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☆ First Republic Crashed and Burned. This Bank Wants to Copy Its Business.
▼ + stars: | 2023-11-26 | by ( Rachel Louise Ensign | Gina Heeb | ) www.wsj.com time to read: 1 min

Regional lender Citizens Financial Group opened a new private bank for wealthy customers last month. Its inspiration: First Republic Bank , which collapsed earlier this year in the second-largest bank failure in history. Citizens, based in Providence, R.I., is spending tens of millions of dollars hiring former First Republic staffers. It hopes the strategy will help it crack a market it has long coveted. Executives say they plan to copy only the good parts of First Republic, such as its beloved customer service.

Organizations: Financial Group, First Republic Bank, Republic, Executives, First Locations: Providence, R.I, First Republic

☆ The Billionaire Donor Taking On His Alma Mater Over Antisemitism
▼ + stars: | 2023-11-04 | by ( Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

When Marc Rowan ’s father died while he was a student at the University of Pennsylvania and the family could no longer afford tuition, the school told him he could finish paying whenever he was able. Rowan sent the university the money a few months after graduation, using his first bonus from his job as a junior investment banker at Drexel Burnham Lambert. Grateful for its generosity, he kept giving to Penn as he climbed to the pinnacle of Wall Street power. He donated $50 million to its Wharton school in 2018, the largest gift the business school had ever received at the time.

Persons: Marc Rowan ’, Rowan, Drexel Burnham Lambert Organizations: University of Pennsylvania, Drexel, Penn, Wharton

☆ Elite Universities Face Donor Revolt Over Mideast Conflict
▼ + stars: | 2023-10-24 | by ( Rachel Louise Ensign | Juliet Chung | ) www.wsj.com time to read: 1 min

David Magerman was in Israel celebrating a holiday by dancing with a Torah in synagogue when Hamas attacked the country earlier this month. When his alma mater, the University of Pennsylvania, put out a statement a few days later that called the assault “horrific” but didn’t explicitly condemn Hamas, he was incensed. Magerman, a hedge-fund veteran turned venture capitalist who has donated millions to the school, has since cut his ties with Penn. “I was just pushed over the edge by the equivocation of the response,” he said.

Persons: David Magerman, didn’t, Magerman, “, ” Organizations: University of Pennsylvania, Penn Locations: Israel

☆ Americans Finally Start to Feel the Sting From the Fed’s Rate Hikes
▼ + stars: | 2023-09-25 | by ( Rachel Louise Ensign | Photographs Yasmin Yassin For The Wall Street Journal | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/personal-finance/interest-rate-hikes-consumer-debt-d2b74401

Persons: Dow Jones

☆ The Rich and Famous Love This Banker, Even If She’s a Little Mean to Them
▼ + stars: | 2023-09-10 | by ( Rachel Louise Ensign | Photographs Emily Assiran For The Wall Street Journal | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/banking/the-rich-and-famous-love-this-banker-even-if-shes-a-little-mean-to-them-14bca59a

Persons: Dow Jones

☆ Banks Don’t Love Rich Mortgage Borrowers as Much as They Used To
▼ + stars: | 2023-08-21 | by ( Ben Eisen | Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/finance/banking/mortgage-jumbo-loan-interest-rates-wealthy-a84e87d3

Persons: Dow Jones

☆ Stock Market News Today: Dow Slips 150 Points; Tesla and Zoom Stocks in Focus
▼ + stars: | 2023-08-21 | by ( ) www.wsj.com time to read: +2 min

Yields on longer-term U.S. Treasurys are rising again, putting renewed pressure on stocks. Stocks opened broadly higher but retraced some of those gains as yields climbed. Volatility in stocks this month has some traders turning to one-day options . The benchmark CSI 300 lost 1.4% and Hong Kong’s Hang Seng Index fell deeper into a bear market. China’s faltering economy remains in focus for investors, after key bank lending rates weren't cut as much as the market was expecting.

Persons: –, Stocks, Ben Eisen, Rachel Louise Ensign, Jerome Powell, Jackson Organizations: Nasdaq, Dow, . Tech, Nvidia, Microsoft, Treasury, CSI, Labor Locations: U.S, Europe

☆ What Fed Hikes? Much of America’s Consumer Debt Is Still Riding Ultralow Rates
▼ + stars: | 2023-07-26 | by ( Rachel Louise Ensign | Photographs Maddie Mcgarvey For The Wall Street Journal | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/what-fed-hikes-much-of-americas-consumer-debt-is-still-riding-ultralow-rates-e10ab199

Persons: Dow Jones Locations: americas

☆ Everyone Wants Interest on Their Deposits. That’s Bad for Main Street Banks.
▼ + stars: | 2023-07-06 | by ( Rachel Louise Ensign | Gina Heeb | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/everyone-wants-interest-on-their-deposits-thats-bad-for-main-street-banks-1131f1b3

Persons: Dow Jones

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/when-svb-and-first-republic-collapsed-so-did-their-employees-investments-59ce4715

Persons: Dow Jones

Tommy York grew up in San Francisco but was far from his goal of saving enough money to buy a home in the uber pricey market—until he landed an engineering job at Google. It was December 2021, and the shares of Google parent Alphabet had just hit a record high. Mr. York’s pay package included a $175,000 stock grant to be paid out over four years. The success of the $2 trillion company would be his, too.

☆ Regional Bank Stocks Plunge Ahead of Fed Meeting
▼ + stars: | 2023-05-02 | by ( Gina Heeb | Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

Illustration: Preston JesseeShares of a number of midsize lenders fell sharply Tuesday following the collapse of First Republic Bank, a sign that investors are still worried about the industry’s health in a world of higher interest rates. Banks that took a hit following the March collapse of Silicon Valley Bank fell the most. Los Angeles-based PacWest was down 25% in midday trading, while Phoenix-based Western Alliance fell 19%. Metropolitan Bank , based in New York, declined 20%.

☆ Jamie Dimon Wins Again in First Republic Bank Deal
▼ + stars: | 2023-05-01 | by ( Rachel Louise Ensign | David Benoit | ) www.wsj.com time to read: 1 min

JPMorgan Chase CEO Jamie Dimon played a key role in earlier efforts to rescue First Republic Bank. Photo: MARCO BELLO/REUTERSAmerica’s biggest bank just got even bigger. JPMorgan Chase & Co.’s purchase of failed First Republic Bank boosts the New York bank’s massive loan book and dominant deposit franchise. It gives the megabank a new crop of rich customers at a time when it is trying to expand its wealth-management operation. And it allows Chief Executive Jamie Dimon to once again play the role of industry savior.

In February, First Republic Bank ’s well-heeled customers were yanking money from their accounts. The bank tried to stem the tide by offering higher rates on certificates of deposit. Even that was a tough sell. Jim Herbert , the bank’s 78-year-old founder, usually a reassuring presence, slammed his hand on the table during an all-hands meeting. We’ve got to get more deposits, he said, according to people familiar with the matter.

☆ First Republic Bank Is Seized, Sold to JPMorgan in Second-Largest U.S. Bank Failure
▼ + stars: | 2023-05-01 | by ( Rachel Louise Ensign | Ben Eisen | ) www.wsj.com time to read: 1 min

Photo: Jeff Chiu/APRegulators seized First Republic Bank and struck a deal to sell the bulk of its operations to JPMorgan Chase & Co., heading off a chaotic collapse that threatened to reignite the recent banking crisis. JPMorgan said it will assume all of First Republic’s $92 billion in deposits—insured and uninsured. It is also buying most of the bank’s assets, including about $173 billion in loans and $30 billion in securities.

First Republic Bank customers pulled around $100 billion in deposits in a matter of days. Photo: LOREN ELLIOTT/REUTERSThe Federal Deposit Insurance Corp. is reviewing bids for First Republic Bank and preparing to seize the lender, according to people familiar with the matter, weeks after a $100 billion deposit run shattered its business model. Big banks including JPMorgan Chase & Co. and PNC Financial Services Group Inc. submitted offers for the troubled lender earlier Sunday, the people said, and the FDIC went back to the bidders with questions in the evening. The agency is expected to name a winner before First Republic opens Monday morning, the people said.

First Republic Bank customers pulled around $100 billion in deposits in a matter of days. Photo: LOREN ELLIOTT/REUTERSBig banks including JPMorgan Chase & Co. and PNC Financial Services Group Inc. are vying to buy First Republic Bank in a deal that would follow a government seizure of the troubled lender, according to people familiar with the matter. A seizure and sale of First Republic could come as soon as this weekend, the people said.

☆ Fed Rethinks Loophole That Masked Losses on SVB’s Securities
▼ + stars: | 2023-04-21 | by ( Andrew Ackerman | Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

The collapse of Silicon Valley Bank, which held $200 billion in assets, has sent shock waves through Wall Street and Main Street. WSJ’s Dion Rabouin explains what this means for investors and everyday Americans worried about a broader, systemic problem in the U.S. banking system. Illustration: Preston JesseeWASHINGTON—The Federal Reserve may close a loophole that allows some midsize banks to effectively mask losses on securities they hold, a contributing factor in the collapse of Silicon Valley Bank. Led by vice chair for supervision Michael Barr , the Fed is considering ending an exemption that allows some banks to boost the amount of capital they report for regulatory purposes, according to people familiar with the matter. Capital is the buffer banks are required to hold to absorb potential losses.

☆ The Era of Easy Deposits Is Over for Main Street Banks
▼ + stars: | 2023-04-19 | by ( Rachel Louise Ensign | Gina Heeb | ) www.wsj.com time to read: 1 min

PHOTO: Douglas R. Clifford/Zuma PressThe era of easy deposits looks like it’s over for the smaller banks that serve a swath of America’s consumers and businesses. Main Street banks such as Citizens Financial Group Inc. and First Horizon Corp. said in recent first-quarter earnings reports they are having a tougher time hanging onto customer money in a world where the Federal Reserve has aggressively raised interest rates. To keep those depositors around, some lenders are paying more on savings accounts and turning to products like certificates of deposit.

Illustration: Preston JesseeBanks are turning to an obscure government-linked lender to shore up their balance sheets following the industry’s rockiest period in years. The Federal Home Loan Bank system—established during the Great Depression to help promote mortgage lending and now a source of liquidity for banks of all stripes—issued a record $495 billion of debt in March to fund loans, which are called advances, the system’s Office of Finance said. Banks ramped up borrowing that month as customers pulled out deposits and investors panicked over failures that threw the stability of the U.S. financial system into question.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/jpmorgan-chase-jpm-q1-earnings-report-2023-47154f00

The crackdown on crypto banking is squeezing digital-asset businesses. The U.S. affiliate of global crypto exchange Binance has struggled to find a bank for its customers’ cash after the failure of Signature Bank left it without a key banking partner, people familiar with the matter said. Users’ dollar deposits were previously sent to either Signature Bank or Silvergate Capital Corp., according to Binance.US’s website. The failures of Signature and Silvergate, both seen as friendly to crypto companies, left many crypto firms rushing to find new banking partners.

☆ First Republic Suspends Dividends on Preferred Stock
▼ + stars: | 2023-04-08 | by ( Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

First Republic’s shares have fallen by nearly 90% since the beginning of March. First Republic Bank , beset by concerns over loan values and deposit flight, said in a regulatory filing Friday that it will suspend payments of quarterly cash dividends on its preferred stock. The bank said that it was suspending the payments “as a measure of prudent oversight.”

Scott Anderson answered the doorbell one night in March to find his 8-year-old neighbor waiting with a bag of popcorn. Mr. Anderson, the chief executive officer of Zions Bank in Utah, had helped the boy open an account on his birthday last year. “Is my money safe?” the boy asked, Mr. Anderson said at an industry conference last week.

☆ First Citizens Adds to Its Collection of Failed Banks With SVB Purchase
▼ + stars: | 2023-03-27 | by ( Ben Eisen | Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

A fast-growing North Carolina lender with a history of buying failed banks is taking on its largest challenge yet with its purchase of Silicon Valley Bank. First Citizens BancShares Inc.’s acquisition of the bulk of SVB’s assets will effectively double the size of the 125-year-old lender, which for most of its history was controlled by one family and operated mainly in North Carolina. The Raleigh-based bank, which had $42 billion in assets three years ago, will have $219 billion after the SVB deal.

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