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☆ Here's what an overbought market and endless negativity tell me to do this week
▼ + stars: | 2023-06-19 | by ( Jim Cramer | ) www.cnbc.com time to read: +6 min

There are too many articles and postings about how we are overdoing artificial intelligence, and how there's not enough substance to justify recent market moves. Still, I am worried about this week because for the first time in a bit I think we need to do some serious digesting. Given the market is officially overbought, I think I will wait until we have a couple of days down before it's worth pulling the trigger. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

Persons: That's worrisome, Joe Biden's, Campbell, Jim Cramer's, Jim Cramer, Jim, Squawk, Virginia Sherwood Organizations: Nasdaq, Nvidia, Microsoft, Google, Oracle, Broadcom, Marvell, Research, Federal Deposit Insurance Corporation, Walmart, Costco, Adobe, Strategic Petroleum Reserve, Federal Reserve, CNBC

☆ SVB agrees to sell its investment banking division
▼ + stars: | 2023-06-18 | by ( ) www.reuters.com time to read: +1 min

June 18 (Reuters) - SVB Financial Group (SIVBQ.PK) said on Sunday it has entered into an agreement to sell its investment banking division, SVB Securities, to a group led by Jeff Leerink and backed by funds managed by The Baupost Group. The bidder group led by Leerink, who is chief executive of SVB Securities, will acquire the investment banking business for a combination of cash, repayment of an intercompany note, and a 5% equity instrument, the company said. First Citizens BancShares Inc (FCNCA.O) bought all the loans and deposits of the failed bank in March, leaving some $90 billion in securities with the FDIC for sale. The lender continues to evaluate strategic alternatives for its division, SVB Capital, and company's other assets and investments, it said. Reporting by Akanksha Khushi in Bengaluru; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

Persons: Jeff Leerink, Leerink, Akanksha, Leslie Adler Organizations: SVB Financial, SVB Securities, Baupost, Federal Deposit Insurance Corporation, Silicon Valley Bank, BancShares Inc, SVB, Suisse, UBS, Thomson Locations: SVB, reverberated, Bengaluru

June 16 (Reuters) - Customers Bancorp (CUBI.N) said on Friday it acquired a $631 million venture banking loan portfolio from U.S. regulator Federal Deposit Insurance Corporation (FDIC) at about 85% of the book value. The portfolio belonged to failed lender Signature Bank, which was put under FDIC receivership in March, a source familiar with the matter told Reuters. Customers Bancorp shares rose on the news to their highest level since early March, and were up 3.3% at $30.23 at midday. On March 12, state regulators closed New York-based Signature Bank, marking this year's second high-profile bank collapse sparked by an exodus of depositors seeking higher returns and safer institutions. Following the bank's closure, the FDIC had announced in April the marketing process for the roughly $60-billion loan portfolio retained in receivership from Signature Bank.

Persons: Michael Perito, Keefe, Perito, Manya Saini, Saeed Azhar, Shailesh Kuber, Richard Chang Organizations: Customers Bancorp, Deposit Insurance Corporation, Signature Bank, Reuters, FDIC, Bancorp, Loans, Bank, New York Community Bancorp, Thomson Locations: Austin, Boston, Southern California, Chicago, New York, Bengaluru

☆ US banking regulator seeks bids for Silicon Valley Bank's German assets
▼ + stars: | 2023-06-16 | by ( ) www.reuters.com time to read: +1 min

June 15 (Reuters) - The U.S. banking regulator is seeking bids for the sale of collapsed Silicon Valley Bank's German assets, according to a Thursday notice posted on its website. The regulator said it will open the German branch's data room to eligible bidders on June 20, adding that participants must hold lending authorization in Germany. This comes in the wake of reports last week from local German media, which said that SVB's German branch was in search of a potential buyer. In March, Silicon Valley Bridge Bank was granted permission by German financial regulator BaFin to conduct its lending business through its SVB Germany branch. HSBC (HSBA.L), which acquired the UK arm of SVB, has been floated as a potential buyer, according to media reports.

Persons: BaFin, Niket Nishant, Akriti Sharma, Krishna Chandra Eluri Organizations: U.S, Federal Deposit Insurance Corporation, Bank, HSBC, Financial, Thomson Locations: U.S, Frankfurt, Berlin, Germany, Silicon, Bengaluru

☆ Walmart-backed fintech ONE raises savings rate as battle for deposits heats up
▼ + stars: | 2023-06-14 | by ( Siddharth Cavale | ) www.reuters.com time to read: +1 min

NEW YORK, June 14 (Reuters) - ONE, a fintech company backed by Walmart Inc (WMT.N), is offering 5% interest on savings accounts of up to $100,000 as of Wednesday, a source close to the company said, as the battle for consumer deposits intensifies. The rate is more than 12 times the national average of 0.4%, the source said, citing Federal Deposit Insurance Corporation data. Apple Inc began offering 4.15% on its Apple Card savings accounts in April in partnership with Goldman Sachs Inc. Step, a fintech app catering to younger customers, offered 5% in May. All other savings balances will continue to receive a 1.00% annual percentage yield.

Persons: Goldman Sachs, Siddharth Cavale, Richard Chang Organizations: YORK, Walmart Inc, Federal Deposit Insurance Corporation, Apple Inc, Apple, Goldman, Goldman Sachs Inc, Valley Bank, Signature Bank, Coastal Community Bank, Walmart, Thomson Locations: U.S, New York

☆ Elon Musk's decision to not pay rent on Twitter's offices is adding to commercial mortgage headaches at Goldman Sachs
▼ + stars: | 2023-06-14 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Elon Musk's decision not to pay Twitter's rent is causing pain for Goldman Sach's commercial real estate portfolio, the FT reported. Goldman was part of a group that originated a $1.7 billion loan to Columbia Property, the owner of several of Twitter's offices. That dwarfs the rise of commercial real estate delinquencies seen across the entire US banking industry, with bad commercial real estate loans rising just 30% nationwide, notching $12 billion over the first quarter. But the jump in Goldman Sach's bad commercial property loans appears partly attributable to Twitter, which has not paid rent on its offices since November of last year. It owed $136,260 on its office spaces as of December 2022, Columbia Property said in its suit.

Persons: Elon, Goldman, —, Goldman Sachs, Musk Organizations: Columbia Property, Columbia, Twitter, Service, Privacy, Federal Deposit Insurance Corporation, The Financial Times, Columbia Property Trust

☆ Millionaires support raising Federal Deposit Insurance Corp. limits. They may be overlooking ways to access more coverage on deposits now
▼ + stars: | 2023-06-12 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Currently, the Federal Deposit Insurance Corp. insures $250,000 per depositor for each ownership category for deposits held at an insured bank. That year, the standard maximum deposit insurance amount was temporarily raised to $250,000, from $100,000. How future deposit insurance may changeThe FDIC in May released a report that outlined three options for the future of the deposit insurance system. This may include an increased, yet also "finite," deposit insurance limit, the FDIC's report states. A third choice, targeted coverage, would provide different levels of deposit insurance coverage for different types of accounts, with higher coverage for business payment accounts.

Persons: Lauren Justice, First Republic —, Martin Gruenberg, Gruenberg, Ted Jenkin, Atlanta . Jenkin, Jenkin Organizations: Bank, Bloomberg, Getty, Valley Bank, Signature Bank, CNBC, Millionaire Survey, Federal Deposit Insurance Corp, First, Committee, Silicon Locations: Beverly Hills , California, First Republic, Atlanta .

☆ The Best CD Rates Are from Credit Unions Right Now. Here Are the Top Offers
▼ + stars: | 2023-06-08 | by ( ) www.wsj.com time to read: +7 min

But with many credit unions struggling to attract deposits their CD terms are especially sweet right now, experts say. The upshot: Half of the top 12 CD rates on DepositAccounts.com, a site that aggregates banking rates, are offered by credit unions. Why credit unions have such high CD rates nowCredit unions frequently offer financial products with more attractive interest rates and lower fees than conventional banks. The best credit union CD ratesWith nearly 5,000 credit unions in the country, there are plenty of favorable CD and share certificate rates out there. The FDIC doesn’t cover credit unions, but a different agency, the National Credit Union Administration, or NCUA, provides a parallel level of protection.

Persons: Martha C, they’ve, They’re, you’re, ”, Dawit Kebede, Curt Long, branchless Organizations: Credit, Nonprofit, Credit Union National Association, National Association of, “, don’t, Workers Credit Union, of, Financial, Association, Workers, Bellco, Bellco Foundation, Dow Credit Union, Dow Credit, Bank, Federal Deposit Insurance Corp, FDIC, National Credit Union Administration Locations: Silicon Valley, DepositAccounts.com, Central Massachusetts, Colorado

☆ Millionaires are hoarding cash, betting on higher rates, CNBC survey says
▼ + stars: | 2023-06-07 | by ( Robert Frank | ) www.cnbc.com time to read: +4 min

Millionaire investors are adding to their mountains of cash, betting on higher interest rates and weak stock markets in 2023, according to the CNBC Millionaire Survey. Of the survey respondents, 28% said they have purchased more fixed income, as they expect interest rates to remain high. Millionaire investors are still betting inflation will persist for years, potentially keeping interest rates higher for longer. Three-quarters of millennial millionaires say inflation will come down to 2% within two years, with one in four saying it will hit the 2% target within a year. CNBC's Millionaire Survey was conducted online in April.

Persons: Elias Ghanem, George Walper, Walper Organizations: CNBC Millionaire Survey, Capgemini Research Institute, Financial Services, Spectrem, Millionaire Survey, CNBC, Millionaires, Millionaire, Valley Bank, First, Signature Bank, Federal Deposit Insurance Corporation

☆ Why it's not that great that everyone is flocking to their online bank
▼ + stars: | 2023-06-03 | by ( Josée Rose | ) www.businessinsider.com time to read: +3 min

Smaller and regional banks are important for the US financial system. "Regional banks have a combination of regional knowledge and expertise that makes lending more efficient," C. Michael Zabel, a former executive at M&T, the Buffalo-based regional bank, told Dealbook in April. Broadly, regional banks are staring down two main headwinds. In the first quarter, Ally Financial and Goldman Sach's Marcus online bank saw them rise, while regional-bank powerhouses like US Bank, Truist Financial, and Citizens Financial saw deposits fall, according to The Wall Street Journal. The pressure on regional banks hasn't abated yet.

Persons: Goldman Sachs's Marcus, Wells, Michael Zabel, Dealbook, They're, Goldman Sach's Marcus, they've, Bankrate's, we'll, Robert Hockett Organizations: Morning, Citibank, bonanza, Bank, Truist, Citizens, Wall Street, Silicon Valley Bank, First, JPMorgan, Western Alliance ., Federal Deposit Insurance Corp, Fed, Bloomberg, Cornell University, CNN Locations: JPMorgan, Wells Fargo, Buffalo, Silicon, First Republic, PacWest, they're, Wall, San Francisco

☆ Logs show Fed's Powell in whirlwind of meetings during March banking turmoil
▼ + stars: | 2023-06-02 | by ( ) www.reuters.com time to read: +2 min

That was five days before UBS agreed to buy Credit Suisse in a deal engineered by Swiss authorities to avoid more market-shaking turmoil in global banking. The bank failed March 10 and a smaller bank, Signature Bank, was taken over by banking regulators on March 12. The schedule shows Powell working two weeks straight from that point. Meetings were scheduled through both of the following weekends to come up with backstops to prevent the turmoil from cascading into a system-wide crisis with wider economic fallout. The pace was reminiscent of his schedule in March 2020, when the onset of the coronavirus pandemic forced the Fed onto a crisis footing.

Persons: Jerome Powell, Powell, Ralph Hamers, Dan Burns, Chizu Organizations: UBS Group AG, Swiss, Credit Suisse, Fed, UBS, Silicon, Bank, Signature Bank, Treasury, Office, Currency, Federal Deposit Insurance Corp, Federal Reserve, Thomson Locations: U.S, Republic

The Labor Department reported that U.S. job openings unexpectedly rose in April, pointing to persistent strength in a labor market that suggests pressure on both wages and inflation. Futures traders raised to 70% the probability of a 25 basis points hike at the Fed's June 13-14 policy meeting. FEDWATCHFed Governor and vice chair nominee Philip Jefferson said skipping a rate hike in two weeks would provide policymakers time to see more data before making a decision. The Labor Department's closely watched May unemployment report, due on Friday, could decide whether a rate hike occurs. Intel was the biggest gainer on the S&P 500 as the chipmaker said it was on track to hit the upper end of its second-quarter revenue forecast.

Persons: Brendan McDermid, Joe Biden, it's, Brad Conger, Callaghan, Conger, FEDWATCH, Philip Jefferson, Patrick Harker, Tim Ghriskey, we've, Nvidia Corp's, Herbert Lash, Shreyashi Sanyal, Shashwat Chauhan, Shounak Dasgupta, Maju Samuel, Richard Chang Organizations: New York Stock Exchange, REUTERS, Senate, Co, Labor Department, Philadelphia Fed, Inverness, Labor, Dow Jones, Nasdaq, Technology, Federal Deposit Insurance Corporation, Parts Inc, Genuine, O'Reily, Hewlett Packard Enterprise Co, Nvidia, Intel, Thomson Locations: New York City, U.S, Conshohocken , Pennsylvania, New York, Bengaluru

[1/2] Fearless Girl is seen outside the New York Stock Exchange (NYSE) in New York City, U.S., May 30, 2023. The S&P 500 was set to end the month flat, while the Dow shed 3.8%. The S&P 500 financial sector index (.SPSY) fell 1.7%, while banks (.SPXBK) dropped 2.7%. Advance Auto Parts Inc (AAP.N) plunged 33.9%, falling the most on the S&P 500, after the auto parts retailer cut its full-year forecasts. Declining issues outnumbered advancers for a 2.21-to-1 ratio on the NYSE and for a 2.02-to-1 ratio on the Nasdaq.

Persons: Brendan McDermid, Joe Saluzzi, Phil Blancato, Nvidia Corp's, advancers, Shreyashi Sanyal, Shashwat Chauhan, Shounak Dasgupta, Maju Samuel Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Federal Reserve, Senate, Themis, Labor, Survey, Traders, Asset Management, Dow Jones, Technology, Federal Deposit Insurance Corporation, Advance, Parts Inc, Genuine, O'Reily, Hewlett Packard Enterprise Co, Nvidia, NYSE, Thomson Locations: New York City, U.S, New York, Bengaluru

☆ U.S. banks sink on concerns about office real estate loans
▼ + stars: | 2023-05-31 | by ( Sinéad Carew | ) www.reuters.com time to read: +3 min

Investors worried about potential losses among banks from office real estate loans after comments from executives, including Wells Fargo & Co's (WFC.N) Chief Executive Officer Charlie Scharf and Blackstone President Jonathan Gray at a Sanford C Bernstein investor conference. Meanwhile, Blackstone's Gray talked about "unprecedented weakness" in older office buildings while noting that this segment currently makes up less than 2% of company's equity portfolio in real estate. Rick Meckler, partner, Cherry Lane Investments, a family investment office in New Vernon, New Jersey said "continued concern over loans made to the office market," was hurting bank stocks broadly on Wednesday, citing the Wells Fargo comments. "The implication is that there are those that will suffer even if Wells Fargo is diversified enough," Meckler said. KeyCorp, down 5.5%, was the biggest decliner in the S&P bank index, and Zions was next, down 4.9%.

Persons: Andrew Kelly, Wells, Charlie Scharf, Blackstone, Jonathan Gray, Sanford C, Wells Fargo's Scharf, Blackstone's Gray, Gray, Bernstein, Rick Meckler, Meckler, Morgan Stanley, Goldman Sachs, Zions, Sinéad Carew, Mehnaz Yasmin, Nick Zieminski Organizations: Citibank, New York Stock Exchange, REUTERS, Banks, Investors, Buyers, Cherry Lane Investments, Citigroup, JPMorgan Chase &, Bank of America, Citizens Financial, Western Alliance Bancorp, PacWest Bancorp, Comerica, PNC Financial Services, Fifth Third Bancorp, Federal Deposit Insurance Corporation, Thomson Locations: Manhattan , New York City, U.S, New Vernon , New Jersey, New York, Bengaluru

WASHINGTON, May 31 (Reuters) - U.S. banks saw total deposits decline by a record 2.5% in the first quarter of 2023, and industry-wide profits were relatively flat after taking into account the effects of two large bank failures, the Federal Deposit Insurance Corporation said Wednesday. The FDIC said the $472 billion in deposit outflows in the first quarter was the largest it had recorded since it began collecting such data in 1984. The decline was primarily from uninsured funds, as insured deposits actually rose $255.1 billion, or 2.5%, amid the failures of Silicon Valley Bank and Signature Bank. The decline in deposits was offset by increased wholesale funding, which rose 14.4% in the first quarter. The results showed banks shrinking the amount of unrealized losses on their books and maintaining strong capital ratios.

Persons: Martin Gruenberg, Gruenberg, Pete Schroeder, Sinead Carew, Nick Zieminski Organizations: Federal Deposit Insurance Corporation, FDIC, Valley Bank, Signature Bank, First Republic Bank, Comerica, Citizens, Thomson

☆ HSBC to rename British arm of Silicon Valley Bank next month- Sky News
▼ + stars: | 2023-05-29 | by ( ) www.reuters.com time to read: +1 min

May 29 (Reuters) - HSBC (HSBA.L) is set to announce next month that the UK arm of Silicon Valley Bank will be renamed HSBC Innovation Banking, Sky News reported on Monday. The British government and the Bank of England facilitated a private sale of SVB UK to HSBC in March, in a move which would protect deposits without taxpayer support. Startup-focused lender SVB Financial Group became the largest bank to fail since the 2008 financial crisis. SVB is undergoing bankruptcy proceedings after California's regulators shuttered Silicon Valley Bank and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. The regulators then agreed to backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire Silicon Valley Bank.

☆ How risky bank debt makes customers safer
▼ + stars: | 2023-05-25 | by ( Liam Proud | ) www.reuters.com time to read: +6 min

LONDON, May 25 (Reuters Breakingviews) - Bank watchdogs are mulling changes to deposit insurance schemes after a string of lenders failed. That’s a problem for depositors, since long-term debt acts as a buffer for customers too. Forcing the issuance of more long-term bank debt could make them cheaper too. The trickier part is figuring out who ultimately bears the cost of loss-absorbing debt. Relying more on loss-absorbing debt could make such giant ad-hoc bills less likely in the future.

☆ Op-ed: Why cash is king for emergency funds and queen for short-term savings
▼ + stars: | 2023-05-22 | by ( Stacy Francis | ) www.cnbc.com time to read: +6 min

You would have been lucky to find a high-yield savings account paying out 1%-2% at that time. Where to keep your emergency cashAn emergency fund is a cash cushion of roughly three to six months of living expenses. American Express High Yield Savings and Barclays Online Savings Account are highly competitive. The easiest way to reach this goal is to automatically have a portion of your paycheck directed toward your emergency or short-term savings fund. Your emergency fund and short-term savings should be directed toward something other than your everyday checking or savings account.

May 22 (Reuters) - First Citizens BancShares Inc (FCNCA.O), which acquired Silicon Valley Bank following its collapse, sued HSBC Holdings PLC (HSBA.L) on Monday, accusing it of poaching more than 40 of the failed bank's employees in order to launch its own U.S. venture banking business. The lawsuit filed in San Francisco federal court says HSBC violated federal law by hiring away the workers so it could gain access to Silicon Valley Bank's (SVB) trade secrets including information about clients in the tech and healthcare sectors. First Citizens in the lawsuit said it is seeking more than $1 billion in damages. First Citizens later in March purchased SVB's assets and deposits for up to $500 million in stock - a fraction of what the bank was worth before it failed. In April, HSBC had said it had hired dozens of Silicon Valley Bank employees to help the bank establish a dedicated practice focused on serving companies in technology and healthcare and investors who support them.

☆ US banks rethink social media as a threat, not a marketing tool
▼ + stars: | 2023-05-18 | by ( Nupur Anand | ) www.reuters.com time to read: +5 min

Greg Becker, the former CEO of Silicon Valley Bank, blamed social media as an "unprecedented" factor in the lender's demise. The former CEO of First Republic Bank, Michael Roffler, also blamed social media for its collapse two months later. Bank executives and directors have ordered their companies to add social media into risk-management programs, according to regional bank executives who declined to be identified because the discussions are private. "NIP IT IN THE BUD"Banks are also contacting customers who complain on social media to address their issues quickly. The Financial Stability Board, an international body, is also investigating the role of social media in recent market turmoil, a source said.

☆ Regulators Rebut Claims by Silicon Valley Bank’s Ex-C.E.O.
▼ + stars: | 2023-05-18 | by ( Emily Flitter | Alan Rappeport | ) www.nytimes.com time to read: +1 min

When asked in a Senate hearing this week who was to blame for the demise of Silicon Valley Bank, the lender’s former chief executive, Greg Becker, had plenty of ideas, blaming regulators, the bank’s board and its own customers for bringing it down. On Thursday, senior officials from two of the bank’s main regulators, the Federal Reserve and the Federal Deposit Insurance Corporation, told members of the same Senate panel that some of the impressions Mr. Becker had left lawmakers with were false. James N. Kramer, a lawyer for Mr. Becker, said Mr. Becker stood by the statements he had made. The regulators’ statements were part of a hearing held by the Senate Banking Committee on how bank oversight should look in the future in light of the failures of three regional banks this spring. It came two days after Mr. Becker appeared alongside former senior leaders of Signature Bank, a New York lender that collapsed just after Silicon Valley Bank did and prompted the federal government to take drastic steps to prevent widespread panic in the banking system.

☆ Sen. Elizabeth Warren presses regulators for answers on First Republic takeover
▼ + stars: | 2023-05-18 | by ( Chelsey Cox | ) www.cnbc.com time to read: +3 min

Sen. Elizabeth Warren, D-Mass., greets Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation, during the Senate Banking, Housing, and Urban Affairs Committee hearing in Dirksen Building on Tuesday, March 28, 2023. WASHINGTON — Sen. Elizabeth Warren is asking federal financial regulators for answers over what she called a "deeply troubling" deal that saw JPMorgan Chase take over First Republic Bank. "Our financial strength, capabilities and business model allowed us to develop a bid to execute the transaction in a way to minimize costs to the Deposit Insurance Fund." Instead, the insurance fund was allowed to take a multibillion-dollar loss after billions of dollars worth of the bank's uninsured deposits were rescued during the deal, Warren said. "The FDIC appeared to prioritize First Republic's uninsured deposits at the bank before the Insurance Fund," she said.

Senator Elizabeth Warren is questioning federal bank regulators on their decision to sell First Republic Bank to the nation's largest bank, JP Morgan Chase. In a letter sent to the Office of the Comptroller of the Currency and Federal Deposit Insurance Corporation Wednesday, Warren said the deal was "deeply troubling," and sought details on how the agencies decided to arrange that particular sale, allowing JPM to grow even larger. This is a troubling outcome, leaving me with numerous questions," she wrote. The FDIC announced this month it had seized First Republic and sold it to JPM in a deal that it estimated would cost its deposit insurance fund $13 billion. Warren also pressed the matter with Michael Hsu, the acting Comptroller of the Currency, at a hearing Thursday.

☆ SVB Financial defeats FDIC effort to seize incoming tax refunds
▼ + stars: | 2023-05-17 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

Judge Martin Glenn in Manhattan handed a victory to SVB Financial in broader dispute over FDIC's efforts to recoup its costs in rescuing the failed Silicon Valley Bank, preventing the regulator from claiming future tax refunds that SVB Financial valued at $300 million. FDIC sought to escrow those funds while the regulator determines whether they properly belong to the seized bank or the bankrupt parent company. Glenn ruled that FDIC had no authority to intercept checks that were clearly written out to "SVB Financial." He ordered FDIC to return the intercepted checks by Friday, and to send any future tax refunds checks to SVB Financial. FDIC argued that the tax refunds may be owed to the seized bank, which is now run by First Citizens BancShares, under a tax agreement between the bank and its former parent company.

☆ Analysis: Overexposed US regional banks could sell commercial property loans
▼ + stars: | 2023-05-17 | by ( Matt Tracy | ) www.reuters.com time to read: +5 min

Still, previously unreported data from New York-based real estate data provider Trepp, shared with Reuters, show many regional banks' holdings exceed thresholds stipulated by regulators. While big banks have recently warned about CRE exposure, the new Trepp data underscores how acute and widespread the problem is across the banking sector. The regulatory guidance requires that banks exceeding these thresholds "should employ heightened risk management practices," including potential sales of specific loans. Meanwhile, New York Community Bancorp (NYCB.N) and Flagstar Bank [RIC:RIC:FBCANK.UL] were among the top five banks listed by Trepp that exceeded the CRE loan threshold. In Tuesday congressional testimony, FDIC chair Martin Gruenberg warned CRE loan portfolios "face challenges" should market conditions persist.

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