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☆ Big banks to the rescue
▼ + stars: | 2023-03-17 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

Goldman Sachs' decision to charge employees for coffee might not be that outrageous after all! The largest US banks — headlined by Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo — just pledged a total of $30 billion in deposits to First Republic Bank. As detailed in a release announcing the news, the 11 banks, which also included Goldman Sachs and Morgan Stanley, believe the move "demonstrates their overall commitment to helping banks serve their customers and communities. I can't imagine the big banks looking to pull the rug out from First Republic four months from now, but this money was a deposit, not a donation. Read more about how big banks came to the rescue of First Republic with $30 billion in deposits.

☆ Retail investors are buying the dip in financial stocks in unprecedented amounts
▼ + stars: | 2023-03-17 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

Retail investors are buying financial stocks in unprecedented amounts after the sector's recent rout, according to Vanda Research. Banks have been pummeled in the wake of Silicon Valley Bank's collapse and concerns over Credit Suisse 's financial situation. Regional bank stocks were particularly hard hit as investors worried whether they had balance sheet issues similar to SVB. Some investors were also buying shares of First Republic Bank, PacWest Bancorp and Truist Financial . Retail investors bought nearly twice as much as the previous week's daily average, totally $1.43 billion in purchases, according to Vanda Research.

☆ UBS is in talks to take over all or part of Credit Suisse, sources tell the Financial Times
▼ + stars: | 2023-03-17 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +1 min

UBS is in talks to take over all or part of Credit Suisse, the Financial Times reported, citing multiple people familiar involved in the talks. Earlier this week, the embattled Credit Suisse said it would borrow as much as 50 billion Swiss francs (or nearly $54 billion) from the Swiss National Bank. But even with that move, Credit Suisse shares have continued to fall. Swiss regulators have told U.S. and U.K. regulators that a merger of the two banks was their "plan A," the people told the Financial Times. Credit Suisse shares closed lower by nearly 7%, but are down 24% for the week.

☆ India's TCS, Infosys have highest exposure to U.S. regional banks - J.P.Morgan
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +2 min

[1/2] The Infosys logo is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017. REUTERS/Chris HelgrenMarch 17 (Reuters) - Top Indian information technology firms Tata Consultancy Services (TCS.NS) and Infosys (INFY.NS) have the highest exposure to regional banks in the United States that are gripped by a financial turmoil, analysts at J.P.Morgan said on Friday. All three companies might need to set aside provisions in the fourth quarter due to their exposure to SVB, J.P. Morgan said in a note. Indian IT firms draw the bulk of their revenue from the banking, financial services and insurance (BFSI) sector. Within BFSI, their exposure to the U.S. banks is on average 62% and Europe 23%, J.P. Morgan said.

☆ Insiders were stepping up and buying this week at these regional banks and niche financials
▼ + stars: | 2023-03-17 | by ( Yun Li | ) www.cnbc.com time to read: +4 min

The banking crisis drove regional bank stocks sharply lower this week, but many insiders took advantage of the turmoil to scoop up shares of their own institutions in what may prove a vote of confidence. Shares of regional banks slumped as the collapse of Silicon Valley Bank left investors worried that other regional banks might face similar balance sheet issues, a possible mismatch between long-dated assets and short-dated liabilities. Regional banks had regained some ground Thursday in anticipation of a group of 11 banks stepping in to First Republic by depositing $30 billion for at least 120 days . Charles Schwab Notably, Charles Schwab CEO Walt Bettinger bought 50,000 shares Tuesday, worth nearly $3 million, for his personal account. Valley National Bancorp Ira Robbins (CEO) bought 5,000 shares Wednesday Jennifer Steans (Director) bought 150,000 shares Tuesday Eric Edelstein (Director) bought 20,000 shares Tuesday Melissa Schultz (Director) bought 15,000 shares Tuesday Jeffrey Wilks (Director) bought 8,000 shares Tuesday Marc Lenner (Director) bought 5,000 shares Tuesday Suresh Sani (Director) bought 5,000 shares Tuesday Valley National Bancorp saw a rush of insider buying this week, including purchases by its CEO and several directors.

☆ Bank troubles roil markets and make Fed's decision next week more fraught
▼ + stars: | 2023-03-17 | by ( Patti Domm | In | ) www.cnbc.com time to read: +7 min

Even with Friday's sell-off, the S & P 500 and Nasdaq scored gains for the week. The S & P 500 rose 1.4%, compared to a tiny loss of 0.2% in the Dow . "If the U.S. economy is going into a recession, they're going to be buying less cloud service. On Friday, durable goods for February is reported, and there are releases of flash S & P Global PMI data for services and manufacturing. Durable goods 9:30 a.m. St. Louis Fed President James Bullard 9:45 a.m. S & P Global Manufacturing PMI 9:45 a.m. S & P Global Services PMI

☆ What’s Going on With First Republic Bank?
▼ + stars: | 2023-03-16 | by ( Colin Barr | ) www.wsj.com time to read: 1 min

First Republic Bank shares have been hit hard over the past week following the failures of two large U.S. regional banks, Silicon Valley Bank and Signature Bank. On Thursday, shares of the bank and many other financial firms rallied after The Wall Street Journal reported that the biggest U.S. banks are discussing a joint rescue of the San Francisco lender. Under the plan, 11 banks including JPMorgan Chase & Co. would place $30 billion in deposits at First Republic, using their own funds. What happened to First Republic Bank? First Republic was one of the banks to be swept up in the contagion that followed the March 10 failure of SVB Financial Corp., the parent of Silicon Valley Bank, because of some similarities including their size, their largely wealthy client base and the largely uninsured nature of their deposit bases.

March 17 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. The package is backed by U.S. regulators, and media reports said JP Morgan boss Jamie Dimon met with Treasury Secretary Janet Yellen on Thursday to discuss it. What started as another grim-looking session on Thursday - safe-havens like the yen and Treasuries were riding high in early trade - culminated in a solid risk rally across the board. But Friday, in Asia at least, looks like being an up day. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ First Republic falls 25% as regional bank stocks continue to sink
▼ + stars: | 2023-03-16 | by ( Jesse Pound | ) www.cnbc.com time to read: +3 min

The struggles for regional bank stocks has continued despite the announcement from U.S. regulators over the weekend of additional support. The SPDR S&P Regional Bank ETF (KRE) has dropped more than 11% this week. The SPDR S&P Regional Bank ETF (KRE) was down another 1% in premarket trading Thursday. However, the Swiss National Bank struck a deal with Credit Suisse to allow the national bank to borrow up to roughly $54 billion. But while Credit Suisse's struggles could have ripple effects throughout the global banking system, the Swiss bank's problems appear to be unrelated to the U.S. regional banks.

NEW YORK, March 16 (Reuters) - PacWest Corp (PACW.O) is in talks about a liquidity boost with Investment firm Atlas SP Partners, two people familiar with the matter said on Thursday, in the latest example of a U.S. regional bank exploring such an option in the wake of Silicon Valley Bank's failure. PacWest is considering a range of options to boost its coffers and there is no certainty that any deal will materialize, the sources said. The details of the liquidity boost that Atlas SP is discussing with PacWest could not be learned. Atlas SP and PacWest did not immediately respond to requests for comment. Reporting by Anirban Sen and David French in New York Editing by Greg RoumeliotisOur Standards: The Thomson Reuters Trust Principles.

☆ Wall Street closes higher as First Republic helps lift banks
▼ + stars: | 2023-03-16 | by ( David Carnevali | ) www.reuters.com time to read: +3 min

SummarySummary Companies European Central Bank raises key policy rateFirst Republic Bank shares reverse course and turn higherMeta, Snap climb as U.S. threatens TikTok banNEW YORK, March 16 (Reuters) - A strong rebound by financials helped Wall Street's main indexes close firmly positive on Thursday, after some of the country's largest lenders came to the rescue of embattled First Republic Bank. "Banks are looking out for one another," said Huntington Private Bank chief investment officer, John Augustine. Shares of JP Morgan and Morgan Stanley were up 1.94% and 1.89% respectively, while the lifeline buoyed First Republic Bank (FRC.N), which gained 9.98%. The KBW regional banking index (.KRX) gained 3.26%, while the S&P 500 banking index (.SPXBK) advanced 2.16%, as both sub-indexes reversed losses. Concerns about banks have rattled the stock market in recent days after the collapse of SVB Financial fueled contagion fears.

☆ U.S. bank deposits have started moving to money market funds - Goldman Sachs
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +1 min

March 16 (Reuters) - Goldman Sachs said deposits have started to move out of U.S. banks and towards money markets funds, as investors seek the safety in Treasury securities amid worries about stresses in the banking sector. Retail money market funds have seen large and accelerating inflows over the last week, Goldman said in a note on Thursday, likely suggesting some migration away from deposits. Following the collapse of SVB Financial Group and Signature Bank, U.S. regional bank stocks have had a bruising last few days, as investors worried about possible deposit outflows causing capital issues at other regional banks. Money markets appear to have continued functioning fairly well in recent days, and facilities such as the Federal Home Loan Banks lending channel and the Bank Term Funding Program should help maintain "healthy" market functioning even if financing needs spike, Goldman notes. Reporting by Susan Mathew in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

☆ FTSE 100 gains as British banks bounce back; Rentokil rises
▼ + stars: | 2023-03-16 | by ( Shashwat Chauhan | ) www.reuters.com time to read: +2 min

UK's blue-chip FTSE 100 (.FTSE) gained 0.4%, rebounding from its steepest fall in over a year on Wednesday. British banks (.FTNMX301010) gained 1.8%, after falling 5.6% in the previous session. Rentokil Initial (RTO.L) jumped 6.1% to the top of the FTSE 100 after the pest control services provider lifted its medium-term outlook after posting a better-than-expected annual profit. The more domestically-focussed FTSE 250 midcap index (.FTMC) were subdued, though asset manager Bridgepoint Group (BPTB.L) rose 2.9% after reporting a higher revenue for 2022. Reporting by Shashwat Chauhan in Bengaluru; Editing by Savio D'Souza and Uttaresh VenkateshwaranOur Standards: The Thomson Reuters Trust Principles.

PacWest is considering a range of options to bolster its coffers and there is no certainty that any deal will materialize, the sources said. The details of the liquidity boost under discussion could not be learned. PacWest shares jumped on the news of the discussions for a liquidity boost, rising 22% to $13.91 in afternoon trading in New York on Thursday, giving the bank a market capitalization of about $1.6 billion. Based in Los Angeles, PacWest is a community bank serving small and venture-backed businesses, primarily in California. It is not clear how much in deposits PacWest has lost in the U.S. regional bank crisis that has led to U.S. regulators taking over Silicon Valley Bank and Signature Bank (SBNY.O).

☆ Fed likely to raise rates by 25 bps, with eyes on banks -PIMCO's CIO
▼ + stars: | 2023-03-16 | by ( Davide Barbuscia | ) www.reuters.com time to read: +3 min

But as the European Central Bank hiked rates by 50 basis points on Thursday, the U.S. central bank was expected to press on with a quarter-point interest-rate hike despite the banking sector turmoil. "They're going to be watching signs of more instability across the financial sector very carefully," Ivascyn told Reuters. "There certainly are scenarios where they pause, it'll likely be a hawkish pause if it's a pause, but our current thinking is they go 25." Ivascyn said he expected market volatility around banks to continue over the next few months with some "isolated areas of weakness," but said the global banking sector was well capitalized compared with the 2008 global financial crisis. "There are going to be weak links within the financial sector and within the credit sector more broadly," said Ivascyn.

☆ Four regional bank stocks for the brave to buy, according to UBS
▼ + stars: | 2023-03-16 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

The selloff in regional banks is overdone, with four names looking especially attractive at these levels, according to UBS. While bank stocks moved higher on Thursday, volatility has risen this week. Regional banks were particularly hard hit. Investors also need to remember that not all regional banks are equivalent, she added. "Thus, we believe that investors should not look at unrealized securities losses in a static manner," Najarian wrote.

☆ U.S. regional banks under pressure to raise deposit rates - analysts
▼ + stars: | 2023-03-16 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +1 min

NEW YORK, March 16 (Reuters) - U.S. regional banks are expected to pay higher rates to depositors to keep them from switching to larger lenders, banking analysts said, following the collapse of Silicon Valley Bank and Signature Bank. The potential for stricter regulation aimed at regional banks will also make it more expensive for them to operate, posing a drag on earnings, he said. Silicon Valley Bank, based in Santa Clara, California, collapsed on Friday, followed by New York-based Signature Bank, in the second and third largest bank failures in U.S. history. BofA on Monday cut target prices for regional bank stocks including Ally Financial (ALLY.N), Citizens Financial Group (CFG.N), Fifth Third Bancorp (FITB.O) and First Republic Bank (FRC.N), partly because of the expected increase in deposit pricing. Rating agency Fitch put some regional banks on negative credit watch because of a "rapidly changing funding and liquidity environment," it said in a report on Monday.

☆ U.S. banks' CDS prices surge as contagion concern widens
▼ + stars: | 2023-03-15 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +3 min

March 15 (Reuters) - A jump in the cost for Wall Street banks to insure bonds against default on Wednesday was another worrisome indicator of credit stress for investors amid the crisis at Credit Suisse and at U.S. regional banks. Swiss bank Credit Suisse (CSGN.S) fell to a record low on Wednesday. Five-year credit default swaps for the flagship Swiss bank hit a new record high. Credit default swaps on Credit Suisse also inverted on Wednesday with the two-year rising above the five-year, and both hit a new 52-week high, according to data from Ortex. Some analysts believe that the larger banks are resilient and are more worried about the smaller and mid-sized banks.

Two supervisory sources told Reuters that the European Central Bank (ECB) had contacted banks on its watch to quiz them about their exposures to Credit Suisse. The Swiss National Bank declined to comment on Switzerland's second-largest bank, after its largest investor said it could not provide Credit Suisse with more financial assistance because of regulatory constraints. Credit Suisse had appealed to the Swiss National Bank and Swiss financial watchdog FINMA for a public show of support, the Financial Times reported. The logo of Swiss bank Credit Suisse is seen in front of an office building in Zurich, Switzerland October 26, 2022. Ralph Hamers, CEO of Credit Suisse rival UBS (UBSG.S) said market turmoil has steered more money its way.

The drop in Credit Suisse shares led a 7% fall in the European banking index (.SX7P), while five-year credit default swaps (CDS) for the flagship Swiss bank hit a new record high, highlighting increasing investor concerns. We move from the problems of American banks to those of European banks, first of all Credit Suisse," said Carlo Franchini, head of institutional clients at Banca Ifigest in Milan. The Swiss National Bank declined to comment on Switzerland's second-largest bank, after its largest investor said it could not provide Credit Suisse with more financial assistance because of regulatory constrains. The logo of Swiss bank Credit Suisse is seen in front of an office building in Zurich, Switzerland October 26, 2022. Ralph Hamers, CEO of Credit Suisse rival UBS (UBSG.S) said it has benefited from market turmoil and seen money inflows.

March 15 (Reuters) - European bank stocks fell sharply on Wednesday, with embattled Credit Suisse (CSGN.S) tumbling to a new low, on renewed investor concerns about stresses within the sector triggered by Silicon Valley Bank's sudden collapse. A more than 20% drop in Credit Suisse shares led a 6% plus fall in the European banking index (.SX7P), while five-year credit default swaps (CDS) for the flagship Swiss bank hit a new record high, highlighting increasing investor concerns. We move from the problems of American banks to those of European banks, first of all Credit Suisse," said Carlo Franchini, head of institutional clients at Banca Ifigest in Milan. BlackRock (BLK.N) Chief Executive Laurence Fink warned on Wednesday that the U.S. regional banking sector remains at risk, and predicted further high inflation and rate increases. And in an attempt to avert a similar crisis down the line, the U.S. Federal Reserve is considering tougher rules and oversight for midsize banks similar in size to SVB.

☆ BlackRock CEO Fink warns of financial risks, persistent inflation
▼ + stars: | 2023-03-15 | by ( Ross Kerber | ) www.reuters.com time to read: +4 min

[1/2] Larry Fink, Chief Executive Officer of BlackRock, stands at the Bloomberg Global Business forum in New York, U.S., September 26, 2018. Fink wrote that after the regional banking crisis, the financial industry could see what he termed "liquidity mismatches." “It’s too early to know how widespread the damage is,” Fink wrote. BlackRock has previously said its diversified products "have limited exposure to Silicon Valley Bank." "The monetary and fiscal tools available to policymakers and regulators to address the current crisis are limited, especially with a divided government in the United States," Fink wrote.

☆ Cautious calm returns to bank stocks as focus shifts to regulation
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +5 min

Focus is also shifting to the possibility of tighter regulation in the U.S. banking sector, particularly for mid-tier banks like SVB (SIVB.O) and New York-based Signature Bank, whose collapses last week roiled financial markets. Investors had been particularly concerned about the huge bond holdings, particularly in U.S. Treasuries, of Japanese lenders. However, Japanese finance minister Shunichi Suzuki said on Wednesday differences in the structure of bank deposits, meant local banks wouldn't face incidents similar to SVB's collapse. In an attempt to avert a similar crisis down the line, the Federal Reserve is also considering tougher rules and oversight for midsize banks similar in size to SVB. "A year after starting to raise interest rates, the Federal Reserve is still chasing evidence that higher borrowing costs are slowing the U.S.

Swiss regulators said they would provide liquidity to Credit Suisse Group AG, if necessary, offering a lifeline to the lender hard hit by concerns over its financial health. Investor confidence in Credit Suisse crumbled Wednesday, unleashing worries that a banking crisis centered among U.S. regional banks had spread across the Atlantic and was poised to unleash substantial damage to markets and the economy.

☆ Bank Failures, Market Turmoil Fuel Bets on a Pause in Fed Interest-Rate Increases
▼ + stars: | 2023-03-15 | by ( Nick Timiraos | ) www.wsj.com time to read: 1 min

More investors are anticipating the Federal Reserve’s rate increase cycle is over after fears spread of broader financial turmoil from the failure of two U.S. regional banks in the past week. Investors in interest-rate futures markets saw a 60% chance Wednesday that the Fed won’t increase rates at their March 21-22 meeting, up from 30% on Tuesday, according to data compiled by CME Group . That would leave the federal-funds rate between 4.5% and 4.75%.

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