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☆ Banks ask SEC to stop short-seller attacks on their stocks driven by social-media speculation
▼ + stars: | 2023-05-05 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +3 min

A leading banking group called for the SEC to do more to stop speculative short selling in bank stocks. The American Banking Section said social-media speculation about banks was disconnected from their financial reality. "ABA is, however, unalterably opposed to short selling practices that distort the markets through manipulation and abuse," he said. Nichols called for the SEC to take a clearer stance against what he called market manipulation and abusive short selling practices. "The harm caused by short selling that runs counter to economic fundamentals ultimately falls on small investors, who see value destroyed by others' predatory behavior."

☆ U.S. bankers urge SEC to probe short sales, reduce 'abusive' trading
▼ + stars: | 2023-05-05 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

"We urge the SEC to consider all its existing tools and to take measures to reduce the avenues for abusive trading practices and restore investor confidence," the group said. "These measures include, at a minimum, a clear message and appropriate enforcement actions against market manipulation and other abusive short selling practices." Short sellers raked in $378.9 million in paper profits on Thursday alone from betting against certain regional banks, according to analytics firm Ortex. ABA President and CEO Rob Nichols told Gensler that short selling could be a legitimate financial tool, but his group was "unalterably opposed to short selling practices that distort the markets through manipulation and abuse." He called on Gensler to send a clear message to market players and take appropriate enforcement action against market manipulation and other abusive short selling practices.

☆ Almost 50% of Americans say they worry about their money being safe with a bank as shares of regional lenders plunge amid deposit outflows
▼ + stars: | 2023-05-04 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

Nearly half of Americans are worried about the safety of their cash in banks and other financial institutions, Gallup said Thursday. But 20% said they were "not worried at all" about their cash, and 30% considered themselves "not too worried." The study was conducted throughout April after Silicon Valley Bank and Signature Bank imploded in March. But its message didn't soothe those trading regional bank stocks on Thursday. Regional bank stocks plunged, with PacWest Bancorp sliding nearly 50% following a Bloomberg report the Beverly Hills-based lender is weighing strategic options, including a breakup or a sale to a larger rival.

☆ Mohamed El-Erian slams Powell's suggestion that the bank turmoil is over – says it could be added to a list of Fed communications that eroded its credibility.
▼ + stars: | 2023-05-04 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +3 min

Mohamed El-Erian raised doubts about Fed chair Jerome Powell's suggestion that the worst of the banking turmoil is over. PacWest is the latest bank to be hit by uncertainty, with its shares tumbling more than 50% in after-hours trading Wednesday. El-Erian said Powell's remarks may get added to a list of Fed communications that ended up eroding its credibility. It is the latest regional bank to be hit by the turmoil that started with Silicon Valley Bank's collapse in March. It's important the Fed notes that this doesn't mean the banking system as a whole is facing an existential crisis, he added.

☆ Treasury: US banks have 'substantial' liquidity, deposit flows are stable
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, May 4 (Reuters) - The U.S. Treasury Department on Thursday said it was continuing to monitor market developments amid sharp drops in the shares of regional lenders PacWest Bancorp <PACW.O and Western Alliance Bancorp (WAL.N), but deposit flows were stable. "We continue to closely monitor market developments," a Treasury official said. "The banking system has substantial liquidity and deposit flows are stable." Western Alliance's stock was down 58.2%, despite a statement from the bank saying it had no unusual deposit outflows and had adequate liquidity. First Republic was the third major casualty of the biggest crisis to hit the U.S. banking sector since 2008.

☆ A $1.1 trillion investment chief shares her 3-part checklist for confirming a recession has started — and details 4 stocks she expects to outperform no matter what
▼ + stars: | 2023-05-03 | by ( James Faris | Akin Oyedele | ) www.businessinsider.com time to read: +6 min

Nuveen investment chief Saira Malik is still forecasting a recession in the next year. Malik also shares four top stocks investors can buy to set themselves up for long-term success. "The consumer — which I would have said was holding up very well — I'm worried about tighter banking conditions, tighter banking credit on the consumer," Malik said. Additionally, the labor market is now showing cracks, even though the unemployment rate remains historically low at 3.5%. 4 stocks set to outperform in a downturnDespite her concerns about the economy, Malik doesn't see a massive market sell-off coming.

☆ 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.

TOKYO, May 2 (Reuters) - Banking sector problems in the United States and Europe were caused by liquidity and interest rates risks, but won't impact on Japan's economy and financial system for now, Economy Minister Shigeyuki Goto said on Tuesday. Financial institutions and authorities will need to respond firmly to liquidity risks," Goto said. "I don't see the U.S. financial sector facing big problems." "The BOJ as central bank should tackle monetary policy operations, but I don't see the current financial situation impacting Japan's economy and financial sector as a whole. "I expect the BOJ to guide monetary policy flexibly, meaning that the central bank should do so appropriately taking economy and financial markets into account."

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.

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 First Republic deal has come at a crucial point for the markets and economy
▼ + stars: | 2023-05-01 | by ( Jeff Cox | ) www.cnbc.com time to read: +4 min

Michael M. Santiago | Getty ImagesJPMorgan Chase's takeover of First Republic likely ends the panic phase of the banking crisis, with the fallout left to come in a pivotal week for markets and the economy. Following an unsuccessful effort to keep First Republic open, the largest U.S. bank by deposits reached a deal to take over the 14th-largest financial institution. With financial services covering such a wide swath of activities in the $26.5 trillion U.S. economy, the failures of Silicon Valley Bank, Signature Bank and now First Republic Bank will reverberate. Stocks nudged higher Monday morning on hopes that the worst of a banking crisis that began in early March has drifted into the rear view. "Resolving FRC should end the 7-week post SVB bank crisis phase."

☆ Why First Republic failed, and what it means for the rest of the banking industry
▼ + stars: | 2023-05-01 | by ( Ryan Hogg | ) www.businessinsider.com time to read: +4 min

First Republic's failure is a stark reminder that the banking crisis is far from over. But despite a speedy takeover by JPMorgan, First Republic's failure shows the banking crisis is far from over. At the end of 2022, two-thirds of First Republic's deposits were uninsured. When SVB and Signature Bank failed, these wealthy customers fled First Republic in droves for fear of losing their cash. The combined failure of SVB, Signature and First Republic is a reminder of the problems affecting the banking system.

☆ De-dollarization and global reserves dominance, explained by a top currency economist and the inventor of the 'dollar smile' theory
▼ + stars: | 2023-04-29 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Stephen Jen, CEO of Eurizon SLJ Eurizon SLJStephen Jen is a leading economist, the cofounder and CEO of Eurizon SLJ, and inventor of the "dollar smile" theory. Phil Rosen: You pointed out recently that the dollar saw a steep erosion in 2022 as a global reserve currency. More likely, we will evolve from a unipolar reserve currency world to a multi-polar world. Here's what he said on a potential "tripolar" reserve currency setup if the dollar loses dominance. And here are the top stories from markets this week:Lauren Simmons, a trader at the New York Stock Exchange.

☆ First Republic teeters on the edge — again
▼ + stars: | 2023-04-28 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

New York CNN —First Republic Bank’s fate is looking grim. The bank’s stock has plummeted about 75% this week, after a disappointing first-quarter earnings report Monday revived Wall Street’s fears about a banking crisis and catalyzed an exodus out of First Republic stock. About two-thirds of First Republic’s deposits were uninsured with the FDIC when the banking turmoil took hold in March, lower than the 94% at Silicon Valley Bank. But at the end of 2022, First Republic had a whopping ratio of 111% for loans and long-term investments to deposits, according to S&P Global. Déjà vuFirst Republic’s fight for survival comes just over a month after Silicon Valley Bank’s collapse on March 10.

☆ The insurance limit on your savings has become a hot global debate
▼ + stars: | 2023-04-28 | by ( Julia Horowitz | ) edition.cnn.com time to read: +8 min

The US Federal Deposit Insurance Corporation insures deposits up to $250,000 per person, per account, using a fund that banks pay into. “I don’t think that’s served us well.”Some argue the US deposit insurance limit should be 100 times higher. What is deposit insurance? Deposit insurance is aimed at calming fears, giving customers less reason to pull their cash out in a hurry. The debate over deposit insurance taps into bigger questions about the state’s role in private enterprise.

Students with a limited credit history are unlikely to be approved for the best credit cards, and even some student credit cards require good to excellent credit. Step is a secured credit card that has a dynamic credit limit that is attached to the bank account balance -- it operates like a debit card but it is a credit card, which is what enables the unique credit building feature. Best Credit Cards for Students With No Credit of 2023Methodology: How we chose the best credit cards for students with no creditInsider's credit cards team looked at dozens of student credit cards, secured credit cards, and starter credit cards and narrowed down the list by choosing only those that students with limited or no credit have a good chance of qualifying for. Credit Cards for Students With No Credit Frequently Asked Questions (FAQ)Which credit card is best for students with no credit? US Bank Altitude Go Secured Credit Card ReviewBest for Students Under 18Step Secured Visa CardWhile credit card accounts are only available to those aged 18 and over, the Step Secured Visa Card offers a solution for students looking to build credit who haven't yet reached legal adulthood.

☆ Premarket stocks: Here's what we know about First Republic Bank
▼ + stars: | 2023-04-27 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —First Republic Bank has been teetering on the edge for weeks. The San Francisco-based lender could be next in the line to collapse, following in the footsteps of former competitors Silicon Valley Bank and Signature Bank. The FDIC, Federal Reserve, White House and First Republic did not respond to requests for comment about those reports. The stock’s trading was halted numerous times both days as its rapid decline triggered volatility-triggered timeouts by the New York Stock Exchange. “It’s becoming clearer each day” that First Republic is “toast,” said Don Bilson at Gordon Haskett, in a note Wednesday.

☆ Here's the outlook for bitcoin as the cryptocurrency struggles to reclaim the all-important $30,000 technical level
▼ + stars: | 2023-04-27 | by ( Matthew Fox | ) www.businessinsider.com time to read: +3 min

The price of bitcoin is testing a pivotal level that could determine whether strength or weakness is ahead. The cryptocurrency needs to decisively clear $30,000 to test its $35,200 resistance level, according to Fairlead Strategies. If bitcoin can decisively clear that threshold, Stockton expects the cryptocurrency to trend toward its key resistance level at $35,900, representing potential upside of 24%. While Stockton is bearish on bitcoin in the short term and bullish on bitcoin in the intermediate term, she remains neutral on the cryptocurrency for the long term, proving just how mixed the technical outlook for bitcoin is. "We are long-term neutral despite improved intermediate-term momentum given the additional hurdle from the monthly cloud... the cloud is now a headwind, acting as long-term resistance," Stockton said.

☆ Factbox: US banks hit by deposit flight as clients seek higher returns
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: 1 min

[1/2] The company logo for financial broker Charles Schwab is displayed at a location in the financial district in New York, U.S., March 20, 2023. REUTERS/Brendan McDermid/File PhotoApril 17 (Reuters) - The closure of two U.S. regional banks in March shook investor confidence in the banking industry and drove spooked customers to seek refuge in "too-big-to-fail" institutions or money market funds for higher yields. First Republic Bank (FRC.N) said on Monday deposits plunged by more than $100 billion in the first quarter and it was exploring options such as restructuring its balance sheet. Total deposits at Wall Street's biggest lenders:Overview of deposits at other prominent financial firms:Source: Company statementsCompiled by Mehnaz Yasmin in Bengaluru; Edited by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

☆ First Republic Bank turmoil pushes stock to plunge 95% this year as the lender seeks another lifeline from big US banks
▼ + stars: | 2023-04-26 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

First Republic shares extended this week's losses, driving the stock down 95% so far in 2023. The bank centered on wealthy clients was set to ask its larger rivals for more financial aid. The stock fell as much as 41% to $4.76 and underwent a number of trading halts because of volatility. If the purchases aren't made, those banks may face fees of about $30 billion from the Federal Federal Deposit Insurance Corp. should First Republic fail, the report said. Those banks are already facing FDIC fees stemming from the collapse and federal seizures of Silicon Valley Bank and Signature Bank last month.

☆ First Republic may not survive, even after two multibillion-dollar bailouts
▼ + stars: | 2023-04-26 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

New York CNN —First Republic Bank is in a fight for its survival. “It’s becoming clearer each day” that First Republic is “toast,” said Don Bilson at Gordon Haskett, in a note Wednesday. First Republic said in its latest earnings call that is exploring its strategic options, Wall Street code for searching for a white knight. First Republic CEO Michael Roffler attempted to assure investors in an earnings call Monday that the bank had enough liquidity to do that. That’s what happened to Silicon Valley Bank on March 10 when the California Department of Financial Protection and Innovation took possession of and closed Silicon Valley Bank and on March 12 Signature Bank was closed by the New York State Department of Financial Services.

☆ Tech bulls are flirting with disaster as banking pressures threaten to crash the stock market, a markets guru warns
▼ + stars: | 2023-04-26 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +2 min

Larry McDonald has warned carefree tech investors are "smoking in the dynamite shed." The founder of "The Bear Traps Report" expects further banking turmoil to tank the stock market. Early signs of a credit crunch and ongoing turmoil in the regional-banking sector suggest there's more trouble ahead, he said. "From credit cards to all different types of companies, credit default swaps are rising on many different financial institutions," he continued. Credit default swaps (CDS) serve as insurance against a company defaulting on its debts, and become more expensive as the perceived risk of a default grows.

☆ Banks ‘aren’t out of the woods’ after the collapse of SVB and Signature
▼ + stars: | 2023-04-25 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +4 min

New York CNN —A month ago, code blue sirens went off at banks across the globe after the collapse of Silicon Valley Bank and Signature Bank. For now, looking at banks’ deposits may lead you to believe that banks are in better shape than they are, but they “are not out of the woods just yet,” said Ana Arsov, managing director at Moody’s. After the collapse of SVB and Signature Bank, record levels of deposits poured into Bank of America, JPMorgan Chase and Citibank from mid-size and regional banks. A sign is posted on the exterior of a First Republic Bank office on March 16, 2023 in San Francisco. And the Fed’s likely rate hikes at its upcoming meetings will lead to more deposit outflows, said Wolfe.

☆ From cooling inflation to a looming recession, here's what CEOs of the 5 largest US banks are predicting for the economy through 2023
▼ + stars: | 2023-04-22 | by ( Morgan Chittum | ) www.businessinsider.com time to read: +4 min

The world's largest banks reported earnings over the past week. Here is what some top bank CEOs are saying about the US economy during their earnings calls this season. JPMorgan CEO Jamie DimonThe Wall Street vet warned investors of looming "storm clouds" ahead. Bank of America CEO Brian MoynihanDuring an earnings call, Moynihan warned of a US recession but said inflation has showed signs of cooling. He allayed fears of a full-blown banking crisis, addressing the turmoil sparked by collapse of specialist banks like SVB last month.

☆ Why Michael Bloomberg is the keeper of the keys on Wall Street
▼ + stars: | 2023-04-21 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Bloomberg deals in data — via its ubiquitous terminal — which serves as the lifeblood of Wall Street. (A funny nugget from the FT story: Bloomberg is not part of the Bloomberg Billionaires Index. In many ways, the Bloomberg terminal is the cockroach of Wall Street. Tiger Global's down bad. Here's more on Tiger Global's unique approach to investing in startups and why it backfired.

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