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☆ Fans bid seaside farewell to Sinead O'Connor with songs, flags and flowers
▼ + stars: | 2023-08-08 | by ( Padraic Halpin | ) www.reuters.com time to read: +3 min

[1/5] A hearse carrying the coffin of late Irish singer Sinead O'Connor passes by during her funeral procession where fans line the street to say their last goodbye to her, in Bray, Ireland, August 8, 2023. REUTERS/Clodagh KilcoyneBRAY, Ireland, Aug 8 (Reuters) - Thousands gathered outside Sinead O'Connor's former seaside home on Tuesday to bid farewell to the outspoken Irish rock star, some singing along to hits blasted from a vintage Volkswagen camper van, others showering her hearse with flowers. Crowds gathered along the seafront at Bray, just south of Dublin, clapped and cheered as O'Connor's coffin passed in a hearse. Irish President Michael D. Higgins and prime minister Leo Varadkar joined O'Connor's family at a private funeral service, state broadcaster RTE reported. "Sinead O'Connor was a very sensitive soul but was very strong for other like her," said Kelleher, 30, who moved to Dublin from New York with her husband Stephen last year.

Persons: Sinead O'Connor, Clodagh Kilcoyne, Sinead O'Connor's, O'Connor, clapped, Bob Marley's, Gemma Byrne, I'm, Sinead, Pope John Paul II, Michael D, Higgins, Leo Varadkar, Tiana Kelleher, Leon, Kelleher, Stephen, Padraic Halpin, Conor Humphries Organizations: REUTERS, Volkswagen, VW, RTE, Thomson Locations: Irish, Bray , Ireland, Clodagh Kilcoyne BRAY, Ireland, London, Bray, Dublin, Drogheda, Co, Wicklow, New York

By increasing the degree of risk attributed to certain assets, the proposed rules would require banks to hold proportionately more capital, potentially eating into returns on equity and profits. Making such lending more expensive will shrink credit available to historically under-served borrowers, something the industry is likely to fight, he said. Chen Xu, an attorney in the financial institutions group at Debevoise & Plimpton, said the new rules viewed high-revenue business lines as higher risk. Morgan Stanley (MS.N) analysts say the largest banks may take up to four years to set aside profits to comply with the new capital rules. Dennis Kelleher, head of the financial reform advocacy group Better Markets, said the banking industry had made similar complaints in the past which he believed had proven unfounded.

Persons: Mike Segar, Joe Saas, Chen Xu, Plimpton, Michael Barr, JPMorgan Chase, Jamie Dimon, Wells Fargo, Kevin Stein, Morgan Stanley, Richard Ramsden, Goldman Sachs, Ramsden, Dennis Kelleher, Douglas Gillison, Tatiana Bautzer, Nupur Anand, Saeed Azhar, Megan Davies, Anna Driver Organizations: Wall, New York Stock Exchange, REUTERS, Industry, Financial Services, Bank Policy Institute, Securities Industry, Financial Markets Association, Debevoise, JPMorgan, CNBC, Citigroup, Bank of America, Klaros Group, Banking Supervision, Better, Thomson Locations: Manhattan, New York City , New York, U.S, Washington, Wells, Basel

☆ Meet Ted Pick, the hard-charging 'deal junkie' who rose to the top at Morgan Stanley the old-fashioned way — and looks poised to succeed James Gorman as CEO
▼ + stars: | 2023-08-01 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +20 min

Employees knew they were getting promoted if Pick told them to wear a tie the following day, an ex-managing director recalled. While Morgan Stanley currently trades at a premium among its Wall Street peers, its enviable success isn't thanks to Pick. Succession has traditionally been a bloody sport on Wall Street, and Morgan Stanley is no exception. Gonzalo Marroquin/Patrick McMullan via Getty Images Show less Morgan Stanley investment management head and dark horse in the race for CEO, Dan Simkowitz. Despite enjoying the stock price gains under Gorman's reign, plenty of longtime employees want another dyed-in-the-wool Morgan Stanley loyalist, according to a former senior executive.

Persons: Morgan Stanley, Ted Pick, Pick, Gucci loafers, Blackstone, Tony James, Morgan, James Gorman, Gorman, Andy Saperstein, Dan Simkowitz, John Mack, Ted, James, Phil Purcell, Mack, Purcell, Merrill Lynch, Paul Taubman, Colm Kelleher, coheads, Gonzalo Marroquin, Patrick McMullan, Saperstein, Euromoney, Parker Gilbert, He's, John, cohead, Bolu, Goldman Sachs, Pablo, tony, Betsey Kittenplan, Smith Barney, James cochairs, Jim Breyer, Anna Wintour, John Mack pranking Pick, John Waldron, Goldman, I'm, Howard Marks, Bill Parcells, atta, Brian Moynihan, aren't, David Solomon, Jamie Dimon's, Eaton Vance, he's, you've, Richard Drew, — Organizations: Employees, Archegos Capital Management, Blackstone, McKinsey, Getty, Middlebury College, China Construction Bank, Harvard Business School, Mitsubishi, Wall, Autonomous Research, Anguilla, Agricultural Bank of China, Capital Management, Metropolitan Museum of Art, Vogue, New York Rangers, Oaktree Capital Management, Bloomberg, Staten, Disney, JPMorgan, Trade, AP Locations: China, Beijing, Manhattan, New York City, Caracas, Venezuela, Brookville, tony Long

The rule, which would implement a 2017 agreement by global regulators, aims to overhaul how banks gauge their riskiness, and in turn how much money they must keep on hand. Industry opponents have already begun to criticize the plan as banks seek to soften, delay, or otherwise derail the government's long-planned effort. The proposal would see U.S. regulators implement a previous global agreement via the Basel Committee on Banking Supervision. "Bank capital is critical," said Dennis Kelleher, president and CEO of Better Markets, which advocates for tougher financial rules. "However, maximizing Wall Street’s bonuses depends on minimizing capital and that’s why Wall Street fights to prevent regulators from requiring them to have enough capital."

Persons: it’s, Ian Katz, JPMorgan Chase, Morgan Stanley, Michael Barr, Barr, Joe Biden, Dennis Kelleher, Pete Schroeder, Susan Heavey Organizations: Federal Deposit Insurance Corporation, Federal, Industry, Washington, Capital Alpha Partners, JPMorgan, Banking Supervision, Citizens Financial, Bank, Better, Thomson Locations: U.S, Basel, Huntington, that’s

☆ UBS investors warm to Credit Suisse deal
▼ + stars: | 2023-07-17 | by ( Oliver Hirt | ) www.reuters.com time to read: +6 min

Several fund managers who hold UBS stock have told Reuters they think UBS has bought Credit Suisse at a good price, with some even describing it as a steal. "UBS got Credit Suisse for practically nothing, so accordingly the deal will work out for them," another investor told Reuters. Still, UBS inherits a troubled legacy at Credit Suisse, said Thomae, pointing to legal risks which UBS has said could cost billions of dollars. Rivals have poached entire teams from Credit Suisse, he said, and some clients are likely to follow them. Deka's Thomae said UBS and Credit Suisse together would have a market share in Switzerland that is just within acceptable limits.

Persons: Colm Kelleher, Guy de Blonay, Andreas Thomae, Thomae, de Blonay, De Blonay, JP Morgan, Kian Abouhossein, Julius Baer, Deka's Thomae, Oliver Hirt, John Revill, David Holmes Organizations: Credit Suisse, UBS, Switzerland's, Reuters, Jupiter Asset Management, CS, Swiss, UBS AG, Credit Suisse AG, STATE, Deka Investment, Fund, Rivals, Suisse, JP, Suisse's, Investors, Credit, Thomson Locations: ZURICH, Suisse's Swiss, Switzerland

☆ Banks with at least $100 billion in assets could face higher capital limits
▼ + stars: | 2023-07-10 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +4 min

Banks with at least $100 billion in assets would be subject to similar regulation that banks with $700 billion in assets currently face, under Barr’s proposal. These regulations would force banks to hold an additional two percentage points of capital, or an additional $2 of capital for every $100 of risk-weighted assets, Barr said. “Our recent experience shows that even banks [with at least $100 billion in assets] can cause stress that spreads to other institutions and threatens financial stability,” Barr in remarks at the Bipartisan Policy Center. Requiring banks to hold more capital could help mitigate risks that arise when banks are under stress. Barr on Fed’s fight against inflationIn addition to discussing bank regulation, Barr also spoke about the Fed’s plans to get inflation down.

Persons: Michael Barr, Banks, Barr, “, ” Barr, SVB, Kevin Fromer, ”, Dennis Kelleher Organizations: New, New York CNN — Federal, Center, Valley Bank, Financial Services, Wall, Better, CNN Locations: New York

Banks' commercial real estate portfolios performed better than expected, showing $65 billion in losses or 8.8% of average loan losses, slightly down on last year's 9.8%, the Fed said. "Some may ask how all the banks can get a regulatory thumbs-up when the industry just went through a period of turmoil. The test assesses whether banks would stay above the required minimum 4.5% capital ratio. The average capital ratio for the 23 banks was 10.1%, the Fed said. That compares with 9.7% last year, when the central bank tested 34 lenders against a slightly easier scenario.

Persons: Morgan Stanley, Goldman Sachs, Charles Schwab, Michael Barr, ” Barr, Banks, Barr, Lindsey Johnson, Dennis Kelleher, Ian Katz, Pete Schroeder, Caroline Valetkevich, Deepa Babington, Stephen Coates Organizations: Federal, JPMorgan Chase, Bank of America, Citigroup, Charles Schwab Corp, Deutsche Bank's, Financial Corp, U.S . Bancorp, Valley Bank, Wells, JPMorgan, Industry, Consumer Bankers Association, U.S, Treasury, T Bank, PNC Financial, Citizens Financial, Better, Fed, Capital Alpha Partners, Thomson Locations: Big U.S, Wells Fargo, U.S

☆ FDIC accidentally reveals details about Silicon Valley Bank’s biggest customers
▼ + stars: | 2023-06-23 | by ( Matt Egan | ) edition.cnn.com time to read: +4 min

New York CNN Business —The FDIC mistakenly revealed to Bloomberg News details on the biggest customers at Silicon Valley Bank, the failed bank whose depositors were rescued through emergency action by regulators. According to Bloomberg, that document was accidentally released unredacted by the FDIC in response to a Freedom of Information Act request. For instance, leading venture capital firm Sequoia Capital, held just more than $1 billion at SVB, according to the FDIC document. The FDIC document indicates the Chinese firm held about $903 million at SVB. The FDIC, charged with insuring deposits at banks, apparently did not intend to release the details on SVB’s biggest customers.

Persons: SVB, Zhipin, Dennis Kelleher, ” Kelleher, Mike Pence, ” Organizations: New York CNN Business —, Bloomberg, Silicon Valley Bank, Bloomberg News, FDIC, Sequoia Capital, PayPal, Google, Apple, Sequoia, CNN, Better Markets, Internet, Better, Main Street Locations: Silicon, Beijing

☆ UBS completes Credit Suisse takeover to become wealth management behemoth
▼ + stars: | 2023-06-12 | by ( Noele Illien | ) www.reuters.com time to read: +5 min

ZURICH, June 12 (Reuters) - UBS (UBSG.S) on Monday said it had completed its emergency takeover of embattled local rival Credit Suisse (CSGN.S), creating a giant Swiss bank with a balance sheet of $1.6 trillion and greater muscle in wealth management. The merger also brings to an end Credit Suisse's 167-year history, marred in recent years by scandals and losses. Credit Suisse shares were up 0.9% on their last day of trading, while UBS were up around 0.8% in early trade. UBS is set to book a massive profit in second-quarter results on Aug. 31 after buying Credit Suisse for a fraction of its so-called fair value. Ermotti has, however, warned the coming months will be "bumpy" as UBS gets on with absorbing Credit Suisse, a process UBS has said will take three to five years.

Persons: Sergio Ermotti, Colm Kelleher, Jean Dermine, Arturo Bris, Ermotti, Noele Illien, John O'Donnell, Miranda Murray, Tomasz Janowski, Edwina Gibbs Organizations: UBS, Credit Suisse, Swiss, Banking, Finance, INSEAD, IMD, Competitiveness, U.S, NEXT, Credit, Thomson Locations: ZURICH, Swiss, Switzerland

☆ UBS says it has completed the takeover of stricken rival Credit Suisse
▼ + stars: | 2023-06-12 | by ( Jenni Reid | ) www.cnbc.com time to read: +1 min

UBS expects to complete its takeover of Credit Suisse "as early as June 12", which will create a giant Swiss bank with a balance sheet of $1.6 trillion. Swiss bank UBS on Monday said that it formally completed the takeover of its rival Credit Suisse. Regulators said Friday that they would cover losses of up to 9 billion Swiss francs ($10 billion) after UBS incurs the first 5 billion Swiss francs as part of the transaction, as it absorbs a portfolio that does not entirely "fit its business and risk profile." Following the acquisition, Credit Suisse and its American Depositary Shares will be delisted from the SIX Swiss Exchange and New York Stock Exchange, with shareholders receiving one UBS share for every 22.48 Credit Suisse shares held. The takeover, which follows multiple scandals and years of share price decline at Credit Suisse, controversially wiped out the 16 billion Swiss francs ($17 billion) worth of assets of the bank's AT1 bond holders.

Persons: Colm Kelleher, Sergio Ermotti Organizations: UBS, Credit Suisse, Regulators, American, SIX Swiss Exchange, New York Stock Exchange Locations: Swiss

☆ UBS completes Credit Suisse takeover
▼ + stars: | 2023-06-12 | by ( Hanna Ziady | ) edition.cnn.com time to read: +4 min

London CNN —UBS has finalized its emergency takeover of fallen rival Credit Suisse, creating a giant Swiss bank with nearly $1.7 trillion in assets in the biggest banking tie-up since the 2008 global financial crisis. The government has said that allowing Credit Suisse (CS) — one of the world’s 30 most important banks — to fail would probably have triggered an international financial crisis. Swiss taxpayers are on the hook for up to 9 billion Swiss francs ($10 billion) of losses that UBS may incur from certain Credit Suisse assets, over and above losses of 5 billion francs ($5.5 billion) that UBS has agreed to bear itself. Investors have already sued the Swiss financial regulator over its decision to impose those losses on them, Reuters has reported. Credit Suisse bled customer deposits worth 67 billion francs ($74.3 billion) in the first three months of the year, adding to massive withdrawals at the end of last year.

Persons: FINMA, “ FINMA, “, Sergio Ermotti, Colm Kelleher, Ermotti, Kelleher, ” Organizations: London CNN, UBS, Credit Suisse, Swiss, Financial Times, CNN, Suisse, Reuters, Credit, Silicon Valley Bank, Signature Bank Locations: Swiss, Switzerland, Silicon, United States

THE SWISS BANKPossibly the first hurdle is a politically fraught decision on Credit Suisse's "crown jewel", its domestic business. But UBS will have to weigh that against public pressure to keep the Credit Suisse business separate with its own brand, identity and, critically, workforce. However, insiders talk of rivals aggressively wooing Credit Suisse clients and employees. Clients who would typically bank both with UBS and Credit Suisse to spread their risk, might now take some of that business elsewhere. One potential risk stems from legal challenges to the decision by Swiss authorities to write off special AT1 bonds issued by Credit Suisse.

Persons: Sergio Ermotti, Ermotti, Colm Kelleher, Alan Mudie, Arturo Bris, Kelleher, Lars Schweizer, John Revill, Oliver Hirt, Noele Illien, Tomasz Janowski, Elisa Martinuzzi, Alexander Smith Organizations: Credit Suisse, UBS, Suisse, Woodman Asset Management, Finance, International Institute for Management Development, Reuters Graphics, Credit, Frankfurt University, Barclays, Thomson Locations: ZURICH, Switzerland, Swiss, Lausanne

Credit Suisse bankers, worried about their future are seeking safer employment at competitors, one person said. Credit Suisse said in April that the bank's "employee attrition has been higher over the last year," and that it had just over 48,000 full-time employees at the end of the first quarter. In an example of competitors poaching Credit Suisse's staff, Santander, Spain’s biggest bank, has hired at least eight bankers from Credit Suisse and was targeting more, Bloomberg News reported this month. UBS management has also said it would set a very high bar when deciding whether to retain any of Credit Suisse's investment banking staff. A banker from Credit Suisse in Zurich told Reuters the lender was in a state of flux, with its investment bank seeing the most staff departures.

Persons: Blick, Colm Kelleher, Noele Illien, Stefania Spezzati, Tomasz Janowski Organizations: Credit Suisse, UBS, . Credit Suisse, Credit Suisse's, Santander, Bloomberg News, Reuters, Swiss Finance Ministry, Thomson Locations: ZURICH, Swiss, Spain’s, Zurich

☆ Switzerland's Social Democrats propose shrinking UBS
▼ + stars: | 2023-05-30 | by ( John Revill | ) www.reuters.com time to read: +3 min

The left-leaning party will propose to cap the bank's assets at half of Switzerland's gross domestic product, effectively forcing the new UBS to slash its assets to a quarter of their current level. Social Democrats are the second-biggest party in the lower house, but with only 39 of the 200 seats will need support of other parties. The Swiss People's Party, which has 53 lower house seats, joined the Social Democrats in rejecting the government's aid package for the merger last month and has also called for no more taxpayer-funded bailouts for banks. An alternative, also considered by the Social Democrats, would be imposing higher capital requirements if the bank's assets rose above 50% of Swiss GDP. "The aim is for UBS to become smaller," Marti told the newspaper.

☆ Switzerland's Social Democrats propose shrinking UBS - Aargauer Zeitung
▼ + stars: | 2023-05-30 | by ( ) www.reuters.com time to read: +2 min

ZURICH, May 30 (Reuters) - Switzerland's Social Democratic Party has drawn up a proposal to shrink UBS (UBSG.S) assets after its takeover of Credit Suisse (CSGN.S), the Aargauer Zeitung newspaper reported. The lender is expected to close the deal with Credit Suisse "very shortly," Chairman Colm Kelleher said last week. An alternative would be imposing higher capital requirements if the bank's assets rose above 50% of Swiss GDP. At present the Swiss parliament is discussing an equity requirement of 15%. "The aim is for UBS to become smaller," Marti told the newspaper.

May 1 (Reuters) - Regulators seized First Republic Bank (FRC.N) and sold its assets to JPMorgan Chase & Co (JPM.N) on Monday, in a deal to resolve the largest U.S. bank failure since the 2008 financial crisis and draw a line under a lingering banking turmoil. Shares of JPMorgan rose 2% on Monday, while those of mid-tier banks fell and the KBW Regional Banking Index (.KRX) closed down 2.7%. [1/3] People walk past a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. "This is not the world financial crisis, this is not the savings and loan crisis. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, it added.

Shares of JPMorgan and some of the other the largest U.S. banks rose on Monday, while those of mid-tier banks fell. [1/3] People walk past a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. "This is not the world financial crisis, this is not the savings and loan crisis. JPMorgan also entered into a loss-share agreement with the FDIC on single family, residential and commercial loans it bought, but will not take First Republic Bank's corporate debt or preferred stock. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, it added.

First Republic was one of the major casualties of the banking crisis triggered in March, when depositors fled en masse from some U.S. lenders to institutions such as JPMorgan that they thought were safer. [1/2] People walk past a First Republic Bank branch in San Francisco, California, U.S. April 28, 2023. JPMorgan has assumed all of the bank's deposits, it said, and will repay $25 billion of the $30 billion big banks deposited with First Republic in March. JPMorgan said it expected to achieve a one-time, post-tax gain of about $2.6 billion after the deal. The failed bank's 84 offices in eight states will reopen as branches of JPMorgan Chase Bank from Monday, it added.

☆ The Fed’s autopsy report on Silicon Valley Bank is coming. Here’s what to expect
▼ + stars: | 2023-04-28 | by ( Allison Morrow | ) edition.cnn.com time to read: +3 min

The Federal Reserve, which is responsible for supervising banks in the United States, plans to release its report at 11 a.m. Another federal regulator, the Federal Deposit Insurance Corporation, will release a similar report on Signature Bank, which fell two days after SVB, in the afternoon. Those assets began steadily losing value when the central bank raised interest rates at a rapid pace last year. As the bank stumbled, it became clear that virtually all — 97%, according to data from Wedbush Securities — of SVB’s deposits were uninsured. There are indications the Fed, SVB’s primary regulator, warned the bank as early as 2019 about its insufficient risk-management systems, according to reporting from the Wall Street Journal and the New York Times.

☆ Resolving Credit Suisse: an alternative history
▼ + stars: | 2023-04-27 | by ( Liam Proud | ) www.reuters.com time to read: +8 min

Reuters GraphicsThe market shock will be all the more extreme because Credit Suisse doesn’t obviously need more capital. It seems perverse to put taxpayer money on the line while leaving the Credit Suisse bonds untouched. Of the 30 global lenders classed as systemically important by the Financial Stability Board, Credit Suisse is the third-smallest by total assets. It also enables the Swiss National Bank to offer Credit Suisse an open-ended credit line, hopefully ending the bank run. Credit Suisse is suffering from a crisis of confidence brought on by years of mismanagement, rather than a system-wide meltdown.

☆ Craving Beauty, but at What Cost?
▼ + stars: | 2023-04-26 | by ( Jennifer Szalai | ) www.nytimes.com time to read: +2 min

THE UGLY HISTORY OF BEAUTIFUL THINGS: Essays on Desire and Consumption, by Katy KelleherActivities that we tend to think of as distinctly human often have nothing to do with immediate survival. In “The Ugly History of Beautiful Things,” Katy Kelleher writes about the extreme and sometimes hideous lengths that people have gone to in order to obtain coveted objects of beauty: ruining their health, wrecking the planet, inflicting suffering on others. “I’ve never found an object that was untouched by the depravity of human greed or unblemished by the chemical undoings of time,” Kelleher writes. A journalist who writes about home and design, she realizes that it has been her job to encourage others to do the same. Kelleher points out that an element of ugliness can be part of an object’s appeal, distinguishing between the intriguingly beautiful and the boringly pretty.

[1/2] A view shows the logo of Credit Suisse on a building near the Hallenstadion where Credit Suisse Annual General Meeting took place, two weeks after being bought by rival UBS in a government-brokered rescue, in Zurich, Switzerland, April 4, 2023. UBS and Credit Suisse declined to comment. What's more, UBS doesn't tend to lend to potential clients as Credit Suisse has often done, a move that can persuade some customers. "There are clearly parts of Credit Suisse that have had a bad culture," UBS Chairman Colm Kelleher told reporters on March 29. UBS ranked 14th advising on mergers globally last year, behind 11th placed Credit Suisse, according to data compiled by Dealogic.

☆ UBS can score a quick win with Swiss sale
▼ + stars: | 2023-04-12 | by ( Liam Proud | ) www.reuters.com time to read: +4 min

LONDON, April 12 (Reuters Breakingviews) - Credit Suisse’s (CSGN.S) Swiss business is theoretically the jewel in the bank’s tarnished crown. Hiving off the Credit Suisse local unit could save Kelleher and his Chief Executive Sergio Ermotti a lot of grief. By contrast, UBS is paying just $3.6 billion for all of Credit Suisse, based on the buyer’s most recent share price. Kelleher could in theory just hand the Credit Suisse local division to shareholders, but that could prove destabilising if they all cash out immediately. UBS will rescue Credit Suisse in a deal worth about 3 billion Swiss francs, Swiss authorities and the two banks said on March 19.

☆ Analysis: Heroes or villains: Short sellers' role in the U.S. bank crisis
▼ + stars: | 2023-04-09 | by ( Lawrence Delevingne | ) www.reuters.com time to read: +7 min

How much short sellers contributed to the downward spiral reprises the debate about whether so-called shorts are market watchdogs or opportunistic investors who profit from others’ misery. In the case of the banking crisis, a review of data and interviews with short sellers and their critics show, the answer may be both. Some high profile short sellers were later celebrated as making prophetic calls about the U.S. housing market. Even so, interviews and public postings show at least some short sellers had placed bets against regional banks well before the crisis hit. SHORT POSITIONSSuch early short sellers, however, were in the small minority.

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