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☆ Here's what's next for bank stocks after the failure of First Republic
▼ + stars: | 2023-05-01 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +4 min

First Republic's demise was the third regional bank failure since early March, when Silicon Valley Bank and Signature Bank folded within days of each other. There is cautious optimism on Wall Street that First Republic will be the last failure of this period. However, reports from other regional banks weren't nearly as dire, with many reporting that deposits had stabilized and were growing again. However, the failure of First Republic could cause some more turbulence, at least in the short-term, for both deposits and bank stocks. "We don't believe that regional banks are completely out of the woods," Wolfe Research chief investment strategist Chris Senyek said in a note to clients on Monday.

NEW YORK, May 1 (Reuters) - The weekend rescue of troubled lender First Republic Bank (FRC.N) has done little to allay options traders' concerns about the overall health of U.S. regional banks. Traders who had bought upside calls on regional banks on Friday appeared to be exiting those positions as the regulator-engineered rescue of First Republic failed to catalyze a rally in the mid-cap bank sector. SPDR S&P Regional Banking ETF shares were down 2% at $41.70 in afternoon trading. At the individual stock level, traders were focused on regional lender PacWest Bancorp (PACW.O) on Monday. With PacWest shares down 7%, put options, typically used for bearish bets, outnumbered call options, usually employed for bullish bets, 4-to-1, according to Trade Alert data.

☆ What’s Going On With First Republic Bank?
▼ + stars: | 2023-04-29 | by ( Colin Barr | ) www.wsj.com time to read: 1 min

First Republic Bank teetered for weeks following the failures early in March of two large U.S. regional banks, Silicon Valley Bank and Signature Bank. The San Francisco company reported first-quarter results on April 24. First Republic’s deposits fell by $100 billion during the banking crisis. Net income dropped by a third.

NEW YORK, April 28 (Reuters) - U.S. officials are coordinating urgent talks to rescue First Republic Bank (FRC.N) as private-sector efforts led by the bank's advisers have yet to reach a deal, according to three sources familiar with the situation. It is unclear whether the U.S. government is considering participating in a private-sector rescue of First Republic. The Treasury Department declined to comment; the FDIC and Federal Reserve did not immediately respond to emailed requests for comment after hours. U.S. officials view a private-sector deal as preferable to First Republic falling into FDIC receivership, two of the sources said. First Republic shares have lost 95% of their value since the regional banking crisis started on March 8.

☆ US money market funds see biggest weekly inflow in four weeks
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +1 min

Refinitiv Lipper data showed investors purchased a net $47.72 billion worth of U.S. money market funds in their biggest weekly net buying since March 29. Meanwhile, U.S. equity funds faced a fifth straight week of outflows, with investors exiting a net $3.75 billion worth of funds. Reuters Graphics Reuters GraphicsInvestors also pulled out $1.62 billion from U.S. bond funds in a second straight week of net selling. U.S. general domestic taxable fixed income funds, inflation protected funds and loan participation funds had $2.18 billion, $892 million and $797 million worth of net selling, respectively. Still, government bond finds secured $2.22 billion worth of inflows compared with net selling of $2.14 billion in the previous week.

☆ Cool investors buy time for First Republic fix
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +1 min

NEW YORK, April 28 (Reuters Breakingviews) - If investors are worried that stresses at First Republic Bank (FRC.N) will hurt other lenders, they aren’t showing it. Stocks of regional U.S. banks are generally faring well despite fears that the San Francisco-based lender might fail. As the government and the private sector mull a rescue, the market’s composure buys precious time for reaching a deal. The difference between now and March, when Silicon Valley Bank and Signature Bank crumpled, is marked. Regional Bank exchange-traded fund (IAT.P) closed with a 0.7% gain.

☆ Deutsche Bank logs 11th straight quarterly profit, reveals job cuts
▼ + stars: | 2023-04-27 | by ( Elliot Smith | ) www.cnbc.com time to read: +5 min

A Deutsche Bank AG branch in the financial district of Frankfurt, Germany, on Friday, May 6, 2022. The Thursday report nevertheless showed deposits fell over the course of the quarter to 592 billion euros from 621.5 billion euros at the end of 2022. watch nowDeutsche's corporate bank net revenues came in at 2 billion for the quarter, up 35% year-on-year and the highest quarterly figure since the launch of its transformation program. However, the bank also flagged job cuts for non-client facing staff and reported a sharper-than-expected 19% year-on-year fall in investment bank revenues year-on-year. He suggested that, in scrutinizing Deutsche Bank, market participants saw a strong and profitable business model, stable balance sheet and deposit base, a "very moderate" and "well underwritten" commercial real estate book and "no near-term financing needs."

☆ Here’s what the SVB report will (and won’t) include, according to top former Fed official
▼ + stars: | 2023-04-27 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +5 min

Randal Quarles, former vice chair of supervision at the Fed, told CNN in an exclusive interview that he doesn’t expect the report to uncover any smoking guns. For instance, SVB was able to opt out of holding capital against its unrealized investment losses. Cole Burston/Bloomberg/Getty ImagesIn Quarles’ view, returning to the pre-2019 requirements “would not have made any difference” in preventing SVB from failing. The real issue that the Fed’s report should address, he said, is why SVB’s uninsured depositors were so quick to flee. That’s why Quarles said he didn’t hear about the red flags Fed officials identified when he was vice chair for supervision.

The Swedish crown weakened sharply after the country's central bank was less hawkish than expected, while the euro rebounded 0.65% from losses on Tuesday when jitters over U.S. regional banks buoyed the safe-haven dollar. But the market expects further rate hikes from the European Central Bank, a difference with the Fed that is driving currency moves. The euro rose 1.05% against the crown to a high of 11.426, set for its biggest one-day gain since early March. Sterling was last trading at $1.2462, up 0.44% on the day, while the yen strengthened 0.28% at 133.34 per dollar. Investor attention will firmly be on the slate of central bank meetings in the next few weeks with the Bank of Japan, under the new Governor Kazuo Ueda, holding its policy meeting later this week.

☆ 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.

☆ Morning Bid: Wowed by tech, worried by banks
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +1 min

That makes investors wary of such provisions at the likes of HSBC (HSBA.L), Lloyds (LLOY.L) and NatWest Group (NWG.L), all of which are due to report earnings in the coming weeks. Across the Atlantic, First Republic Bank's (FRC.N) plunging deposits and tumbling shares are rippling through the U.S. regional banking sector. U.S. recession fears have also resurfaced after consumer confidence hit a nine-month low, alongside some weak earnings. In a week packed with tech sector earnings, the focus moves from artificial intelligence to advertising revenues as Facebook-parent Meta Platforms (META.O) and streaming device maker Roku Inc (ROKU.O) report. Key developments that could influence markets on Wednesday:U.S. durable goods orders, Germany and France consumer confidenceEarnings: Meta Platforms, Boeing, GSK, Deutsche Boerse, Roku IncEditing by Jacqueline WongOur Standards: The Thomson Reuters Trust Principles.

Companies First Republic Bank FollowApril 26 (Reuters) - Oil prices rose in early Asian trade on Wednesday after a U.S. trade group reported a significant draw in crude oil stocks ahead of the government's data release. Brent crude rose by 16 cents, or 0.2%, to $80.93 a barrel by 0006 GMT. U.S. West Texas Intermediate crude rose 25 cents, or 0.3%, to $77.32 a barrel. Analysts had expected crude inventories to fall by about 1.5 million barrels. Crude oil settled more than 2% lower on Tuesday after U.S. consumer confidence dropped to a nine-month low in April, feeding worries about a recession.

☆ Oil prices rise on U.S. crude, fuel stock draws
▼ + stars: | 2023-04-26 | by ( ) www.cnbc.com time to read: +1 min

Oil prices rose in early Asian trade on Wednesday after a U.S. trade group reported a significant draw in crude oil stocks ahead of the government's data release. Brent crude rose by 16 cents, or 0.2%, to $80.93 a barrel by 0006 GMT. U.S. West Texas Intermediate crude rose 25 cents, or 0.3%, to $77.32 a barrel. Analysts had expected crude inventories to fall by about 1.5 million barrels. Crude oil settled more than 2% lower on Tuesday after U.S. consumer confidence dropped to a nine-month low in April, feeding worries about a recession.

☆ Stocks making the biggest moves premarket: Activision Blizzard, Chipotle, First Republic Bank & more
▼ + stars: | 2023-04-26 | by ( Pia Singh | ) www.cnbc.com time to read: +5 min

The company said Tuesday its upcoming quarterly revenue will range from $700 million to $750 million, compared to the expected $765.2 million from analysts surveyed by StreetAccount. The company reported an adjusted loss of $1.27 per share and $17.92 billion in revenue. Activision Blizzard — Activision Blizzard shares dropped about 10.4% in the premarket after a UK regulator blocked Microsoft's purchase of the video game publisher. ServiceNow will be announcing its quarterly earnings Wednesday after the bell. The gain came after fellow tech-related giant Microsoft reported quarterly earnings that exceeded expectations, boosting sentiment for Amazon.

☆ Bitcoin jumps 8% as First Republic pulls banking sector concerns back into focus
▼ + stars: | 2023-04-26 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

Cryptocurrencies jumped on Wednesday as investor concerns about the U.S. banking sector began to swell again, with First Republic Bank fighting to avoid another collapse. "Crypto rallies during banking crises, and it looks like the banking crisis may not be over," Hougan said. "As First Republic is now on the verge of collapse, bitcoin represents both a safe haven versus uncertain bank deposits." As crypto rallied, the U.S. dollar index moved lower and was on pace for worst day since Apr. 12, when bitcoin traded at its highs of this year.

[1/2] A person walks past a First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike Segar/File PhotoApril 26 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. An unholy trinity of U.S. developments on Tuesday - poor corporate earnings, a bank's value going up in smoke and slumping consumer confidence - will likely set an extremely gloomy tone for Asian markets on Wednesday. The wider U.S. regional banking index's 4% slide - its fourth straight decline - took its year-to-date decline to 25%. If there is a tailwind for Asian markets on Wednesday amid the headwinds it will be the after-hours results from Google's parent company Alphabet GOOGL.O and Microsoft .MSFT.O.

First Republic reported a more than $100 billion plunge in deposits in the quarter in the aftermath of the biggest turmoil to hit the banking sector since 2008. Regional bank PacWest Bancorp (PACW.O) fell 9%, Western Alliance Bancorporation (WAL.N) 6%, Zions Bancorp (ZION.O) 5% and brokerage Charles Schwab Corp (SCHW.N) was down 4%. First Republic said on Monday it was "pursuing strategic options" to quickly strengthen the bank, without providing details. Options include an asset sale of up to $100 billion, a source familiar with the situation said on Tuesday. "So it's tough to even describe it as good asset and bad asset," Chiaverini said.

Low and stable inflation is good for markets and the economy, so central banks had to show their seriousness on inflation, Tannenbaum added. Central banks softened rate rises with communication that was mindful of instability risks, showing reassuring "humility", said Perkins. "The bank resolution framework created after the great financial crisis," said Francesco Papadia, senior fellow at Bruegel and former ECB director general for market operations, "is proving difficult to implement." Reuters Graphics4/ UNITED WE STANDAfter CS's rescue, the Fed and other big central banks supported market liquidity with dollar swap lines. Amundi's Pradhan said the "case by case" central bank responses to individual lenders failing in March exposed the lack of a coordinated bank resolution system.

☆ Morning Bid: Tech tally in focus, China alarms Europe
▼ + stars: | 2023-04-24 | by ( ) www.reuters.com time to read: +5 min

Otherwise, a packed earnings season dominates this week's investment radar as more than a third of S&P500 companies report. Including Intel (INTC.O), those five tech stocks have accounted for two-thirds of the S&P500's gains this year - with the Artificial Intelligence craze sparked by the emergence of ChatGPT adding a new non-cyclical attraction to the sector. But before markets get a taste of Q1 tech profits, the reverberations from last month's banking blow-up are still being absorbed. European stocks were slightly negative and U.S. stock futures also marginally in the red ahead of Wall Street's open. The dollar was mixed - up against Asian currencies but off against European currencies amid hawkish European Central Bank soundings on interest rates.

NEW YORK, April 21 (Reuters) - Vanguard, the world's second-largest asset manager, increased exposure to large bank's bonds during the banking rout in March, taking advantage of cheap valuations, according to a report seen by Reuters. "The banking troubles offered a brief window to add large banks at compelling valuations," said the report, written by Sara Devereux, global head of fixed income group, and her team. "We had little exposure to troubled banks and do not see evidence of a systemic risk to the financial system," it said. Core inflation, however, is likely to be sticky, according to Vanguard, limiting the Fed's ability to ease monetary policy in coming quarters. "Barring a major economic surprise, we think the Fed will hold policy rates high for longer than the market currently expects."

☆ Signs of banking stability as regionals gained this week and money market inflows reversed
▼ + stars: | 2023-04-21 | by ( Bob Pisani | ) www.cnbc.com time to read: +1 min

A couple signs of stability for those worried about the banking crisis: regional bank stocks are mostly up this week, and inflows into money market funds have reversed. The Regional Bank ETF (KRE) is still 25% lower than it was in early March. Another sign of calm: money market inflows have stopped. Total assets in money market funds fell by $68.64 billion in the week ended April 19, according to the Investment Company Institute. From late February to early April, net assets of money market funds increased by about 10%, to $5.27 trillion.

☆ U.S. company comments suggest upbeat demand despite gloomy forecasts
▼ + stars: | 2023-04-21 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

The credit card company reported quarterly earnings that missed analysts' expectations, however, as it kept aside a large sum to cover potential defaults. That would mark the second straight quarterly fall for corporate earnings, a so-called "earnings recession" that last occurred when COVID-19 hit corporate results in 2020. Moreover, in aggregate, companies are reporting earnings 7.8% above expectations, compared with a 4.2% average for the prior four quarters. Baker Hughes Co. (BKR.O) said in a presentation this week that the energy outlook remained constructive even with elevated recession risks. Both Delta (DAL.N) and United (UAL.O) gave upbeat near-term outlooks on travel demand, with Delta a week ago saying it expects summer travel demand will result in higher-than-expected profit for the quarter through June despite other risks.

☆ Deposit flight at U.S. regional banks blights interest income gains
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +2 min

The flight of deposits at Fifth Third Bancorp (FITB.O), Comerica (CMA.N), Truist Financial Corp (TFC.N) and KeyCorp (KEY.N) dampened gains that the lenders made in their interest income benefiting from the U.S. Federal Reserve's aggressive monetary policy tightening through the past year. Only, Huntington Bancshares Inc (HBAN.O), among banks reporting on Thursday, managed to grow average total deposits by $472 million from the prior quarter. In the aftermath, the KBW Regional Banking Index (.KRX) has tumbled 19.4% this year, through previous close. Clients are expected to continue the shift toward other assets that bring in higher returns unless the banks increase returns, analysts have said. Citizens Financial (CFG.N) on Wednesday cut its forecast for net interest income, expecting an increase in the rate it pays out for deposits to clients.

☆ There's no such thing as a dumb question ... unless you're interviewing someone for a job
▼ + stars: | 2023-04-20 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +4 min

Hiring is never easy, but it's particularly difficult on Wall Street. Emmalyse's story is worth a read not only for Smart's advice but his candidness, a dying trait on Wall Street. These cloud tools are proving to be game changers. Fidelity and State Street are rolling out annuity options within their 401(k) products, The Wall Street Journal reports. As the weather starts to warm up, plenty of people are making the switch to iced coffee.

☆ Blackstone is in talks to help regional banks with lending
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +4 min

NEW YORK, April 20 (Reuters) - Blackstone Inc (BX.N), the biggest manager of private equity and real estate assets, said on Thursday it was discussing partnerships with U.S. regional banks to help them with constraints in areas such as car loans and home improvement financing. "As regional banks experienced outflows of deposits, we are seeing real-time opportunities to partner with them at scale," Blackstone President Jonathan Gray said on the firm's first-quarter earnings call. "The regional banks generally play a very large role in home improvement loans, auto loans and equipment finance. He did not identify the banks Blackstone is speaking to. The firm has shifted its focus in real estate to resilient sectors such as logistics and rental housing.

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