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☆ FDIC Chairman Denies Being Investigated, Then Changes Testimony
▼ + stars: | 2023-11-15 | by ( Rebecca Ballhaus | ) www.wsj.com time to read: +1 min

Federal Deposit Insurance Corp. Chairman Martin Gruenberg denied being subject to investigations for inappropriate workplace conduct at a House hearing, but later recanted his testimony, citing a 2008 investigation. Photo: Alex Wong/Getty ImagesFederal Deposit Insurance Corp. Chairman Martin Gruenberg testified before a House panel Wednesday that he had never been investigated for inappropriate conduct. But the FDIC tapped an external investigator more than a decade ago to examine complaints about his temperament, former officials said. In a previously scheduled hearing before the House Financial Services Committee that followed a Wall Street Journal report that found a toxic workplace culture at the agency, the panel’s chairman asked Gruenberg, “Since you’ve run the agency, you’ve been there for 20 years, have you ever been investigated for inappropriate conduct during your time at the FDIC?”

Persons: Martin Gruenberg, Alex Wong, Gruenberg, you’ve Organizations: Deposit Insurance Corp, Getty, FDIC, Financial Services Committee, Journal

☆ ‘What the Hell Is Going On at the FDIC?’ Lawmakers Grill Agency Chairman
▼ + stars: | 2023-11-14 | by ( Rebecca Ballhaus | ) www.wsj.com time to read: 1 min

FDIC Chairman Martin Gruenberg appeared Tuesday at a previously scheduled Senate hearing. Photo: stefani Reynolds/Agence France-Presse/Getty ImagesSenators on Tuesday questioned Federal Deposit Insurance Corp. Chairman Martin Gruenberg over the agency’s handling of allegations of harassment and discrimination revealed by a Wall Street Journal investigation. “What the hell is going on at the FDIC?” asked Sen. John Kennedy (R., La.

Persons: Martin Gruenberg, stefani Reynolds, ”, Sen, John Kennedy Organizations: Agence France, Getty, Insurance Corp, Wall Street

REUTERS/Evelyn Hockstein/ Acquire Licensing RightsWASHINGTON, Nov 14 (Reuters) - The Federal Reserve's top Wall Street cop Michael Barr and other bank regulators will defend plans to hike U.S. bank capital requirements when they appear before Congress this week as they come under increasing pressure from many lawmakers to rein in their efforts. The proposal would overhaul how banks gauge risk and, in turn, how much capital they must hold against potential losses. Regulators say stronger cash cushions will make the financial system safer and are especially crucial after three banks failed earlier this year. As part of their campaign to kill the Basel proposal, banks have been lobbying lawmakers to put pressure on the regulators. On Monday, 39 Senate Republicans stepped up the pressure, asking the regulators to scrap the proposal, citing economic harm.

Persons: Michael Barr, Evelyn Hockstein, Barr, Federal Deposit Insurance Corporation's Martin Gruenberg, Mike Hsu, Mark Warner of Virginia, Jon Tester, Isaac Boltansky, Gruenberg, Michelle Price, Pete Schroeder, Jonathan Oatis Organizations: Banking, Housing, Urban Affairs Committee, Capitol, REUTERS, Rights, Federal, Federal Deposit Insurance, Financial, Democrat, Senate, Republicans, Journal, Industrial, Commercial Bank of China, Treasury, Thomson Locations: Washington , U.S, U.S, Basel, Montana

☆ US lawmakers demand FDIC watchdog briefing on workplace culture
▼ + stars: | 2023-11-14 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Jason Reed/File Photo Acquire Licensing RightsNov 14 (Reuters) - Republican lawmakers on the House Financial Services Committee said Tuesday they were calling for an urgent briefing from a government watchdog to address reported allegations of pervasive sexual harassment at the Federal Deposit Insurance Corporation (FDIC). FDIC Chairman Martin Gruenberg was likely to face questioning on the matter during Congressional hearings with other top banking regulators this week, including a Wednesday appearance before the House Financial Services Committee. Gruenberg on Monday told staff the agency would not tolerate sexual harassment and announced that the agency had hired an outside law firm to review its internal practices. The FDIC Office of Inspector General (OIG) reported in 2020 that the FDIC's efforts to prevent sexual harassment were inadequate. "As is our practice, we will continue to monitor management challenges at the FDIC as they are brought to the attention of the OIG, including matters related to sexual harassment," said FDIC Chief of Staff Jon Lebruto.

Persons: Sheila Bair, Jason Reed, Patrick McHenry of, Martin Gruenberg, Tyler Smith, Jon Lebruto, Douglas Gillison, Anna Driver Organizations: Federal Deposit Insurance Corp, REUTERS, Republican, Financial, Federal Deposit Insurance Corporation, Street Journal, Financial Services Committee, FDIC, Monday, Reuters, Thomson Locations: Washington, Patrick McHenry of North Carolina

☆ FDIC Chair takes heat over stunning allegations of sexual harassment and discrimination at agency
▼ + stars: | 2023-11-14 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +3 min

New York CNN —Federal Deposit Insurance Corporation Chair Martin Gruenberg testified Tuesday that he was unaware of the allegations of widespread sexual harassment and discrimination at the agency detailed in a Wall Street Journal investigation. “I did not know about the individual cases,” Gruenberg told him. Martin Gruenberg, chair of the Federal Deposit Insurance Corporation, told senators on Tuesday he was troubled by the allegations detailed in a Wall Street Journal investigation. The report also referenced a 2019 survey conducted by the inspector general that found 8% of the 2,376 respondents experienced sexual harassment between January 2015 to April 2019. The 2020 inspector general report made 15 recommendations to prevent and address sexual harassment at the agency, which Gruenberg said in his testimony on Tuesday had been implemented but acknowledged “didn’t change the culture” at the FDIC.

Persons: Martin Gruenberg, Gruenberg, “, we’ve, ”, Mike Rounds, Thom Tillis, ” Gruenberg, Michael Barr, Michael Hsu, Urban Affairs Gruenberg, Jelena McWilliams Organizations: New, New York CNN, Federal Deposit Insurance, Street, Senate, Street Journal, FDIC, Federal Reserve, Federal Deposit Insurance Corporation, Banking, Housing, Urban Affairs, Financial Locations: New York, South Dakota, North Carolina, “, U.S

Companies United States Senate FollowWASHINGTON, Nov 13 (Reuters) - A group of 39 Senate Republicans in a letter on Monday called on major U.S. banking regulators to withdraw a contentious proposal to significantly raise bank capital requirements, warning it could hinder lending and harm the economy. Regulators said stronger cushions will guard against future unforeseen risks, and cited the failures earlier this year of three large U.S. lenders as a warning. * Regulators have said they are continuing to gather data for the proposal, and have given firms more time to provide feedback. * Senator Tim Scott, the top Republican on the Senate Banking Committee and a former presidential candidate, and Senate Minority Leader Mitch McConnell were among the senior Republicans in the chamber to sign Monday's letter. WHAT'S NEXTU.S. banking regulators are due to testify before the Senate Banking Committee on Tuesday, when they are expected to be pressed on the proposal by Republicans.

Persons: Banks, Tim Scott, Mitch McConnell, Pete Schroeder, Paul Simao, Jonathan Oatis Organizations: United States, WASHINGTON, Republicans, Federal Reserve, Federal Deposit Insurance Corporation, Currency, Regulators, Republican, Senate Banking Committee, Fed, OCC, NEXT, Thomson Locations: Basel

☆ Strip Clubs, Lewd Photos and a Boozy Hotel: The Toxic Atmosphere at Bank Regulator FDIC
▼ + stars: | 2023-11-13 | by ( Rebecca Ballhaus | ) www.wsj.com time to read: 1 min

A male Federal Deposit Insurance Corp. supervisor in San Francisco invited employees to a strip club. A supervisor in Denver had sex with his employee, told other employees about it and pressed her to drink whiskey during work. Senior bank examiners texted female employees photos of their penises. All of the men remained employed at the agency.

Organizations: Federal Deposit Insurance Corp, San Francisco Locations: San, Denver

☆ FDIC Hires Independent Firm to Investigate Alleged Harassment and Discrimination at Regulator
▼ + stars: | 2023-11-13 | by ( Rebecca Ballhaus | ) www.wsj.com time to read: 1 min

Federal Deposit Insurance Corp. Chairman Martin Gruenberg testified on Capitol Hill earlier this year. Photo: EVELYN HOCKSTEIN/REUTERSThe Federal Deposit Insurance Corp. has hired an independent firm to conduct a “top-to-bottom assessment” of alleged harassment and discrimination at the banking regulator, its chairman told staff Monday, hours after The Wall Street Journal published an investigation that found a longtime toxic atmosphere prompted women to quit the agency. In a three-minute video to staff reviewed by the Journal, Chairman Martin Gruenberg said the article “raises some serious allegations about the FDIC workplace” and said the firm would contact employees to solicit their confidential input. He didn’t specify which firm the agency had hired.

Persons: Martin Gruenberg, EVELYN HOCKSTEIN Organizations: Deposit Insurance Corp, Capitol, Federal Deposit Insurance Corp, Journal

☆ An FDIC supervisor reportedly invited staff to a strip club and senior bank examiners texted nude pics to female employees. They're still employed.
▼ + stars: | 2023-11-13 | by ( Grace Kay | ) www.businessinsider.com time to read: +5 min

An FDIC supervisor invited his staff to a strip club, according to a report from WSJ. The Journal interviewed over 100 current and former FDIC staff about the agency's culture. The Journal's report details instances where a supervisor invited staff to a strip club and male workers sent their female colleagues unsolicited nude pictures. In 2020, the organization's inspector general criticized the FDIC's investigations into sexual harassment, calling them "decentralized, untimely, incomplete, and inaccurate," the Journal reported. The FDIC demoted Nguyen after multiple workers told management that the supervisor had allegedly made homophobic and harassing comments to staff.

Persons: —, they'd, Trevor McIntosh, McIntosh, he'd, Hien Nguyen, Nguyen, I've Organizations: FDIC, Service, Federal Deposit Insurance Corporation, Wall Street, Washington D.C, Anadolu Agency Locations: Washington

☆ Money market funds are yielding north of 5%. Here's when it may pay to look elsewhere
▼ + stars: | 2023-11-08 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Investors can't get enough of money market funds these days due to their attractive yields, which are north of 5%. When money market funds work Those who need easy access to cash could benefit from the money market funds' liquidity, which is one of the asset's biggest advantages, Benz said. However, unlike bank savings accounts, money market funds are not insured by the Federal Deposit Insurance Corporation. While money market funds may be yielding more than longer-term Treasurys or investment-grade bonds right now, that isn't necessarily always going to be the case. "Why would someone invest in a 5-year Treasury note when a money market fund is yielding higher?

Persons: Christine Benz, hasn't, Charles Schwab, Hermes, Peter Crane, Benz, Barry Glassman, Glassman, laddering, —, Jesse Pound Organizations: Morningstar, Crane Data, Fidelity, Data, Vanguard, Wealth, Federal Deposit Insurance Corporation, Benz, CNBC

☆ Signature Loan Sale Likely to Lower Commercial-Property Values
▼ + stars: | 2023-11-07 | by ( Peter Grant | Will Parker | ) www.wsj.com time to read: 1 min

The Federal Deposit Insurance Corp. is doing what it was designed to do when banks like Silicon Valley and Signature go under: cover insured deposits. Here’s how the FDIC works and why it was created. Photo illustration: Madeline MarshallThe sale of Signature Bank ’s $33 billion in commercial-property loans and other assets is expected to attract bids as much as 40% below face value, offering new evidence of how much property prices have eroded. Regulators closed Signature Bank in March after a run on its deposits, marking the fourth-largest bank failure in U.S. history. Now, the Federal Deposit Insurance Corp. is auctioning off thousands of Signature loans backed by apartment buildings and other commercial properties primarily in the New York region.

Persons: Madeline Marshall Organizations: Federal Deposit Insurance Corp, Signature Bank, Bank Locations: Silicon, New York

☆ The No. 1 thing people get wrong about high-yield savings accounts, says wealth management expert
▼ + stars: | 2023-11-03 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +3 min

High-yield savings accounts can help your money grow faster than traditional savings accounts, but many people mistakenly think that the returns these types of accounts can deliver are too good to be true. Like traditional savings accounts, high-yield savings accounts are backed by the Federal Deposit Insurance Corporation, which is an independent U.S. government agency. Online banks that offer high-yield savings accounts tend to have lower overhead costs than traditional banks, since they aren't paying for physical locations and other expenses. But high-yield savings accounts offer APYs as high as 5% or 6%. But before you move over your funds, be sure to do your research on the bank that's offering the high-yield savings account you're interested in.

Persons: Colby Dickson, Greg McBride, McBride, Jim Cramer, Ben McKenzie, Farnoosh Organizations: Northwestern Mutual, CNBC, Federal Deposit Insurance Corporation, FDIC Locations: U.S

☆ Best 6-Month CD Rates for November 2023
▼ + stars: | 2023-11-01 | by ( Martha C. White | ) www.wsj.com time to read: +7 min

Rates for short-term investments, including CDs, savings accounts and more, have grown steadily more generous in recent months with the Federal Reserve hiking interest rates to fight inflation. Best six-month CD ratesfor NovemberThe market for six-month CDs is large and, as a result, quite competitive. Our six-month CD rate picks reflect the best available on DepositAccounts, com, which tracks roughly 275,000 rates at more than 11,000 banks and credit unions. For instance, you could start out with a six-month CD, along with a one-year CD. When the six-month CD matures, you would then roll over that balance into a new one-year CD.

Persons: Martha C, Haviland, ”, Ken Tumin Organizations: Federal Reserve, Deposit Insurance Corp, Federal, FDIC, National Credit Union Administration

[1/3] The Federal Deposit Insurance Corp (FDIC) logo is seen at the FDIC headquarters in Washington, February 23, 2011. FDIC Chairman Martin Gruenberg said in March the agency was also probing possible misconduct related to the collapses of Silicon Valley Bank (SVB) and Signature Bank (SBNY.PK) New York. As with SVB and Signature Bank, the FDIC is probing whether First Republic executives and board members broke rules that require them to act in the bank's best interests. NO ACTIONThe March implosions of SVB and Signature Bank sparked a deposit run at First Republic. FDIC bank failure probes can take years.

Persons: Jason Reed, Martin Gruenberg, SVB, Michael Roffler, James Herbert, Roffler, Michael Krimminger, IndyMac, Michael Perry, Douglas Gillison, Christine Prentice, Michelle Price, Matthew Lewis Organizations: Federal Deposit Insurance Corp, REUTERS, Federal Deposit Insurance Corporation, First Republic Bank, Reuters, FDIC, Valley Bank, Signature Bank, Regulators, First Republic, U.S . Justice Department, Securities, Exchange Commission, SEC, First, Bloomberg, Federal, JPMorgan Chase &, JPMorgan, Reserve, New, Thomson Locations: Washington, Republic, New York, First Republic, Massachusetts, SVB

☆ Best 5-Year CD Rates for October 2023
▼ + stars: | 2023-10-31 | by ( Martha C. White | ) www.wsj.com time to read: +8 min

Best 5-year CD rates for NovemberA five-year CD is one of the more common CD terms available. Interest rates on 5-year CDs have not climbed as sharply this year as rates for CDs with shorter terms. Our CD rate picks reflect the best available five-year CD rates we found on DepositAccounts, com, which tracks roughly 275,000 rates at more than 11,000 banks and credit unions. You expect interest rates to fallThe current interest rate environment is great for savers, but if the U.S. economy slows, the Federal Reserve policy makers are likely to cut interest rates in order to stimulate the additional growth. These accounts’ interest rates are variable, so if prevailing interest rates decline, banks will cut their rates and you will earn less money.

Persons: Martha C, —, ”, Ken Tumin, Dillon Haviland Organizations: Federal Deposit Insurance Corp, Federal Reserve, TBH Advisors, FDIC, National Credit Union Administration Locations: U.S, Nashville, Tenn

☆ Supermarket bank branches are closing 7 times faster than other locations
▼ + stars: | 2023-10-27 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

Banks closed 10.7% of their in-store branches in the year ended June 30, according to Federal Deposit Insurance Corp. data. PNC , Citizens Financial and U.S. Bank shut the most in-store locations during the 12-month period at chains including Safeway and Stop & Shop. Among retailers, Walmart houses the most bank branches with 1,179, according to an S&P Global report released this week. That year, banks closed nearly 18% of their in-store branches and 3.1% of other locations, S&P Global said. For instance, in 2019, banks shut 4.2% of in-store locations and 1.7% of other locations.

Persons: Nathan Stovall, Banks Organizations: Banks, Federal Deposit Insurance Corp, Silicon Valley Bank, PNC, Citizens Financial, U.S . Bank, Safeway, Shop, Walmart, P, P Global, P Global Market Intelligence Locations: Silicon

☆ Banks Face Shake-Up of Low-Income Lending Rules
▼ + stars: | 2023-10-24 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

The Office of the Comptroller of the Currency, the Fed and the Federal Deposit Insurance Corp. are expected to sign off on the new requirements for banks on Tuesday. Photo: Andrew Harrer/Bloomberg NewsWASHINGTON—Top U.S. banking regulators struggled for more than five years to update anti-redlining rules aimed at making banks lend more in lower-income communities. On Tuesday, they are completing a revamp of them for the era of online banking. The 1977 Community Reinvestment Act sought to end banks’ historical practice of denying or limiting financial services in minority neighborhoods. The current rules, which are nearly 30 years old, generally require banks to serve everyone in the communities surrounding their branches, including lower-income people.

Persons: Andrew Harrer Organizations: Fed, Federal Deposit Insurance Corp, Bloomberg News WASHINGTON — Locations: Bloomberg News WASHINGTON — Top

WASHINGTON, Oct 24 (Reuters) - U.S. regulators will begin grading banks on which communities and geographies they service via online lending under tougher new rules modernizing fair lending standards to be finalized on Tuesday. The changes to 1977 Community Reinvestment Act (CRA) regulations draw a line under a contentious multiyear effort that was delayed amid fierce lobbying by community groups and lenders, as well as by a change of presidential administrations. Conceived to prevent red lining, CRA regulations are central to banks' overall supervisory performance. Historically, CRA grades focused on how well banks serviced low-income communities where banks have branches. Banks on Tuesday said they supported fair lending but flagged concerns with the final rule.

Persons: Michael Barr, Michelle Bowman, Banks, Randy Benjenk, Lindsey Johnson, Pete Schroeder, Andrea Ricci, Michelle Price, Marguerita Choy Organizations: Federal, Fed, Federal Deposit Insurance Corporation, Office, Covington, Consumer Bankers Association, Thomson Locations: U.S, Burling

Four thousand U.S. dollars are counted out by a banker counting currency at a bank in Westminster, Colorado November 3, 2009. REUTERS/Rick Wilking/File Photo Acquire Licensing RightsWASHINGTON, Oct 20 (Reuters) - A trio of U.S. banking regulators announced on Friday they were giving the public extra time to digest and provide feedback on a broad proposal to raise bank capital requirements that is already facing fierce industry pushback. The regulators are similarly extending the window for a separate proposal that would raise a capital surcharge for the largest global banks. Firms have warned the proposal if finalized could force them to curtail lending, curb product offerings, and lead to economic harm. The "Basel Endgame" proposal implements international capital standards agreed by the Basel Committee on Banking Supervision in the aftermath of the 2007-2009 financial crisis.

Persons: Rick Wilking, Banks, Pete Schroeder, Andrea Ricci Organizations: REUTERS, Rights, Federal Reserve, Federal Deposit Insurance Corporation, Currency, Regulators, Banking, Fed, Thomson Locations: Westminster , Colorado

☆ Keep your sweetened CD yields going with this maneuver
▼ + stars: | 2023-10-18 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The one-year Treasury bill is yielding 5.47% Wednesday, and one-year CDs at some institutions offer annual percentage yields exceeding 5%. "It always makes sense to look at the landscape," said Danika Waddell, a certified financial planner and founder of Xena Financial Planning. Ally Financial and Bread Financial are among the institutions offering a higher renewal rate for customers who stick around. Consider that about a year ago, the average one-year CD had an APY of less than 1%, according to Bankrate.com . Consider that Synchrony Financial has an 11-month no-penalty CD that offers a 4.5% APY, while its 12-month standard CD yields 5.1%.

Persons: Danika Waddell, Morgan Stanley, Banks, Betsy Graseck, Mark Hamrick, It's, Waddell, Michael Bloom Organizations: Federal Reserve, Treasury, Investors, Xena, PNC, WFC, Bankrate.com, Ally, Federal Deposit Insurance Corp Locations: JPM

☆ PNC Financial Services to cut jobs after quarterly profit drop
▼ + stars: | 2023-10-13 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Brendan McDermid/File Photo Acquire Licensing RightsOct 13 (Reuters) - PNC Financial Services Group (PNC.N) said on Friday it would reduce its workforce by about 4% as part of its cost reduction plans after it posted a drop in profit in the third quarter. Average deposits at Pittsburgh-based PNC were also down 3.8%, at $422.5 billion in the third quarter, compared to $439.2 billion for the same quarter last year. The lender earned a profit of $1.57 billion, or $3.60 per share, compared to $1.64 billion, or $3.78 per share, from a year earlier. The lender said it expects a drop of 1% to 2% for the fourth quarter in its net interest income (NII), compared to the current quarter this year. In the third quarter, it posted a drop of 1.6% in NII, to $3.4 billion, from the same quarter last year.

Persons: Brendan McDermid, Banks, Jaiveer Shekhawat, Pritam Biswas, Pooja Desai Organizations: PNC Financial Services Group Inc, New York Stock Exchange, REUTERS, PNC Financial Services, PNC, Analysts, Signature Bridge Bank, Federal Deposit Insurance Corp, Thomson Locations: New York City, U.S, Pittsburgh, NII, Bengaluru

☆ Chinese officials urge calm after Evergrande fears reportedly spark small bank run
▼ + stars: | 2023-10-12 | by ( Laura He | ) edition.cnn.com time to read: +5 min

Depositors lined up at the bank in Cangzhou, in Hebei province, to withdraw their money, according to photos and videos circulated online this week, prompting an appeal for calm by officials. The bank has a statement from the city government posted at its entrance, assuring the public that their deposits are safe, Yicai said. It was unclear how many depositors took part in the bank run or how much they withdrew. Central Huijin Investment, an arm of China’s sovereign wealth fund, bought tens of millions of shares in Bank of China, Agricultural Bank of China, China Construction Bank and Industrial and Commercial Bank of China, according to separate stock exchange filings made by the banks. The best performer has been China Construction Bank, which was up 5.6% in Hong Kong and 2.7% in Shanghai.

Persons: Hong Kong CNN —, ”, Evergrande, Xu Jiayin, Yicai, Weeks, ’, —, Martha Zhou Organizations: Hong Kong CNN, Police, CNN, Bank of Cangzhou, Bank, Huijin Investment, Bank of China, Agricultural Bank of, China Construction Bank, Industrial, Commercial Bank of China Locations: China, Hong Kong, Cangzhou, Hebei province, city’s, Beijing, Henan, Bank, Agricultural Bank of China, Shanghai

New York CNN —Sheila Bair, who had a front row seat to the subprime mortgage meltdown, is worried today’s housing market is unsustainably hot. A housing bubble can form when prices rise to unsustainable levels. “I see much less speculation in the housing market today, thank goodness,” said Bair. ‘Dizzying heights’Legendary investor Jeremy Grantham shares Bair’s concern about a housing bubble. In many ways, today’s housing market is the polar opposite of the one that preceded the Great Recession.

Persons: Sheila Bair, ” Bair, Bair, ”, she’s, there’s, Jeremy Grantham, ” Grantham, Goldman Sachs, Fannie Mae, Priscilla Almodovar, it’s, ” Almodovar, Lawrence Yun, homebuyers shouldn’t, ” Yun, Yun, America doesn’t Organizations: New, New York CNN, National Association of Realtors, CNN, Federal Deposit Insurance Corp, NAR, “, UBS Locations: New York, Los Angeles, San Diego, Richmond, Cincinnati, Zurich, Tokyo, Miami, Toronto, Vancouver, London, America, “

"This quarter is all about higher interest rates for longer," said Mike Mayo, an analyst at Wells Fargo. "There is a constructive environment, and investment banking fees tend to be higher through the end of the year," said Jason Goldberg, a banking analyst at Barclays. Despite the renewed optimism, investment banking activity remains depressed. As rates rise, bond prices fall, representing losses on paper that would be realized if the banks sold the bonds. More broadly, "we're back into this environment where investors think interest rates are going to remain higher for longer," he said.

Persons: JP Morgan Chase, Mike Segar, JPMorgan Chase, Goldman Sachs, Morgan Stanley's, Mike Mayo, Ebrahim Poonawala, Jason Goldberg, Richard Ramsden, James Demmert, Ramsden, Tatiana Bautzer, Saeed Azhar, Lananh Nguyen, Nick Zieminski 私 Organizations: JP, Co, REUTERS, JPMorgan, Citigroup, Wells, Bank of America, Federal Reserve, Wall Street, SoftBank's Arm Holdings, Barclays, U.S, Treasury, Valley Bank, Federal Deposit Insurance Corporation, Reuters, Street Research Locations: New York, Wells Fargo, dealmaking, Israel, Bengaluru

☆ This bank just hiked its 1-year CD rate to a fresh high
▼ + stars: | 2023-10-09 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

Stashing money in safe assets is paying off — and another bank has just hiked the yield it pays on a 1-year certificate of deposit. LendingClub bumped the annual percentage yield on its 1-year CD to 5.65%, an increase of 15 basis points. That places LendingClub's 1-year CD some 55 basis points above the median CD peer rate, according to an analysis by Stephens, and it makes the bank's offering the top-paying CD within Stephens' coverage. "Following the market now anticipating a higher for longer rate cycle, we've seen a reversal of the CD rate cuts initiated in September by a few of our online banks," he said. The upside of buying a CD is you get to lock in your rate for the duration of the time you hold the instrument.

Persons: LendingClub, Stephens, Vincent Caintic, Caintic, Banks, — CNBC's Michael Bloom Organizations: Investors, Federal Deposit Insurance Corporation

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