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SummarySummary Companies First Republic Bank tumbles on suspending dividendFedEx jumps on full-year profit forecast raiseFutures mixed: Dow down 0.30%, S&P down 0.11%, Nasdaq up 0.10%March 17 (Reuters) - U.S. stock index futures were mixed on Friday as investors remained wary about a potential banking crisis despite the country's largest banks throwing troubled regional lender First Republic Bank a lifeline. Big U.S. banks were mixed, with JPMorgan and Citigroup (C.N) flat, while Wells Fargo (WFC.N) edged 0.1% higher. European Central Bank supervisors saw no contagion to euro zone banks from the recent market turmoil, a source said. Investors are now looking ahead to the Federal Reserve's interest rate decision, due next week, to gauge how it will tame inflation amid a banking crisis. Money market participants now see an 83% chance of the Fed raising rates by 25 basis points on March 22.

☆ SVB Financial Files for Chapter 11 Bankruptcy Protection
▼ + stars: | 2023-03-17 | by ( Alexander Saeedy | ) www.wsj.com time to read: 1 min

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☆ Futures waver as banking crisis worries persist
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +3 min

Shares of First Republic Bank (FRC.N), however, fell 3.8% in premarket trading as the bank suspended its dividend payout. Concerns about a global banking crisis have dominated market sentiment this week after the collapse of SVB Financial (SIVB.O) and Signature Bank (SBNY.O). While the focus remains on the health of the banking sector, investors also looked ahead to U.S. central bank's policy meeting next week to gauge how it will tame inflation amid a banking crisis. Yield on the two-year Treasury note, which best reflects interest rate expectations, rose to 4.15% as some tensions about the banking sector abate. Shares of Fedex Corp (FDX.N) rose 11.1% premarket after the delivery giant raised full-year earnings forecast after cost cuts.

☆ Silicon Valley Bank's CEO and CFO were ousted but other bank executives still have their jobs — and they're wooing new customers, acting CEO told clients.
▼ + stars: | 2023-03-17 | by ( Kali Hays | Darius Rafieyan | Dakin Campbell | ) www.businessinsider.com time to read: +5 min

Clients were told that the CEO and CFO are out of SVB, while other managers remain. His message to them: Silicon Valley Bank was fully operational, protected by unlimited FDIC insurance even for new deposits, and all business was functioning normally, as if the bank run on Friday never happened. In this case, Silicon Valley Bridge Bank is a full-service bank." Retaining management is, perhaps, a good outcome for the moment for SVB employees who have been cast in a pall of uncertainty since last week. SVB employees now seem to fall into three groups, according to the recruiter, who has spoken with SVB employees in recent days.

☆ Here are all 8 stocks we bought this week during the bank-driven market volatility
▼ + stars: | 2023-03-17 | by ( Paulina Likos | ) www.cnbc.com time to read: +6 min

The Club followed through on what Jim Cramer laid out last Sunday, using this week's volatility to opportunistically buy on market pullbacks. In fits and starts, bank stocks were under pressure all week. With so many trades, eight stocks in all, here's a recap for Club members that further explains how our broader view of the market influences our buying decisions. We see EMR's market decline after the takeover news as overblown and view the stock's valuation as more attractive following a steeper decline Friday. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

☆ People are pouring cash into money market funds at the highest rate since the start of COVID as depositors flee banking turmoil
▼ + stars: | 2023-03-17 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

Money market funds drew in the most cash since early 2020 as depositors sought safety during a shakeup in the banking industry. About $121 billion was poured in money market funds over the past week, the Investment Company Institute said. Last week's shutdown of Silicon Valley Bank was the first bank seizure since 2008. For the week that ended on Wednesday, $120.93 billion flew into money market funds, the Investment Company Institute said Friday. The push of cash into money market funds resulted in a record $5.01 trillion in total assets tracked by ICI.

☆ Where is Silicon Valley's J. Pierpont Morgan?
▼ + stars: | 2023-03-17 | by ( Anita Ramaswamy | ) www.reuters.com time to read: +3 min

After withdrawals lashed the banking system in 1907, financier J. Pierpont Morgan corraled his peers into using their own money to calm the crisis. The contrast with Silicon Valley – which is also embroiled in the ongoing firestorm – couldn’t be more stark. Startup and technology firms’ cash crunch precipitated the fall of Silicon Valley Bank and its parent SVB Financial (SIVB.O), which in turn sparked panic in the financial system. Silicon Valley is fragmented and built on an individualistic ethos. Real, toothsome regulation might force Silicon Valley’s great minds to realize how interconnected their ecosystem is.

March 17 (Reuters) - Oil prices settled lower Friday, reversing early gains of more than $1 a barrel as banking sector fears caused both benchmarks to reach their biggest weekly declines in months. U.S. West Texas Intermediate crude fell $1.61, or 2.4%, at $66.74. Oil prices tracked equity markets lower, dogged by the banking sector crisis and worries about possible recession. Pressure stemmed from "the continued fragile state of the market", said Ole Hansen, head of commodity strategy at Saxo Bank. Analysts still expect constrained global supply to support oil prices in the foreseeable future.

March 17 (Reuters) - HR and payment software startup Rippling said on Friday it has raised $500 million in a new funding round initially intended to help customers make payroll in the immediate aftermath of Silicon Valley Bank's collapse. The round, led by technology investor Greenoaks Capital, gave Rippling the same valuation of $11.25 billion it had clinched after its previous capital raise last year, the company said. Unclear if customers' funds would be recovered by Monday, Conrad started to seek more capital from investors, whose funds were also partly stuck with SVB. Growth equity firm Greenoaks was one of Rippling's investors that have funds available to wire on Monday. Rippling offers services to businesses to manage their human resource and information technology operations such as employees' onboarding and payroll management.

☆ U.S. FDIC weighs backstop on bank auctions to attract smaller peers - source
▼ + stars: | 2023-03-17 | by ( Kanjyik Ghosh | ) www.reuters.com time to read: +1 min

March 17 (Reuters) - U.S. regulators are considering retaining ownership of securities owned by Signature Bank (SBNY.O) and Silicon Valley Bank (SIVB.O) to allow smaller banks to participate in auction for the collapsed lenders, a source familiar with the matter said on Friday. Many of the fixed income securities that SVB and Signature Bank invested in, such as Treasuries, have been worth less since the Federal Reserve raised interest rates. Signature Bank and Silicon Valley Bank did not immediately respond to Reuters requests for comment. Reuters on Wednesday reported that regulators at the FDIC have asked interested banks in acquiring SVB and Signature Bank to submit bids by March 17. SVB Financial Group (SIVB.O), the parent company of Silicon Valley Bank, earlier on Friday filed for a court-supervised reorganization under Chapter 11 bankruptcy protection.

☆ Executives at Silicon Valley Bank and First Republic Bank sold millions of stock right before the crash
▼ + stars: | 2023-03-17 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

Executives at First Republic Bank and Silicon Valley Bank sold stock right before the banking crisis. First Republic's chief risk officer sold shares two days before the Silicon Valley Bank implosion. Today, SVB stock remains halted but is essentially at zero after Silicon Valley Bank was taken over by the FDIC and SVB Financial filed for bankruptcy. First Republic Bank executives also managed to sell stock right before the crash. All-in, insiders at First Republic Bank sold about $12 million in stock in 2023 at an average price of just below $130 per share.

☆ US stocks fall as bank worries linger after firms borrow $165 billion from Fed to shore up liquidity
▼ + stars: | 2023-03-17 | by ( Matthew Fox | ) www.businessinsider.com time to read: +1 min

US stocks fell on Friday as investor concerns about the current state of the US banking industry linger. Banks borrowed $165 billion from the Federal Reserve's backstop program to shore up liquidity. First Republic fell 20% after it cut its dividend, and SVB Financial filed for bankruptcy in New York. First Republic Bank shored up liquidity via a $30 billion capital infusion from major US banks like JPMorgan, Wells Fargo, Goldman Sachs, Morgan Stanley, and Bank of America, among others. Still, the deal wasn't enough to stem the decline in First Republic Bank's stock, which fell 20% on Friday after it suspended its dividend.

WASHINGTON, March 17 (Reuters) - U.S. President Joe Biden said on Friday the banking crisis has calmed down after the recent collapse of Silicon Valley Bank (SVB) (SIVB.O) and Signature Bank (SBNY.O). "Yes," Biden told reporters at the White House on Friday when asked if the banking crisis had calmed down. Californian regulators shuttered Silicon Valley Bank last Friday and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Earlier on Friday, Biden had called on Congress to give regulators greater power over the banking sector, including leveraging higher fines for managers, clawing back executives' compensation and barring officials from failed banks. Silicon Valley Bank CEO Greg Becker sold $3.6 million worth of shares in late February, about two weeks before the bank entered FDIC receivership, Bloomberg and CNBC reported.

☆ SVB Financial seeks bankruptcy protection for reorganization
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

March 17 (Reuters) - SVB Financial Group (SIVB.O) said on Friday it filed for a court-supervised reorganization under Chapter 11 bankruptcy protection to seek buyers for its assets, days after its former unit Silicon Valley Bank was taken over by U.S. regulators. The plan to seek bankruptcy protection comes after the company said on March 13 it was planning to explore strategic alternatives for its businesses, including the holding company, SVB Capital and SVB Securities. SVB Securities and SVB Capital's funds and general partner entities are not included in the Chapter 11 filing, the company said on Friday. Reuters reported on Wednesday that the parent company was exploring seeking bankruptcy protection for selling assets. California banking regulators closed SVB on Friday and appointed the Federal Deposit Insurance Corporation as receiver for later disposition of its assets.

☆ What’s Going on With First Republic Bank?
▼ + stars: | 2023-03-16 | by ( Colin Barr | ) www.wsj.com time to read: 1 min

First Republic Bank shares have been hit hard over the past week following the failures of two large U.S. regional banks, Silicon Valley Bank and Signature Bank. On Thursday, shares of the bank and many other financial firms rallied after The Wall Street Journal reported that the biggest U.S. banks are discussing a joint rescue of the San Francisco lender. Under the plan, 11 banks including JPMorgan Chase & Co. would place $30 billion in deposits at First Republic, using their own funds. What happened to First Republic Bank? First Republic was one of the banks to be swept up in the contagion that followed the March 10 failure of SVB Financial Corp., the parent of Silicon Valley Bank, because of some similarities including their size, their largely wealthy client base and the largely uninsured nature of their deposit bases.

The planned rescue package was discussed by Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and JPMorgan Chase & Co. (JPM.N) CEO Jamie Dimon on Tuesday, according to a source familiar with the situation. A central player in the deal was Rodgin Cohen, a veteran lawyer at Sullivan & Cromwell, two sources familiar with the matter said. A First Republic Bank branch is pictured in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. Other lenders including BNY Mellon, PNC Bank, State Street, Truist and U.S. Bank channeled $1 billion of deposits into the San Francisco-based lender. Federal Reserve Board Chair Jerome Powell said the Fed was always ready to provide liquidity through its discount window.

☆ 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.

☆ US FDIC may need temporary guarantee for all bank deposits -ex chief Bair
▼ + stars: | 2023-03-16 | by ( David Lawder | ) www.reuters.com time to read: +3 min

WASHINGTON, March 15 (Reuters) - The Federal Deposit Insurance Corp may need to seek temporary guarantees for all uninsured U.S. bank deposits to stem a drain of funds from small and regional U.S. lenders following deposit bailouts for failed banks SVB Financial and Signature Bank, former FDIC chair Sheila Bair said on Wednesday. "My biggest fear now is that that lack of trust in the banking system takes hold and uninsured deposits start fleeing banks of all sizes to the biggest banks, just making them bigger again," Bair said. If that continues, the FDIC and the U.S. Treasury should seek "streamlined" authority from Congress to guarantee all uninsured deposits and transaction accounts, which handle client company payroll and operations, she said. A Reuters review of company filings and FDIC data showed that San Francisco-based First Republic had uninsured deposits of $119.5 billion, or 68% of its total. Bair said she did not view Silicon Valley Bank or Signature Bank as systemically important institutions, adding that they could have been resolved through FDIC's normal takeover process, with a "haircut" for uninsured deposits.

It would help organize a $2.25 billion stock sale for SVB to fill the funding gap caused by the bond portfolio sale, two of the sources said. It is unclear whether Goldman has held onto all or part of the bond portfolio or sold it. In a regulatory filing on Tuesday, SVB said its bond portfolio sales to Goldman were done at "negotiated prices". Goldman was not paid the underwriting fee it had agreed for the stock sale because that deal fell through, two of the sources said. UNDISCLOSED ROLESVB did not disclose in its stock sale prospectus to investors that Goldman was the acquirer of the bond portfolio it sold at a loss.

☆ Credit Suisse sued by U.S. shareholders over finances, controls
▼ + stars: | 2023-03-16 | by ( ) www.cnbc.com time to read: +1 min

U.S. shareholders of Credit Suisse Group AG sued the Swiss bank on Thursday, claiming that the bank defrauded them by concealing problems with its finances. The proposed class action accuses Credit Suisse of deceiving investors by failing to disclose that it was suffering from "significant" customer outflows, and that it had material weaknesses in its internal controls over financial reporting. Credit Suisse declined to comment on the lawsuit, which was filed in federal court in Camden, New Jersey. Turner, the named plaintiff, sued on behalf of holders of Credit Suisse's American depositary shares from March 10, 2022, to March 15, 2023. The case is Turner v Credit Suisse Group AG et al, U.S. District Court, District of New Jersey, No.

☆ Deposit insurance is addiction not medication
▼ + stars: | 2023-03-16 | by ( John Foley | ) www.reuters.com time to read: +7 min

NEW YORK, March 16 (Reuters Breakingviews) - Deposit insurance is as American as apple pie, and twice as unhealthy. Bank deposits in the United States are guaranteed up to $250,000, and over 90% of SVB’s accounts held more than that sum. Alternatively, regulators could invite the market to provide a solution – say, with privately funded insurance for deposits over the guaranteed limit. The trouble is that deposit insurance is like Novocaine – the higher the dose, the more the patient becomes numb. For that reason the best option is probably to do nothing – or better still, lower the deposit insurance limit.

☆ Wall Street analysts see direct economic growth hit from SVB fallout
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: 1 min

March 16 (Reuters) - The crisis in small and mid-sized banks in the United States after the swift downfall of SVB Financial Group (SIVB.O) could further slow down the struggling economy and raises the probability of a recession this year, according to Wall Street analysts. J.P.Morgan said the slower loan growth at mid-size banks could trim a half to one percentage point off the level of GDP over the next year or more. Goldman Sachs raised its probability of the U.S. economy entering a recession in the next 12 months by 10 percentage points to 35%, citing the stress on the small banks. Reporting by Aniruddha Ghosh in Bengaluru; Editing by Dhanya Ann ThoppilOur Standards: The Thomson Reuters Trust Principles.

March 16 (Reuters) - U.S. shareholders of Credit Suisse Group AG (CSGN.S) sued the Swiss bank on Thursday, claiming that the bank defrauded them by concealing problems with its finances. The proposed class action accuses Credit Suisse of deceiving investors by failing to disclose that it was suffering from "significant" customer outflows, and that it had material weaknesses in its internal controls over financial reporting. Credit Suisse declined to comment on the lawsuit, which was filed in federal court in Camden, New Jersey. Turner, the named plaintiff, sued on behalf of holders of Credit Suisse's American depositary shares from March 10, 2022, to March 15, 2023. The case is Turner v Credit Suisse Group AG et al, U.S. District Court, District of New Jersey, No.

LONDON, March 16 (Reuters) - Banks should largely be able to cope with "unrealised losses" on bonds and the collapse of Silicon Valley Bank, top credit ratings agencies S&P Global and Moody's said on Thursday, although they remained guarded on Credit Suisse's woes. "At this stage, we view the risks from unrealized losses as manageable," S&P said in a report published just days after the collapse of Silicon Valley Bank, a lender it had rated as 'investment grade' until the day it fell. Rival agency Moody's also offered its balm to the Credit Suisse jitters, saying that while it would "act appropriately" with the Swiss bank's rating, Europe's lenders remain in fundamentally good health. "That kind of confidence shock that we've just seen from the U.S. is bound to have some impact," Hill said. Reporting By Marc Jones and Lawrence White Editing by Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.

☆ JPMorgan, Morgan Stanley among banks in deal talks with First Republic - WSJ
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: 1 min

March 16 (Reuters) - Several banks including JPMorgan Chase & Co (JPM.N) and Morgan Stanley (MS.N) are in talks with First Republic Bank (FRC.N) for a potential deal, the Wall Street Journal reported on Thursday, citing people familiar with the matter. The deal could involve capital infusion to bolster the troubled lender after the collapse of SVB Financial (SIVB.O) last week triggered fears of a contagion, the report said. JPMorgan and First republic bank did not immediately respond to Reuters' requests for comment. Morgan Stanley declined to comment. Reporting by Niket Nishant in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

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