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☆ For Regional Banks, Does More Debt Mean Fewer Problems?
▼ + stars: | 2023-04-01 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Silicon Valley Bank might have benefited from more debt. A lot of discussion right now is about the bonds that American banks hold. One tidbit from lawmakers’ grilling of regulators should catch investors’ attention: a proposal to expand a requirement for issuing long-term debt. Today this debt requirement applies only to megabanks with over $700 billion in assets, the likes of JPMorgan Chase or Bank of America . Regulators are looking at expanding it to banks with over $250 billion of assets and even smaller, The Wall Street Journal has reported.

☆ Unlimited Deposit Insurance Can’t Solve Everything
▼ + stars: | 2023-03-24 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Treasury Secretary Janet Yellen put a damper on hopes for one immediate solution to the present banking crisis when she said on Wednesday that she wasn’t considering trying to offer “blanket” insurance guaranteeing all deposits. But this will almost certainly not extinguish the idea. Secretary Yellen also said it was “worthwhile” for Congress to look at deposit insurance. Treasury already can, as it did with Silicon Valley Bank and Signature Bank, alongside the Federal Deposit Insurance Corp. use a “systemic risk exception” to cover all of an individual bank’s depositors with accounts above the $250,000 limit. And the idea of universal insurance is gaining traction, including among some smaller banks and their advocates, who already feel that megabanks are treated differently.

☆ How Much Is First Republic Worth?
▼ + stars: | 2023-03-18 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

First Republic Bank is trading at just above 30% of its tangible book value, compared with a premium of around 50% for S&P 500 banks overall. For many years First Republic Bank traded at a premium valuation to most other banks, in part reflecting the view that it served a premium clientele. Now the future value of those wealthy customers is a big question mark. Despite the injection of $30 billion of deposits by megabanks into First Republic on Thursday, its shares declined sharply Friday. The bank is now trading at just over 30% of its tangible book value, versus a premium of around 50% for S&P 500 banks overall, according to FactSet.

☆ Banks’ Big Plan Might Solve the Immediate Problem, but Not the Bigger Ones
▼ + stars: | 2023-03-16 | by ( Telis Demos | ) www.wsj.com time to read: 1 min

Megabanks coming together to shore up First Republic Bank will probably solve today’s big problem. But it may not help for much beyond that. A massive $30 billion infusion of deposit cash into First Republic by the biggest banks in the nation will almost surely relieve the immediate pressure on the California lender. This group includes JPMorgan Chase, Bank of America, Citigroup , Wells Fargo , Goldman Sachs , Morgan Stanley , U.S. Bancorp , PNC Financial Services and others, The Wall Street Journal has reported—essentially the country’s largest banks. In effect, some of the influx of deposits that megabanks have received over the past week from people fleeing midsize lenders will be redirected to First Republic.

U.S. District Judge Jed Rakoff in Manhattan said the bank must turn over requested documents from 2015 to 2019, a period after JPMorgan had dropped Epstein as a client. The U.S. Virgin Islands has called Dimon "a likely source of relevant and unique information" about why JPMorgan kept Epstein on, and discussions on Epstein's referrals of prominent and wealthy potential clients. Lawyers for the U.S. Virgin Islands did not immediately respond to requests for comment. JPMorgan wants Staley to reimburse it for damages it might incur in the other lawsuits, and return eight years of compensation. The case is Government of the U.S. Virgin Islands v JPMorgan Chase Bank NA, U.S. District Court, Southern District of New York, No.

☆ Toshiba buyout heralds a big step back for Japan
▼ + stars: | 2023-01-20 | by ( Una Galani | ) www.reuters.com time to read: +7 min

MUMBAI, Jan 20 (Reuters Breakingviews) - The end of a long battle to wring some value from Toshiba (6502.T) is finally within reach. Such an outcome won’t encourage private equity firms, and big policy shifts underway may stifle the industry just as it hits a new high. Instead, after an accounting scandal in 2015, Toshiba came to epitomise Japan Inc’s pervasive value destruction. Japan typically outperforms private equity deals in other developed markets, partly because existing incentive structures for company bosses are so poor. The country’s private equity industry is only just finding its feet.

☆ Banks take No. 1 spot, tech loses a market crown: The 2023 Just 100 rankings
▼ + stars: | 2023-01-10 | by ( Eric Rosenbaum | ) www.cnbc.com time to read: +5 min

1 on the 2023 Just 100 list, and it's not alone among peers. On last year's list, the top four spots all went to tech companies. "Banks have been steadily improving their game and that's the standout," he said of this year's Just 100 list. 71, making the cut for the Just 100 list. This year's top 10 still included five tech companies: NVIDIA , Microsoft , Hewlett Packard Enterprise , Apple , and Intel .

☆ BOJ to conduct digital yen trial with Japan's 3 megabanks, others - Nikkei
▼ + stars: | 2022-11-23 | by ( Daniel Leussink | ) www.reuters.com time to read: +1 min

REUTERS/Florence Lo/IllustrationTOKYO, Nov 23 (Reuters) - The Bank of Japan will start a trial with an eye on launching a digital yen with Japan's three megabanks and regional banks next spring, the Nikkei newspaper reported. The central bank could decide in 2026 whether to issue a digital currency after verifying issues for two years, such as whether there are problems with deposits and withdrawals from bank accounts, Nikkei said. A spokesperson for the BOJ was not immediately available to comment on Wednesday, a public holiday in Japan. It will likely come after the BOJ wraps up a second phase of its central bank digital currency (CBDC) experiment that started in April, and which will last about a year. The BOJ will collaborate with participating banks in the trial from next spring to check whether CBDCs can be transferred between accounts, the Nikkei reported.

☆ This Powerful BlackRock Team Has the Ear of Governments and Megabanks
▼ + stars: | 2022-10-20 | by ( Angel Au-Yeung | ) www.wsj.com time to read: 1 min

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Lawmakers also asked the CEOs to condemn China's "human rights abuses," in a departure from previous hearings that tended to focus on domestic issues like housing and consumer protection. JPMorgan & Chase (JPM.N) CEO Jamie Dimon and Citigroup CEO Jane Fraser both concurred, saying their banks would follow government guidance if China were to invade Taiwan. When asked later by Republican Lance Gooden if she would condemn "ongoing human rights abuses in China," Fraser hesitated. JPMorgan's Dimon also warned the United States had to compete with global Chinese banks, which have grown in size over the last few years to become the biggest in the world. "I am going to do everything in my power to make sure we compete with the best Chinese banks in the world.

☆ Watch JPMorgan Chase CEO Jamie Dimon and six other bank leaders get grilled by Congress
▼ + stars: | 2022-09-21 | by ( Hugh Son | ) www.cnbc.com time to read: 1 min

[The stream is slated to start at 10:00 a.m. Please refresh the page if you do not see a player above at that time.] The CEOs of the biggest U.S. retail banks, including JPMorgan Chase's Jamie Dimon and Wells Fargo's Charlie Scharf, are set to testify before the Democrat-led House Financial Services Committee. The hearing is called "Holding Megabanks Accountable: Oversight of America's Largest Consumer Facing Banks" will begin at 10 a.m. E.T.

☆ JPMorgan CEO Dimon to warn Congress of economic 'storm clouds' -testimony
▼ + stars: | 2022-09-20 | by ( Pete Schroeder | ) www.reuters.com time to read: +3 min

JP Morgan CEO Jamie Dimon speaks at the Boston College Chief Executives Club luncheon in Boston, Massachusetts, U.S., November 23, 2021. REUTERS/Brian SnyderWASHINGTON, Sept 20 (Reuters) - JPMorgan Chase & Co (JPM.N) Chief Executive Jamie Dimon plans to tell Congress that the U.S. economy faces "storm clouds," according to prepared testimony. Dimon, who is due to testify alongside major U.S. bank CEOs at congressional hearings Wednesday and Thursday, will outline the competing forces buffeting the nation's economy. The hearing will seek CEO testimony on a range of issues, including consumer protection, compliance issues, diversity and "issues relating to the public interest" such as worker rights and abortion access, according to the memo. They will be joined by US Bancorp (USB.N) CEO Andy Cecere, PNC Financial (PNC.N) CEO William Demchak, and Truist Financial (TFC.N) CEO William Rogers, who run the country's largest regional lenders.

☆ Big Regional Banks Might Face New Rules for Dealing With a Crisis
▼ + stars: | 2022-09-19 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

Michael Barr, the Fed’s top bank regulator, signaled he is looking at large regional banks ‘as they grow and as their significance in the financial system increases.’WASHINGTON—A group of President Biden-appointed bank regulators are considering new rules to require large regional banks to add to financial cushions that could be called on in times of crisis. The steps under consideration include requirements that the regional firms raise long-term debt that can help absorb losses in case of their own insolvency, according to three people familiar with the matter, extending a slimmed-down version of requirements that at present apply only to the largest U.S. megabanks.

☆ Another big rate hike is coming. Lather. Rinse. Repeat
▼ + stars: | 2022-09-18 | by ( Paul R. La Monica | Cnn Business | ) edition.cnn.com time to read: +6 min

As such, experts' forecasts for the Fed's key short-term rate after the November meeting range from 3.5% to 4%. In other words, the Fed's rate hikes could ultimately lead to the economy cooling off more than the central bank would like. Too many big rate hikes risk "sending the economy into a mild recession," Chubb said. What's more, other central banks, mainly the European Central Bank, are likely to step up the pace and size of rate increases as well. "Major central banks still have work to do on inflation, including the Fed and the ECB.

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