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☆ The banks are competing with money market funds, not just each other: Wedbush's David Chiaverini
▼ + stars: | 2023-05-02 | 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 EmailThe banks are competing with money market funds, not just each other: Wedbush's David ChiaveriniDavid Chiaverini, Wedbush Securities managing director, joins 'Closing Bell' to discuss the fallout in regional banks after First Republic's sale to JPMorgan, credit quality issues hurting commercial real estate, and more.

☆ First Republic's rescue by JPMorgan means the worst of the banking uncertainty is over, Citi CEO says
▼ + stars: | 2023-05-02 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

First Republic's rescue by JPMorgan will put an end to the worst of the banking uncertainty, Citi CEO Jane Fraser says. JPMorgan took over First Republic after customers yanked over $100 billion worth of deposits. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. JPMorgan stepped in to buy First Republic from the Federal Deposit Insurance Corporation (FDIC) on Monday, acquiring close to $92 billion worth of assets as well as certain liabilities. Read more: Why First Republic failed, and what it means for the rest of the banking industry

☆ Wall Street's most important workers you've never thought of
▼ + stars: | 2023-05-02 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

And on Wall Street, where the volume of information continues to rise, application design and user interface is taking center stage. User interface and user experience have long been underappreciated in finance, which is ironic considering the public nature of the work. Read more about Citadel X, the $57 billion hedge fund's user experience and interface team. If you're still trying to understand the collapse of yet another regional bank, we've got you covered. The German bank is building out its investment bank as it eyes a potential return of M&A, the Financial Times reports.

☆ Mohamed El-Erian: 4 Unintended Consequences of the First Republic Deal
▼ + stars: | 2023-05-02 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +3 min

Mohamed El-Erian said JPMorgan's takeover of First Republic could lead to "potential collateral damage". It's another case of US government institutions settling for a "second best" solution, he wrote in a Bloomberg op-ed. El-Erian warned of four unintended consequences from the deal including "a more concentrated banking system" and the risk of deeper credit crunch. Yet the potential collateral damage and the unintended consequences are far from immaterial," El-Erian wrote in an op-ed for Bloomberg on Monday. The chief economic adviser at Allianz warned of four notable unintended consequences for the US financial system, that could emerge from the final outcome of the First Republic narrative.

☆ The Fed is focused on inflation and the banking jitters won't stall its interest-rate increases, Jim Bianco says
▼ + stars: | 2023-05-02 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +3 min

Trouble with regional banks won't impact the Fed's decision to lift interest rates, Jim Bianco said. The Wall Street analyst thinks the Fed will raise rates this week and probably again next month. 'If [Fed chair Jerome Powell] focuses a lot on inflation, then financial markets could struggle. If he appeases financial markets, he lets inflation go," Bianco told CNBC. "The Fed is focused on inflation, and they're gonna raise rates, and they're gonna leave the door open to raising rates again in June.

☆ US regional bank stocks fall for second day as First Republic failure weighs
▼ + stars: | 2023-05-02 | by ( ) www.reuters.com time to read: +2 min

May 2 (Reuters) - Shares of major U.S. regional banks fell further on Tuesday in the aftermath of the collapse of First Republic Bank (FRC.N), the largest U.S. bank failure since the 2008 financial crisis. Investors are still concerned that the crisis started by the closure of Silicon Valley Bank and Signature Bank in March could engulf other mid-sized lenders. Shares of PacWest Bancorp (PACW.O) tumbled nearly 30%, while Western Alliance Bank (WAL.N) and KeyCorp (KEY.N) fell 21% and 10%, respectively. Some investors are also concerned about the long-term impact of the JPMorgan deal, which risks worsening the "too-big-to-fail" problem regulators have been trying to solve for years. Reporting by Niket Nishant and Jaiveer Singh Shekhawat in Bengaluru; Editing by Subhranshu SahuOur Standards: The Thomson Reuters Trust Principles.

☆ CNBC Daily Open: JPMorgan takes over First Republic
▼ + stars: | 2023-05-02 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +3 min

A branch of First Republic Bank in New York City, U.S.Markets were remarkably quiet following the second-biggest bank failure in U.S. history. 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 were remarkably quiet following the second-biggest bank failure in U.S. history. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ CNBC Daily Open: JPMorgan rides to the rescue
▼ + stars: | 2023-05-02 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +3 min

A posted announcement from the FDIC about the seizure of First Republic Bank and sale to JPMorgan Chase is displayed on a window at a First Republic Bank office on May 01, 2023 in San Francisco, California. 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. In sum: First Republic's failure and takeover by JPMorgan is a big deal (and good one for the biggest bank in the U.S.!) Subscribe here to get this report sent directly to your inbox each morning before markets open.

WASHINGTON, May 1 (Reuters) - JPMorgan Chase & Co's (JPM.N) deal to buy First Republic Bank pushed the Biden administration into a corner, leaving officials scrambling to explain how their stance against mergers squared with allowing the largest U.S. bank to get even bigger. At a White House event on small business on Monday, President Joe Biden hailed the sale of the troubled San Francisco-based lender, saying it would protect all depositors and avert a government bailout. "A poorly supervised bank was snapped up by an even bigger bank — ultimately taxpayers will be on the hook," Warren tweeted. "No recent administration has done more to promote competition, address (the) concentration process across industries," she told a White House briefing. Jean-Pierre added that Biden administration officials valued the fact that community banks offer services to those who might not otherwise have banking access.

Shares of JPMorgan and some of the other the largest U.S. banks rose on Monday, while those of mid-tier banks fell. [1/3] People walk past a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. "This is not the world financial crisis, this is not the savings and loan crisis. JPMorgan also entered into a loss-share agreement with the FDIC on single family, residential and commercial loans it bought, but will not take First Republic Bank's corporate debt or preferred stock. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, it added.

JPMorgan Chase & Co's (JPM.N) shares rose 3.1% to a near two-month high after the deal was announced earlier in the day. The S&P 500 Banks index (.SPXBK) gained 1.1%, while the KBW Regional Banking index (.KRX) shed 1.5%. Shares of regional banks PNC Financial (PNC.N) and Citizens Financial (CFG.N), that were among the bidders for First Republic, dropped 4.7% and 5.2%, respectively. "But regional banks will face higher cost of doing business for some time until confidence is rebuilt or there is a different regulatory scheme." Analysts now expect first-quarter earnings for S&P 500 companies to fall 1.9% from a year earlier, compared with a 5.1% fall expected at the start of April, according to Refinitiv data.

First Republic was one of the major casualties of the banking crisis triggered in March, when depositors fled en masse from some U.S. lenders to institutions such as JPMorgan that they thought were safer. [1/2] People walk past a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. JPMorgan has assumed all of the bank's deposits, it said, and will repay $25 billion of the $30 billion big banks deposited with First Republic in March. JPMorgan said it expected to achieve a one-time, post-tax gain of about $2.6 billion after the deal. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, it added.

The S&P 500 Banks index (.SPXBK) gained 1.4%. Big banks such as Bank of America (BAC.N) and Wells Fargo & Co (WFC.N) rose 0.3% and 2.8%, respectively. First Republic's woes kicked off last week on a bleak note, but upbeat earnings from Alphabet Inc (GOOGL.O), Microsoft Corp (MSFT.O) and Meta Platforms Inc (META.O) helped the benchmark S&P 500 (.SPX) notch its second consecutive month of gain on Friday. Analysts now expect first-quarter earnings for S&P 500 companies to fall 1.9% from a year earlier, compared with a 5.1% fall expected at the start of April, according to Refinitiv data. The S&P index recorded 21 new 52-week highs and no new low, while the Nasdaq recorded 48 new highs and 47 new lows.

☆ Explainer: Why First Republic Bank failed and what JPMorgan's deal means
▼ + stars: | 2023-05-01 | by ( Lawrence Delevingne | Thomson Reuters | Delevingne Works Primarily On Enterprise Stories Related To Finance. He Joined Reuters In | ) www.reuters.com time to read: +4 min

May 1 (Reuters) - The focus of the U.S. regional banking crisis turned on First Republic Bank in late March after the wealthy clients it courted to fuel its breakneck growth began pulling their deposits. The failure of First Republic, which said last week it had first-quarter outflows of more than $100 billion, marks the demise of a third major U.S. bank in just two months, after Silicon Valley Bank and Signature Bank . Merrill Lynch acquired the bank in 2007 but First Republic was listed on the stock market again in 2010 after being sold by Merrill's new owner, Bank of America. WHAT THE JPMORGAN DEAL MEANSJPMorgan said that under its deal First Republic's 84 offices in eight U.S. states would reopen as branches of JPMorgan Chase Bank from Monday, so customers of the failed bank will be dealing with the giant financial group instead. The biggest U.S. bank will get even bigger as a result of the deal for most of First Republic's assets.

☆ Factbox: JPMorgan's deal for collapsed First Republic explained
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +2 min

May 1 (Reuters) - JPMorgan Chase & Co (JPM.N) will buy most of First Republic Bank's (FRC.N) assets in a last-ditch rescue led by U.S. regulators, marking the third major U.S. institution to fail in two months. The deal, announced early on Monday as regulators seized First Republic, will see the largest U.S. bank acquire $173 billion of loans, $30 billion of securities and $92 billion of deposits of the failed lender. Highlights from a presentation to investors by JPMorgan:Key terms:* JPMorgan Chase will pay $10.6 billion to the Federal Deposit Insurance Corp (FDIC)* Will not assume First Republic's corporate debt or preferred stock* FDIC to provide loss share agreements with respect to most acquired loans* JPMorgan will repay $25 billion of deposits large U.S. banks made in First Republic in March and eliminate the $5 billion deposit it made on consolidation* Deal has received all regulatory approvals and has closedTransaction assumptions:* JPMorgan expects one-time gain of $2.6 billion post-tax at closing, not including expected restructuring costs of $2 billion over the course of 2023 and 2024* Estimated to add roughly $500 million to net income and be accretive to tangible book value per share* Says FDIC loss share agreements reduce risk weighting on covered loansPlan for integration:* First Republic branches and offices will open as normal* Plans to convert certain First Republic branches into new J.P. Morgan wealth centers* Failed lender's loan portfolios will be transitioned to JPMorgan Chase's business segments and technology systems* First Republic's private wealth management platform will become part of J.P. Morgan AdvisorsDue diligence:* JPMorgan says over 800 employees participated in the due diligence* Conducted comprehensive data room review including loan and deposit tapes* JPMorgan says loan portfolio marks supported by due diligence processReporting by Manya Saini in Bengaluru; Editing by Sriraj KalluvilaOur Standards: The Thomson Reuters Trust Principles.

STEPPING UPA security guard stands outside a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. The FDIC estimated in a statement that the cost to the Deposit Insurance Fund (DIF) would be about $13 billion. JPMorgan has assumed all of the bank's deposits, it said, and will repay $25 billion of the $30 billion big banks deposited with First Republic in March. New York-based JPMorgan will take on $173 billion of loans, $30 billion of securities and $92 billion of deposits. "Our government invited us and others to step up, and we did," said Jamie Dimon, JPMorgan Chairman and CEO.

☆ Futures muted as Fed caution sets in, JPMorgan to buy First Republic
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +4 min

The rescue comes less than two months after a deposit flight from U.S. lenders Silicon Valley Bank and Signature Bank forced the Fed to step in with emergency measures to stabilize markets. Apple Inc (AAPL.O) is set to report later this week. Markets should take today's news in stride knowing that the repeated bank failures should now have the Fed back on its heels and defanged moving forward." ET, Dow e-minis were down 14 points, or 0.04%, S&P 500 e-minis were down 3.75 points, or 0.09%, and Nasdaq 100 e-minis were down 13.5 points, or 0.1%. Reporting by Ankika Biswas in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

May 1 (Reuters) - JPMorgan Chase & Co (JPM.N) will buy most of First Republic Bank's (FRC.N) assets in a last-ditch rescue led by U.S. regulators, marking the third major U.S. institution to fail in two months. First Republic Bank shares tumbled 43.3% in premarket trading. The FDIC estimated in a statement that the cost to the Deposit Insurance Fund would be about $13 billion. "Our government invited us and others to step up, and we did," said Jamie Dimon, Chairman and CEO of JPMorgan Chase. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, according to the JPMorgan statement.

☆ JP Morgan to buy First Republic's assets and assume deposits
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +3 min

The banking giant will take $173 billion of loans and about $30 billion of securities of First Republic Bank including $92 billion of deposits, JPMorgan said in a statement. First Republic Bank shares tumbled 36% in premarket trading. The FDIC estimated in a statement that the cost to the Deposit Insurance Fund would be about $13 billion. "Our government invited us and others to step up, and we did," said Jamie Dimon, Chairman and CEO of JPMorgan Chase. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, according to the JPMorgan statement.

☆ Don't let the patriotic talk fool you. Here are 5 ways JPMorgan stands to win from buying First Republic Bank.
▼ + stars: | 2023-05-01 | by ( Emmalyse Brownstein | Carter Johnson | ) www.businessinsider.com time to read: +8 min

JPMorgan on Monday morning emerged as the white-knight buyer of First Republic Bank. More wealth advisors for high-net-worth clientsJPMorgan's wealth management ambitions will also get a boost from its purchase of First Republic. The smaller bank has about 150 high-end advisors who will join JPMorgan's brokerage business unit, JPMorgan Advisors. "If they can retain the wealth advisors and not lose too many more, I think it will be very advantageous. "This helps bring the bank crisis phase to the home stretch in our view," wrote Wells Fargo's Mayo.

☆ First Republic deal boosts our banks. Danaher gets a confidence vote. Here are our takes on the news
▼ + stars: | 2023-05-01 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +6 min

That deposit money will be repaid to the participating banks, which include Club holdings Wells Fargo (WFC) and Morgan Stanley (MS). Wells Fargo deposited $5 billion , while Morgan Stanley contributed $2.5 billion. The Club's take: Morgan Stanley and Wells Fargo are stocks worth buying here, Jim Cramer said during Monday's "Morning Meeting." One potential drag on Morgan Stanley shares is JPMorgan's wealth management operations are strengthened by its First Republic acquisition. A man walks past a First Republic bank in Manhattan on May 01, 2023 in New York City.

☆ Here's what's next for bank stocks after the failure of First Republic
▼ + stars: | 2023-05-01 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +4 min

First Republic's demise was the third regional bank failure since early March, when Silicon Valley Bank and Signature Bank folded within days of each other. There is cautious optimism on Wall Street that First Republic will be the last failure of this period. However, reports from other regional banks weren't nearly as dire, with many reporting that deposits had stabilized and were growing again. However, the failure of First Republic could cause some more turbulence, at least in the short-term, for both deposits and bank stocks. "We don't believe that regional banks are completely out of the woods," Wolfe Research chief investment strategist Chris Senyek said in a note to clients on Monday.

☆ JPMorgan takes over First Republic after it's seized by Californian financial regulator
▼ + stars: | 2023-05-01 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

A view of the First Republic Bank logo at the Park Avenue location, in New York City, March 10, 2023. The Californian financial regulator took possession of First Republic Monday, resulting in the third failure of an American bank since March, after a last-ditch effort to persuade rival lenders to keep the ailing bank afloat failed. JPMorgan Chase acquired all of First Republic's deposits, including uninsured deposits, and a "substantial majority of assets," according to a release. "As part of the transaction, First Republic Bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank, National Association, today during normal business hours," the FDIC said in a statement. "All depositors of First Republic Bank will become depositors of JPMorgan Chase Bank, National Association, and will have full access to all of their deposits."

☆ Uzbek leader wins referendum on extending powers
▼ + stars: | 2023-05-01 | by ( ) www.reuters.com time to read: +1 min

TASHKENT, May 1 (Reuters) - Uzbekistan has passed a package of constitutional amendments in a referendum, preliminary data showed on Monday, which will allow President Shavkat Mirziyoyev to run for two more seven-year terms when his current one ends in 2026. The reform, passed with 90.21% of Sunday's vote, resets Mirziyoyev's term count, while promising the Central Asian nation's citizens greater social and legal protections. Mirziyoyev, 65, has opened up the former Soviet republic's economy, greatly improved ties with the West, and curbed the powers of security services whose dominance had in previous decades turned the country of 35 million into a police state. Although Tashkent's Western partners are unlikely to approve of the extension of presidential powers, Uzbekistan risks little given the West is seeking support from ex-Soviet nations in its efforts to isolate Russia over its war in Ukraine. Reporting by Mukhammadsharif Mamatkulov, Writing by Olzhas Auyezov, editing by Ed OsmondOur Standards: The Thomson Reuters Trust Principles.

☆ Watch CNBC's full interview with Apollo Global Management CEO Marc Rowan
▼ + stars: | 2023-05-01 | 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 EmailWatch CNBC's full interview with Apollo Global Management CEO Marc RowanApollo Global Management CEO Marc Rowan joins David Faber on 'Squawk on the Street' to discuss the fallout of First Republic's banking failure, Apollo's performance, recession prediction, and more.

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