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☆ White House to nominate Goldsmith Romero soon, aiming for July hearing, says Reuters source
▼ + stars: | 2024-06-13 | by ( ) www.cnbc.com time to read: +2 min

The White House will nominate markets regulator Christy Goldsmith Romero as Federal Deposit Insurance Corporation chair imminently as it targets the week of July 8 for her first hearing, a person with direct knowledge of the matter said on Wednesday. The White House will nominate markets regulator Christy Goldsmith Romero as Federal Deposit Insurance Corporation chair imminently as it targets the week of July 8 for her first hearing, a person with direct knowledge of the matter said on Wednesday. The White House declined comment. She had been lined up for the Treasury role before Gruenberg succumbed last month to political pressure to resign. Punchbowl News earlier on Wednesday reported that the White House would announce Romero's nomination on Thursday.

Persons: Christy Goldsmith Romero, Sherrod Brown, Joe, Goldsmith Romero, Martin Gruenberg, Kristin Johnson, Spokespeople, Brown, Johnson, Goldsmith Romero's, Gruenberg Organizations: Federal Deposit Insurance Corp, Federal Deposit Insurance Corporation, imminently, White House, Democratic, Banking, U.S, Commodity Futures Trading Commission, Treasury Department, Treasury, FDIC, Labor, Street, Punchbowl Locations: Washington , DC, Washington

☆ Biden to nominate Christy Goldsmith Romero as FDIC chair after abrupt departure of predecessor
▼ + stars: | 2024-06-13 | by ( ) www.cnbc.com time to read: +2 min

Christy Goldsmith Romero, commissioner of the Commodity Futures Trading Commission (CFTC) speaks during the DC Blockchain Summit in Washington, D.C., on Tuesday, May 24, 2022. President Joe Biden will nominate Christy Goldsmith Romero to replace Martin Greunberg as head of the Federal Deposit Insurance Corporation. A longtime financial regulator, Goldsmith Romero is currently a commissioner at the Commodity Futures Trading Commission, the nation's financial derivatives regulator, and previously worked with the Department of Treasury. Her previous nominations to the nation's financial regulators were unanimously confirmed by the Senate. Gruenberg's resignation would not be official until Goldsmith Romero nomination is finalized.

Persons: Christy Goldsmith Romero, Joe Biden, Martin Greunberg, Gruenberg's, Goldsmith Romero, Sen, Sherrod Brown, Gruenberg, Cleary Gottlieb Steen, Hamilton, hasn't, Tim Scott Organizations: Futures Trading Commission, DC, Washington , D.C, Federal Deposit Insurance Corporation, White, Commodity Futures Trading Commission, Department of Treasury, Georgetown University, Senate, Banking Committee, Republicans, FDIC, Republican Locations: Washington ,, Ohio

☆ Biden nominates Christy Goldsmith Romero to lead FDIC at pivotal time for the banking regulator
▼ + stars: | 2024-06-13 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +3 min

New York CNN —President Joe Biden has nominated Christy Goldsmith Romero as chair of the Federal Deposit Insurance Corporation. Goldsmith Romero, a Democrat, served as special inspector general for the Troubled Asset Relief Program at the Treasury Department that was borne out of the Great Recession. As incoming head of the FDIC, she will largely be viewed as the figure responsible for fixing the longstanding problematic culture at the agency. An independent investigation commissioned by the FDIC released in early May confirmed the Wall Street Journal’s reporting from last year. Gruenberg’s exitUnder pressure from the top-ranking Democrat on the Senate Banking Committee, Sherrod Brown of Ohio, Gruenberg announced he would vacate the position once a new chair is confirmed.

Persons: Joe Biden, Christy Goldsmith Romero, Martin Gruenberg, Goldsmith Romero, Goldsmith Romero “, ”, “, wrongdoers, Sherrod Brown of, Gruenberg, Travis Hill Organizations: New, New York CNN, Federal Deposit Insurance Corporation, Democrat, Troubled Asset, Treasury Department, FDIC, ”, Senate Banking, Republican Locations: New York, ”, Gruenberg’s, Sherrod Brown of Ohio

☆ Former Bank Bailout Watchdog Is Choice to Lead F.D.I.C.
▼ + stars: | 2024-06-13 | by ( Emily Flitter | ) www.nytimes.com time to read: +1 min

Christy Goldsmith Romero, a lawyer who spent more than a decade rooting out fraud and other bad behavior at banks that received federal aid in the wake of the 2008 financial crisis, has been chosen to be the next leader of the Federal Deposit Insurance Corporation, the White House announced on Thursday. Her pick is the first step in President Biden’s quest to quickly replace the current chair, Martin Gruenberg, the bank regulator’s longtime leader who said last month that he would resign in response to reports of vast workplace abuse and harassment at the agency. If the Senate Banking Committee acts quickly to hold a hearing and a vote on Ms. Goldsmith Romero’s candidacy, she has a chance of assuming the role before the presidential election in November. In a statement emailed to reporters, the committee’s chairman, Sherrod Brown, Democrat of Ohio, said Ms. Goldsmith Romero “would bring to the F.D.I.C. decades of financial services experience, including valuable experience.”“She has proven herself to be a strong, independent and fair regulator who is not afraid to do what’s right,” he said.

Persons: Christy Goldsmith Romero, Biden’s, Martin Gruenberg, Goldsmith Romero’s, Sherrod Brown, Goldsmith Romero “, ” Organizations: Federal Deposit Insurance Corporation, White, Committee, Democrat Locations: Ohio

☆ Biden Nears Pick for Next F.D.I.C. Chair
▼ + stars: | 2024-06-11 | by ( Emily Flitter | ) www.nytimes.com time to read: +1 min

Three weeks after President Biden vowed to pick a new leader for the Federal Deposit Insurance Corporation, the bank regulator shaken by a vast workplace abuse scandal, a front-runner has emerged: Christy Goldsmith Romero, who sits on the five-member Commodity Futures Trading Commission, according to two people with knowledge of the administration’s thinking. Ms. Goldsmith Romero is a lawyer who, after the financial crisis, spent more than 12 years in an office created by Congress to investigate fraud and other misconduct by banks that received money from the government’s roughly $450 billion crisis rescue package, the Troubled Asset Relief Program. From 2011 to 2022, Ms. Goldsmith Romero led the office as the special inspector-general for the program. Mr. Biden has not made a final decision. Ms. Goldsmith Romero’s position as the front-runner for the job was first reported by The Wall Street Journal.

Persons: Biden, Christy Goldsmith Romero, Goldsmith Romero, Goldsmith Organizations: Federal Deposit Insurance Corporation, Futures Trading Commission, Troubled Asset, Wall Street

☆ Synapse bankruptcy trustee says $85 million of customer savings is missing in fintech meltdown
▼ + stars: | 2024-06-07 | by ( Hugh Son | ) www.cnbc.com time to read: +3 min

Al Drago | Bloomberg | Getty ImagesThere is an $85 million shortfall between what partner banks of fintech middleman Synapse are holding and what depositors are owed, according to the court-appointed trustee in the Synapse bankruptcy. Customers of fintech firms that used Synapse to link up with banks had $265 million in balances. But the banks themselves only had $180 million associated with those accounts, trustee Jelena McWilliams said in a report filed late Thursday. The missing funds explain what is at the heart of the worst meltdown in the U.S. fintech sector since its emergence in the years after the 2008 financial crisis. She said Synapse apparently commingled funds among several institutions, using multiple banks to serve the same companies.

Persons: Jelena McWilliams, Al Drago, Andreessen Horowitz, McWilliams, Bank —, it's, Banks, Cravath, Judge Martin Barash Organizations: Federal Deposit Insurance Corporation, Banking, Housing, Urban Affairs Committee, Washington , D.C, Bloomberg, Getty, Synapse, Evolve Bank & Trust, American Bank, AMG, Bank, Partner Bank Locations: Washington ,, U.S, what's

☆ Higher interest rates have created 63 'problem banks' and $517 billion in unrealized losses, FDIC says
▼ + stars: | 2024-06-04 | by ( Matthew Fox | ) www.businessinsider.com time to read: +1 min

High interest rates continue to put pressure on the US banking system. The FDIC said the US banking system has 63 "problem banks" and is sitting on $517 billion in unrealized losses. AdvertisementMore than a year after the downfall of Silicon Valley Bank, higher interest rates are still putting pressure on the US banking system. According to the Federal Deposit Insurance Corporation's first quarter report, the US banking system is sitting on a collective $517 billion in unrealized losses and has 63 "problem banks." Those losses have been sparked primarily by a surge in interest rates over the past two years, which have driven down the price of fixed-income securities held by banks.

Persons: — Organizations: FDIC, Service, Valley Bank, Federal Deposit Insurance, Business

☆ FDIC did not report allegations of senior officials' misconduct 'in a timely manner,' watchdog says
▼ + stars: | 2024-05-24 | by ( Josephine Rozzelle | ) www.cnbc.com time to read: +3 min

The Federal Deposit Insurance Corp. failed to report allegations of senior officials' misconduct in a timely manner, according to a new memo from the agency's internal watchdog. The Office of Inspector General "learned of several allegations of misconduct regarding senior FDIC officials that were not reported to the OIG in a timely manner," said the letter, dated Thursday. "The OIG is now reviewing these allegations to determine how they should be incorporated into OIG work plans." A scathing independent report published in April found a widespread culture of harassment and discrimination at the FDIC, citing allegations from more than 500 FDIC employees. "The FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct," the report concluded.

Persons: Martin Gruenberg, Jennifer Fain, Gruenberg, General, Fain, Gruenberg —, Joe Biden, —, Republican Travis Hill, Biden Organizations: Federal Deposit Insurance Corporation, Financial, Federal Deposit Insurance Corp, FDIC, FDIC's, Republican, GOP, Financial Services, White Locations: Washington , DC

☆ FDIC chairman Martin Gruenberg to resign following investigations into sexual harassment at the bank regulator
▼ + stars: | 2024-05-21 | by ( Shubhangi Goel | ) www.businessinsider.com time to read: +3 min

The report also probed FDIC chairman Martin Gruenberg's strong temper. Staying in office would prevent FDIC vice chairman Travis Hill, a Republican, from becoming the agency's acting chairman. The White House said that President Joe Biden would soon nominate a new FDIC chairman and that it expects the Senate to move quickly to confirm the nominee. "I accept the findings of the reports and as chairman, I take full responsibility to anyone who has experienced sexual harassment, discrimination or other misconduct at the FDIC," Gruenberg said at the hearing. Investigators said they set up a hotline in mid-January and received more than 500 complaints — largely from current employees — about sexual harassment, discrimination, and other issues.

Persons: —, Martin Gruenberg's, Gruenberg, Travis Hill, Joe Biden, Cleary Gottlieb Steen, Hamilton Organizations: Service, Federal Deposit Insurance Corporation, Business, Democratic, Wall Street, Republican, Journal, Senate, FDIC

☆ Jamie Dimon is worried about how much the US is borrowing. Here’s why
▼ + stars: | 2024-05-21 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +9 min

New York CNN —Major business leaders and economists are worried about America’s growing debt problem. Last week, JPMorgan CEO Jamie Dimon expressed fear that a crisis is looming and that unchecked deficit spending could explode. The big picture: Between the Trump-era tax cuts and Covid-era stimulus programs, the national debt has exploded in recent years. Trump Media (DJT) reported a loss of $327.6 million during the first three months of the year, compared with a loss of $210,300 a year earlier. The company generated just $770,500 of revenue, marking the second-straight quarter where its revenue totaled less than $1 million.

Persons: Jamie Dimon, ”, ” Dimon, “, Ray Dalio, Columbia Business School Glenn Hubbard, Joe Biden’s, Jason Thomas, Carlyle, ” Thomas, Hanna Ziady, Liz Truss, Treasuries, Hubbard, Thomas, it’s, Donald Trump, Matt Egan, Devin Nunes, Martin Gruenberg, Elisabeth Buchwald, ” Gruenberg, Sen, Sherrod Brown, Gruenberg, He’s, Cleary Gottlieb Steen, Gruenberg’s, Gruenberg Organizations: CNN Business, Bell, New York CNN —, JPMorgan, Sky News, Financial, Columbia Business School, United, CNN, IMF, Congressional, Office, Peterson Foundation, Treasury, Trump Media, Trump Media & Technology Group, Truth Social, Company, Big Tech, ” Trump Media, Federal Deposit Insurance Corporation, Senate Banking Committee, FDIC, Hamilton Locations: New York, Bridgewater, United States, —, United, United Kingdom

☆ Senate Banking Chair Sherrod Brown calls for new FDIC leadership after misconduct report
▼ + stars: | 2024-05-20 | by ( Josephine Rozzelle | ) www.cnbc.com time to read: +1 min

Sen. Sherrod Brown, D-Ohio, on Monday called on President Joe Biden to replace Federal Deposit Insurance Corporation Chairman Martin Gruenberg after allegations of widespread sexual harassment and misconduct within the agency. There "must be fundamental changes at the FDIC," Brown, who chairs the Senate Committee on Banking, Housing, and Urban Affairs, said in a statement. With his statement, Brown broke from fellow Democrats, who have largely condemned the allegations but refrained from pushing for Gruenberg's resignation, instead calling for him to drive changes at the agency. Law firm Cleary Gottlieb in April released a scathing report detailing an alleged culture of "sexual harassment, discrimination, and other interpersonal misconduct" at the FDIC. In one instance, Gruenberg allegedly screamed profanities at employees after they delivered bad news, the report said.

Persons: Sen, Sherrod Brown, Joe Biden, Martin Gruenberg, Brown, Cleary Gottlieb, Gruenberg Organizations: Federal Deposit Insurance, FDIC, Banking, Housing, Urban Affairs, Senate, Biden, Employees Locations: Ohio

☆ Bank Regulator Overseeing ‘Toxic’ Culture Loses Key Supporter in Senate
▼ + stars: | 2024-05-20 | by ( Emily Flitter | ) www.nytimes.com time to read: +1 min

He called for Mr. Biden to nominate a successor and for the Senate to quickly confirm that person, who could then take over for Mr. Gruenberg. “There must be fundamental changes at the F.D.I.C.,” Mr. Brown said. “Those changes begin with new leadership, who must fix the agency’s toxic culture and put the women and men who work there — and their mission — first.”An F.D.I.C. spokesman declined to comment. Since then, Mr. Gruenberg has faced some calls to resign from members of both political parties who said they felt he had played too big a role in shaping the agency’s culture in recent years, including by making the agency’s staff fear communicating with him.

Persons: Sherrod Brown of, Biden, Martin Gruenberg, Brown, Gruenberg, ” Mr, Cleary Gottlieb Organizations: Federal Deposit Insurance Corporation, Banking Committee, Senate, Mr, Street Locations: Sherrod Brown of Ohio

☆ Democrats Batter Bank Regulator Over F.D.I.C.’s ‘Toxic’ Workplace Culture
▼ + stars: | 2024-05-15 | by ( Emily Flitter | ) www.nytimes.com time to read: +1 min

Martin Gruenberg is still the leader of the Federal Deposit Insurance Corporation, an agency that supervises U.S. banks, but after a bipartisan grilling on Wednesday by members of a House committee overseeing bank regulators, he appeared to be hanging on by a thread. Democrats expressed dismay over his responses to the crisis at his agency, after a scathing report of a culture of widespread sexual harassment and discrimination. One congresswoman appeared to call for him to resign, as Republicans have been doing for months. “Personally, I do not have confidence that you can continue to lead in this role,” Representative Ayanna S. Pressley, Democrat of Massachusetts, told Mr. Gruenberg during an exchange. (Two other federal bank regulators, the acting comptroller of the currency, Michael Hsu, and the Federal Reserve vice chair, Michael Barr, also offered testimony on bank regulatory matters, but much of the committee’s focus was on the F.D.I.C.)

Persons: Martin Gruenberg, Ayanna S, Pressley, Gruenberg, “, Michael Hsu, Michael Barr Organizations: Federal Deposit Insurance Corporation, Federal Reserve Locations: Massachusetts

☆ Under Fire for ‘Toxic’ Work Culture, Bank Regulator Apologizes Again
▼ + stars: | 2024-05-14 | by ( Emily Flitter | ) www.nytimes.com time to read: +1 min

Just days after the release of a scathing report detailing a culture of widespread sexual harassment and discrimination at the Federal Deposit Insurance Corporation, its chair, Martin Gruenberg submitted congressional testimony on Tuesday that indicated he had no plans to step down. “I accept the findings of the report and, as chairman, I take full responsibility,” he said. The hearings come as Mr. Gruenberg, a Democrat, faces calls from Republican lawmakers to resign. He has so far survived those demands with the backing of the White House and key Democratic lawmakers like Senator Sherrod Brown of Ohio, Senator Elizabeth Warren of Massachusetts and Representative Maxine Waters of California. Should Mr. Gruenberg be pressured to depart the agency after the hearings, that could also put into jeopardy a rule that the agency is proposing along with other federal bank regulators, to tighten and expand oversight of the nation’s largest lenders, but which has been fiercely opposed by big banks.

Persons: Martin Gruenberg, Gruenberg, ”, Sherrod Brown of, Elizabeth Warren of, Maxine Waters Organizations: Federal Deposit Insurance Corporation, Financial, Democrat, White, Elizabeth Warren of Massachusetts Locations: Sherrod Brown of Ohio, California

☆ The FDIC is a 'boys club' where some senior execs pursued romantic relationships with their staff, says new report
▼ + stars: | 2024-05-08 | by ( Meghan Morris | ) www.businessinsider.com time to read: +4 min

The Federal Deposit Insurance Corporation, or FDIC, has a "patriarchal" culture, according to an independent report. The bank regulator took no action on dozens of harassment complaints and moved wrongdoers around. The report said the FDIC has dismissed myriad harassment complaints and that wrongdoers are moved around internally or promoted. AdvertisementThe independent investigators spent nine pages discussing FDIC chairman Martin Gruenberg's conduct. The FDIC did not immediately respond to a request for comment from Business Insider sent outside standard hours.

Persons: —, Cleary Gottlieb Steen, Hamilton, Martin Gruenberg's, Gruenberg, Travis Hill, Karine Jean, Pierre didn't Organizations: Federal Deposit Insurance Corporation, Service, Wall Street Journal, FDIC, Democrat, Republican, White, Business Insider Locations: wrongdoers, Gruenberg

☆ The Chair of the FDIC is facing calls to resign after scathing report. The implications for banks could be significant
▼ + stars: | 2024-05-08 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +4 min

New York CNN —Martin Gruenberg, the chair of the Federal Deposit Insurance Corporation, is facing a barrage of calls from lawmakers to resign after a scathing 234-page report released Tuesday detailed pervasive sexual harassment, discrimination and bullying at the agency. If he heeds the calls, there could be significant ramifications for banks across the country. “We do recognize that, as a number of FDIC employees put it in talking about Chairman Gruenberg, culture ‘starts at the top,’” the report said. Gruenberg’s temperament “may hinder his ability to establish trust and confidence in leading meaningful culture change,” the report added. Aside from Democratic Rep. Bill Foster, Democrats have stopped short of calling on Gruenberg to resign.

Persons: New York CNN — Martin Gruenberg, Cleary Gottlieb Steen, Gruenberg, ‘, ’, “, ” That’s, CNN Gruenberg “, Joe Biden, Bill Foster, That’s, Travis Hill, Rulemaking, ” Dennis Kelleher, Hill, Cowen, Sen, Elizabeth Warren aren’t, Karine Jean, Pierre didn’t, Biden, Kelleher Organizations: New, New York CNN, Federal Deposit Insurance Corporation, Hamilton, FDIC, CNN, Democrat, Democratic Rep, Republican, Senate, Democratic, Better, Federal Reserve, White Locations: New York, Basel

☆ Inquiry Finds a Toxic Culture at the F.D.I.C., and Takes Aim at Its Leader
▼ + stars: | 2024-05-07 | by ( Emily Flitter | ) www.nytimes.com time to read: +1 min

A report on workplace culture at the Federal Deposit Insurance Corporation released on Tuesday revealed a broad, yearslong pattern of sexual harassment, discrimination and abuse of mostly women and members of minority groups by senior officials. The findings are likely to lead to another potentially bruising round of questions for the agency’s chair, Martin Gruenberg, who is scheduled to testify in Congress later this month. It described “fiefdoms” in regional offices, where senior managers protected other longtime employees from potential consequences stemming from more junior employees’ claims of mistreatment. Examples of the behavior, including senior examiners texting junior women pictures of their genitalia or taking them to brothels, were first reported by The Wall Street Journal in November. Tuesday’s report was the result of an independent investigation by Cleary Gottlieb, which was hired by a special committee created by the agency’s board after The Journal’s report.

Persons: Martin Gruenberg, ”, “, Cleary Gottlieb, ’, Tuesday’s Organizations: Federal Deposit Insurance Corporation, Wall Street

☆ U.S. probe finds widespread sexual misconduct at FDIC
▼ + stars: | 2024-05-07 | by ( ) www.cnbc.com time to read: +2 min

The Federal Deposit Insurance Corporation must make sweeping changes to address widespread sexual harassment and other misconduct, according to an independent report released on Tuesday that raises questions about the future of the banking regulator's leadership. The report, prompted by a Wall Street Journal investigation, cited accounts from more than 500 people, including some who alleged FDIC Chair Martin Gruenberg had engaged in bullying and verbal abuse. "For far too many employees and for far too long, the FDIC has failed to provide a workplace safe from sexual harassment, discrimination, and other interpersonal misconduct," said the report, adding that those accused of misconduct were frequently reassigned new roles. "Chair Gruenberg must accept responsibility and must immediately work to make fundamental changes to the agency and its culture." Some employees described Gruenberg as "harsh" and "aggressive", as well as prone to losing his temper, the report said.

Persons: Martin Gruenberg, Cleary Gottlieb, Gruenberg, Patrick McHenry, Sherrod Brown Organizations: Federal Deposit Insurance Corporation, Wall Street Journal, FDIC, WSJ, Democrat, Republican, Financial Services, Banking, Housing, Urban Affairs Committee

☆ Interest rates are staying high—how to make them work in your favor
▼ + stars: | 2024-05-03 | by ( Gabriel Cortés | ) www.cnbc.com time to read: +2 min

If you were hoping interest rates might come down this spring, you're likely going to have to wait a little bit longer. After more than a decade of near-zero interest rates, savers are now in an environment where they're being rewarded for keeping deposits in the bank. And with interest rates staying at their decades-long high for longer, savers have an extended window to take advantage of everything banks are offering. "We did a study recently and found that very few people are earning even 4% on their savings," Rossman says. Now is a great time to shop around for the most favorable terms and lock in those interest rates while they're here, Rossman says.

Persons: That's, Ted Rossman, Rossman Organizations: U.S . Federal Reserve, Federal Deposit Insurance Corporation Locations: U.S

☆ Americans were paid an additional $235 billion in interest in 2023, thanks to the Fed
▼ + stars: | 2024-05-01 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +7 min

High-yield savings accountsThe average interest rate on regular bank savings accounts is roughly 0.5% but can run as low as 0.01% at the biggest banks. By contrast, the average on high-yield savings accounts is well over 4%, according to DepositAccounts.com. If you leave it parked in a regular savings account at 0.5%, you’ll get $50 in interest for a year. As with any savings account, banks can lower the rate they offer — also known as the APY — at any time. Money market accounts and money market fundsAlthough money market deposit accounts and money market mutual funds are both generating yields competitive with the best high-yield savings accounts, there are important differences.

Persons: —, It’s, ”, Greg McBride, you’ll, McBride, “, ” McBride, Ben Bakkum, Collin Martin, Martin Organizations: New, New York CNN, Federal Reserve, Federal Deposit Insurance Corporation, FDIC, National Credit Union Share Insurance, Securities Investor Protection Corporation, Treasury, Fed, Schwab Center, Financial Research Locations: New York, Schwab.com, United States

☆ FDIC says Republic First Bank is closed by Pennsylvania regulators
▼ + stars: | 2024-04-26 | by ( Luciana Lopez | ) edition.cnn.com time to read: +1 min

CNN —The Federal Deposit Insurance Corporation on Friday said that Republic Bank has been closed by Pennsylvania state regulators, in what the FDIC said was the first US bank failure this year. “Philadelphia-based Republic First Bank (doing business as Republic Bank) was closed today by the Pennsylvania Department of Banking and Securities, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. To protect depositors, the FDIC entered into an agreement with Fulton Bank, National Association of Lancaster, Pennsylvania to assume substantially all of the deposits and purchase substantially all of the assets of Republic Bank,” the FDIC said in a statement. That makes Republic Bank (FRBK) far smaller than the regional bank failures that rocked the financial world last year. The FDIC said that Republic Bank was the first bank to fail in the United States since Citizens Bank in Sac City, Iowa, in November 2023.

Persons: “ Organizations: CNN, Federal Deposit Insurance Corporation, Bank, First Bank, Republic Bank, Pennsylvania Department of Banking, Securities, Fulton Bank, National Association of Lancaster, Silicon Valley Bank, FDIC, Bloomberg, Citizens Bank Locations: Pennsylvania, “ Philadelphia, National Association of Lancaster , Pennsylvania, Silicon, New Jersey , Pennsylvania, New York, United States, Sac City , Iowa

☆ Regulators Seize Republic First, a Troubled Philadelphia Bank
▼ + stars: | 2024-04-26 | by ( Kashmir Hill | More About Kashmir Hill | ) www.nytimes.com time to read: 1 min

Regulators late Friday seized Republic First Bancorp, a troubled Philadelphia lender, in the first U.S. bank failure this year. Republic First Bancorp, known as Republic Bank, had about $4 billion in deposits at the end of January and assets worth $6 billion, the Federal Deposit Insurance Corporation said in a statement. said, with Republic First’s 32 branches in Pennsylvania, New Jersey and New York reopening as soon as Saturday as Fulton Bank branches. Founded in 1988, Republic First was smaller than the midsize banks that collapsed last year — including First Republic Bank and Silicon Valley Bank, whose assets each topped $200 billion. expects the cost to the Deposit Insurance Fund to be $667 million.

Organizations: First Bancorp, Republic First Bancorp, Republic Bank, Federal Deposit Insurance Corporation, Fulton Bank of Lancaster, Fulton Bank, First Republic Bank, Silicon Valley Bank, Deposit Insurance Fund Locations: Philadelphia, U.S, Republic, Pa, Pennsylvania , New Jersey, New York

☆ US regional banks are still under pressure. That’s likely to continue
▼ + stars: | 2024-04-18 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

New York CNN —Despite overcoming a crisis in 2023, the pain isn’t over for America’s regional banks. Shares of New York Community Bank have tumbled 71%, Bank OZK shares have slid 16% and Webster Financial shares have lost 11%. Regional banks reported wide losses on their profits during the first quarter. PNC projects that its net interest income will fall between 4% to 5% in 2024 from last year. “I’m worried about a handful of [regional banks],” Bair told CNBC on Tuesday.

Persons: that’s, Jerome Powell, “, ” Powell, Sheila Bair, “ I’m, ” Bair, ” Tesla, Tesla, Elon Musk, Chris Isidore, Musk, Chancellor Kathaleen McCormick, Read, Samantha Delouya, —, Maximilian Kotz, Leonie Wenz, Noah Diffenbaugh Organizations: CNN Business, Bell, New York CNN, Regional Banking, New York Community Bank, Bank OZK, Webster Financial, PNC Financial, T Bank, US Bancorp, Citizens, PNC, Valley Bank, Signature Bank, First Republic Bank, Federal Reserve, Wilson Center, Federal Deposit Insurance Corporation, CNBC, Tesla, Securities and Exchange Commission, United Nations, Potsdam, Climate, CNN, Stanford University Locations: New York, Delaware, ” Delaware

☆ Wells Fargo is flat after an earnings beat — here's why and our outlook on shares
▼ + stars: | 2024-04-12 | by ( Zev Fima | ) www.cnbc.com time to read: +9 min

Wells Fargo Why we own it : We bought Wells Fargo as a turnaround story under CEO Charlie Scharf. In addition, the bank's net interest margin came up short, and therefore net interest income. However, bank interest income estimates depend on interest rates, a factor Wells can't control. Net interest income fell 17% year over year as deposits declined due to customers reallocating cash into higher-yielding securities. Non-interest income increased 9% thanks to higher asset-based fees driven by an increase in market valuations.

Persons: Wells, Charlie Scharf, He's, Scharf, Charles Scharf, Wells Fargo, it's, Jim Cramer's, Jim Cramer, Jim, Justin Sullivan Organizations: Federal Deposit Insurance Corporation, Silicon Valley Bank, Bank of America, Citigroup, Management, Consumer, Auto, Corporate, Wealth, CNBC Locations: Silicon, Wells Fargo, U.S, That's, Wells, San Bruno , California

☆ Wells Fargo shares fall as lower interest income cuts into profits
▼ + stars: | 2024-04-12 | by ( Yun Li | ) www.cnbc.com time to read: +1 min

A woman walks past Wells Fargo bank in New York City, U.S., March 17, 2020. Wells Fargo shares fell Friday after the bank reported first-quarter earnings that showed a decline in interest income. Wells said its net interest income decreased 8% in the quarter, due to the impact of higher interest rates on funding costs, including the impact of customer migration to higher yielding deposit products. "The investments we are making across the franchise contributed to higher revenue versus the fourth quarter as an increase in noninterest income more than offset an expected decline in net interest income," Scharf added. Shares of the bank climbed more than 15% year to date, beating the S&P 500's 9% return.

Persons: Wells Fargo, Wells, Charlie Scharf, Scharf Organizations: Wells, LSEG, Deposit Insurance Corporation Locations: Wells Fargo, New York City, U.S

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