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☆ BMO's chief strategist says you have to 'sift through the rubble' in the banking sector. Here are the smaller names he likes
▼ + stars: | 2023-04-05 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

First Citizens BancShares and Glacier Bancorp are smart smaller bank stocks to own as investors re-examine the pummeled financial sector, according to Brian Belski, chief investment strategist at BMO Harris. "Unfortunately, you have to kind of sift through the rubble to find ... the best names," he said on CNBC's " Halftime Report ." That's despite the fact that small- and mid-size banks will likely see massive consolidation more broadly, Belski added. Three out of the five analysts with ratings on First Citizens say the stock is worth buying, according to Refinitiv. But after its recent drop, the average analyst expects the stock to rally almost 25% in the next year.

☆ FDIC exercises rights in First Citizens, New York Community Bank stocks
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +1 min

March 31 (Reuters) - Regulator Federal Deposit Insurance Corporation (FDIC) exercised its equity rights in First Citizens BancShares Inc (FCNCA.O) and New York Community Bancorp Inc (NYCB.N) as part of the deals to rescue failed lenders Silicon Valley Bank and Signature Bank. A spokesperson for the regulator confirmed FDIC also exercised its option to acquire shares of New York Community Bancorp. U.S. regulators said on Monday they would backstop the deal for First Citizens to buy Silicon Valley Bank, triggering an estimated $20 billion hit to a government-run insurance fund. First Citizens did not pay cash upfront for the Silicon Valley Bank deal. New York Community Bank entered into an agreement with regulators to buy deposits and loans from New York-based Signature Bank earlier this month.

[1/3] FDIC representatives Luis Mayorga and Igor Fayermark speak with customers outside of the Silicon Valley Bank headquarters in Santa Clara, California, U.S. March 13, 2023. REUTERS/Brittany Hosea-SmallNEW YORK/WASHINGTON, March 31 (Reuters) - The Federal Deposit Insurance Corporation (FDIC) has retained advisers to sell the securities portfolios that the new owners of failed Silicon Valley Bank and Signature Bank rejected, according to people familiar with the matter. Silicon Valley Bank's and Signature Bank's securities portfolios carry a face value of around $90 billion and $26 billion, respectively, according to regulatory filings and statements by government officials. The FDIC estimates the sale of Silicon Valley Bank and Signature Bank will cost the deposit fund $20 billion and $2.5 billion, respectively. It will release final figures once sales of the loan books of the banks and their securities portfolios are complete.

☆ First Citizens Bank, the buyer of SVB's assets, is run by a billionaire North Carolina family that's bought over 20 failed banks since 2008
▼ + stars: | 2023-03-30 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

First Citizens Bank, the company that bought the assets of SVB, is run by a family with a wealth of experience buying failed banks. Forbes looked at the billionaire family that's guided First Citizens' purchase of more than 20 small banks since 2008. First Citizens will be among the largest 20 banks in the US with the SVB deal. Its purchases of failed banks include First Regional Bank and Temecula Valley Bank in California and Denver-based United Western Bank. Its assets jumped from $109 billion just before the SVB deal and have increased from $16.7 billion at the end of 2008.

☆ Gold prices dip as bank angst recedes
▼ + stars: | 2023-03-30 | by ( Kavya Guduru | ) www.reuters.com time to read: +2 min

SummarySummary Companies Gold down for second sessionGold could decline to $1,920/oz - analystVolumes in SPDR Gold Shares highest since OctMarch 30 (Reuters) - Gold prices edged lower on Thursday as easing concerns about the global banking system fed risk appetite and curbed some safe-haven bullion bids. Spot gold was down 0.2% at $1,960.52 per ounce, as of 0346 GMT, falling for a second session. Volumes in SPDR Gold Shares, the largest gold-backed ETF, have surged to their highest level since October," they said. The opportunity cost of holding non-yielding gold rises when interest rates are increased to bring down inflation. Markets see a 43.2% chance of the Fed raising interest rates by 25 basis points in May, according to the CME FedWatch tool.

☆ Premarket stocks: Banking chaos has been bittersweet for crypto and wine
▼ + stars: | 2023-03-30 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

But it also gave the fine wine and crypto industry a big boost as panicking investors rushed out of the financial sector and into alternative assets. Bittersweet banking: SVB lent over $4 billion to winery clients since 1994, with over 400 wine industry clients (including wineries, vineyards and vendors) working with the bank’s premium wine division, according to the bank’s website. Recent SEC filings, meanwhile, indicated SVB had about $1.2 billion in outstanding loans to high-end wine clients when the bank collapsed. Circle, the company behind popular stablecoin USDC, said it had about $3.3 billion of its $40 billion in reserves at SVB. The collapse of Signature Bank, a major crypto lender, also had serious implications for the industry.

☆ Wall Street jumps with rosy outlooks from companies
▼ + stars: | 2023-03-29 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

Micron (MU.O) shares shot up 7.2%, boosting the Nasdaq and S&P 500, and leading gains in the PHLX semiconductor index (.SOX), which closed 3.3% higher. Lululemon surges after strong reoprtThe bulk of S&P 500 companies begin reporting on the first quarter in mid-April. On Monday, regional U.S. lender First Citizens BancShares scooped up the assets of Silicon Valley Bank. Michael Barr, Fed Vice Chair for Supervision, told Congress the scope of blame for Silicon Valley Bank's failure stretches across bank executives. The S&P 500 posted 9 new 52-week highs and no new lows; the Nasdaq Composite recorded 69 new highs and 135 new lows.

☆ Dollar rebounds as banking fears fade; yen falls on quarter-end flows
▼ + stars: | 2023-03-29 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +3 min

NEW YORK, March 29 (Reuters) - The dollar rose against most major peers on Wednesday, reversing some of its recent declines, and gained sharply against the yen, which was volatile as the end of the Japanese fiscal year approaches. Improving risk sentiment and investor hopes that central banks can once again turn their attention toward fighting inflation was helping support the dollar, Given said. The dollar rose to a one-week high against the yen, which remained volatile in the run-up to the end of the Japanese fiscal year on Friday. "A decent amount of USD/JPY flow today is end of quarter related," Monex USA's Given said. The dollar was 1.37% higher at 132.71 yen .

REUTERS/Kevin LamarqueMarch 29 (Reuters) - The scope of blame for Silicon Valley Bank's failure stretches across bank executives, Federal Reserve supervisors and other regulators, the banking system's top cop on Wednesday told U.S. lawmakers demanding answers for the lender's swift collapse. "I think that any time you have a bank failure like this, bank management clearly failed, supervisors failed and our regulatory system failed," Michael Barr, Fed Vice Chair for Supervision, told Congress. 'SOME REAL FLAWS'Barr told the House Financial Services Committee that he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable. The Fed was in discussions with Silicon Valley Bank the day before its collapse to move pledgable collateral to the discount window, a key facility long associated with providing emergency loans to banks, Barr said on Wednesday. "(Fed) staff were working with Silicon Valley Bank basically all afternoon and evening and through the morning the next day to pledge as much collateral as humanly possible to the discount (window) on Friday," Barr said.

March 29 (Reuters) - The Federal Reserve was in discussions with Silicon Valley Bank the day before its collapse to move pledgable collateral to the discount window, a key facility long associated with providing emergency loans to banks, the Fed's head of banking supervision told a Congressional committee on Wednesday. Fed Vice Chairman for Supervision Michael Barr said he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable. "(Fed) staff were working with Silicon Valley Bank basically all afternoon and evening and through the morning the next day to pledge as much collateral as humanly possible to the discount (window) on Friday," Barr said to the House Financial Services Committee. Barr told the Senate Banking Committee he first became aware of the interest rate risk issues at SVB in mid-February, while Fed supervisors had been raising issues with the bank directly in months prior to that. Some Democrats have also argued a 2018 bank deregulation law is to blame.

☆ Dollar firmer as banking fears fade; yen sinks on quarter-end flows
▼ + stars: | 2023-03-29 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +3 min

"The dollar is trading mixed today with a bit of upside as global risk sentiment improves and central banks can turn their attention back toward inflation," Given said. The dollar rose to a one-week high against the yen , which remained volatile in the run-up to the end of the Japanese fiscal year on Friday. "A decent amount of USD/JPY flow today is end of quarter related," Monex USA's Given said. "Traders are concerned with real money outcomes at the moment, but as global risk sentiment continues to improve, JPY as a traditional haven looks less appealing," she said. The dollar was 1.03% higher at 132.275 yen.

☆ Safe-haven dollar sluggish as banking fears ebb; yen drops
▼ + stars: | 2023-03-29 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

The dollar index , which tracks the currency against six major peers, edged 0.08% higher to 102.57 in Asian trading, following drops of about 0.3% in each of the past two sessions. The weakness comes despite a rise in U.S. Treasury yields, also the result of ebbing demand for the safest assets. The yen remained volatile in the run-up to the end of the Japanese fiscal year on Friday. The dollar jumped 0.59% to 131.68 yen , and touched a one-week high of 131.80. The yen had dropped 0.5% the previous day, when it uncharacteristically moved in the opposite direction with long-term U.S. Treasury yields.

Las Vegas, March 29 (Reuters) - Consumer and mid-sized banks are planning to monitor their internal processes more closely and hold more frequent discussions with regulators as the industry tries to move forward from weeks of turmoil, industry executives say. She spoke as senior executives from regional and mid-sized U.S. banks gathered alongside regulators for the association's annual conference this week. Consumer Financial Protection Bureau Director Rohit Chopra said regulators were focused on maintaining stability of the financial system. In recent weeks, President Joe Biden, Treasury Secretary Janet Yellen and industry executives have made public statements aimed at reassuring depositors. "The banking system is pretty sound," and large and regional banks are well-capitalized, Citigroup Inc (C.N) CEO Jane Fraser said last week.

☆ US Federal Reserve watchdog launches probe of SVB supervision
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +1 min

March 28 (Reuters) - The U.S. Federal Reserve's Office of Inspector General (OIG) has launched an independent review of the failure of Silicon Valley Bank (SVB), an OIG spokesperson said on Tuesday. The review, which was launched on March 14, will assess the board's and the Federal Reserve Bank of San Francisco's supervision of the failed lender, the spokesperson told Reuters in a statement. The independent oversight authority plans to complete its investigation within six months, the spokesperson added. The probe was reported earlier by Bloomberg News. Reporting by Rahat Sandhu in Bengaluru and Pete Schroeder; Editing by Leslie Adler and Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

"I think that any time you have a bank failure like this, bank management clearly failed, supervisors failed and our regulatory system failed," Michael Barr, Fed Vice Chair for Supervision, told Congress. REPORTS DUE MAY 1Both the Fed and FDIC are is expected to produce reports on the failure of Silicon Valley Bank by May 1. Barr told the House Financial Services Committee that he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable. Gruenberg of the FDIC told lawmakers he also became aware of SVB's stress that Thursday evening. "(Fed) staff were working with Silicon Valley Bank basically all afternoon and evening and through the morning the next day to pledge as much collateral as humanly possible to the discount (window) on Friday," Barr said.

☆ Oil gains for 3rd day on Kurdish supply concerns, easing banking fears
▼ + stars: | 2023-03-29 | by ( ) www.cnbc.com time to read: +2 min

Oil wells are seen at an oil facility by the Highway 5 near Bakersfield in California, United States on November 27, 2022. Brent crude futures rose 42 cents, or 0.5%, to $79.07 a barrel at 0046 GMT. A drawdown in U.S. crude oil inventories last week also lent support. U.S. crude oil inventories fell by about 6.1 million barrels in the week ended March 24, according to market sources citing American Petroleum Institute figures on Tuesday. Analysts had expected U.S. crude oil stockpiles to have risen last week, while distillate and gasoline inventories were seen down.

☆ Dollar on the defensive as banking fears ebb; yen drops
▼ + stars: | 2023-03-29 | by ( ) www.cnbc.com time to read: +2 min

In this photo illustration, US 100 dollar bills seen on an American flag. The dollar index , which tracks the currency against six major peers, was flat in early Asian trading, following drops of about 0.3% in each of the past two sessions. The yen remained volatile in the run-up to the end of the Japanese fiscal year on Friday. The dollar jumped 0.51% to 131.59 yen , erasing all of the previous day's 0.5% decline, when it uncharacteristically moved in the opposite direction with long-term U.S. Treasury yields. The token had dipped as low as $26,541 on Monday, after its retreat from a nine-month high of $29,380 last week.

☆ Goldman Sachs picks the winners and losers in regional banks after the SVB collapse
▼ + stars: | 2023-03-29 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

The banking crisis continues to keep investors on edge about the health of regional banks. Now Goldman Sachs has identified what it said are the biggest winners and losers in the industry in the aftermath of the Silicon Valley Bank collapse. The Wall Street investment bank said the biggest short-term risk for regional banks could come from shifting market shares of deposits as corporates look to diversify. Meanwhile, there is the potential that regional banks will need to "pay up" to prevent deposits from moving to other banks "or leave bank balance sheets entirely," Goldman said. These stocks are all down more than 20% in March as investors spooked by the crisis dumped regional bank shares.

☆ Morning Bid: Bank calm, rates firm, Alibaba steals show
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +4 min

A semblance of calm has returned to world markets in the final week of the first quarter as the banking storm abates and the spotlight switched to a share-boosting six-way revamp of Chinese e-commerce giant Alibaba. Investors cheered the surprise move from Alibaba (9988.HK) as a sign Beijing's corporate crackdown may be nearing an end, sending shares of the Jack Ma-founded firm and peers soaring. The surprise move seeks to take advantage of Ermotti's experience rebuilding the bank after the global financial crisis 15 years ago. Broader stock markets were higher across the board, with Wall St futures up almost 1% ahead of the open. Futures markets now show a 50-50 chance of one more Fed rate hike in this cycle in May and half a point of easing by yearend.

DURHAM, North Carolina, March 28 (Reuters) - U.S. President Joe Biden said on Tuesday his administration had done what was possible to address the banking crisis with available authorities, but added the White House response on the matter was "not over yet." The markets seem to be responding," Biden told reporters before departing North Carolina to return to the White House. Asked if his administration had exhausted its unilateral moves, short of congressional action, to address stress in the banking sector, Biden said: "No, it's not over yet. The failures of Silicon Valley Bank (SVB) and, days later, Signature Bank (SBNY.O), set off a broader loss of investor confidence in the banking sector that pummeled stocks and stoked fears of a full-blown financial crisis. The Biden administration quickly adopted a series of emergency measures to protect depositors in the two banks, while the Federal Reserve provided additional liquidity to help banks across the sector cover depositors' needs.

☆ To Some Investors, Banks Look Like Bargains
▼ + stars: | 2023-03-28 | by ( Sam Goldfarb | ) www.wsj.com time to read: 1 min

A growing number of investors are betting on a rebound in the banking sector, wagering that regional lenders are in much better condition than many initially feared after the collapse of Silicon Valley Bank. Bank shares rallied Monday, while U.S. Treasury prices fell, after First Citizens Bancshares reached a deal with federal regulators to buy large pieces of Silicon Valley Bank. The run on SVB that started March 9 had sparked a rout in banks and a surge in demand for Treasurys, reflecting fears that trouble in the financial sector could hurt the broader economy.

☆ The FDIC’s Sweetheart Bank Deal for SVB
▼ + stars: | 2023-03-28 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

First Citizens Bank headquarters on March 27 in Raleigh, North Carolina. First Citizens BancShares on Sunday night was the lucky winner of the bidding to buy the assets of Silicon Valley Bank, and what a deal it is. Rather than minimize the cost to the deposit insurance fund as required by law, the Federal Deposit Insurance Corp. seems to have chosen the best political match. North Carolina-based First Citizens will acquire all of SVB’s deposits, loans and branches but leave $90 billion in securities and other assets with the FDIC. First Citizens will buy SVB’s $72 billion in loans at a sizable $16.5 billion discount and share future losses or gains with the FDIC.

☆ Biden says banking crisis 'not over yet'
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, March 28 (Reuters) - U.S. President Joe Biden said on Tuesday he has done what is possible to address the banking crisis with available authorities but that it is "not over yet." Asked if the administration would not take any more executive action to address the matter, Biden said "Oh no, It's not over yet. We're watching very closely." The failures of Silicon Valley Bank (SVB) and, days later, Signature Bank (SBNY.O), set off a broader loss of investor confidence in the banking sector that pummeled stocks and stoked fears of a full-blown financial crisis. Reporting by Andrea Shalal and Nandita Bose in Washington; Editing by Chris Reese and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

SummarySummary Companies Futures down: Dow 0.10%, S&P 0.17%, Nasdaq 0.22%March 28 (Reuters) - U.S. stock index futures slipped on Tuesday as Treasury yields rose amid easing worries about a banking crisis following First Citizens BancShares' U.S. regulator-backed deal for failed Silicon Valley Bank. Shares of First Citizens BancShares Inc (FCNCA.O) fell 1% in premarket trading after surging more than 50% on Monday following its deal to acquire the deposits and loans of failed Silicon Valley Bank. Regional banks also rose, led by First Republic Bank's (FRC.N) 2.2% gain after a 12% rally on Monday. Later in the day, Fed Vice Chair for Supervision Michael Barr will testify before the Senate Committee on Banking, Housing and Urban Affairs on "bank oversight" in the first of several hearings on the collapse of Silicon Valley Bank and Signature Bank. ET, Dow e-minis were down 31 points, or 0.1%, S&P 500 e-minis were down 6.75 points, or 0.17%, and Nasdaq 100 e-minis were down 27.75 points, or 0.22%.

☆ For battered U.S. bank shares, earnings may make or break
▼ + stars: | 2023-03-28 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

Even so, the S&P 500 bank index (.SPXBK) is down 16% since March 8, two days before Silicon Valley's collapse, with the failure of Signature Bank and problems at other banks adding to the turmoil. Some say quarterly results could be key to what happens next with bank shares. Among other financials, Jefferies Financial Group (JEF.N) is expected to report quarterly results after the closing bell Tuesday. Analysts expect S&P 500 earnings to fall 4.6% in the first quarter of 2023 from the year-ago period. They are forecasting S&P 500 financials (.SPSY) to post year-over-year earnings growth in the first quarter of 5.4%, making it among just four sectors whose earnings are expected to climb.

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