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☆ Regional banks were all ‘guilty until proven innocent’ after Silicon Valley Bank, Citizens CEO says
▼ + stars: | 2024-03-10 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +9 min

Other regional bank stocks got slammed: By the end of the day, most saw their stock down by double-digit percentages. Kori Suzuki/ReutersIt’s been exactly one year since that fateful day marked the start of a string of subsequent bank failures. Because of that, “there will be bank failures,” Federal Reserve Chair Jerome Powell warned senators in his semi-annual testimony last week. Bruce Van Saun: People like to call last year’s bank failures regional bank failures. Office real estate is just one component of commercial real estate, albeit the most worrisome to banks and economists.

Persons: Bruce Van Saun, NYCB, Kori Suzuki, Reuters It’s, it’s, Jerome Powell, Van Saun, Richard Drew, didn’t, Michael Nagle, Joseph Otting, Otting, CARLOS BARRIA, we’re, we’ve Organizations: New, New York CNN, Citizens Financial Group, New York Community Bank, NYCB, Reuters, CNN, Signature Bank, Silicon Valley Bank, Citizens Financial, Providence, Financial Group, Bloomberg, SVB, we’re, SoFi, Citizens, OneWest Bank, CIT Group, REUTERS Locations: New York, Silicon, San Francisco , California, Providence , Rhode Island, Covid

☆ Premarket stocks: Why another unexpectedly hot jobs report could derail markets
▼ + stars: | 2024-03-08 | by ( Krystal Hur | ) edition.cnn.com time to read: +7 min

New York CNN —Wall Street was taken aback by the US labor market’s resilience in January. Another unexpectedly hot report could shake things up again. The January jobs report showed that the US economy added a stunning 353,000 jobs that month and the unemployment rate stayed at 3.7%. The new EU regulations force sweeping changes on some of the world’s most widely used tech products, including Apple’s app store, Google search and messaging platforms, including Meta’s WhatsApp. The broad obligations apply only to the EU, which could leave tech users in the United States and other markets looking longingly at some of the features Big Tech is rolling out in response to the European directive.

Persons: Jerome Powell, he’s, “, ” Powell, Bonnie Cash, —, ’ ”, BeiChen Lin, It’s, Loretta Mester, ”, José Torres, Meta’s, Brian Fung, Apple, Bing, Read, Elisabeth Buchwald, NYCB, Steven Mnuchin’s, Alessandro DiNello, ” Read Organizations: CNN Business, Bell, New York CNN, Federal, Financial, Capitol, Reuters, Traders, Russell Investments, ” Cleveland Federal, CNBC, Market, Interactive Brokers, Apple, Google, Union citizens, Big Tech, New York Community Bank, Silicon Valley Bank, Liberty Strategic Capital Locations: New York, Washington ,, United States, NYCB, Silicon

☆ Customers are pulling their cash from NYCB, but it’s no bank run
▼ + stars: | 2024-03-07 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +3 min

New York CNN —Customers of New York Community Bank (NYCB) pulled $6 billion worth of deposits between February 5 and March 5, leaving the bank’s deposit base 7% lower, at $77 billion. However, the pattern is not indicative of a bank run, which these days can drain a lender of funds in mere hours. Shortly ahead of its demise, depositors at Silicon Valley Bank tried withdrawing $42 billion in one day over fears they wouldn’t be able to access their funds if the bank failed. On Thursday’s call, NYCB also announced it’s slashing its dividend to one penny a share. Increasing both means the bank has fewer funds available to lend, which as a result would limit its profitability.

Persons: NYCB, Steven Mnuchin’s, Alessandro DiNello, ”, ” DiNello Organizations: New, New York CNN, New York Community Bank, Silicon Valley Bank, Liberty Strategic Capital, NYCB, Wall, Moody’s Investors Service, Fitch Locations: New York, Silicon

☆ Premarket stocks: Fed Chair Powell is about to get grilled by Congress. Here’s what markets want to hear
▼ + stars: | 2024-03-06 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Fed Chair Jerome Powell has a chance to provide more insight when he testifies before Congress on Wednesday and Thursday. Those reports pushed back market bets on when the Fed will start cutting interest rates. Investors will closely listen for any hints from Powell about what the Fed is looking for, data-wise, before it begins to lower interest rates. Powell will also be asked about the economic pain Americans are feeling as a result of elevated inflation and interest rates. When interest rates fall, holding income-paying assets (like bonds) becomes less appealing than owning the precious metal.

Persons: Jerome Powell, there’s, ”, Powell, —, Emanuel Cleaver, Dave Sekera, Claudia Sahm, ” Powell, Krystal Hur, Samantha Murphy Kelly, “, ” Mengmeng Zhang Organizations: CNN Business, Bell, New York CNN, Federal, Investors, Missouri Democrat, Politico, Morningstar, Morningstar . New York Community Bank, Fitch, Moody’s Investors Service, Federal Reserve, Costco, Apple, Counterpoint Research, Huawei, Counterpoint Locations: New York, Missouri, Morningstar ., China

☆ NYCB stock tumbles to lowest level since 1996
▼ + stars: | 2024-03-04 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +2 min

New York CNN —Shares of New York Community Bank (NYCB) fell 23% Monday, hitting their lowest level since 1996. The issues caused a $2.4 billion loss to shareholders last quarter, NYCB said. That caused the stock to plunge, bringing it to its lowest level since 1997. NYCB’s troubles are having a mixed effect on other regional bank stocks. Shares of Valley National Bank (VLY) closed 5.6% lower on Monday, while Zions Bancorporation (ZION) closed 1% higher.

Persons: NYCB, Alessandro DiNello, Zions Organizations: New, New York CNN, New York Community Bank, Fitch, Moody’s Investors Service, First Republic Bank, Silicon Valley Bank, Signature Bank, National Bank Locations: New York, Silicon, NYCB, ZION

☆ What’s Behind the Turmoil at New York Community Bank?
▼ + stars: | 2024-03-01 | by ( Santul Nerkar | ) www.nytimes.com time to read: +1 min

Shares of New York Community Bank slid more than 25 percent on Friday, a day after the lender said its loss in the fourth quarter was $2.4 billion more than it had previously reported, and also announced the departure of its chief executive and a board member. Shares of other regional banks were also lower: Valley National Bank and Columbia Banking System both fell more than 2 percent. The KBW Regional Bank Index, which tracks performance of U.S. regional banks, fell more than 1 percent. The drop in shares of other banks is a sign investors are still nervous about the potential for wider trouble in the banking sector — nearly a year after several small banks failed. But the fact that the declines in other regional banks were small suggested that NYCB’s problems are seen as unique to it.

Persons: ”, Christopher Marinac, Janney Montgomery Scott Organizations: New York Community Bank, National Bank and Columbia Banking System, Regional

☆ NYCB shares tumble after regional lender swaps out CEO, says it identified ‘material weakness’ in internal controls
▼ + stars: | 2024-02-29 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +3 min

New York CNN —Shares of New York Community Bank (NYCB) fell by as much as 20% in after-hours trading on Thursday after the beleaguered regional lender said in a filing it had identified “material weakness” in the company’s controls. The issues caused a $2.4 billion loss to shareholders last quarter, NYCB said. The bank also announced that Alessandro DiNello, its recently appointed executive chairman, will be the new president and CEO, effective immediately. In the same filing, NYCB disclosed Hanif (Wally) Dahya resigned from serving as director of the board. In his February 25 resignation letter, he said he “did not support the proposed appointment” of DiNello to president and CEO.

Persons: NYCB, Alessandro DiNello, Thomas Cangemi, Hanif, Wally, Dahya, “, DiNello, Marshall Lux, Chase Organizations: New, New York CNN, New York Community Bank, Silicon Valley Bank, Signature Bank, First Republic Bank, Securities and Exchange Commission Locations: New York, Silicon

☆ Here’s why regional banks have so much commercial real estate exposure
▼ + stars: | 2024-02-29 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +7 min

New York CNN —It’s no secret that commercial real estate (CRE) has become a source of stress for banks. Regional banks were on high alert recently after New York Community Bancorp (NYCB) reported steeper-than-expected future losses on commercial real estate loans. So why is it that the smaller, regional banks are so much more exposed to commercial real estate? Office real estate is among the bank’s smaller commercial real estate subcomponents. Robbins of Valley National Bank told CNN “we remain comfortable with our diverse and granular commercial real estate portfolio.”Office real estate is just one component of commercial real estate, albeit the most worrisome to banks and economists.

Persons: New York CNN —, Goldman Sachs, Fitch, Banks, BankRegData, Flagstar, “, JPMorgan Chase, —, Michael Brochstein, it’s, Ira Robbins, Robbins, CNN “, Carlos Barria, ” Organizations: New, New York CNN, New York Community Bancorp, Flagstar Bank, Federal Deposit Insurance Corporation, National Bank, JPMorgan, Getty, Valley National Bank, CNN, Fitch, FDIC, Reuters Locations: New York, Morristown , New Jersey

☆ The odds of no interest-rate cuts in 2024 are growing
▼ + stars: | 2024-02-20 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +7 min

In today’s big story, we’re looking at the chances of there being no rate cuts this year, and how the markets would react. What's on deck:This story is available exclusively to Business Insider subscribers. The big storyCuts are canceledAaron Schwartz/Xinhua via Getty ImagesDon't count your chickens before they hatch and don't price in your rate cuts before they materialize. Last December, Fed Chair Jerome Powell signaled that three cuts were on the table for 2024, which he reiterated earlier this month. AdvertisementBonds could struggle, though, with further delays on rate cuts raising the risk that debt markets suffer another meltdown like they did last fall.

Persons: —, Mark Zuckerberg, Aaron Schwartz, ”, won’t, Jerome Powell, Phil Rosen, There's, BI’s Yuheng Zhan, NYCB’s, Ark's Cathie Wood, Paul Judge, Tessa Flippin, Claude Grunitzky, Gayle Jennings O'Byrne, Black VCs, Masayoshi Son, OpenAI’s, Jenny Chang, Rodriguez, Vladimir Putin, Donald Trump, Dan DeFrancesco, Jordan Parker Erb, Hallam Bullock, George Glover, Grace Lett Organizations: Service, UFC, Business, Xinhua, Getty, Federal, Paramount, Fed, Big Tech, JPMorgan Private Bank, Discover, Discover Financial, Nvidia, Opportunity, Equity Alliance, Wocstar Fund, Opportunity Fund, Equity Alliance Wocstar, Google, Walmart, Pandora, Home Locations: Japan, Ukraine, Moscow, Russia, Fox, New York, London, Chicago

☆ Why do people keep uninsured money in banks?
▼ + stars: | 2024-02-12 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +10 min

Somehow, the same issue plaguing last year’s failed banks is back in focus at the latest bank in crisis: massive loads of uninsured deposits. To be sure, the risk isn’t anywhere close to that of the banks that failed last year: About 94% of domestic deposits at Silicon Valley Bank were uninsured and 90% of Signature Bank’s deposits were uninsured, according to the Federal Reserve. The money is guaranteed by the Federal Deposit Insurance Corporation, which is funded by fees paid by major US banks. About 40% of all money in the US, or $8 trillion, sitting in banks is uninsured, said Lawrence White, a professor at New York University’s Stern School of Business. “It also risks violating the FDIC’s statutory requirement to resolve failed banks and protect insured depositors in the least expensive way possible.”Sometimes, he said, rescuing those uninsured depositors may be the cheapest way to protect insured depositors at banks.

Persons: NYCB, Brian Snyder, James Lee, David Wessel, Lawrence White, University’s, Banks, Ting Shen, ”, Kori Suzuki, JPMorgan Chase, Michael Ohlrogge, Maxine Waters, Elizabeth Warren, “ Organizations: New, New York CNN, New York Community Bancorp, Investors, Silicon Valley Bank, Federal Reserve, Bank, Xinhua, Federal Deposit Insurance Corporation, FDIC, Reuters, Brookings Institution, International Monetary Fund, University’s Stern School of Business, US Treasury, Bloomberg, Getty, Securities and Exchange Commission, Valley Bank, Signature Bank, JPMorgan, Bank of America, Citigroup, First Republic Bank, New York University’s School of Law, Financial Services, Banking Committee, CBS, Bank Coalition of America Locations: New York, Silicon, United States, New, ”, Washington , DC, San Francisco , California, Sen

☆ How empty office space became the new bogeyman on Wall Street
▼ + stars: | 2024-02-09 | by ( Matt Egan | ) edition.cnn.com time to read: +6 min

And yet Wall Street is suddenly freaking out about bad real estate loans and empty office buildings. One regional lender — New York Community Bancorp — has seen its stock price implode and its credit rating slashed to junk in part because of its exposure to bad office loans. Japan’s Aozora Bank startled investors by blaming bad loans linked to US offices for a projected loss. That’s a major problem for an industry like real estate known for piling on debt. Importantly, Zandi said these bank failures will be limited to smaller lenders — the ones sitting on suddenly shaky office loans.

Persons: —, ” they’re, It’s, ”, Ed Mills, Raymond James, gameplan, Paul Volcker, That’s, Spencer Platt, ” Alessandro DiNello, NYCB, Powell, Janet Yellen, Jerome Powell, “, ” Mills, Mark Zandi, ” Zandi, Zandi, ” Banks Organizations: New, New York CNN, —, York Community Bancorp, Japan’s, Bank, Federal Reserve, Fed, Regulators, New York Community Bancorp, York Community Bank, Getty, Moody’s, CNN Locations: New York, sweatpants, Washington, Brooklyn, New York City

☆ Big Dreams Come Back to Bite New York Community Bank
▼ + stars: | 2024-02-08 | by ( Rob Copeland | Emily Flitter | ) www.nytimes.com time to read: +1 min

During last spring’s banking crisis, when a competing lender went under, New York Community Bank pounced, acquiring a big chunk of its business. The pain stems largely from a weakening commercial real estate market that impelled NYCB — which operates more than 400 branches under brands including Flagstar Bank — to admit to mounting losses. After the bank rushed to project stability, including by releasing a new set of financial disclosures on Tuesday evening that one analyst termed a “late night news dump,” shares rose 7 percent on Wednesday. Whether its efforts will stick is an open question. NYCB executives, who just a week ago had been tight-lipped about the bank’s finances, opened up the books on Wednesday and laid out turnaround plans on a public conference call.

Persons: Flagstar Bank — Organizations: New York Community Bank pounced, Flagstar Bank, Signature Bank

☆ New York Community Bank stock drops even after lender says deposits increased
▼ + stars: | 2024-02-07 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +6 min

The bank announced earlier on Wednesday that it had appointed DiNello, formerly the president of Flagstar Bank, to the position effective immediately. The bank holds total deposits of approximately $83 billion, the lender said in a statement Tuesday evening. US banks hold about $2.7 trillion in commercial real estate loans. But while the last crisis was all about interest rate risk, this one revolves around the $20 trillion commercial real estate market. The increase was driven partly by expected losses on commercial real estate loans, it said.

Persons: ” Alessandro DiNello, DiNello, NYCB, ”, weren’t, Fitch, Thomas Cangemi, ” DiNello, Goldman Sachs, Moody’s, Neel Kashkari, ” Kashkari, he’s, Janet Yellen, “, Yellen, “ I’m, ” Yellen Organizations: New, New York CNN —, New York Community Bancorp, Moody’s Investors Service, Flagstar Bank, Bank, Moody’s, JPMorgan, Signature Bank, Silicon Valley, Regulators, Federal, Community Bancorp, CNBC, Financial Locations: New York, Flagstar, New, Minneapolis

☆ New York Community Bank’s stock price is plunging, but that won’t tell you if it’s on the brink of failure. Here’s what will
▼ + stars: | 2024-02-07 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +4 min

New York CNN —Some of the very first signs of banking stress in the crisis that unfolded last year were reflected in Silicon Valley Bank, Signature Bank and First Republic Bank’s nosediving share prices. That’s a considerably larger share compared to Signature Bank and Silicon Valley Bank shortly before their demises. So far, there’s no evidence that the bank is at risk of failingAs scary as it may be to see a bank’s stock price plunging, it’s not the best gauge for the bank’s viability. The best source of information on that front is a bank’s deposit flows, Chiaverini said. As of last quarter, deposits were down just 2% and declined even less excluding the custodial deposits connected to the acquisition of Signature Bank.

Persons: Bank’s, Thomas Cangemi, David Chiaverini, it’s, Chiaverini, NYCB, Janet Yellen, ” Yellen Organizations: New, New York CNN, Silicon Valley Bank, Signature Bank, First, New York Community Bancorp, Moody’s Investors Service, Wedbush Securities, ”, Silicon Valley, Bank of America, Financial Services, Federal Deposit Insurance Corporation Locations: New York, Silicon Valley

☆ New York Community Bancorp’s credit rating downgraded to junk on real estate concerns
▼ + stars: | 2024-02-06 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

CNN —Embattled regional bank New York Community Bancorp suffered another blow Tuesday evening as Moody’s Investors Service downgraded its credit rating to junk status. Shares of New York Community Bancorp tumbled 17% in after-hours trading Tuesday evening after the downgrade. Moody’s is keeping New York Community Bancorp’s credit rating on review, signaling further downgrades are possible. New York Community Bancorp did not immediately respond to a request for comment. Treasury Secretary Janet Yellen declined to specifically comment on New York Community Bancorp’s troubles during a hearing on Tuesday.

Persons: Moody’s, ”, Wall, ” Moody’s, Janet Yellen, Yellen, “ I’m, ” Yellen Organizations: CNN, New, New York Community Bancorp, Moody’s Investors Service, Community Bancorp, New York Community, Silicon Valley Bank, York Community Bancorp, Financial Services Committee Locations: New York, New, Silicon

☆ What’s really going on with bank stocks
▼ + stars: | 2024-02-02 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +4 min

Word quickly spread on Wall Street that the regional bank was under pressure, igniting a bout of selling of other bank stocks over fears of contagion. The KBW Regional Banking Index closed down 6% on Wednesday. Unlike many fellow regional banks, it held on to the vast majority of its deposits. He also highlighted that the banks’ losses were tied to faulty office building loans. The selloff that hit other regional bank stocks is “likely overdone given idiosyncratic factors tied to NYCB,” Bank of America analysts said in a note on Thursday.

Persons: Zions, NYCB, Thomas Cangemi, Chris Marinac, Janney Montgomery Scott, CNN he’s, ”, ” NYCB, That’s, It’s, isn’t, ” Marinac, “ Organizations: New, New York CNN, Federal Reserve, New York Community Bancorp, Western Alliance Bancorp, York Community Bancorp, Bank, CNN, ” Bank of America, Aozora Bank, First Republic, Valley Bank Locations: New York, ZION, York

☆ Banks are being rocked again as real estate losses mount
▼ + stars: | 2024-02-01 | by ( Anna Cooban | ) edition.cnn.com time to read: +5 min

The regional lender set aside $552 million in the fourth quarter to absorb loan losses, up from $62 million in the previous quarter. The increase was driven partly by expected losses on a loan used to finance an office building, it said. ET as shares in NYCB, as well as other regional banks, suffered sharp losses. Much bigger players are girding themselves for losses linked to commercial real estate. Europe’s benchmark Stoxx Europe 600 Banks index, which tracks 42 big EU and UK banks, is up 23% since a low in late March.

Persons: Thomas Cangemi, Brendan McDermid, Julius Baer, Philipp Rickenbacher, Arnd Wiegmann, Reuters Philip Lawlor, ”, “, ” Lawlor, CNN’s Matt Egan Organizations: London CNN, Credit Suisse, New York Community Bancorp, New York Stock Exchange, Japan’s Aozora Bank, Federal Reserve, ”, CNN, Signa Group, Chrysler, Reuters, Deutsche Bank, Bank, Suisse —, UBS, Wilshire Indexes, KBW Locations: Europe, New York, Tokyo, Zurich, California, Republic, NYCB, Banc, Swiss, Austrian, Switzerland

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