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☆ Stocks making the biggest premarket moves: Tesla, First Republic, UBS, Foot Locker and more
▼ + stars: | 2023-03-21 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

Check out the companies making the biggest moves in premarket trading:Tesla — The electric vehicle maker rose 2% after Moody's assigned it a Baa3 rating and removed its junk-rated credit. First Republic — The beleaguered bank jumped nearly 19% in premarket trading, following a 90% plunge so far this month as investors focused on its large amount of uninsured deposits. Regional banks — Regional banks were also higher on the heels of First Republic's rise and as investors continued to digest the likelihood of expanded federal insurance. UBS — U.S.-listed shares of the Swiss-based bank were up 4%, a day after gaining 3.3% following its agreement to buy Credit Suisse for $3.2 billion. Foot Locker — Its shares rose more than 4% after Citi upgraded the retailer to "buy" from "neutral."

☆ CNBC Daily Open: First Republic Bank is trying to save itself
▼ + stars: | 2023-03-21 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Markets might face a Minsky moment soon, warned Marko Kolanovic, JPMorgan Chase's chief market strategist and co-head of global research. With that in mind, investors might want to heed Kolanovic's warning that a Minsky moment could be on the horizon. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ Stocks making the biggest moves midday: First Republic, UBS, Virgin Orbit, Dell and more
▼ + stars: | 2023-03-20 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Check out the companies making the biggest moves midday:First Republic — Shares tanked nearly 30% after Standard & Poor's cut First Republic's credit rating to B+ from BB+. S&P first lowered the bank's rating to junk status just last week. UBS , Credit Suisse — U.S.-listed shares of Credit Suisse tanked 50.5% after UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or $3.2 billion. UBS shares gained 4.7%. Exelixis — The stock gained 3.9% after the biotech company announced a $550 million share repurchase program to run through the end of 2023.

☆ Credit Suisse's investment bankers are so concerned about cuts, employees are being told to look for new jobs. 'They encouraged it.'
▼ + stars: | 2023-03-20 | by ( Carter Johnson | Casey Sullivan | Dakin Campbell | ) www.businessinsider.com time to read: +12 min

The fate of Credit Suisse's investment bank hangs in the balance after being sold to UBS. The investment bank's planned spinoff has been put on hold and bankers are bracing for job cuts. People said they expect Credit Suisse's planned spinoff of its investment banking operations, announced last year, to be scuttled. Over at 11 Madison Ave., where Credit Suisse's NY operations are headquartered, emotions were running hot on Monday. Now, the proposed CS First Boston deal hangs in the balance, with both industry experts and Credit Suisse employees uncertain whether it will go through.

☆ CNBC Daily Open: Credit Suisse is too big to fail. So UBS agreed to buy it
▼ + stars: | 2023-03-20 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Fed officials say they rely on data to determine the trajectory of interest rates. As Doug Roberts, founder and chief investment strategist at Channel Capital Research, said, Fed officials have "to do something, otherwise they lose credibility." Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ One country, two crypto systems: Hong Kong harbors crypto hub ambitions despite China's crackdown
▼ + stars: | 2023-03-20 | by ( Lee Ying Shan | ) www.cnbc.com time to read: +5 min

Sopa Images | Lightrocket | Getty ImagesThe crypto industry has had a rough year with digital currency markets crashing and companies collapsing across the board. Hong Kong is planning to introduce new rules in June that will require crypto trading platforms to be licensed by the Securities and Futures Commission. Bitcoin ATMs, operated by Coinhero, in Hong Kong, China, on Wednesday, Dec. 21, 2022. While Hong Kong harbors high crypto ambitions and boasts relatively lower tax policy on businesses, the city could still potentially find competition with other crypto hubs. The logo of Bitcoin cryptocurrency at a store in Hong Kong on Thursday, Feb. 10, 2022.

☆ CNBC Daily Open: UBS agrees to buy Credit Suisse
▼ + stars: | 2023-03-20 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Fed officials say they rely on data to determine the trajectory of interest rates. As Doug Roberts, founder and chief investment strategist at Channel Capital Research, said, Fed officials have "to do something, otherwise they lose credibility." Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ What are AT1 bonds and why are Credit Suisse’s now worthless?
▼ + stars: | 2023-03-20 | by ( Anna Cooban | ) edition.cnn.com time to read: +4 min

But it is the owners of Credit Suisse’s $17 billion worth of “additional tier one” (AT1) bonds who have been left fully in the cold. David Benamou, chief investment officer at Axiom Alternative Investments, a French wealth management firm with exposure to AT1 bonds, called the decision “quite surprising, not to say … shocking.”What are AT1 bonds? AT1 bonds are also known as “contingent convertibles,” or “CoCos”. It is not the write-down of Credit Suisse’s AT1 bonds that has rocked investors, but the fact that the bank’s shareholders will receive some compensation when bondholders will not. But because Credit Suisse’s demise has not followed a traditional bankruptcy, analysts told CNN, the same rules don’t apply.

☆ Dow futures rise more than 100 points after UBS buys Credit Suisse to stem bank crisis: Live updates
▼ + stars: | 2023-03-19 | by ( Hakyung Kim | ) www.cnbc.com time to read: +3 min

S&P 500 futures and Nasdaq-100 futures climbed 0.3%. UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or $3.2 billion, with the combined bank to have $5 trillion in assets. But traders may be anxious for more to be done by regulators to stem the slide in regional banks. The SPDR Regional Banking ETF (KRE) tumbled 14% last week. "I think there's there's been an overreaction to the regional banks ... And that likely represents an opportunity," said Hogan.

☆ A leading fund manager warns that regional banks could cause 'financial Armageddon' — unless the government makes 2 crucial moves immediately
▼ + stars: | 2023-03-19 | by ( James Faris | ) www.businessinsider.com time to read: +8 min

Financial stress stemming from Silicon Valley Bank's collapse could spread, a top fund manager said. But that in itself is becoming an under-the-radar issue, he noted, as large banks' strength is now coming at the expense of regional banks — even those without issues. Since most regional banks aren't classified as "systemically important," their clients would be out of luck in the event of a bank failure, Hatfield noted. Unless the FDIC insures all deposits at all banks, Hatfield said that there will be no reason to put money in a non-protected regional bank. So they'll have a negative interest margin, they'll lose money, they'll get downgraded, and they'll go out of business."

☆ Investors in venture funds reveal how they felt VCs handled the Silicon Valley Bank fallout: one was privately frustrated, while another was impressed
▼ + stars: | 2023-03-19 | by ( Madeline Renbarger | Ben Bergman | ) www.businessinsider.com time to read: +4 min

After last week's bank run on SVB, many limited partners for VC funds had lots of questions. One LP was unhappy with how VCs in the funds they back handled the SVB crisis. Some LPs are wary of the tech industry's heavy reliance on the bank. But after last week's bank run on Silicon Valley Bank, caused in large part by warnings from several prominent VCs to their portfolio companies to get their money out of the bank, LPs have mixed feelings about how it all went down. "There were a lot of fintech companies in particular, and banking companies that banded together to come up with solutions overnight."

☆ S&P cuts First Republic deeper into junk, says $30 billion infusion may not solve problems
▼ + stars: | 2023-03-19 | by ( ) www.cnbc.com time to read: +2 min

A First Republic Bank branch is pictured in Midtown Manhattan in New York City, March 13, 2023. First Republic Bank saw its credit ratings downgraded deeper into junk status by S&P Global, which said the lender's recent $30 billion deposit infusion from 11 big banks may not solve its liquidity problems. S&P cut First Republic's credit rating three notches to "B-plus" from "BB-plus," and warned that another downgrade is possible. Sunday's downgrade by S&P was the second in four days for First Republic, which previously held an "A-minus" credit rating. In a statement following the S&P downgrade, First Republic said the new deposits and cash on hand leave it "well positioned to manage short-term deposit activity.

☆ Credit Suisse faces fateful weekend. Will UBS step up with a rescue bid?
▼ + stars: | 2023-03-18 | by ( Mark Thompson | ) edition.cnn.com time to read: +3 min

London CNN —The fate of Credit Suisse could be decided in the next 36 hours after a torrid week for Switzerland’s second biggest bank. But by Friday, analysts were speculating that a full-blown rescue would be needed, and reports began to swirl of a possible takeover by its biggest Swiss rival, UBS (UBS). The FT said the boards of UBS and Credit Suisse were expected to meet separately over the weekend. Credit Suisse and UBS both declined to comment to Reuters. “BlackRock is not participating in any plans to acquire all or any part of Credit Suisse, and has no interest in doing so,” a BlackRock spokesperson told CNN.

First Republic Bank was forced to seek a lifeline this week, receiving tens of billions of dollars from other banks. These are known as unrealized losses — they turn into real losses only if the banks have to sell the assets. +2 % 0 –4 First Republic Pacific Western Signature −8 Plotted quarterly ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 –4 Silicon Valley Western Alliance Zions −8 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 First Republic Pacific Western Signature –4 −8 Plotted quarterly ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 Silicon Valley Western Alliance Zions –4 −8 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 First Republic Pacific Western Signature –4 −8 Plotted quarterly ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 Silicon Valley Western Alliance Zions –4 −8 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 Source: Federal Financial Institutions Examination Council Note: Includes both “held-to-maturity” and “available-for-sale” securities, meaning both long- and short-term investments. Banks’ cash and noncash assets Plotted quarterly $200 billion Pacific Western Signature 150 100 First Republic 50 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 $200 billion Western Alliance Zions 150 100 50 Silicon Valley 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 Banks’ cash and noncash assets $200 billion Pacific Western Signature 150 100 50 First Republic 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 $200 billion Western Alliance Zions 150 100 50 Silicon Valley 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 Source: Federal Financial Institutions Examination CouncilMidsize banks like SVB do not have the same regulatory oversight as the nation’s biggest banks, who, among other provisions, are subject to tougher requirements to have a certain amount of reserves in moments of crisis. Last weekend, the Fed announced a program that offers loans of up to one year to banks using the banks’ government bonds and certain other assets as collateral.

☆ What caused the global banking crisis this week and will it lead to a recession?
▼ + stars: | 2023-03-17 | by ( Mark Thompson | ) edition.cnn.com time to read: +7 min

Silicon Valley Bank’s customers were frantically pulling their money from the California-based lender before US regulators intervened to take control. Thursday, March 16 — First Republic Bank was teetering on the brink as customers withdrew their deposits. In guaranteeing all deposits at Silicon Valley Bank and Republic Bank, the US Federal Reserve is on the hook for $140 billion. Then there’s the $54 billion the Swiss National Bank offered Credit Suisse in the form of an emergency loan. The $318 billion the Fed has loaned in total to the financial system is about half what was extended during the global financial crisis.

☆ Big banks to the rescue
▼ + stars: | 2023-03-17 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

Goldman Sachs' decision to charge employees for coffee might not be that outrageous after all! The largest US banks — headlined by Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo — just pledged a total of $30 billion in deposits to First Republic Bank. As detailed in a release announcing the news, the 11 banks, which also included Goldman Sachs and Morgan Stanley, believe the move "demonstrates their overall commitment to helping banks serve their customers and communities. I can't imagine the big banks looking to pull the rug out from First Republic four months from now, but this money was a deposit, not a donation. Read more about how big banks came to the rescue of First Republic with $30 billion in deposits.

Employees have been working around the clock to onboard as many startups as possible in the wake of the implosion of Silicon Valley Bank. Silicon Valley Bank, which had more than $175 billion in deposits and served nearly half of US VC-backed startups, was taken over by US regulators on March 10. "That said, I am worried that this bias towards a Big Four bank is a double-edged sword," Shekar added. "SVB did not think like a big bank. They could understand your operating plan when a big bank would balk at it," Ashley Tyrner, CEO and founder of FarmBoxRX, told Insider.

☆ Short sellers are doubling down on these European banks — and Credit Suisse isn't their top target
▼ + stars: | 2023-03-17 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

Short-sellers are sitting on nearly $2 billion in profit from bets against the European banking sector this month so far. The worries heightened in Europe on Wednesday as Credit Suisse shares fell by 24% — its biggest daily loss. However, data shows that Credit Suisse — Switzerland's second-largest lender — doesn't even make the list of the top five most-shorted European Banks. BNP Paribas remains the biggest target for short-sellers, with $3.1 billion in total wagers expecting shares to fall. The following table shows the European lenders that saw the largest increase in shorts over the past 30 days.

☆ The Club's bank holdings help bolster First Republic, while our semis are set to climb on AI
▼ + stars: | 2023-03-17 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +6 min

The news: Wells Fargo and Morgan Stanley are part of a group of 11 banks that agreed Thursday to jointly deposit $30 billion in First Republic Bank (FRC). Wells Fargo plans to deposit $5 billion at First Republic, along with Citigroup (C), JPMorgan Chase (JPM) and Bank of America (BAC). Morgan Stanley and Goldman Sachs (GS) contributed $2.5 billion each. The uninsured deposits, which will yield market rates, are required to stay at First Republic for at least 120 days. Wells Fargo slid over 3%, to roughly $38 per share, while Morgan Stanley declined 2.4%, to just under $85 per share.

☆ What credit ratings have to do with the fallout at Silicon Valley Bank and First Republic — and why they matter so much to banks
▼ + stars: | 2023-03-16 | by ( Huileng Tan | ) www.businessinsider.com time to read: +8 min

As panic shoots across the banking sector, US banks' credit ratings have come under the spotlight, and investors are zooming in on how these institutions are graded. Moody's, S&P Global, and Fitch are three big credit ratings agencies that control about 95% of the credit ratings in the financial markets. In fact, during the global financial crisis, credit ratings agencies had been blasted for giving better ratings to risky mortgage-backed securities and collateralized loans. Fears of the crisis spreading have also hit the credit ratings of First Republic Bank. First Republic Bank is now considering various options —including a sale – Bloomberg reported Wednesday, citing people with knowledge of the matter.

☆ Stocks making the biggest premarket moves: Credit Suisse, Snap, Adobe, PagerDuty & more
▼ + stars: | 2023-03-16 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Check out the companies making the biggest moves in premarket trading:Credit Suisse — U.S.-listed shares of Credit Suisse gained nearly 6% after the Swiss bank said it will borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank. Occidental Petroleum — Shares rose nearly 1% after Warren Buffett's Berkshire Hathaway bought another 7.9 million shares, totaling $466.7 million. Baidu — U.S. listed shares of Baidu sank nearly 6% after the Chinese tech company unveiled its ChatGPT alternative, Ernie bot. PagerDuty — Shares rallied nearly 6% after the digital operations management platform's earnings and revenue topped estimates for the fourth quarter. Adjusted earnings per share came in at 8 cents per share, versus the 2 cents expected, per Refinitiv.

☆ Stocks making the biggest moves midday: Credit Suisse, First Republic Bank, Halliburton and more
▼ + stars: | 2023-03-15 | by ( Samantha Subin | ) www.cnbc.com time to read: +3 min

Credit Suisse — Shares of Credit Suisse plunged 25% after its biggest backer, Saudi National Bank, said it won't provide the Swiss bank with further financial help. First Republic Bank — The regional bank stock tumbled 23%, giving back some of Tuesday's gains as turmoil at Credit Suisse rattled the broader sector and S&P Global Ratings downgraded its debt rating to BB+ from A-. U.S. banks — Major U.S. banks tumbled on Wednesday as unease over the latest crisis at Credit Suisse spooked some investors. Energy stocks — Major energy stocks took a hit as oil stooped to its lowest level in more than a year. New York Community Bancorp — The regional bank stock jumped more than 5%, bucking the broader sell-off trend in banking names.

☆ The CEO of Silicon Valley Bridge Bank is asking customers to return. But spooked Americans are moving billions out of smaller banks and into Wall Street giants.
▼ + stars: | 2023-03-15 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

The CEO of Silicon Valley Bridge Bank asked customers to move their money back to the bank. US depositors have been moving billions of dollars from smaller to larger banks, per Reuters. The bridge bank, which opened on Monday, is a new lender created by the Federal Deposit Insurance Corporation, which took over the deposits of the Silicon Valley Bank. His statements come just as US depositors are moving billions away from smaller banks after the collapse of Silicon Valley Bank and Signature Bank, New York, Reuters reported Tuesday. Both Silicon Valley Bank and Signature Bank, New York, experienced runs on deposits that led to their closures.

☆ Proptech VCs and startup founders already struggling from the housing-market downturn are now reeling from the Silicon Valley Bank collapse
▼ + stars: | 2023-03-15 | by ( Alex Nicoll | ) www.businessinsider.com time to read: +5 min

The overnight collapse of Silicon Valley Bank after a social media and group chat-fueled bank run is creating yet another set of problems for an already ailing venture tech environment. The proptech industry has suffered over the past year as higher interest rates have throttled both the real estate and tech worlds. Silicon Valley Bank was the go-to lender of so-called venture debt, or debt that startups can raise along with their equity rounds of funding. The Silicon Valley Bank collapse "just punctuated it," he said, of the financial duress. Real estate lending warningsBanks make up almost a third of all commercial real estate lending according to CBRE.

☆ Crypto founders are running out of bank options after the collapses of SVB and Signature. Here's where they're scrambling to move their money.
▼ + stars: | 2023-03-15 | by ( April Joyner | Morgan Chittum | ) www.businessinsider.com time to read: +5 min

Crypto founders face dwindling banking options after the collapses of Silvergate and Signature Bank. After back-to-back collapses of several crypto- and startup-friendly banks — Silvergate, Signature, and Silicon Valley Bank — crypto founders face a huge void. Silvergate and Signature, in particular, filled a vital role in the financial system for crypto startups, several founders told Insider. Well before the collapse of SVB and downfall of Signature, crypto founders had found banking havens outside the US in locales such as Dubai and Singapore. "It's a recurring conversation that crypto companies have that are based out of the states," she said.

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