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☆ JP Morgan: Expect BI to cut interest rate by 50bps by Q1 2025
▼ + stars: | 2024-10-21 | 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 EmailJP Morgan: Expect Bank Indonesia to cut interest rate by 50bps before the end of Q1 next yearJP Morgan's Henry Wibowo calls for targeted fiscal stimulus from Indonesian government to support lower- and middle-income households

Persons: JP Morgan, Morgan's Henry Wibowo Organizations: Expect Bank Locations: Expect Bank Indonesia

☆ Asia markets poised for stronger open as investors expect Bank of Japan to keep its policy unchanged
▼ + stars: | 2024-01-23 | by ( Lim Hui Jie | ) www.cnbc.com time to read: +1 min

Bitcoin , the world's most popular cryptocurrency, fell decidedly below $40,000 for the first time this year. Bitcoin has fallen 14% since Jan. 10, the day the SEC allowed ETF trading for the cryptocurrency. "It feels like Bitcoin investors are running up a descending escalator right now as traditional financial benchmarks enjoy the easier ride to record highs. The Grayscale Bitcoin Trust ETF is the world's largest, with over $25 billion in assets under management. CEO of Grayscale Investments Michael Sonnenshein told CNBC last week that most of the approved bitcoin ETFs won't survive.

Persons: Bitcoin, Antoni Trenchev, Michael Sonnenshein Organizations: Metrics, SEC, CNBC Locations: Asia

☆ Bank earnings kick off with JPMorgan, Wells Fargo amid concerns about rising rates, bad loans
▼ + stars: | 2023-10-12 | by ( Hugh Son | ) www.cnbc.com time to read: +3 min

Just as they did during the March regional banking crisis, higher rates are expected to lead to a jump in losses on banks' bond portfolios and contribute to funding pressures as institutions are forced to pay higher rates for deposits. The issue constrains the bank's interest revenue and has made the lender the worst stock performer this year among the top six U.S. institutions. Expectations on the impact of higher rates on banks' balance sheets varied. Still, others including KBW and UBS analysts said that other factors could soften the capital hit from higher rates for most of the industry. There's also concern that higher interest rates will result in ballooning losses in commercial real estate and industrial loans.

Persons: Jamie Dimon, Marco Bello, Christopher McGratty, David Konrad, McGratty, Morgan Stanley, Betsy Graseck, Konrad, Gerard Cassidy Organizations: JPMorgan Chase &, Reuters, JPMorgan Chase, Citigroup, Bank, Silicon Valley Bank, First, Bank of America, Comerica, Fifth Third Bank, KeyBank, UBS, RBC Locations: Miami , Florida, U.S, Wells Fargo, Silicon, First Republic

☆ Opinion | How to Make Russia Really Pay for Invading Ukraine
▼ + stars: | 2023-09-19 | by ( Bret Stephens | ) www.nytimes.com time to read: +1 min

Volodymyr Zelensky will visit Washington this week to give thanks to the United States for its generosity — while asking for $24 billion more, which is what the Biden administration is seeking from Congress in additional military and humanitarian aid to Ukraine. That will bring the total amount of American aid to $135 billion, which so far has been $223 million a day since the war began, according to one calculation. Maybe it’s time to open a new funding source before American largess runs out — this time from Russia. As the former Treasury secretary Larry Summers has put it, “Bank robbers should not expect banks to honor their safe deposit boxes.”So far, the Biden administration has disagreed. “It would not be legal now in the United States for the government to seize” Russia’s assets, Janet Yellen, the Treasury secretary, said in May 2022.

Persons: Volodymyr Zelensky, Biden, Larry Summers, Janet Yellen Organizations: Bank, Economist Locations: Washington, United States, Ukraine, Russia, Russian

☆ Moody's cuts ratings of 10 U.S. banks and puts some big names on downgrade watch
▼ + stars: | 2023-08-08 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

Moody's cut the credit ratings of a host of small and mid-sized U.S. banks late Monday and placed several big Wall Street names on negative review. Moody's also changed its outlook to negative for 11 banks, including Capital One , Citizens Financial and Fifth Third Bancorp . Among the smaller lenders receiving an official ratings downgrade were M&T Bank , Pinnacle Financial , BOK Financial and Webster Financial . "Meanwhile, many banks' Q2 results showed growing profitability pressures that will reduce their ability to generate internal capital. Though the stress on U.S. banks has mostly been concentrated in funding and interest rate risk resulting from monetary policy tightening, Moody's warned that a worsening in asset quality is on the horizon.

Persons: Moody's, Cullen, Frost, Jill Cetina, Ana Arsov Organizations: New York Stock Exchange, Bank, New York Mellon, U.S . Bancorp, Truist, Frost Bankers, Northern Trust, Capital, Citizens Financial, Fifth Third Bancorp, T Bank, Pinnacle Financial, BOK, Webster, Regional, Silicon Valley Bank, Signature Bank, Credit Suisse, UBS, Federal Reserve, Fed Locations: New York City, U.S, Regional U.S, Silicon, Europe, Swiss

☆ Banks kicked off the last two weeks of July with higher rates on CDs. Where to find solid yields
▼ + stars: | 2023-08-01 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Good news for income-centric investors: Higher yields in the certificate of deposit market will continue through the remainder of 2023. Banks hiked rates on CDs through the last two weeks of July, with the average one-to-12-month rate rising by 11 basis points to 4.6%, according to Morgan Stanley analyst Betsy Graseck. See below for some of the institutions in Morgan Stanley's coverage that are also offering attractive rates. Graseck noted that over the past two weeks, rates on CDs in the 13-to-36-month range have fallen by 4 basis points. "We also expect banks to continue shortening the duration of their highest CD offers to position for a potential Fed rate cut in 1H24," she wrote.

Persons: Banks, Morgan Stanley, Betsy Graseck, AXP, Graseck, — CNBC's Michael Bloom Organizations: DFS, Morgan Locations: 1H24

Under the "stress test" exercise, the Fed tests big banks' balance sheets against a hypothetical severe economic downturn, the elements of which change annually. WHY DOES THE FED 'STRESS TEST' BANKS? It announces the size of each bank's stress capital buffer in the subsequent months. For example, the 2022 stress test envisioned a 5.8 percentage point jump in unemployment under a "severely adverse" scenario. This extra test will not count towards banks' capital requirements but will allow the Fed to explore applying multiple adverse scenarios in future.

Persons: Banks, Wells, Goldman Sachs, Morgan Stanley, Michael Barr, Pete Schroeder, Michelle Price, Andrea Ricci Organizations: U.S . Federal, Big, Fed, Citigroup, Bank of America, JPMorgan Chase &, Goldman Sachs, Deutsche Bank's U.S, JPMorgan Citigroup, Wells Fargo & Co, Bank, U.S, Treasury, Thomson Locations: Big U.S, Silicon

Under the "stress test" exercise, the Fed tests banks' balance sheets against a hypothetical severe economic downturn, the elements of which change annually. WHY DOES THE FED "STRESS TEST" BANKS? It typically publishes aggregate industry losses, and individual bank losses including details on how specific portfolios - like credit cards or mortgages - fared. It announces the size of each bank's stress capital buffer in the subsequent months. For example, the 2022 stress test envisioned a 5.8 percentage point jump in unemployment under a "severely adverse" scenario.

Persons: Banks, Wells, Goldman Sachs, Morgan Stanley, Michael Barr, Pete Schroeder, Michelle Price, Andrea Ricci Organizations: U.S . Federal, Fed, Citigroup, Bank of America, JPMorgan Chase &, Goldman Sachs, Deutsche Bank's U.S, JPMorgan Citigroup, Wells Fargo & Co, Bank, U.S, Treasury, Thomson Locations: Silicon

LONDON, May 1 (Reuters) - Inflation in the euro area is too high for comfort, meaning markets expect the European Central Bank to deliver its seventh straight interest rate hike on Thursday. 1/ How much will the ECB hike rates by on Thursday? Most analysts expect at least one more rate move after Thursday, even as the Federal Reserve looks set to pause its rate hike campaign. Market pricing suggests ECB rates will peak around 3.6% this year, and Belgium's central bank governor Pierre Wunsch says he wouldn't be surprised to see rates rise to 4%. Tuesday's bank lending should offer some clues but it might be too early to gauge the full impact of the March banking crisis on financing conditions.

☆ We expect Bank of Japan to maintain yield curve control today, says research institute
▼ + stars: | 2023-04-28 | 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 EmailWe expect Bank of Japan to maintain yield curve control today, says research instituteHiromi Yamaoka of Future Institute of Research says governor Kazuo Ueda has to "pay attention to a soft landing" as many entities are accustomed to the current policy.

☆ 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.

☆ Yellen says U.S. banks may tighten lending and negate need for more Fed rate hikes
▼ + stars: | 2023-04-15 | by ( ) www.cnbc.com time to read: +2 min

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. 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." 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.

☆ Everything you need to know as JPMorgan, Citi, Goldman Sachs, and other big banks report earnings
▼ + stars: | 2023-04-14 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +7 min

Bank of America and Goldman Sachs come in on Tuesday, with Morgan Stanley bringing up the rear on Wednesday. For a breakdown on the specific numbers, check out Markets Insider and the fantastic 10 Things Before the Opening Bell newsletter. Big banks poured $30 billion into First Republic in the midst of the banking crisis in an effort to shore up the wider market. And what about those pesky shadow banks? Never one to miss a good opportunity, shadow lenders are looking to step up where big banks are stepping back, Bloomberg reported.

☆ Why the struggles of mid-sized US banks could be bad news for the Main Street economy
▼ + stars: | 2023-03-28 | by ( Carla Mozée | ) www.businessinsider.com time to read: +6 min

Households and businesses may find it harder to get loans from regional banks as people pull deposits from those lenders. "The greatest vulnerabilities with respect to credit creation going forward lie with non-mortgage bank lending to households and mortgage bank lending for non-financial non-corporate businesses," JPMorgan said. Regional banks are "very important" to the financial system, CFRA's Yokum said. Regional banks can potentially give better service, more customized products, potentially higher deposit rates," he said. Some hefty figures illustrate the "disproportionately large" role small banks hold in lending in the US.

☆ Premarket stocks: Commercial real estate is in trouble. Why you should be paying attention
▼ + stars: | 2023-03-27 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Economists are growing concerned about the $20 trillion commercial real estate (CRE) industry. After decades of thriving growth bolstered by low interest rates and easy credit, commercial real estate has hit a wall. Before the Bell spoke with Xander Snyder, senior commercial real estate economist at First American, to find out. Before the Bell: Why should retail investors pay attention to what’s going on in commercial real estate right now? So the health of the market has an impact on the larger economy, even if you’re not interested in commercial real estate for commercial real estate’s sake.

☆ European banks face renewed selling pressure
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: +8 min

So people are acting with their feet and continuing to sell bank stocks. ING ECONOMICS TEAM (emailed) "Most European banks are impacted by these events mainly via the more cautious market sentiment. "It seems like post what happened to Credit Suisse last weekend, two things might be at play here. “European banks probably suffered from contagion from what was going on in the US, where the regional banks seem to be under pressure in the rising rate environment. European banks have, in fact, had no fundamental issues whatsoever.

☆ Swiss CoCo shakeout may yet help bank regulators
▼ + stars: | 2023-03-22 | by ( Neil Unmack | ) www.reuters.com time to read: +3 min

LONDON, March 22 (Reuters Breakingviews) - Switzerland’s forced merger of Credit Suisse (CSGN.S) with UBS (UBSG.S) has caused a real stink. European regulators on Monday mobilised to calm debt investors after Swiss authorities chose to write off 16 billion Swiss francs of Credit Suisse’s Additional Tier 1 CoCos. Both the Bank of England and European regulators pledged on Monday to respect the bank rescue hierarchy that says shareholders should lose money before debt. A case in point: only last year the already creaking Credit Suisse chose to redeem a bond. Follow @Unmack1 on TwitterCONTEXT NEWSPrices of contingent capital securities, a kind of junior ranking loss-absorbing bank debt, fell after bonds issued by Credit Suisse were wiped out following its takeover by UBS.

☆ FDIC sells most of failed Signature Bank to Flagstar
▼ + stars: | 2023-03-19 | by ( David Goldman | ) edition.cnn.com time to read: +1 min

New York CNN —A week after Signature Bank failed, the Federal Deposit Insurance Corporation said it has sold most of its deposits to Flagstar Bank, a subsidiary of New York Community Bank. New York Community Bank bought substantially all of Signature’s deposits and a total of $38.4 billion worth of the company’s assets. That includes $12.9 billion of Signature’s loans, which New York Community Bank purchased at a steep discount -— it paid just $2.7 billion for them. New York Community Bank also paid the FDIC stock that could be worth up to $300 million. That’s likely why New York Community Bank was unwilling to take on all Signature’s assets.

☆ Bank of America double-downgrades Ally Financial, cites deteriorating macro climate
▼ + stars: | 2023-01-05 | by ( Samantha Subin | ) www.cnbc.com time to read: +1 min

Bank of America thinks it's time to sell Ally Financial as the company faces slowing loan demand and a troublesome macro picture. Shares shed more than 3% in the premarket after analyst Brandon Berman double-downgraded the stock to underperform from buy, saying that macro factors will weigh on fundamentals in the near term. Competitive deposit rate offers could also bring earnings per share below the $4 level, Berman wrote. The new target suggests shares remain range bound near term after selling off nearly 49% in 2022. "We expect bank stocks to outperform pure-play lenders in the current economic backdrop, at least until investors feel confident downward EPS revisions have bottomed out," Berman wrote.

☆ Sam Bankman-Fried could be bailed and placed under house arrest after he's extradited to the US, reports say
▼ + stars: | 2022-12-21 | by ( Pete Syme | ) www.businessinsider.com time to read: +3 min

Sam Bankman-Fried could be bailed and placed under house arrest after extradition to the US. One option being explored, alongside house arrest, is electronically monitoring Bankman-Fried. Two people familiar with the matter told the Times that the deal could see Bankman-Fried placed under house arrest. Since then, Bankman-Fried has spent just over a week in the notoriously-harsh Fox Hill prison, which reports say is overcrowded and understaffed. One official at the prison told The Washington Post that the FTX founder appeared "awfully scared," but seemed like a "nice guy."

Nov 27 (Reuters) - Top Canadian banks are expected to post a decline in fourth-quarter profits as choppy markets hurt wealth management and a slow deal pipeline dents income from investment banking, offsetting expected gains from business loans. On average, profit for the Big Six banks are expected to drop 4% from last year, hurt by lower investment banking activity. Royal Bank of Canada (RY.TO) and Bank of Montreal (BMO.TO), which have the largest capital markets businesses, are expected to see the biggest hit to profits. "Business lending was particularly strong and aided by strength in balances outside of Canada," KBW analysts Mike Rizvanovic and Abhilash Shashidharan said. National Bank of Canada (NA.TO) and Toronto-Dominion Bank (TD.TO), also among the Big Six, will report earnings on Wednesday and Friday, respectively.

☆ ECB to begin great cash mop-up as banks repay billions in loans
▼ + stars: | 2022-11-18 | by ( Francesco Canepa | ) www.reuters.com time to read: +4 min

While this early TLTRO reimbursement is voluntary, the ECB has given banks an incentive to get rid of those loans by taking away a rate subsidy last month. Analysts expect banks to repay around half a trillion euros worth of TLTRO loans at this week's window - the first of several - which would make this the biggest drop in excess liquidity since records began in 2000. MONEY MARKETSThe other area of focus for the ECB will be money markets, in which banks lend to each other for a short time. But Marco Brancolini, a strategist at Nomura, said he did not see "much of an impact" even if banks repaid 600 billion euros. Banks had until Nov. 16 to notify the ECB about their intention to repay TLTRO loans, but the reimbursement will only take place on Nov. 23.

☆ Premarket stocks: Wall Street bonus outlook is grim
▼ + stars: | 2022-11-16 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

New York CNN Business —Ferragamo belt-buckles are being tightened across Wall Street as bankers prepare for a gloomy bonus season. “This is a canary in the coalmine for the economy, if the canary dies that’s not good for anybody,” said Johnson. In recent years, Amazon has gradually been growing its footprint in the health care sector. Earlier this year, Amazon agreed to acquire One Medical, a membership-based primary care service, for $3.9 billion. The big picture: Amazon isn’t the only Big Tech company attempting to cash-in on a chunk of the health care industry.

☆ Premarket stocks: How to read big bank earnings
▼ + stars: | 2022-10-13 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Beyond disappointing headline figures, Wall Street analysts are focusing on three important factors: loan growth, capital adequacy, and the economic outlook. Loan growth: The rate at which businesses borrow money from big banks doesn’t just tell us about the health of a financial institution itself. But Wall Street estimates show that loan growth is expected to decelerate in Q4 and into next year. Growth of Individual loans will likely decline, showing that Americans are beginning to feel the pinch of rising interest rates. Capital adequacy: Expect banks to take questions about how much money they have on hand.

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