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☆ What the First Republic takeover means for customers
▼ + stars: | 2023-05-01 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +3 min

New York CNN —First Republic Bank was taken over by the Federal Deposit Insurance Corporation on Monday, with most of its assets sold to JPMorgan Chase. Chase is assuming all deposits of First Republic customers. First Republic customers’ deposits will continue to be FDIC-insured. First Republic customers will have many of the same banking conveniences that they had before the bank was taken over. Direct deposits like paychecks and Social Security benefits will continue as usual,” the FDIC said on its resource page for First Republic customers.

☆ What every consumer should know about bank failures
▼ + stars: | 2023-05-01 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +4 min

New York CNN —Let’s be frank: If you have a US bank account, hearing about bank failures in the past couple of months hasn’t felt great. Here’s what you need to know to keep things in perspective despite the recent closures of First Republic, Silicon Valley Bank and Signature Bank. How do I know my money is safe? How can I know if my bank will fail? The FDIC will issue information within a day or so of taking over a failed bank to let the bank’s customers know what steps if any they need to take and when.

If a bank fails, insured deposits will be moved to another FDIC-insured bank or paid out. Checking accounts, savings accounts, money market accounts, and certificates of deposit are examples of FDIC-insured bank accounts. Single bank accounts and joint bank accounts are examples of different ownership categories. If you want to keep more money in the bank than the FDIC will insure, you could open another bank account at a separate bank. Aside from First Republic, Silicon Valley Bank, and Signature Bank, the last bank failure happened in October 2020, when Alamena State Bank in Kansas was shut down.

☆ Goldman Sachs M&A team doesn't get out of bed for less than $10 billion
▼ + stars: | 2023-04-26 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Goldman Sachs' M&A team operates under a similar mandate, albeit with a few more zeros. Why bother stressing over 10 $1 billion deals when you can just do a $10 billion deal? It's not just the M&A market that's facing issues. The bank has held the top spot on the year-end M&A league tables for decades, but it is hearing footsteps. More on Goldman's M&A strategy amid an industry drought.

And, as it's global liquidity that matters, the bowl is also kept brimming as the Bank of Japan continues to buy government bonds at pace. But a study looking at the U.S. banking shock that led to the failure of Silicon Valley Bank and Signature Bank last month and deposit runs across many regional banks suggests a different angle - a 'deposit glut' from within the richest countries that is increasingly unstable. "In a context of rising wealth inequality and growing corporate savings, an increasing share of bank deposits is uninsured and held by sophisticated agents," Vuillemey wrote. "This implies that these deposits are increasingly fragile, and that deposit insurance schemes ... are slowly losing bite." As illustrated in Technicolor in the SVB run, big uninsured deposits are volatile - sensitive as they are to any hint on the bank's health and moveable at push of a button.

☆ Many States Are Trying to Restrict Gender Treatments for Adults, Too
▼ + stars: | 2023-04-22 | by ( Azeen Ghorayshi | ) www.nytimes.com time to read: +1 min

Missouri this month became the first state in the country to severely restrict gender treatments for people of all ages, following a series of quieter moves across the country that have been chipping away at transgender adults’ access to medical care. Last year, Florida joined six other states in banning Medicaid from covering some form of gender care for transgender people of all ages. These bans affect an estimated 38,000 beneficiaries of the public insurance program, according to the Williams Institute, a research center at U.C.L.A.’s law school. And in at least five states, Republican legislators have proposed bills that would abolish gender care for minors as well as young adults. The rule also said that patients should not receive gender treatments until any mental health issues are “resolved.”

☆ Now Is the Time to Lock In CD Rates, Experts Say
▼ + stars: | 2023-04-20 | by ( ) www.wsj.com time to read: +5 min

But with lower interest rates on the horizon, savers don’t have much time to make up their minds. “If you wait and interest rates come back down, those rates on CDs would also come down,” says financial advisor Ed Cofrancesco, in Orlando, Fla.CD rates are up—for nowFor years, CD rates languished at paltry levels. That’s because bonds’ market value traditionally rises as interest rates fall. But if the Fed does cut rates later this year, you will likely have to reinvest your cash at a lower rate. In another scenario, a recession could send inflation and interest rates plummeting, making those who bought three-year CDs seem like geniuses.

☆ Buffett says U.S. bank deposits are safe and the government would backstop all of them if necessary
▼ + stars: | 2023-04-12 | by ( Alex Harring | ) www.cnbc.com time to read: +2 min

Warren Buffett said Americans should not be concerned about their bank deposits in the wake of the latest financial shock in the sector and the government would ensure no depositor in this country lost a dime. Buffett said the government would likely step in to backstop all depositors in all U.S. banks if that was ever necessary, though he did note that would require Congressional approval. Bank stocks largely tumbled in March as investors grew skittish on the sector, with the selloff specifically focused on regional banks amid liquidity concerns. To restore confidence, 11 banks put $30 billion in deposits in First Republic Bank , whose shares have tumbled during the shock. Buffett noted that shareholders may lose out if more bank failures occur and rightly so, but depositors shouldn't be worried.

in March, they said the banking crisis heightened that forecast to a recession. Policymakers at the Fed voted unanimously last month for a smaller interest rate increase after turbulence in the banking industry set off fears of bank runs, according to the minutes. The Fed’s latest interest rate increase brought the federal funds rate to a range of 4.75% to 5%, the highest level since September 2007. “Such a tightening in financial conditions would work in the same direction as rate tightening,” Powell said, stressing that the banking industry remained sound. SVB’s collapse was the second-largest bank failure in US history and underpins the worst banking crisis since the Great Recession.

☆ Skittish Savers Are Fleeing Local Banks. Here’s Why They Could Still Be a Great Deal for You
▼ + stars: | 2023-04-06 | by ( ) www.wsj.com time to read: +6 min

In fact, experts say now may be the time to consider what small banks have to offer. Depositors appear to be fleeing small banks because they fear problems in the banking sector could spread beyond the tiny number of troubled banks that have made headlines so far. “Which is bad for them, but good for their customers.”Of course, online banks also offer savers high interest rates that meet or exceed what most small banks offer. Small bank loansIf you are looking for a loan, small banks have a lot to offer, too. And if you already have a relationship with a small bank, you might be able to obtain more favorable borrowing terms.

☆ What Is a Money Market Fund?
▼ + stars: | 2023-04-04 | by ( ) www.wsj.com time to read: +11 min

“Money market funds have become a much more interesting place,” says Jay McLaughlin, institutional sales manager for iMoneyNet, a research firm that follows the money market fund industry. How money market funds workThe first thing for investors to understand is that money market funds are mutual funds, not bank accounts. Municipal money market fundsMunicipal money market funds appeal to many high-income investors because of their tax-exempt nature. One popular muni money market fund is the $17 billion Vanguard Municipal money market Fund (VMSXX) and its current 7-day yield of 2.65%—a yield which on its face is lower than other fund types, but after taxes are considered, can actually be higher for some investors. How to get the best money market fund ratesTypically your stock trading platform may have a default money market fund for its clients, established at your initial sign-up, as a kind of placeholder to keep your cash.

☆ Sen. Elizabeth Warren: We need to raise the FDIC insurance caps
▼ + stars: | 2023-03-31 | 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 EmailSen. Elizabeth Warren: We need to raise the FDIC insurance capsSen. Elizabeth Warren joins 'Squawk on the Street' to discuss the motivation and point of Warren's push for law changes for banks, and what happens if SVB executives were forced to return money earned from the sale of company stock and more.

☆ Corporate agitator Ackman tells US to raise FDIC insurance limit to shore up confidence
▼ + stars: | 2023-03-29 | by ( Svea Herbst-Bayliss | ) www.reuters.com time to read: +2 min

NEW YORK, March 29 (Reuters) - Billionaire investor William Ackman who spent years telling corporations how to perform better is now taking on the U.S. government by calling for higher insurance limits to safeguard the banking system at the height of a banking crisis. Ackman, who runs hedge fund Pershing Square Capital Management, sent a letter to his investors saying the FDIC should raise its $250,000 per account limit days after U.S. regulators took over Silicon Valley Bank and Signature Bank, triggering a crisis in U.S. regional banks. In his annual letter to shareholders he amplified a message he has been blasting for days on Twitter. "Banking is a confidence sensitive business," and regulators' conflicting public statements have "reduced investor, business, and consumer confidence in our banking system" he wrote. Ackman's investment firm's Pershing Square Holdings portfolio has returned 25.1% per year over the last five years, handily beating its broader stock market index which gained 9.4% a year during the same time.

☆ How protected is your money in accounts outside of banks?
▼ + stars: | 2023-03-28 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

Spoiler alert: You likely have at least some protection in all but your crypto accounts. There are several types of deposit accounts you may have at one bank (e.g., individual savings account, joint checking, business account, etc.) NCUA, which is backed by the full faith and credit of the US government, covers accounts up to $250,000, in much the same way the FDIC covers bank accounts. Crypto accountsIf you invest in crypto assets you have no federally guaranteed protections should the company acting as custodian of your assets go under. Even if you’re holding your crypto assets at a firm that is an SEC-registered broker-dealer and it is a member of SIPC, your crypto assets will not receive SIPC protection.

☆ FDIC coverage limits may be raised above $250,000 again. How experts say you can have more of your deposits insured
▼ + stars: | 2023-03-27 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Experts say there are still ways to gain FDIC coverage even if you are over that $250,000 limit. Citizens Bank of Edmond offers additional coverage, with a limit of $150 million per depositor, through IntraFi Network. "If you're able to use IntraFi, then you don't necessarily have to go to another bank to get another $250,000," Castilla said. Jill Castilla CEO of Citizens Bank of EdmondBecause the bank's average deposit is typically $25,000, Citizens Bank of Edmond does not use the amplified coverage often, Castilla said. Add beneficiaries to your accountAnother way of getting more than $250,000 in coverage for your deposits is to add beneficiaries.

"It was a quirky situation," St. Louis Fed President James Bullard said in comments to a St. Louis community group. 'FELT VERY STABLE'The Fed raised interest rates by a quarter of a percentage point on Wednesday, its ninth straight increase. This wasn't a straightforward decision," Atlanta Fed President Raphael Bostic said in an interview with National Public Radio, a U.S. media outlet. But "that's a different issue than the macro policy issue that we were dealing with in terms of interest rates," Bostic said. So the conditions were right to do monetary policy the way we want to do monetary policy."

Morgan Stanley analyst Manan Gosalia, in a report earlier this week, set a target price of $54 for First Republic shares in a best-case scenario. "I have not considered or discussed anything having to do with blanket insurance or guarantees of deposits," she said. The Morgan Stanley report considered that a potential extension of FDIC insurance could bring a majority of First Republic's customers back. Even if it clinches a cash infusion, the lender will probably need to take losses on securities in its so-called held-to-maturity portfolio, the Morgan Stanley analysts wrote. In the worst-case scenario, First Republic's shares would sink to just $1, Morgan Stanley analysts estimated.

☆ Veru: Yellen's comments on FDIC insurance show how fragile market sentiment is right now
▼ + stars: | 2023-03-23 | 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 EmailVeru: Yellen's comments on FDIC insurance show how fragile market sentiment is right nowDan Veru of Palisade Capital Markets discusses the swings in sentiment after Fed chair Jerome Powell's press conference and Treasury Secretary Janet Yellen's comments to Congress on bank deposits, and highlights some higher quality names in the small cap space.

☆ Hedge Fund manager Dan Niles says the banking crisis will get worse. How to invest from here
▼ + stars: | 2023-03-23 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

The market is still dealing with the potential fallout of the banking crisis and Satori Fund's Dan Niles says it could get a lot worse before it gets better. Investors have been abuzz lately about the possibility that the Federal Deposit Insurance Corporation (FDIC) would consider providing "blanket insurance" for all banking deposits. The next step in navigating the ongoing crisis starts there, Niles said. "The next phase is we have to expand the FDIC insurance," he told CNBC's "Squawk Box" Thursday. Niles also mentioned that 3-month Treasury bills are a good opportunity to get a 4.7% return "with no risk."

☆ US stocks rise as fresh jobs data continues to show no sign of labor market weakness
▼ + stars: | 2023-03-23 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

US stocks edged higher on Thursday after weekly jobless claims data showed continued resilience in the US labor market. Jobless claims fell to 191,000 last week, below economist estimates of 197,000. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. Weekly jobless claims fell 1,000 from the prior week to 191,000, below consensus estimates of 197,000. The strength in the labor market continues even as high-profile tech companies like Amazon and Meta Platforms announce further steep job cuts.

Morgan Stanley analyst Manan Gosalia, in a report earlier this week, set a target price of $54 for First Republic shares in a best-case scenario. That hope was reduced on Wednesday, after Yellen told a hearing of the U.S. Senate's Appropriations Subcommittee on Financial Services that the government "is not considering insuring all uninsured bank deposits." The Morgan Stanley report considered that a potential extension of FDIC insurance could bring a majority of First Republic's customers back. Even if it clinches a cash infusion, the lender will probably need to take losses on securities in its so-called held to maturity portfolio, the Morgan Stanley analysts wrote. In the worst-case scenario, First Republic's shares would sink to just $1, Morgan Stanley analysts estimated.

☆ Piper Sandler did a deep analysis of banks and says these are the ones to buy on the dip
▼ + stars: | 2023-03-22 | by ( Sarah Min | ) www.cnbc.com time to read: +3 min

The repercussions from the ongoing banking crisis will take some time to play out, but Piper Sandler has names for investors to start sorting through among the wreckage. Even so, banks are dealing with tightening lending standards and rising costs that will continue to weigh on the sector. Still, some banks with strong deposit and liquidity characteristics can help investors find safe harbor, according to Piper Sandler. Here are three overweight-rated, mid-cap bank stocks that Piper Sandler highlighted: The analysts named SouthState Corporation to their list, saying they have confidence in the bank's ability to outperform peers because of its "strong low-cost, core deposit base." First Interstate BancSystem was named to the list because of its lower cost deposit base, its relatively insulated location, and its strong dividend yield.

☆ What would a federal expansion of deposit insurance look like?
▼ + stars: | 2023-03-22 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +7 min

That’s the Federal Deposit Insurance Corporation’s standard limit, meaning any bank deposits up to that amount are protected by the independent government agency. But now there’s growing support for raising that insurance cap. A higher insurance cap doesn’t automatically mean banks will be subject to tighter regulations, Dollar noted, but there could be some call for it. The FDIC insurance limit has been raised seven times since 1950 — and $250,000 also isn’t a calculated number, Collins said. In 2008, the FDIC used the same system for temporary unlimited deposit insurance guarantee on certain accounts.

☆ US officials study ways to expand FDIC coverage to all deposits -Bloomberg News
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +1 min

March 20 (Reuters) - U.S officials are looking at ways to temporarily expand Federal Deposit Insurance Corp (FDIC) coverage to all deposits, Bloomberg News reported on Monday. U.S. Treasury Department staff are studying whether federal regulators have enough emergency authority to insure deposits above the current $250,000 cap on accounts without the consent of Congress, the report said, citing people familiar with the matter. One legal framework that is being looked at for expanding FDIC insurance would use the Treasury Department's authority to take emergency action and lean on the Exchange Stabilization Fund, the report added. "Due to decisive recent actions, the situation has stabilized, deposit flows are improving and Americans can have confidence in the safety of their deposits," a U.S. Treasury spokesperson told Bloomberg. Reporting by Gokul Pisharody and Juby Babu in Bengaluru; Editing by Neil Fullick and Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

☆ Hardline US Republicans oppose bank deposit guarantees beyond $250,000 limit
▼ + stars: | 2023-03-21 | by ( David Lawder | ) www.reuters.com time to read: +4 min

[1/3] A sign reads “FDIC Insured” on the door of a branch of First Republic Bank in Boston, Massachusetts, U.S., March 13, 2023. REUTERS/Brian SnyderWASHINGTON, March 20 (Reuters) - Hardline Republicans in the House of Representatives on Monday vowed to oppose any universal federal guarantee on bank deposits above the current $250,000 limit, throwing a major roadblock to a key tool regulators could deploy if bank runs re-emerge as financial confidence wobbles. The upheaval has been marked by uninsured business depositors fleeing smaller community and regional lenders toward the largest banks perceived as "too big to fail." Independent Community Bankers Association President Rebeca Romero Rainey said in a statement that depositors in safely run small banks should get the same guarantees that uninsured depositors in SVB and Signature Bank received. Runs could re-emerge if another bank falters, and if the institution is large enough, regulators will again declare a systemic risk exception and guarantee its uninsured deposits, he added.

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