Community Bancorp, pushing it above $100 billion in assets, which by law puts it under more scrutiny from regulators. DiNello was CEO of Flagstar Bank, which New York Community Bancorp acquired in late 2022.

Persons: Thomas Cangemi, ”, Joe Biden, ” Citi’s Keith Horowitz, Horowitz, Cangemi, Alessandro DiNello, DiNello Organizations: New York Community Bancorp, Moody’s, U.S . Securities, Exchange Commission, Bank, Industry, Flagstar Bank, New, Community Bancorp Locations: York, New, , New York

☆ Here’s why regional banks have so much commercial real estate exposure
▼ + stars: | 2024-02-29 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +7 min

New York CNN —It’s no secret that commercial real estate (CRE) has become a source of stress for banks. Regional banks were on high alert recently after New York Community Bancorp (NYCB) reported steeper-than-expected future losses on commercial real estate loans. So why is it that the smaller, regional banks are so much more exposed to commercial real estate? Office real estate is among the bank’s smaller commercial real estate subcomponents. Robbins of Valley National Bank told CNN “we remain comfortable with our diverse and granular commercial real estate portfolio.”Office real estate is just one component of commercial real estate, albeit the most worrisome to banks and economists.

Persons: New York CNN —, Goldman Sachs, Fitch, Banks, BankRegData, Flagstar, “, JPMorgan Chase, —, Michael Brochstein, it’s, Ira Robbins, Robbins, CNN “, Carlos Barria, ” Organizations: New, New York CNN, New York Community Bancorp, Flagstar Bank, Federal Deposit Insurance Corporation, National Bank, JPMorgan, Getty, Valley National Bank, CNN, Fitch, FDIC, Reuters Locations: New York, Morristown , New Jersey

☆ Israel’s economy slumps in the fourth quarter as war takes a toll
▼ + stars: | 2024-02-19 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

London CNN —Israel’s output contracted sharply in the final three months of 2023, falling for the first time in nearly two years, as the war with Hamas takes a heavy toll on the economy. The conflict is expected to cost Israel around 255 billion shekels ($70.3 billion) by the end of 2025, equivalent to around 13% of GDP, according to the Bank of Israel. And earlier this month, Moody’s delivered Israel’s first ever credit rating downgrade, citing elevated political risk and deteriorating public finances stemming from the war. “Under a scenario of outright conflict… the negative economic impact would spread to more sectors and be longer-lasting,” Moody’s said. In 2023 as a whole, Israel’s economy grew 2%, according to the statistics office.

Persons: Liam Peach, ” Peach, Moody’s, Israel’s, ”, ” Moody’s, Ido Soen Organizations: London CNN, Hamas, Gross, Israel’s, Bureau, Statistics, Israel, Capital Economics, Bank of Israel Locations: Gaza, Israel, Lebanese

☆ A US productivity boom may explain how inflation slowed amid a strong economy
▼ + stars: | 2024-02-17 | by ( Bryan Mena | ) edition.cnn.com time to read: +5 min

If productivity is strong, that means the US economy is doing more with less, or being more productive. Productivity is measured by dividing all the goods and services produced in the economy by every hour people worked. “But the economy did well, so that translated into higher productivity, supporting higher wage growth and fending off inflation from accelerating.”Last year’s productivity boom could also be a combination of all of the above. Still, it may be too soon to know if last year’s productivity burst was truly a transformative shift in the US economy. “Sometimes at the very end of an economic cycle, productivity can be boosted by cost-saving measures,” Goodwin of New York Life Investments said.

Persons: ” Lauren Goodwin, Mark Zandi, John Min, Austan Goolsbee, It’s, ” Min, ” Goodwin, ” Organizations: DC CNN, Labor Department, New York Life Investments, CNN, Microsoft, Meta, Citigroup, Monex, Federal Reserve, Chicago Fed, Bloomberg Locations: Washington

☆ Moody's Mark Zandi talks the risks of keeping rates higher
▼ + stars: | 2024-02-16 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailMoody's Mark Zandi talks the risks of keeping rates higherMark Zandi, Moody’s Analytics chief economist, and CNBC's Steve Liesman join 'The Exchange' to discuss the case for March rate cuts, the risks of keeping rates higher, and more.

Persons: Mark Zandi, Steve Liesman

TOKYO (AP) — Shares declined Wednesday in Asia after disappointingly high U.S. inflation data sent stocks sliding on Wall Street and raised prospects that interest rates will remain elevated for longer. Hong Kong’s Hang Seng index resumed trading after the Lunar New Year holiday, edging 0.7% higher to 15,861.77 after opening lower. High interest rates hurt all kinds of investments, and they tend to particularly hurt high-growth stocks like technology companies. Stocks of smaller companies fell even more because high rates could hurt them more than bigger rivals by making it more difficult to borrow cash. Yields jumped in the bond market as traders built up expectations for the Fed to keep rates high for longer.

Persons: Australia's, Korea's Kospi, Sensex, Tuesday’s, Russell, Alexandra Wilson, Elizondo, Carl Icahn Organizations: TOKYO, —, Nikkei, Federal Reserve, Labor Department, Dow Jones, Nasdaq, Microsoft, Fed, Treasury, Goldman, Goldman Sachs Asset Management, Wall, JetBlue Airways, New York Mercantile Exchange, Brent, U.S Locations: Asia, Indonesia, Southeast, China, Bangkok, Goldman Sachs

☆ Opinion: A thrilling Super Bowl that was also about something more
▼ + stars: | 2024-02-12 | by ( Opinion Amy Bass | ) edition.cnn.com time to read: +10 min

Amy Bass Rodney BedsoleThis time around, football pundits wondered if Super Bowl LVIII would be the coronation of Chiefs coach Andy Reid and the establishment of a Kansas City dynasty with a third title in five years. This Super Bowl matchup, of course, had history. “We’re not done.”Key to any Super Bowl, of course, is the halftime show. Compared to Usher on roller skates, the commercials – which often take center stage of any Super Bowl broadcast — were relatively tame. “Taylor Swift is in Las Vegas,” commentator Ian Rappoport had assured Taylor Nation.

Persons: Amy Bass, Read, Patrick Mahomes, Mecole, ” Hardman, Tom Brady, Michael Che, ”, Donald Trump’s, Lady Gaga, Amy Bass Rodney Bedsole, Andy Reid, Kyle Shanahan’s, Mike, Taylor Swift, Travis Kelce, Reid, Kelce, Shanahan, Brock Purdy, George Kittle, Swift, Taylor, Purdy, Jake Moody’s, Harrison Butker, Moody, Butker, Mahomes, “ We’re, Usher, Alicia Keys, Lil Jon, Ludacris, Lionel Messi, Dan Marino, Jason Sudeikis shilled, Matt Damon, Ben Affleck, Jennifer Lopez, Dunkin, Robert F Kennedy Jr, ’, Kennedy, Kennedy Jr’s, Taylor —, “ Taylor Swift, Ian Rappoport, “ I’ll, —, Ashley Avignone, Joe Biden, Trump, ” Taylor, Joe Biden ”, Biden, Biden — Organizations: Manhattanville College, CNN, Kansas City Chiefs, San Francisco 49ers, Atlanta Falcons, New England Patriots, Budweiser, Denver Broncos, Chiefs, 49ers, Super, Kansas City, Verizon, PAC, “ GO CHIEFS, NFL, Truth Locations: America, Kansas, San Francisco, Japan, Las Vegas, Mahomes, Cetaphil’s, Massachusetts, Sephora

☆ Opinion: How to solve the nation’s affordable housing crisis
▼ + stars: | 2024-02-12 | by ( Opinion Jim Parrott | Mark Zandi | ) edition.cnn.com time to read: +7 min

Not only has that made mortgages much more expensive, it’s exacerbated the long-standing shortage in housing supply, particularly at the lower-priced part of the market. The market machinery that cranks out housing supply at the bottom of the market has effectively ground to a halt. But falling rates will not solve the underlying structural problems that caused the housing shortfall in the first place. Once rates normalize, housing affordability will simply return to where we were prior to the pandemic, going from dismal to just bad. Lawmakers should complement this support to increase the supply of housing with targeted help for those looking to buy their first home.

Persons: Jim Parrott, Parrott Ryan, Mark Zandi, Jim Parrott Ella Parrott, Mark Zandi Moody's, it’s Organizations: Urban Institute, Moody’s, CNN, National Association of Realtors, Congress

It is the first time Moody’s has lowered Israel’s credit rating, which is used by investors to measure the riskiness of investing in a global entity or government. Moody’s downgraded Israel from A1 to A2 and said the outlook for the country’s economy was “negative.” The A2 rating nonetheless continues to carry relatively low risk, according to Moody's. Photos You Should See View All 21 ImagesStill, Israeli officials fear that the Moody’s downgrade could lead other major agencies also to downgrade Israel’s outlook. Israel’s economy bounced back after previous wars with Hamas, but the current war is much longer than any of those. Concerns about Israel’s governance, rising inflation and a worldwide slowdown in tech investments last year also weighed on the economy.

Persons: “, ” Moody’s, Moody’s, Bezalel Smotrich, ”, Benjamin Netanyahu, Michel Strawczynski, it’s, Amir Yaron, Israel –, Western Europe —, Benjamin Netanyahu's, Moody's Organizations: —, Sunday, Finance, Hebrew University, Bank of Israel, Bank of Israel Gov Locations: TEL AVIV, Israel, Gaza, Jerusalem, Western Europe

☆ How empty office space became the new bogeyman on Wall Street
▼ + stars: | 2024-02-09 | by ( Matt Egan | ) edition.cnn.com time to read: +6 min

And yet Wall Street is suddenly freaking out about bad real estate loans and empty office buildings. One regional lender — New York Community Bancorp — has seen its stock price implode and its credit rating slashed to junk in part because of its exposure to bad office loans. Japan’s Aozora Bank startled investors by blaming bad loans linked to US offices for a projected loss. That’s a major problem for an industry like real estate known for piling on debt. Importantly, Zandi said these bank failures will be limited to smaller lenders — the ones sitting on suddenly shaky office loans.

Persons: —, ” they’re, It’s, ”, Ed Mills, Raymond James, gameplan, Paul Volcker, That’s, Spencer Platt, ” Alessandro DiNello, NYCB, Powell, Janet Yellen, Jerome Powell, “, ” Mills, Mark Zandi, ” Zandi, Zandi, ” Banks Organizations: New, New York CNN, —, York Community Bancorp, Japan’s, Bank, Federal Reserve, Fed, Regulators, New York Community Bancorp, York Community Bank, Getty, Moody’s, CNN Locations: New York, sweatpants, Washington, Brooklyn, New York City

Japan's benchmark Nikkei 225 rose nearly 0.1% to 36,897.42, slipping back from earlier gains that took it briefly to a 34-year high. In prior months, such a report may have hurt the stock market because of concerns that it would mean a longer wait for cuts to interest rates from the Federal Reserve. The latest set of earnings reports from big U.S. companies also kept the stock market mixed overall. It gave a forecast for expected profit across 2024 that fell short of analysts’. In other trading, benchmark U.S. crude lost 6 cents to $76.16 a barrel in electronic trading on the New York Mercantile Exchange.

Persons: Shinichi Uchida, Australia's, ”, Ryan Detrick, Ralph Lauren Organizations: TOKYO, Nikkei, Investors, Bank of Japan, SoftBank Group Corp, Nissan, Dow Jones, Nasdaq, Carson Group, Federal Reserve, Walt Disney Co, Arm Holdings, PayPal, Global, New York Community Bancorp, Traders, New York Mercantile Exchange, Brent, U.S . Locations: U.S, Asia, U.K

☆ Israel’s credit rating downgraded because of war with Hamas
▼ + stars: | 2024-02-09 | by ( Samantha Delouya | ) edition.cnn.com time to read: +2 min

CNN —Israel’s prolonged war with Hamas is going to become a significant economic and political burden for the country over the long haul, Moody’s said Friday. So the agency downgraded Israel’s credit rating. Moody’s Investors Service downgraded Israel’s debt rating from A1 to A2 on Friday, underscoring the economic damage of the country’s war with Hamas, which has resulted in thousands of human casualties and stoked geopolitical tensions around the world. In mid-October, less than two weeks after Hamas’ deadly attack on Israel on October 7, Moody’s warned that Israel’s credit rating was in danger of a downgrade. “Conflict with Hezbollah would pose a much bigger risk to Israel’s territory,” Moody’s said.

Persons: CNN —, Moody’s, ” Moody’s, Matt Egan Organizations: CNN, Moody’s, Hamas Locations: Israel, Gaza, “

☆ Yellen: It’s ‘obvious’ that empty office buildings will create banking stress and losses
▼ + stars: | 2024-02-08 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

New York CNN —High commercial real estate vacancies are expected to create some stress for smaller banks, Treasury Secretary Janet Yellen said Thursday. However, she said she does not see them as causing a systemic risk to the nation’s financial system. “It’s obvious that there’s going to be a stress and losses that are associated with this,” Yellen said. On Tuesday, Yellen said she does “have a concern about commercial real estate.” She noted that higher interest rates and rising vacancy rates in office buildings have combined to cause problems — especially as real estate loans come due. New York Community Bancorp recently disclosed a surprise loss and a spike in loan losses as commercial real estate loans go bad.

Persons: Janet Yellen, Yellen, ” Yellen, ”, CNN’s Matt Egan Organizations: New, New York CNN —, Banking Committee, Silicon Valley Bank, New York Community Bancorp, Moody’s Investors Service, Bank Locations: New York, Silicon

☆ New York Community Bank stock drops even after lender says deposits increased
▼ + stars: | 2024-02-07 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

The bank announced earlier on Wednesday that it had appointed DiNello, formerly the president of Flagstar Bank, to the position effective immediately. The bank holds total deposits of approximately $83 billion, the lender said in a statement Tuesday evening. US banks hold about $2.7 trillion in commercial real estate loans. But while the last crisis was all about interest rate risk, this one revolves around the $20 trillion commercial real estate market. The increase was driven partly by expected losses on commercial real estate loans, it said.

Persons: ” Alessandro DiNello, DiNello, NYCB, ”, weren’t, Fitch, Thomas Cangemi, ” DiNello, Goldman Sachs, Moody’s, Neel Kashkari, ” Kashkari, he’s, Janet Yellen, “, Yellen, “ I’m, ” Yellen Organizations: New, New York CNN —, New York Community Bancorp, Moody’s Investors Service, Flagstar Bank, Bank, Moody’s, JPMorgan, Signature Bank, Silicon Valley, Regulators, Federal, Community Bancorp, CNBC, Financial Locations: New York, Flagstar, New, Minneapolis

☆ Premarket stocks: US companies are still worried about an economic shock
▼ + stars: | 2024-02-07 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

A version of this story first appeared in CNN Business’ Before the Bell newsletter. But America’s publicly traded companies are flashing a key sign of economic uncertainty — they’ve been hoarding cash. And companies with existing and expensive debt in a high-interest rate environment would likely want to use their cash to pay it down. “We interpret this correlation as evidence that cash reserves act like insurance against sudden economic shocks,” wrote the researchers. The missing bolts are apparently not the only problem.

Persons: America’s, ” Vijay Govindarajan, ”, Dartmouth’s Govindarajan, Anup Srivastava, Chandrani Chatterjee, Max, Jennifer Homendy, Homendy, Evan Spiegel, Tuesday’s, Read Organizations: CNN Business, Bell, New York CNN, CNN, Moody’s Investors, Dartmouth’s Tuck School of Business, University of Calgary’s Haskayne School of Business, University of Texas, JPMorgan, NTSB, Boeing, National Transportation Safety, Max, Alaska Airlines, United Airlines, Wall Street, Meta Locations: New York, Ukraine, Arlington, Alaska, Oregon, ”

☆ New York Community Bank’s stock price is plunging, but that won’t tell you if it’s on the brink of failure. Here’s what will
▼ + stars: | 2024-02-07 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +4 min

New York CNN —Some of the very first signs of banking stress in the crisis that unfolded last year were reflected in Silicon Valley Bank, Signature Bank and First Republic Bank’s nosediving share prices. That’s a considerably larger share compared to Signature Bank and Silicon Valley Bank shortly before their demises. So far, there’s no evidence that the bank is at risk of failingAs scary as it may be to see a bank’s stock price plunging, it’s not the best gauge for the bank’s viability. The best source of information on that front is a bank’s deposit flows, Chiaverini said. As of last quarter, deposits were down just 2% and declined even less excluding the custodial deposits connected to the acquisition of Signature Bank.

Persons: Bank’s, Thomas Cangemi, David Chiaverini, it’s, Chiaverini, NYCB, Janet Yellen, ” Yellen Organizations: New, New York CNN, Silicon Valley Bank, Signature Bank, First, New York Community Bancorp, Moody’s Investors Service, Wedbush Securities, ”, Silicon Valley, Bank of America, Financial Services, Federal Deposit Insurance Corporation Locations: New York, Silicon Valley

☆ Former Dallas Fed President Robert Kaplan on NYCB turmoil
▼ + stars: | 2024-02-07 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFormer Dallas Fed President Robert Kaplan on NYCB turmoilRobert Kaplan, former Dallas Fed president, joins 'The Exchange to discuss New York Community Bank as the regional bank's stock took a hit after Moody’s cut its credit rating to junk.

Persons: Robert Kaplan Organizations: Former Dallas Fed, Dallas Fed, New, Community Bank

☆ Corporate defaults are on the rise: Here's what you need to know
▼ + stars: | 2024-02-06 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCorporate defaults are on the rise: Here's what you need to knowChristina Padgett, Moody’s head of leveraged finance, joins 'The Exchange' to discuss the state of corporate defaults, how the Fed's decisions will impact leveraged companies, and more.

Persons: Christina Padgett, Moody’s

☆ New York Community Bancorp’s credit rating downgraded to junk on real estate concerns
▼ + stars: | 2024-02-06 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

CNN —Embattled regional bank New York Community Bancorp suffered another blow Tuesday evening as Moody’s Investors Service downgraded its credit rating to junk status. Shares of New York Community Bancorp tumbled 17% in after-hours trading Tuesday evening after the downgrade. Moody’s is keeping New York Community Bancorp’s credit rating on review, signaling further downgrades are possible. New York Community Bancorp did not immediately respond to a request for comment. Treasury Secretary Janet Yellen declined to specifically comment on New York Community Bancorp’s troubles during a hearing on Tuesday.

Persons: Moody’s, ”, Wall, ” Moody’s, Janet Yellen, Yellen, “ I’m, ” Yellen Organizations: CNN, New, New York Community Bancorp, Moody’s Investors Service, Community Bancorp, New York Community, Silicon Valley Bank, York Community Bancorp, Financial Services Committee Locations: New York, New, Silicon

A combination of inflation, increased interest rates, and the end of pandemic-tied relief, such as the moratorium on student loan payments, has led to record credit card debt, experts say. A recent report from credit rating company Moody’s found credit card delinquencies are now well above 2019, or pre-pandemic levels. If you're facing increased credit card debt, while feeling the ongoing effects of inflation, here's what to consider:ASK FOR A RATE CUTPhotos You Should See View All 45 ImagesOne of the first things you should do is ask your credit card company to lower your rates. While the Federal Reserve signaled Wednesday that its first interest rate cut is likely months away, the average credit card interest rate is already far and away higher than the rate set by the Fed. PAY OFF HIGHER-INTEREST DEBT FIRSTKnown as the “avalanche approach,” paying off debt that accumulates interest more quickly will always be more efficient than paying off lower-interest debt first.

Persons: Moody’s, Silvio Tavares, ”, Kia McCallister, Charles Schwab Organizations: —, Federal Reserve, ASK, Fed, National Foundation, Credit, nfcc.org, Federal Trade, Public, Bureau of Labor Statistics, Consumer Federation of America, America, Associated Press, Charles, Charles Schwab Foundation, Inc, AP Locations: realtor.com

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