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☆ Premarket stocks: The world's biggest banks are still pouring money into fossil fuels
▼ + stars: | 2023-04-20 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Banks have pledged to go green, but last year they poured billions of dollars into expanding the capacity of fossil fuel production despite the accelerating climate crisis. While Canadian banks are providing a rising share of the money, US lenders still dominate the market and accounted for 28% of all fossil fuel financing in 2022, said the report. High prices have swelled profits for energy companies, leaving them flush with cash. The record profits come after the world’s 60 largest private banks provided $5.5 trillion in finance for fossil fuels over the past seven years, according to the report. The Banking on Climate Chaos report, which has been published for 14 years, examines the fossil fuel funding of the 60 largest banks in the world.

☆ The credit crunch is here and it could cripple the economy. Here's what Larry Summers, Nouriel Roubini and 7 other experts have said on the emerging threat.
▼ + stars: | 2023-04-20 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +6 min

Latest bank lending data suggests the credit crunch "has already started," according to Morgan Stanley strategists. Here's a selection of recent warnings on the emerging threat from experts including Larry Summers, David Solomon, Mike Wilson, Nouriel Roubini and Bill Gross. Apollo Asset Management's Jim Zelter told Bloomberg "it's not a credit crunch" but rather a "transition period" as markets face higher debt costs. "That credit crunch is going to make the likelihood of a recession — a hard landing — much greater than before. "Whether this qualifies as a full-blown 'credit crunch' remains to be seen.

☆ Factbox: How big US banks are managing bad loan reserves
▼ + stars: | 2023-04-19 | by ( ) www.reuters.com time to read: 1 min

[1/2] A J.P. Morgan logo is seen outside the JPMorgan bank offices in Paris, France, January 27, 2023. REUTERS/Sarah MeyssonnierApril 17 (Reuters) - U.S. banking heavyweights set aside billions of dollars in the first quarter to account for potential bad loans, as rising interest rates turn up the heat on borrowers who are just starting to see some relief from inflation. Below is an outline of how banks have managed their reserves since 2020:JPMorgan Chase & Co (JPM.N)Bank of America Corp (BAC.N)Goldman Sachs Group Inc (GS.N)Citigroup Inc (C.N)Wells Fargo & Co (WFC.N)Morgan Stanley (MS.N)Source: Company statementsReporting by Manya Saini and Niket Nishant in Bengaluru; editing by Deepa Babington and Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

☆ Banking turmoil isn't over as regional lenders face risk of commercial-property credit losses, JPMorgan strategist says
▼ + stars: | 2023-04-19 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +2 min

Regional banks' troubles aren't over and remain "an area of concern", JPMorgan Asset Management's Jonathan Liang said. They are facing increased risks of credit losses in the commercial-property sector, which may come under stress, he said. And so we think that in the coming year or two, there's going to be growing distress in this space, and that will also potentially amount to credit losses for those US regional banks," he added. Many experts have warned the US commercial real-estate sector could face problems as high borrowing costs and tighter credit conditions following the recent banking turmoil complicate matters for big property owners as they seek to refinance loans. Nearly $450 billion in commercial real-estate debt is due to mature in 2023 - meaning a final payment on those loans are due, per data cited from Trepp by JPMorgan.

Insider asked four CEOs of fintech companies for advice they'd give immigrants who are new to the US. Compared to someone born and raised in the US, immigrants face unique challenges when meeting financial goals. Insider spoke with four CEOs in the fintech industry who are immigrants or children of immigrants. Here are their five tips for immigrants trying to gain financial footing in the US. He also suggests working with a credit union to set up multiple accounts — for example, a checking account for everyday expenses, a savings account for future goals, and another savings account for your emergency savings fund.

☆ Yellen says US banks may tighten lending and negate need for more rate hikes
▼ + stars: | 2023-04-15 | by ( David Lawder | ) www.reuters.com time to read: +4 min

WASHINGTON, April 15 (Reuters) - U.S. Treasury Secretary Janet Yellen said banks are likely to become more cautious and may tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve interest rate hikes. "Banks are likely to become somewhat more cautious in this environment," Yellen said in the interview, which is scheduled to air on Sunday. But Yellen said she was not yet seeing anything "dramatic enough or significant enough" in this area to alter her economic outlook. Some Fed officials have said the U.S. central bank should adopt a more cautious footing as they expect banks to restrict lending in the months ahead. Asked whether sanctions could erode the dollar's role as the world's reserve currency, Yellen acknowledged potential risks.

☆ US banks likely to pull back credit, Yellen tells CNN
▼ + stars: | 2023-04-15 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, April 15 (Reuters) - U.S. Treasury Secretary Janet Yellen said banks are likely to tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve rate hikes, according to a CNN interview transcript released on Saturday. "Banks are likely to become somewhat more cautious in this environment," Yellen said in the interview scheduled to air on Sunday. "We already saw some tightening of lending standards in the banking system prior to that episode, and there may be some more to come." She said that would lead to a restriction in credit in the economy that "could be a substitute for further interest rate hikes that the Fed needs to make." Reporting by David Lawder and Daniel Burns; Editing by Andrea RicciOur Standards: The Thomson Reuters Trust Principles.

☆ TSX futures gain on oil boost; big US banks jump
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +1 min

April 14 (Reuters) - Futures for Canada's commodity-heavy stock index edged up on Friday, tracking a rise in crude prices, while upbeat earnings from big U.S. banks supported optimistic investor mood. June futures on the S&P/TSX index were up 0.2% at 7:00 a.m. Wall Street futures slipped as most growth and technology stocks were down in premarket trading, while robust earnings from big U.S. banks, including JPMorgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N), limited losses for futures tracking S&P 500 (.SPX). The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) rose on Thursday to its highest closing level in nearly six weeks, buoyed by strength in gold miners. In company news, Scotiabank downgraded oil and gas company Cenovus Energy Inc (CVE.TO) to "sector perform" from "sector outperform."

☆ US stocks fall as investors weigh strong bank earnings against weak retail sales data
▼ + stars: | 2023-04-14 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

US stocks moved lower on Friday as investors weighed solid bank earnings against weak retail sales data. JPMorgan, Wells Fargo, and Citigroup all posted better-than-feared earnings that indicated a resilient economy. But retail sales dropped 1% in March as consumers scaled back big-ticket purchases. But weak retail data in March weighed down stocks. The retail sales data extended the decline seen in February and was driven by consumers pulling back on big-ticket item purchases like cars.

☆ For some US banks, it’s still a wonderful life
▼ + stars: | 2023-04-13 | by ( John Foley | ) www.reuters.com time to read: +7 min

Bank customers are still sitting on a pile of savings manufactured by pandemic-era government stimulus and curtailed consumption. Among all banks, deposit balances have fallen 5% year-on-year; to get back to their pre-Covid trend, they’d need to fall 20%. What of small banks that can’t match either advantage? Better placed within communities to soothe the nerves of mostly local customers, small banks can instill trust and loyalty while allaying fears. This edge for small banks should also insulate them from the worst effects of a deposit price war.

April 11 (Reuters) - Banks that contributed the bulk of $30 billion in deposits to First Republic Bank (FRC.N) plan to set aside about $100 million each in first-quarter earnings in case of potential losses, two sources with direct knowledge of the matter said. The sources declined to be identified because of the sensitivity of the situation. The banks declined to comment. The four largest U.S. banks were among a group of 11 lenders that bolstered First Republic after its shares plunged during the crisis triggered by the collapse of Silicon Valley Bank and Signature Bank. Major U.S. banks will begin reporting first-quarter earnings from Friday.

☆ There's no clear sign of a US credit crunch yet, a top Fed official says
▼ + stars: | 2023-04-11 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +3 min

There's no clear signs of a US credit crunch yet, according to Fed official John Williams. We haven't seen any clear signs yet of credit conditions tightening and we don't know how big those effects will be," he said. The collapse of SVB and Signature Bank has stoked fears that lending standards to obtain a loan will become harder. We haven't seen any clear signs yet of credit conditions tightening and we don't know how big those effects will be," he added at a New York University event Monday. Other commentators have blamed the Fed's aggressive interest rate hikes as a key factor in the collapse of SVB and Signature Bank.

☆ Premarket stocks: Wall Street has found something else to worry about
▼ + stars: | 2023-04-11 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

Retail investors are buying bank stocksTD Ameritrade released its March Investor Movement Index on Monday, which tracks what retail investors are up to. Lately, large companies have begun to change their investor relations strategies to become more retail investor friendly. “March was full of surprises, but the overall impact among TD Ameritrade retail clients when it came to exposure to the markets was neutral,” said Lorraine Gavican-Kerr, managing director at TD Ameritrade. Retail investors, meanwhile, were net sellers of Meta, NVIDIA, Advanced Micro Devises, Intel and Apple. Inflation expectations for the year ahead have increased by half a percentage point to 4.7%, the survey found.

☆ Bank of America shares 12 charts that show that the economy is about to enter a full-blown recession
▼ + stars: | 2023-04-10 | by ( Matthew Fox | ) www.businessinsider.com time to read: +5 min

There are growing signs the US economy is about to enter a full-blown recession, said Bank of America. The bank cited worrying signs in manufacturing and the jobs market, and said investors aren't paying attention to the risks. But so far, no recession has materialized as the jobs market and consumer spending have remained fairly resilient. Model is driven by Asian exports, global PMIs, China financial conditions, US yield curve," BofA said. Steepening yield curve often precedes a recessionBank of America"US Treasury 2-year/10-year yield curve flattens and inverts in anticipation of recession.

☆ American offices are half-empty. That could be the next big risk for banks
▼ + stars: | 2023-04-10 | by ( Julia Horowitz | ) edition.cnn.com time to read: +9 min

“I’m more concerned than I’ve been in a long time,” said Matt Anderson, managing director at Trepp, which provides data on commercial real estate. About $270 billion in commercial real estate loans held by banks will come due in 2023, according to Trepp. Questions about the health of banks with sizable exposures to commercial real estate loans cause customers to pull deposits. That forces lenders to demand repayment — exacerbating the sector’s downturn and further damaging the banks’ financial position. The likeliest outcome is thought to be an uptick in defaults and reduced access to funding for the commercial real estate industry.

☆ Three major risks that have the banking industry on edge
▼ + stars: | 2023-04-10 | by ( Allison Morrow | ) edition.cnn.com time to read: +6 min

The toll of the WFH eraCommercial real estate — offices, apartment complexes, warehouses and malls — has come under substantial pressure, my colleague Julia Horowitz reports. Commercial property valuations could fall by roughly 20% to 25% this year, according to Rich Hill, head of real estate strategy at Cohen & Steers. About $270 billion in commercial real estate loans held by banks will come due in 2023. The proportion of commercial office mortgages where borrowers are behind with payments is rising, according to Trepp, which provides data on commercial real estate, and high-profile defaults are making headlines. That might seem simplistic, but it’s especially relevant for an industry as uniquely reliant on trust as banking is.

☆ Economist who called 2008 crisis says more bank collapses are coming
▼ + stars: | 2023-04-06 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

More bank failures are coming, according to top economist Raghuram Rajan. Rajan, who called the 2008 crisis, warned of more volatility stemming from the Fed's rate hikes. The bank's failure sparked a steep sell-off in regional bank stocks, leading some commentators to warn of a 1980s-style banking crisis. "This sense that the spillover effects of monetary policy are huge and aren't dealt with by ordinary supervision has just escaped our consciousness over the last so many years," Rajan said of central bank policy. But Fed Chair Powell has denied the possibility of a rate cut this year, warning markets that rates would continue remain restrictive through 2023.

☆ Small businesses are filing for bankruptcy at a higher rate than at the peak of the pandemic - and a looming credit crunch could make things worse
▼ + stars: | 2023-04-03 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Before March, the number of small- and mid-sized businesses filing for bankruptcy was already on the rise, meaning the bank turmoil only exacerbates an existing trend. What risks are you watching as far as a credit crunch in the US for the coming months? First Citizens, the company that bought Silicon Valley Bank's assets, is run by a family that's no stranger to buying failed banks. The bank is run by a billionaire North Carolina family that's bought over 20 small failed banks since 2008. With the recent takeover, it's poised to stand among the largest 20 banks in the US.

☆ Saudi money is flowing to US media and entertainment, from Live Nation to LIV Golf, 5 years after Jamal Khashoggi's murder: 'The ice has thawed'
▼ + stars: | 2023-04-03 | by ( Claire Atkinson | Lucia Moses | ) www.businessinsider.com time to read: +20 min

Sovereign funds and other entities in Saudi Arabia, Qatar, and the UAE are pouring millions into US media and entertainment. Insider identified some key people connecting Middle East investors with American companies. Saudi Arabia is trying to pitch itself to the world as a cultural and economic reformer and spur tourism. Vince McMahon's WWE has a long-term partnership with the Kingdom of Saudi Arabia, with a major live WWE event there slated for May. Vince McMahon's WWE was one of the first US companies to create unique events in Saudi Arabia.

☆ Wall Street could stand to benefit from recruiting beyond just the Ivies
▼ + stars: | 2023-04-03 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Insider's Emmalyse Brownstein has one about an investor's unique path to Wall Street. I hope Alfieri's story isn't just valuable to students trying to break into Wall Street. Wall Street could also benefit from casting a wider net among universities to get some diversity of thought. Click here to read some tips for how to nab a job on Wall Street despite not coming from an elite school. This fintech helps Wall Street keep tabs on employees' messengers.

☆ JPMorgan says more banks could run out of reserves like SVB if pace of this deposit flight continues
▼ + stars: | 2023-04-03 | by ( Jeff Cox | ) www.cnbc.com time to read: +2 min

"The current pace of deposit loss to MMFs raises questions over sustainability," JPMorgan strategist Nikolaos Panigirtzoglou wrote in a Friday client note. "If it continues for a prolonged period, more US banks could eventually run out of reserves and face liquidity issues similar to SVB, Signature Bank and Silvergate." The ongoing deposit flight has created a problem for banks that have to maintain a base of assets against their deposit totals. In the current case, the situation has seen banks dip into reserves to cover their capital requirements, a situation that JPMorgan called potentially dangerous. Bank reserves have declined sharply since the Fed began curtailing then ultimately reversing its quantitative easing.

☆ Premarket stocks: The FDIC could ask big banks to clean up $23 billion mess
▼ + stars: | 2023-03-31 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

While regional and mid-sized banks are behind the recent turmoil, it appears that large banks may be footing the bill. Ultimately, that means higher fees for bank customers and lower rates on their savings accounts. The law also gives the FDIC the authority to decide which banks shoulder the brunt of that assessment fee. Passing it on: Regardless of who’s charged, the fees will eventually get passed on to bank customers in the end, said Isaac. In 2021, Wall Street was estimated to be responsible for 16% of all economic activity in the city.

☆ First Citizens Bank, the buyer of SVB's assets, is run by a billionaire North Carolina family that's bought over 20 failed banks since 2008
▼ + stars: | 2023-03-30 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

First Citizens Bank, the company that bought the assets of SVB, is run by a family with a wealth of experience buying failed banks. Forbes looked at the billionaire family that's guided First Citizens' purchase of more than 20 small banks since 2008. First Citizens will be among the largest 20 banks in the US with the SVB deal. Its purchases of failed banks include First Regional Bank and Temecula Valley Bank in California and Denver-based United Western Bank. Its assets jumped from $109 billion just before the SVB deal and have increased from $16.7 billion at the end of 2008.

☆ The US housing market is tanking - and the banking fiasco could make things worse, RH CEO Gary Friedman says
▼ + stars: | 2023-03-30 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

The US housing market has slowed dramatically over the past year, RH CEO Gary Friedman said. Soaring interest rates have hit housing demand, and the banking fiasco is a fresh blow, he said. Friedman said the outlook is less clear now than in 2008, and he urged the Fed not to tank the economy. "The fact is, we've been in a massive housing recession for the past year," Friedman continued, adding that "accelerating weakness" in the sector could weigh on his company's revenue and profits for several quarters. Several experts have sounded the alarm on the housing market and economy.

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