DIRS.INFO The most relevant business & tech news

☆ Bankers’ pitch to save First Republic: Help us now, or pay more later when it fails
▼ + stars: | 2023-04-26 | by ( Hugh Son | ) www.cnbc.com time to read: +4 min

CNBC's David Faber, who first reported on the rescue plan Tuesday, said that the coming days are crucial for First Republic. But that model broke down in the aftermath of the SVB failure as its wealthy customers quickly pulled uninsured deposits. Other possible, but less-likely moves include converting the big bank's deposits into equity, or even finding a buyer. They also benefited the buyers who were able to cherry-pick the best assets while the FDIC retains underwater bonds, the First Republic advisors noted. "If anything, last night's discouraging update will make it even harder for First Republic to keep what it has."

☆ Cramer's First Take: Microsoft stock went up because they don't need Activision
▼ + stars: | 2023-04-26 | by ( ) www.cnbc.com time to read: 1 min

In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCramer's First Take: Microsoft stock went up because they don't need ActivisionCNBC's Jim Cramer reacts to news of UK regulators blocking Microsoft's acquisition of Activision, and First Republic's plunging stock prices.

☆ Morning Bid: Cloud control - tech trumps banks
▼ + stars: | 2023-04-26 | by ( ) www.reuters.com time to read: +5 min

Alphabet (GOOGL.O) also gained 1% as it too trumpeted gains in cloud services and AI, alongside plans for a $70 billion buyback. With Meta (META.O) results out later, its stock was up 2% and Amazon (AMZN.O) raced ahead 4%. PacWest Bancorp's (PACW.O) shares jumped 15% in extended trading after the regional lender said deposits have been building recently. And in Europe, Standard Chartered (STAN.L) shares bucked otherwise dour markets on a forecast-beating 21% jump in first-quarter profits. U.S. Treasury markets continued to rally, with yields on 2-year notes dropping below 4% Tuesday and testing 3.9% early today.

☆ First Republic Bank turmoil pushes stock to plunge 95% this year as the lender seeks another lifeline from big US banks
▼ + stars: | 2023-04-26 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

First Republic shares extended this week's losses, driving the stock down 95% so far in 2023. The bank centered on wealthy clients was set to ask its larger rivals for more financial aid. The stock fell as much as 41% to $4.76 and underwent a number of trading halts because of volatility. If the purchases aren't made, those banks may face fees of about $30 billion from the Federal Federal Deposit Insurance Corp. should First Republic fail, the report said. Those banks are already facing FDIC fees stemming from the collapse and federal seizures of Silicon Valley Bank and Signature Bank last month.

☆ Stocks making the biggest moves midday: Microsoft, Chipotle, Boeing, First Republic Bank and more
▼ + stars: | 2023-04-26 | by ( Michelle Fox | ) www.cnbc.com time to read: +4 min

Check out the companies making the biggest moves midday:Microsoft — Shares of tech giant Microsoft gained more than 8% Wednesday after a better-than-expected earnings report a day earlier. The company earned $1.17 per share on $69.79 billion in revenue, while analysts polled by Refinitiv expected it to earn $1.07 per share on revenue of $68.9 billion. The company also announced a $70 billion share buyback. 107230585First Republic — Shares of the regional bank fell more than 20% on Wednesday, extending their steep losses for the week. However, deposits for the first quarter totaled about $28.2 billion, down from $33.9 billion from the fourth quarter of 2022.

☆ Goldman Sachs M&A team doesn't get out of bed for less than $10 billion
▼ + stars: | 2023-04-26 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Goldman Sachs' M&A team operates under a similar mandate, albeit with a few more zeros. Why bother stressing over 10 $1 billion deals when you can just do a $10 billion deal? It's not just the M&A market that's facing issues. The bank has held the top spot on the year-end M&A league tables for decades, but it is hearing footsteps. More on Goldman's M&A strategy amid an industry drought.

☆ First Republic's dramatic slide continues as regional bank looks for rescue deal
▼ + stars: | 2023-04-26 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +1 min

Shares were down 13% in premarket trading, extending losses of nearly 50% on Tuesday. First Republic 's stock sank again on Wednesday as investors kept an eye on a potential rescue deal for the troubled regional bank. First Republic was seen by customers and investors alike as a risky bank after the collapse last month of Silicon Valley Bank, which had a similar financial profile. First Republic also said in its quarterly report Monday that it was reviewing strategic options to help reshape its balance sheet. Advisors to First Republic are trying to convince at least some of those banks to provide further support by buying some of First Republic's assets at above-market rates, CNBC has learned.

☆ The $30 billion reason for Wall Street to save First Republic ASAP
▼ + stars: | 2023-04-26 | by ( Matt Turner | ) www.businessinsider.com time to read: +3 min

The bank is seeking to sell assets and raise fresh capital to keep itself going. That's part of the reason the stock is trading down so heavily, with the bank currently valued at a little more than $1 billion. The pitch, according to Hugh Son at CNBC, is essentially this: If First Republic is seized by the FDIC, those same banks will face a bill of $30 billion. Liz Hoffman at Semafor notes that private equity could step in also, taking on some of First Republic's problem assets, with banks taking on the rest. First Republic would then seek to sell shares to replenish its capital.

☆ Nasdaq 100 futures rise Wednesday night as Meta pops on quarterly results: Live updates
▼ + stars: | 2023-04-26 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

Traders work on the floor of the New York Stock Exchange on April 26, 2023 in New York City. Nasdaq 100 futures gained 0.5%, while S&P 500 futures added 0.2%. Futures linked to the Dow Jones Industrial Average gained 23 points, or 0.07%. Meta shares leapt in after-hours trading as the company reported quarterly revenue that beat analysts' expectations. The S&P 500 slid 0.38%, while the tech-heavy Nasdaq Composite rose 0.47%.

☆ First Republic handed out billions in ultra-low-rate mortgages to the wealthy. It backfired horribly.
▼ + stars: | 2023-04-25 | by ( Matt Turner | ) www.businessinsider.com time to read: +4 min

The bank won wealthy clients with the offer of jumbo mortgage loans that required no principal payments for a decade. First Republic first moved into focus back in the March banking crisis that claimed Silicon Valley Bank, Signature Bank, and Silvergate. Like SVB and Signature, a large percentage of First Republic deposits were not insured by the FDIC, making it especially susceptible to deposit flight. Wealthy clients can easily move their deposits away from First Republic while keeping their mortgage with the firm, which creates a liquidity challenge. First Republic is now backtracking from this strategy, saying it will focus on writing loans that are guaranteed by Fannie and Freddie.

☆ What First Republic's results mean for the regional bank trade, according to Wall Street
▼ + stars: | 2023-04-25 | by ( Jesse Pound | In Jesse-Pound | ) www.cnbc.com time to read: +4 min

First Republic 's quarterly update left investors with major questions about whether the bank can repair itself after massive withdrawals, but the regional bank troubles appear to now be limited to just a small corner of the industry, according to Wall Street analysts. The troubled regional lender reported its first-quarter results Monday, showing a 40.8% drop in deposits that was steeper than analyst estimates. The bank said deposits have stabilized in recent weeks and that it was taking steps to cut expenses and shrink its balance sheet, while also exploring strategic options. Results from regional banks over the last two weeks demonstrated the stickiness of the deposit customer base. ... We expect FRC to embrace a new approach and a different business model, as it adjusts to operating with a smaller balance sheet.

☆ First Republic stock craters 49% after the bank reveals customers pulled out $100 billion of deposits last quarter
▼ + stars: | 2023-04-25 | by ( George Glover | ) www.businessinsider.com time to read: +2 min

First Republic shares fell 49% Tuesday on the back of dire first-quarter earnings. The regional bank's customers pulled out more than $100 billion worth of deposits last quarter. First Republic plans to lay off around 25% of its workforce during the second quarter. Without that lifeline, First Republic's deposit outflows would have totaled $102 billion – which equates to around 41% of the customer deposits it held prior to the first quarter, according to Deutsche Bank. "With the closure of several banks in March, we experienced unprecedented deposit outflows," the San Francisco-based bank's CFO Neal Holland said after Monday's earnings release.

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.

☆ First Republic's strategic options "very challenging" - Fitch
▼ + stars: | 2023-04-25 | by ( Saeed Azhar | ) www.reuters.com time to read: +2 min

NEW YORK, April 25 (Reuters) - First Republic Bank's (FRC.N) strategic options are "very challenging" because any potential sale is unlikely without the lender taking big writedowns on its mortgage loan book and securities portfolio, analysts at Fitch Ratings said on Tuesday. "The options are very challenging and probably very costly, especially for shareholders. The bank said it was "pursuing strategic options" to strengthen the bank, without providing details. "There are still more downside risks until some clarity emerges on what their strategic options can be," Wolfe said. First Republic's total investment securities stood at $34.8 billion at the end of March, rising 9.8% from the fourth quarter, it said on Monday.

☆ Western countries have scrambled to deliver billions of dollars of military gear to Ukraine. Getting it to the frontlines is a whole other problem.
▼ + stars: | 2023-04-23 | by ( Stavros Atlamazoglou | ) www.businessinsider.com time to read: +7 min

For a military at war, it's a challenge to get the right gear to the right troops at the right time. Western countries have scrambled to deliver that gear to Ukraine, overcoming political debates and logistical hurdles, but getting it to the frontlines presents a whole other problem. Diego Herrera Carcedo/Anadolu Agency via Getty ImagesThe restricted operational environment makes Ukraine's logistics that much harder. Diego Herrera Carcedo/Anadolu Agency via Getty ImagesFurther complicating the situation is the fact that the Ukrainian military is a dynamic force. Many Ukrainian troops are also rotating through the US and European countries for training.

☆ DHS task force will examine how to use A.I. to protect homeland security
▼ + stars: | 2023-04-21 | by ( Lauren Feiner | ) www.cnbc.com time to read: +3 min

Alejandro Mayorkas, secretary of the U.S. Department of Homeland Security, speaks during a new conference in Brownsville, Texas, U.S., on Thursday, Aug. 12, 2021. WASHINGTON – The Department of Homeland Security will establish a new task force to examine how the government can use artificial intelligence technology to protect the country. DHS Secretary Alejandro Mayorkas announced the task force Friday during a speech at a Council on Foreign Relations event. Mayorkas gave two examples of how the task force will help determine how AI could be used to fine-tune the agency's work. Mayorkas asked Homeland Security Advisory Council Co-Chair Jamie Gorelick to study "the intersection of AI and homeland security and deliver findings that will help guide our use of it and defense against it."

[1/4] A view of the Park Avenue location of the First Republic Bank, in New York City, U.S., March 10, 2023. FDIC regulators had raised the specter of systemic risk from the failure of large regional banks months before the SVB and Signature Bank collapses, records reviewed by Reuters show. SECRETS REVEALEDThe Fed will release its report on SVB at 11 a.m. EDT (1500 GMT) on Friday. FDIC Chair Martin Gruenberg has not provided much detail about the supervision of Signature, which like SVB had grown rapidly in recent years. The Fed's inspector general will have a report on each bank in the third quarter.

☆ A Supreme Court justice resigned 54 years ago over conduct that may 'pale in comparison' to Clarence Thomas' — but Thomas is almost certain to get off scot-free thanks in part to the 'Trump effect'
▼ + stars: | 2023-04-21 | by ( Kelsey Vlamis | Erin Snodgrass | ) www.businessinsider.com time to read: +7 min

Supreme Court Justice Abe Fortas resigned in 1969 over accusations of financial misconduct. But unlike Fortas, Thomas is unlikely to experience severe consequences in the post-Trump era. Like Fortas, Thomas has been accused of financial misconduct. Democratic lawmakers have called for an investigation into Thomas, and the Senate Judiciary Committee has said it will hold a hearing on Supreme Court ethics. "He will forever be remembered as the second Abe Fortas," Kalir said.

☆ Sabalenka says win over Krejcikova a confidence boost for French Open
▼ + stars: | 2023-04-20 | by ( ) www.reuters.com time to read: +2 min

[1/2] Tennis - WTA 500 - Stuttgart Open - Porsche Arena, Stuttgart, Germany - April 19, 2023 Belarus' Aryna Sabalenka in action during her round of 16 match against Czech Republic's Barbora Krejcikova REUTERS/Angelika WarmuthApril 20 (Reuters) - World number two Aryna Sabalenka said beating former French Open champion Barbora Krejcikova in the second round of the tune-up event in Stuttgart will boost her preparation for the Roland Garros Grand Slam. Sabalenka defeated Krejcikova 6-2 6-3 in one hour and 15 minutes on Wednesday, becoming the first player to book her spot in the quarter-finals. The Belarusian said the victory over the 2021 French Open winner handed her a confidence boost ahead of the May 28-June 11 major on the Parisian clay. "It's tough but an interesting challenge to play the first match against a Grand Slam champion," Australian Open winner Sabalenka, who received a bye in the opening round, told reporters. "It is something unique like you're never going to play the first round against a Grand Slam champion in the bigger tournament.

☆ Morgan Stanley netted nearly $20 billion in new client assets from First Republic and other struggling regional banks
▼ + stars: | 2023-04-19 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +3 min

Morgan Stanley netted $109.6 billion in new client assets in the first quarter of 2023. Before the hiring binge, Morgan Stanley and other banks gave a $30 billion lifeline to First Republic. Morgan Stanley beat profit estimates with its first-quarter results and got a little boost from the banking crisis. Analyst Steven Chubak of Wolfe Research asked how First Republic advisors flocking to Morgan Stanley had boosted quarterly inflows. That leaves $19.6 billion attributable to advisors and clients fleeing struggling banks like First Republic for Morgan Stanley, a too-big-to-fail institution.

☆ From one of Britain's most popular toys to the target of police raids: how a children's doll became a symbol of racism
▼ + stars: | 2023-04-16 | by ( Isobel Van Hagen | ) www.businessinsider.com time to read: +6 min

A police raid on a bar just outside of London renewed a debate over racist dolls. But despite the long history of the racist trope, the debate over the doll's place in British culture continues. Revellers take part in the Children's Parade at Notting Hill Carnival in London, Britain, August 28, 2022. But it does appear that there is some gradual shift in public opinion happening with the dolls. Nevertheless, the enduring popularity of the blackface doll creates the impression "that we live in a post-racial society," Scott said.

☆ BOJ executive warns of 'extremely high' uncertainty over Japan's economy
▼ + stars: | 2023-04-14 | by ( Leika Kihara | ) www.reuters.com time to read: +2 min

Summary BOJ must keep easy policy to support economy - ShimizuFinancial stress warrants close monitoring - ShimizuOverseas risks key to BOJ's growth, inflation forecastsWASHINGTON, April 14 (Reuters) - Bank of Japan Assistant Governor Tokiko Shimizu said on Friday there had been "extremely high" uncertainty regarding Japan's economy, as slowing global growth and recent financial market stress cloud its outlook. "More recently, financial market stress is drawing attention," she said. "Taking these risks into account, it's necessary to pay due attention to developments in the financial sector" and the impact on Japan's economy and prices. Japan's economy has made a delayed recovery from the scars of the COVID-19 crisis, with an end to pandemic-induced curbs propping up consumption. But global recession fears cloud the outlook for the export-reliant economy, a risk that may keep the BOJ from phasing out its massive stimulus.

[1/2] Protesters hold placards depicting French President Emmanuel Macron during a demonstration as part of the 12th day of nationwide strikes and protests against French government's pension reform, in Paris, France, April 13, 2023. It would also need to find its way through parliament, where Macron has lost his working majority and debate has become increasingly fractious. The conservative Les Republicains' (LR) party, which the government had hoped it would be able to count on for support, has emerged deeply divided from the pension reform saga. "There are gaping wounds in the country," LR lawmaker Aurélien Pradié, who rebelled against the pro-pension reform party line on the reform, said on Twitter. So while the pension reform is on the statute books, Macron has much political capital still to regain.

☆ Krejcikova to donate Billie Jean King Cup earnings to Turkey earthquake victims
▼ + stars: | 2023-04-14 | by ( ) www.reuters.com time to read: +1 min

[1/4] Tennis - Billie Jean King Cup Qualifiers - Ukraine v Czech Republic - Megasary Club Belek, Antalya, Turkey - April 14, 2023 Czech Republic's Barbora Krejcikova and Ukraine's Katarina Zavatska shake hands after their singles match REUTERS/Umit BektasApril 14 (Reuters) - Czech tennis player Barbora Krejcikova said on Friday she will donate her Billie Jean King Cup earnings to Turkey's earthquake victims. The earthquake that struck Turkey and Syria on Feb. 6 killed more than 55,000 people. Former French Open champion Krejcikova, who is currently playing in the Billie Jean King Cup qualifiers against Ukraine in the Turkish city of Antalya, said the funds would support tennis players in the affected regions. "The money will directly help the Turkish population from regions that have been affected by the earthquake, especially local tennis players that have lost close to everything," the 27-year-old said in a statement. loadingReporting by Tommy Lund in Gdansk; Editing by Ken FerrisOur Standards: The Thomson Reuters Trust Principles.

☆ Everything you need to know as JPMorgan, Citi, Goldman Sachs, and other big banks report earnings
▼ + stars: | 2023-04-14 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +7 min

Bank of America and Goldman Sachs come in on Tuesday, with Morgan Stanley bringing up the rear on Wednesday. For a breakdown on the specific numbers, check out Markets Insider and the fantastic 10 Things Before the Opening Bell newsletter. Big banks poured $30 billion into First Republic in the midst of the banking crisis in an effort to shore up the wider market. And what about those pesky shadow banks? Never one to miss a good opportunity, shadow lenders are looking to step up where big banks are stepping back, Bloomberg reported.

Search resuls for: "Public's"

25 mentions found