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☆ Bank of America's Andy Sieg is joining Citi as head of global wealth
▼ + stars: | 2023-03-30 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

Andy Sieg, a veteran of Merrill Lynch, is parting ways with Bank of America to join Citigroup . He will be the new head of Citi Global Wealth, reporting to Jane Fraser, the bank's CEO. Previously, Sieg was president of Merrill Lynch Wealth Management, a post he's held for six years. He was also a member of Bank of America's executive management team. Separately, Bank of America announced that Lindsay Hans and Eric Schimpf have been appointed presidents and co-heads of Merrill Wealth Management.

☆ How First Republic's courtship of the wealthy led to meltdown
▼ + stars: | 2023-03-27 | by ( Lawrence Delevingne | ) www.reuters.com time to read: +6 min

March 27 (Reuters) - First Republic Bank (FRC.N) became the epicenter of the U.S. regional banking crisis after the wealthy clients it courted to fuel its breakneck growth started withdrawing deposits and left the bank reeling. Reuters GraphicsFor years, First Republic lured high net-worth customers with preferential rates on mortgages and loans. Morgan Stanley analysts estimated a deposit outflow of nearly half of total deposits according to a March 20 note. First Republic's loan book and investment portfolio also became less valuable as interest rates rose, which is hampering a capital raise. "Wealthy customers were drawn to First Republic in part because they could get large mortgages at rock-bottom interest rates," said McCoy.

☆ Silicon Valley Bank red flags: Why did almost everyone fail to predict its collapse?
▼ + stars: | 2023-03-26 | by ( Allison Morrow | ) edition.cnn.com time to read: +8 min

A bank run took down Silicon Valley Bank on March 10, as depositors withdrew $42 billion in a single day. To embrace a uniquely Silicon Valley ethos that champions boldness, growth and disruption. Silicon Valley Bank held 55% of its customers' deposits in long-dated bonds whose value eroded as interest rates went up. Silicon Valley Bank held an unusually large proportion (55%) of its customers’ deposits in long-dated Treasuries. And for most of that year, Silicon Valley Bank was operating with a massive vacancy in its corporate leadership team: a chief risk officer.

☆ Wealth managers ramp up staff in Hong Kong to chase Chinese demand
▼ + stars: | 2023-03-24 | by ( Summer Zhen | ) www.reuters.com time to read: +4 min

HONG KONG, March 24 (Reuters) - Wealth management firms are expanding operations aggressively in Hong Kong to meet pent-up demand from rich Chinese individuals looking to invest more money overseas after three years of COVID-19 curbs, industry sources said. Noah Holdings (NOAH.N), the largest independent wealth management firm in China, was among five private banks and wealth management firms Reuters talked to that said they held client events in the city and organised private art tours. Hywin Holdings (HYW.O), another Chinese wealth manager, invited 30 ultra-high-net worth clients to workshops, fund manager visits and even a yacht party in Hong Kong last week. Chinese financial institutions are vying for this growing wealth management business in Hong Kong. Chinese Everbright Bank and Hua Xia Bank set up private banking departments in Hong Kong in the past few months, according to sources familiar with their plans.

☆ UBS' uber-rich clients don't want to share the wealth (managers)
▼ + stars: | 2023-03-23 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Among the key things to remember was reopening the steam room at exactly 3:30 p.m. after its cleaning. Hayley has all the details from rich clients as well as industry analysts about why this whole thing could spell disaster. It's still early days, but the UBS-Credit Suisse deal might be the best example of something that makes sense on paper, but doesn't work in reality. Read more about why UBS acquiring Credit Suisse could lead to more headaches than huge wins for the Swiss wealth behemoth. And since we're talking BBQ, I'm required to share the funniest tweet in the history of Twitter.

☆ Bitcoin’s market dominance is climbing. Here’s what that says about interest rate expectations
▼ + stars: | 2023-03-23 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +3 min

Bitcoin's market dominance has been climbing in March and is now up to levels not seen since June. Investors use it to determine which parts of the crypto market are outperforming or underperforming relative to their peers. When bitcoin dominance climbs, it implies that bitcoin is doing well, but more specifically, it means its outperforming altcoins. Bitcoin dominance has risen steadily since March 8, the day after Silvergate Bank announced its voluntary liquidation. "That's reflecting a view that a lot of macro investors have, that we're either at or very near the bottom of this macro cycle."

EV made up almost 12% of all car sales in Singapore last year, up from almost 4% in 2021, according to the Land Transport Authority. Still, EVs represented just 1% of cars on the road, a Reuters analysis of ownership data found. In Singapore, a small island with an extensive public transport system, only about 12 cars are owned per 100 people. Over the past decade, the number of Ferraris (RACE.MI) in Singapore has grown by 67% and Lamborghinis by 38%. ($1 = 1.3264 Singapore dollars)Reporting by Xinghui Kok; additional reporting by Kevin Krolicki; Editing by Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

☆ Analysis: Credit Suisse collapse threatens Switzerland's wealth management crown
▼ + stars: | 2023-03-22 | by ( John Revill | ) www.reuters.com time to read: +6 min

[1/3] Logos of Swiss banks UBS and Credit Suisse are seen in Zurich, Switzerland March 20, 2023. Switzerland's credibility as a stable, predictable country had been upended by moves like the decision to wipe out the holdings of Credit Suisse bondholders, he said. Under the takeover deal, holders of Credit Suisse AT1 bonds will get nothing, while shareholders, who usually rank below bondholders in compensation terms, will receive $3.23 billion. "In that sense I also see a prosperous future for the financial centre because we have hundreds of very well capitalised banks and very successful wealth management and asset management banks." Reuters Graphics Reuters GraphicsReuters GraphicsOthers were more skeptical about the future, highlighting a reluctance to confront mistakes at Credit Suisse or take responsibility for the aftermath.

Women face unique challenges, but there are steps to take today to build wealth for the long term. The gender pay and retirement gap, rising costs of child and elder care and the pink tax, to name a few. Start saving aggressively to cover basic living expenses during that period. You do not want to spend down retirement savings or max out credit cards to get by. This will become such a habit, you will forget that you are saving money because it's transferred into savings before you even see it.

Credit Suisse employs 50,000 people globally across wealth management, investment banking and asset management operations, with more than 150 offices in 50 countries. Outside its office near Singapore's central business district, nearby coffee shops, usually bustling with bankers from Credit Suisse and rivals, were less crowded early on Monday. UBS warned on Sunday that it would pare back much of Credit Suisse's investment bank, which Credit Suisse had planned to spin off. UBS and Credit Suisse sources said Southeast Asia was among the regions where the banks had the most overlap on the wealth management and investment banking teams. "Investment banking stands out and that could be where the pain is felt most for Credit Suisse," a senior executive at UBS said.

SINGAPORE/HONG KONG, March 20 (Reuters) - Credit Suisse staff arriving to work in Hong Kong and Singapore on Monday morning fretted about retrenchments and retaining business after larger Swiss rival UBS agreed to swallow the 167-year-old bank in a state-backed rescue. Credit Suisse employs 50,000 people globally across wealth management, investment banking and asset management operations, with more than 150 offices in 50 countries. Outside its office near Singapore's central business district, nearby coffee shops, usually bustling with bankers from Credit Suisse and rivals, were less crowded early on Monday. In Hong Kong, Credit Suisse said it would still press ahead with its annual investment conference that kicks off on Tuesday, although media are no longer invited. UBS warned on Sunday that it would pare back much of Credit Suisse's investment bank, which Credit Suisse had planned to spin off.

☆ Goldman Sachs just raised their recession probability due to stress in the banking system. These 20 stocks are least sensitive to an economic downturn, the bank says.
▼ + stars: | 2023-03-20 | by ( William Edwards | ) www.businessinsider.com time to read: +3 min

Silicon Valley Bank, Signature Bank, and First Republic Bank have all battled woes in the last week. Silicon Valley Bank and Signature Bank of New York both closed in recent days as a result of a run on deposits. Silicon Valley Bank had taken significant losses on bond investments, causing depositors to worry that their money would not be safe. This fear spread to customers of Signature Bank, which then sold assets at a loss to meet liquidity demands. First Republic Bank also appeared to have insufficient liquidity to weather a bank run, fueling concerns that it would be closed down.

☆ Bank of America: Buy these 22 stocks that will outperform as people look for ways to save in a recession that will push even high-income Americans to spend less
▼ + stars: | 2023-03-19 | by ( Marley Jay | ) www.businessinsider.com time to read: +2 min

The firm has picked the stocks it thinks will win — and lose — as customers cut their spending. Bank of America thinks a recession is coming, despite the fact that the US economy is still holding up fairly well right now. "We see risks to higher-end exposed US stocks this year, in part due to an amplified wealth effect," Hall wrote. Hall thinks those could include winter clothing maker Canada Goose, home goods retailer Bed Bath & Beyond, electronics retailer Best Buy, and consumer products companies like Clorox and Kimberly-Clark. But the following 22 companies all have "Buy" ratings from Bank of America, and Hall expects them to benefit from the oncoming economic slump as high-earners cut back on spending.

☆ Top UBS executives defend their 'emergency rescue' of Credit Suisse. Here's what comes next.
▼ + stars: | 2023-03-19 | by ( Rebecca Ungarino | ) www.businessinsider.com time to read: +5 min

UBS sought to reassure investors that the Credit Suisse deal wouldn't disrupt long-term strategy. UBS agreed to acquire Credit Suisse on Sunday in a deal arranged by the Swiss government. Credit Suisse has faced crisis after crisis in recent years, from Archegos to a spying scandal. "These events could alter the course of not only European banking but also the wealth management industry more generally," Georgiou said. "It's an outcome that we may not have hoped for," Hamers said of the Credit Suisse deal.

☆ A millennial who became a millionaire after the 2008 crash says building wealth is about more than opportunistic investing. You also have to make lifestyle changes and load up on side hustles.
▼ + stars: | 2023-03-19 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +4 min

Sabatier says that economic uncertainty has created an "incredible opportunity to invest," but that there's more to building wealth than timing the market. While the economy and the stock market don't always rise and fall in tandem, historically, a struggling economy has provided investors with opportunities to buy stocks on the cheap. When Sabatier began investing in 2010, the US economy had already emerged from the Great Recession, and the stock market had recovered some of its losses. From March 2009 to March 2020, the S&P 500 gained over 400% — the longest bull market run in US history. "You'll come out ahead over the next 10, 20, and 30-plus years," he said, adding that, "the best time to start investing was yesterday.

Financial planner Nicole Morong says buying a house isn't the best decision for six types of people. But financial planner Nicole Morong at Peterkin Financial says buying a house isn't the best financial move for everyone, and most people who feel pressured to do so can't actually afford it. See Insider's picks for the best mortgage lenders for first-time buyers >>"Affordability is more than whether or not you can pay the monthly mortgage," Morong says. If you do, Morong says you're probably better off renting than owning a home. You don't have an emergency savings fundAn emergency savings fund is three to six months worth of living expenses, typically kept in a high-yield savings account so that it's easily accessible in case of an emergency.

☆ Where wealthy investors are putting their cash after SVB collapse
▼ + stars: | 2023-03-16 | by ( Robert Frank | ) www.cnbc.com time to read: +4 min

Wealthy investors and family offices are moving more of their money out of bank cash-balances and into treasuries, money markets and other short-term instruments, according to wealth advisors. "Over [last] weekend there was a lot of worry," said Michael Zeuner, managing partner at WE Family Offices, which advises wealthy investors and family offices. The SVB crisis has only accelerated a broader push by wealthy investors over the past year to move cash out of bank balances and into Treasuries and money-markets. Loans and mortgagesWealthy investors and family offices will continue to rely on banks for loans and mortgages. But the strategy of banks requiring wealthy clients to give them deposits or primary-banking relationships in exchange for loans may be ending, advisers say.

☆ First Republic Bank stock tumbles on credit downgrade and deposit worries
▼ + stars: | 2023-03-15 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —First Republic Bank’s credit rating was downgraded on Wednesday by both Fitch Ratings and S&P Global Ratings on concerns that depositors could pull their cash despite the federal intervention. Fitch also placed another regional bank, PacWest Bancorp, on watch for a potential credit ratings downgrade of its own. The moves reflect continued worries about the banking system in the aftermath of the collapse of Silicon Valley Bank and Signature Bank. Both credit ratings firms pointed to the large amount of deposits at First Republic that are uninsured because they are above the $250,000 FDIC limit. Moody’s Investors Service on Tuesday cut its outlook for the entire US banking sector and placed six US banks on review for potential credit rating downgrades, including First Republic.

☆ Early retiree says reading these 8 books helped him save $1 million: ‘I wasn’t born into money'
▼ + stars: | 2023-03-14 | by ( Steve Adcock | ) www.cnbc.com time to read: +3 min

This book was originally published in 1996, but the basic money principles can still be applied today. For example, many experts recommend brewing your coffee at home to save money, but not Sethi. In fact, he teaches readers to uncover their "rich life" by spending lavishly on things they care about while cutting back on what doesn't matter. Money expert Morgan Housel explores the psychological side of finance in a clever and non-judgmental way. "Your Money or Your Life: 9 Steps to Transforming Your Relationship With Money and Achieving Financial Independence"

☆ UK growth demands better-directed fiscal fireworks
▼ + stars: | 2023-03-13 | by ( Francesco Guerrera | ) www.reuters.com time to read: +7 min

As a former health minister, Hunt is familiar with the Hippocratic Oath’s principle of “first, do no harm.” That credo didn’t resonate with former finance minister Kwasi Kwarteng. The Institute for Fiscal Studies estimates that borrowing in the current financial year is running 31 billion pounds below the November forecast by the Office for Budget Responsibility (OBR), the UK’s independent fiscal watchdog. A further 6 billion pounds will freeze fuel duties, avoiding a 23% rise from April. In November, the OBR forecast that Downing Street would meet that goal with just 9.2 billion pounds to spare. That would still cost 11 billion pounds a year but would boost investment by 5% in the long run.

Li, installed as premier on Saturday during the annual session of China's parliament, is tasked with reviving the world's second-largest economy after three years of COVID curbs. But he faces challenges including weak confidence among consumers and private industry, sluggish demand for exports and worsening relations with the United States. China's private sector has been rattled in recent years by a sweeping regulatory clampdown targeting some of its most vibrant industries, including the internet and private education. At the opening of the annual parliamentary session, China set a GDP growth target of 5% percent, its lowest goal in nearly three decades, after the economy grew just 3% last year. China's relations with the United States sank to a low after U.S. House Speaker Nancy Pelosi visited Taiwan in August 2022.

☆ Biden’s Big Wealth Tax? Unconstitutional
▼ + stars: | 2023-03-11 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

One part of President Biden’s budget that deserves more attention is his stealth wealth tax, because it looks unconstitutional. He’s selling it as a 25% “minimum tax” on billionaire incomes, but see the fine print. The tax would apply to “those with wealth of more than $100 million,” while covering “all of their income, including appreciated assets.”Slight problem: Appreciated assets are not income. The Constitution bans the federal government from imposing “direct taxes,” unless they are apportioned among the states according to population. To get around that, Congress in 1909 passed the 16th Amendment, which for a century has permitted the feds “to lay and collect taxes on incomes.”

☆ When it comes to passing wealth on to kids, women have very different ideas to men
▼ + stars: | 2023-03-10 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +1 min

"For women, legacy often means more than passing wealth down to the next generation; it also means being capable of positively impacting the lives of others," Marianna Mamou, head of "advice beyond investing" at UBS Global Wealth Management, told CNBC Make It. Men and women have very different approaches to money — and that affects how they pass on wealth to their children. "For women, legacy often means more than passing wealth down to the next generation; it also means being capable of positively impacting the lives of others," Marianna Mamou, head of "advice beyond investing" at UBS Global Wealth Management, told CNBC Make It. For example, the way women invest their wealth is often aligned with their personal values or in service of causes. Women also view their wealth overall in a specific way according to the report.

☆ Frontier countries to suffer most if Fed rate gets to 6% - analysts
▼ + stars: | 2023-03-09 | by ( Rodrigo Campos | ) www.reuters.com time to read: +5 min

"This mix is generally a net negative for emerging markets." A recent Barclays analysis showed a 50 basis point Fed rate hike would increase interest rate volatility, which "would be more destabilizing initially, as it typically comes with EM FX underperformance, which could trigger a further leg up in EM rates." Analysts at JPMorgan expect the dollar to weaken once the terminal rate stabilizes, but a 50-basis point Fed hike "would be a regime-shift in favor of outsized USD-strength." A 6% Fed rate environment alongside still-hot inflation does make short-term rates in Chile and India as well as Poland, the Czech Republic and Hungary most vulnerable, UBS found. Chinese equities could provide a safe haven in a 6% fed funds rate scenario, UBS said.

☆ Credit Suisse obtains key approval to launch wealth business in China
▼ + stars: | 2023-03-08 | by ( Selena Li | ) www.reuters.com time to read: +2 min

HONG KONG, March 8 (Reuters) - Credit Suisse (CSGN.S) has received regulatory green light from China after years of waiting to launch a full-fledged wealth management business in the world's second-biggest economy, according to a company memo reviewed by Reuters. The expansion comes after the lender suffered worse-than-expected global wealth outflows of 92.7 billion Swiss francs ($98.29 billion) in the fourth quarter. Credit Suisse Securities (China), the company's China joint venture, recently obtained an investment consultancy license, which allows it to create and distribute equity research products onshore and to engage in investment advisory services, according to the memo. Credit Suisse "plans to double the number of relationship managers in China in 2023," said Benjamin Cavalli, the company's head of wealth management for Asia Pacific, without providing details on how many relationship managers it currently has. Total assets at Credit Suisse's wealth division fell to 540.5 billion Swiss francs by the end of last year from 742.6 billion francs a year earlier.

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