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April 11 (Reuters) - Banks that contributed the bulk of $30 billion in deposits to First Republic Bank (FRC.N) plan to set aside about $100 million each in first-quarter earnings in case of potential losses, two sources with direct knowledge of the matter said. The sources declined to be identified because of the sensitivity of the situation. The banks declined to comment. The four largest U.S. banks were among a group of 11 lenders that bolstered First Republic after its shares plunged during the crisis triggered by the collapse of Silicon Valley Bank and Signature Bank. Major U.S. banks will begin reporting first-quarter earnings from Friday.

☆ Buffett: Do not panic about U.S. banks and deposits
▼ + stars: | 2023-04-12 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

April 12 (Reuters) - Warren Buffett said people should not be panicked about the banking industry or the safety of U.S. bank deposits, despite the recent failures of Silicon Valley Bank and Signature Bank. "People shouldn't be worried about losing their money and their deposits they have in an American bank, but the message has gotten very confused," Buffett, 92, said on CNBC. Berkshire's equity portfolio includes several banks, including a $34.2 billion year-end stake in Bank of America Corp (BAC.N). Buffett says banks have "mismanaged" assets and liabilities for a long time, and "every now and then it bites them in a big way." Buffett also said he would bet $1 million that no American depositor would lose money from a bank failure in the next year.

☆ Unstable markets drag Canadian M&A, debt issuance to four-year low
▼ + stars: | 2023-04-06 | by ( Maiya Keidan | ) www.reuters.com time to read: +3 min

The collapse of regional banks Silicon Valley Bank and Signature Bank in the U.S. tightened credit market making funding difficult for deals. As the banking crisis abate and many global central banks move to the sidelines to assess the impact of rapid interest rates hikes, bankers are, however, betting that appetite for dealmaking would return. Canadian M&A volumes totalled $34.7 billion in the first quarter, down 52.3% from a year ago, with dealmaking off to the worst start since the same period in 2020. Some market participants noted the second quarter is already off to a stronger start, with the mining sector gathering momentum. Abeed Ramji, head of Canadian Debt Capital Markets at TD, said the lack of issuance from banks impacted the corporate debt market, adding that global markets had become more expensive for financing.

☆ Media Veteran Lou Paskalis Joins Group to Encourage Brands to Advertise on News
▼ + stars: | 2023-04-05 | by ( Megan Graham | ) www.wsj.com time to read: 1 min

Marketers in the digital era have become increasingly concerned about making sure their ads don’t appear near content that they or their consumers could consider objectionable. Lou Paskalis , a longtime advertising industry executive who previously held leadership roles at the marketing trade group MMA Global and Bank of America Corp., has joined a startup that seeks to rate news for reliability and bias. Mr. Paskalis this week became chief strategy officer at Ad Fontes Media Inc. , a Colorado-based public-benefit corporation—a for-profit company that aims to generate public good.

☆ JPMorgan's Dimon says US banking turmoil not over, sees long repercussions
▼ + stars: | 2023-04-04 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +3 min

And the banking system is under renewed stress after the failure of Silicon Valley Bank and Credit Suisse's rescue by UBS last month. "The market's odds of a recession have increased," Dimon wrote. "And while this is nothing like 2008, it is not clear when this current crisis will end. Even so, it is unclear whether the disruptions will slow the consumer spending that drives the U.S. economy, Dimon wrote. Any new regulations in response to the latest turmoil should be "thoughtful," including clearer rules for dealing with failed banks, Dimon wrote.

☆ JPMorgan's Dimon says US banking crisis not over, sees long repercussions
▼ + stars: | 2023-04-04 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +3 min

NEW YORK, April 4 (Reuters) - The U.S. banking crisis is ongoing and will have effects for years to come, JPMorgan Chase & Co (JPM.N) CEO Jamie Dimon wrote in a letter to shareholders on Tuesday. "The market's odds of a recession have increased," Dimon wrote. "And while this is nothing like 2008, it is not clear when this current crisis will end. Even so, it is unclear whether the disruptions will slow the consumer spending that drives the U.S. economy, Dimon wrote. Any new regulations in response to the latest turmoil should be "thoughtful," including clearer rules for dealing with failed banks, Dimon wrote.

☆ SVB Collapse Complicates Banks’ Efforts to Unload More Than $25 Billion of Junk Debt
▼ + stars: | 2023-04-02 | by ( Alexander Saeedy | Laura Cooper | ) www.wsj.com time to read: 1 min

Silicon Valley Bank had to sell bonds at a loss. Recent turmoil in the banking industry has made the already-difficult task of selling off tens of billions of risky buyout debt even harder for Wall Street firms. Bank of America Corp., Barclays PLC, Morgan Stanley and others together currently hold $25 billion to $30 billion of “hung debt” on their balance sheets, according to leveraged-finance analytics firm 9fin. The unsold debt is tied to leveraged buyouts that banks agreed to finance before worsening credit conditions last year sapped investor appetite for the paper.

March 30 (Reuters) - Citigroup Inc (C.N) hired Andy Sieg to lead its global wealth arm, the lender said on Thursday, from Bank of America Corp (BAC.N), where he led the Merrill Wealth Management unit. Two years ago, Citigroup unified its various wealth businesses into a single organization led by Jim O'Donnell that included its private bank and personal wealth management divisions. Fraser signaled the bank's intention to become a global leader in wealth management at its investor day last year. "This is a fantastic opportunity to build a leading wealth management business at the world's most global bank at a time of massive wealth creation," he said in a statement. Sieg's departure prompted the appointments of Lindsay Hans and Eric Schimpf as co-leads of Merrill Wealth Management, Bank of America said in a separate statement.

March 30 (Reuters) - Citigroup Inc (C.N) on Thursday it has hired Andy Sieg to lead its global wealth arm from Bank of America Corp (BAC.N), where he led the Merrill Wealth management unit. Two years ago, Citigroup unified its various wealth businesses into a single wealth management organization, which was led by Jim O'Donnell and included the Citi Private Bank and Citi Personal Wealth Management. At its investor day last year, Fraser signaled the bank's intention to become a global leader in wealth management. Sieg's departure led to the appointments of Lindsay Hans and Eric Schimpf as co-leads of Merrill Wealth Management, Bank of America said in a separate statement. Sieg joined Merrill Lynch in 1992 and had served as Merrill president since 2017.

NEW YORK, March 29 (Reuters) - Bank of America Corp's (BAC.N) digital personal finance tool, Life Plan, has attracted more than $55 billion in new money since its launch in late 2020, as customers use technology to set financial goals. Life Plan, which has more than 10 million users, enables customers to set goals such as saving for a vacation or college or to build a retirement fund. BofA's app allows customers to move money around their bank and brokerage accounts, as well as pull in funds from other institutions, David Tyrie, chief digital officer at Bank of America, told Reuters. While millennials and Gen-Z account for 63% of the app's users, Gen X and baby boomers make up 38%. Reporting by Lananh Nguyen and Nupur Anand in New York; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

Deposits held by small U.S. banks dropped by a record $119 billion to $5.46 trillion after the collapse of Silicon Valley Bank on March 10, according to data released Friday by the Federal Reserve. "We expect stress in the banking system to weigh on credit growth, which will in turn reduce real GDP growth," Goldman Sachs analysts led by chief economist Jan Hatzius wrote in a note, referring to gross domestic product. Tighter credit conditions will exert meaningful pressure on economic activity, but the effect will not be catastrophic unless the situation escalates into "full-blown crisis of confidence," Barclays analysts wrote in a note last week. U.S. regulators announced on Monday they would backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire failed Silicon Valley Bank, triggering an estimated $20 billion hit to a government-run insurance fund. "Banking system stress remains high, but there are some signs of stabilization," Bank of America Corp (BAC.N) analysts wrote in a note.

Regulators shuttered Silicon Valley Bank (SVB) and Signature Bank, the second and third largest closures in the nation's history. Authorities then took unprecedented action to backstop the collapsed companies' deposits and introduced new measures to shore up confidence. The ups and downs may have helped banks' trading desks as choppy markets fueled client activity. While billions of dollars of those deposits landed at the biggest banks, some analysts said the influx was unlikely to provide a major boost to their earnings. Investors are becoming increasingly focused on the rising cost of funding for banks, which could weigh on earnings, analysts at Piper Sandler wrote in a note last week.

☆ Bank of America to redeploy wealth management, banking employees - source
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: +1 min

March 24 (Reuters) - Bank of America Corp (BAC.N) is redeploying employees in wealth management and lending to other roles within the company, a source familiar with the matter said on Friday, as higher interest rates continue to weigh on the businesses. Less than 200 employees are being moved to product specialist positions within the company's global operations organization, the source told Reuters. Based on current market conditions, we are re-aligning talent to support these areas," a Bank of America spokesperson said. The move highlights the broader weakness in Wall Street banks' mortgage and wealth management businesses in a rising interest rate environment. Wells Fargo & Co (WFC.N) slashed hundreds of jobs in its mortgage business across the U.S., Bloomberg News reported in December.

[1/2] A JPMorgan logo is seen in New York City, U.S., January 10, 2017. While lenders regularly compete for customers, the loss of confidence that shook the banking system in the last two weeks sparked concerns about contagion that could lead to a broader panic. President Joe Biden, Treasury Secretary Janet Yellen and Citigroup Inc. C.N Chief Executive Jane Fraser have all made statements in recent days to reassure the public that the U.S. banking system is safe. "We all have a vested interest in keeping America's financial system strong and thriving," a JPMorgan spokesperson said. "It's the envy of the world with thousands of institutions of all sizes serving every corner of the country."

☆ Bank Stocks Slump After Fed Raises Rates
▼ + stars: | 2023-03-22 | by ( Gina Heeb | ) www.wsj.com time to read: 1 min

Financial stocks dropped sharply Wednesday after the Federal Reserve raised interest rates by an expected quarter point and signaled that it isn’t overly concerned about economic risks tied to the collapse of several banks. The KBW Nasdaq index of commercial banks and the SPDR S&P Regional Banking ETF were both down about 4%, after earlier being down less than half that. Shares of two major regional banks, PNC Financial Services Group and U.S. Bancorp , were down more than 5%. JPMorgan Chase & Co. and Bank of America Corp. were down more than 2%.

☆ First Republic seeks new ways to escape unrealized losses
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +5 min

March 21 (Reuters) - First Republic Bank's (FRC.N) efforts to secure a capital infusion continued without success on Tuesday, as the troubled regional lender started to plan for the possibility it may need to downsize or get a government backstop. Bloomberg News reported U.S. officials and Wall Street leaders seeking to aid First Republic were exploring the possibility of government backing that would help overcome the issue of the bank's unrealized losses. JPMorgan is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said. "There are a number of factors lifting the (financial) stocks, including the comments by Yellen. "We believe First Republic remains in crisis," said Jason Benowitz, senior portfolio manager at CI Roosevelt.

NEW YORK, March 22 (Reuters) - JPMorgan (JPM.N) Chief Executive Jamie Dimon is scheduled to meet with Lael Brainard, the director of the White House's National Economic Council, during the executive's planned trip to Washington, according to a person familiar with the situation. The CEOs of major banks gathered in Washington for a two-day scheduled meeting which started on Tuesday, sources familiar with the matter previously said. The quarterly meeting of the Financial Services Forum included Dimon and Bank of America Corp (BAC.N) CEO Brian Moynihan, who head the nation's two largest lenders, the sources said. The banks were aiming to work out details for what needs to be done for First Republic within the coming 24 hours, another source said. Eleven lenders, including the eight members of the Financial Services Forum, threw First Republic a lifeline of a combined $30 billion in deposits last week.

NEW YORK, March 22 (Reuters) - JPMorgan (JPM.N) Chief Executive Jamie Dimon met Lael Brainard, the director of the White House National Economic Council on Wednesday, while in Washington this week, according to a person familiar with the situation. Brainard met with a range of business leaders including Dimon, part of a series of meetings she has had over the last month with business, labor, advocacy, and academic leaders, the source said. The CEOs of major banks gathered in Washington for a two-day meeting which started on Tuesday, sources familiar with the matter previously said. The banks were aiming to work out details for what needs to be done for First Republic within the coming 24 hours, another source said. On Tuesday, Reuters reported First Republic is examining how it can downsize and sell parts of its business, including some of its loan book, in a bid to raise cash and cut costs.

☆ First Republic slumps after report of potential government backing in deal
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +5 min

March 21 (Reuters) - Shares of First Republic Bank (FRC.N) tumbled 14% in extended trade on Tuesday following a report that a potential deal for the troubled bank could rely on government backing to encourage buyers. Potential government backing in a deal to save First National could involve conditions at the expense of the bank's shareholders, said Dennis Dick, a trader at Triple D Trading in Ontario, Canada. While a sale of the entire bank remains possible, First Republic is currently focused on raising capital, the third source said. First Republic's shares had surged as much as 60% on Tuesday before closing up 30%, but even so First Republic's stock has lost over 80% in value in the past two weeks. JPMorgan is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said.

☆ First Republic's future to be discussed as major bank CEOs meet, sources say
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, March 21 (Reuters) - Major bank chief executives are gathering in Washington for a two-day scheduled meeting starting on Tuesday, with the future of First Republic Bank (FRC.N) to be discussed, sources familiar with the matter said. The quarterly meeting of the Financial Services Forum will include JPMorgan Chase & Co.'s (JPM.N) Jamie Dimon and Bank of America Corp's (BAC.N) Brian Moynihan, the sources said. First Republic Bank is among the banks that have been speaking to peers and investment firms about potential deals in the wake of U.S. regulators taking over Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) this month amid a flight of depositors, sources have said. Two sources familiar with the matter previously said that all options are on the table for First Republic, which could include a sale or equity infusion. JPMorgan Chase & Co (JPM.N) is advising First Republic on its options to raise capital from investors, a source familiar with the situation previously said.

☆ First Republic shares fall on fresh liquidity fears as peers rebound
▼ + stars: | 2023-03-20 | by ( Medha Singh | ) www.reuters.com time to read: +3 min

March 20 (Reuters) - Shares of First Republic Bank (FRC.N) slumped 13.1% on Monday, after a report the regional bank could raise more money fanned worries about its liquidity despite a $30 billion rescue last week. Shares of some of the big banks involved in the unprecedented support rose, reversing premarket losses. "Even though First Republic Bank says that they have the financial backing to survive, investors are concerned that they too will have to be taken over," said Jason Pride, chief investment officer of private wealth at Glenmede. The S&P 1500 regional banks index (.SPCOMBNKS) added nearly 4%, outperforming S&P 500 banks' (.SPXBK) 2.6% rise. A U.S. official told Reuters on Sunday that the deposit outflows that left many regional banks reeling in the wake of Silicon Valley Bank's failure had slowed and in some cases reversed.

☆ First Republic shares fall as private placement report stirs fresh liquidity fears
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +1 min

March 20 (Reuters) - Shares of First Republic Bank (FRC.N) slumped 16% on Monday, leading losses among U.S. lenders in premarket trading, after a report the regional bank could raise more money fanned worries about its liquidity despite a $30 billion rescue last week. S&P Global downgraded the bank deeper into junk status on Sunday and said the recent cash infusion from 11 large U.S. banks may not solve its liquidity problems. Shares of the banks involved in the unprecedented support also fell. On Sunday, Reuters reported that the lender was still trying to put together a capital raise but that no deal was imminent. PacWest Bankcorp (PACW.O) climbed 5.9% after the bank said deposit outflows had stabilized and its available cash exceeded total uninsured deposits.

☆ Buffett's Berkshire Hathaway speeds up stock buybacks
▼ + stars: | 2023-03-19 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

March 19 (Reuters) - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) has stepped up its pace of stock buybacks, repurchasing more than $1.8 billion of its own stock this year. Berkshire's repurchases have also included Class B shares, which normally cost about 1/1500th as much as Class A shares. The Class A shares closed on Friday at $442,765, their low for the year, while the Class B shares closed at $293.51, near their low. Buffett owns 15.6% of Berkshire's stock. In his Feb. 25 annual letter to shareholders, Buffett defended buybacks, calling someone who views all repurchases as harmful "an economic illiterate or a silver-tongued demagogue."

He now faces renewed criticism over his agenda at the Fed, where he oversaw efforts to reduce regulations on regional banks. U.S. regional banks are expected to pay higher rates to depositors to keep them from switching to larger lenders, leaving them with higher funding costs. In 2008, regulators had to contend with billions of dollars in toxic mortgages and complex derivatives sitting on bank books. Currently, regional banks below $250 billion in assets have simpler capital, liquidity and stress testing requirements. "SVB is not a very complicated bank," said Dan Awrey, a Cornell Law professor and bank regulation expert.

[1/2] A person walks past a First Republic Bank branch in Midtown Manhattan in New York City, New York, U.S., March 13, 2023. REUTERS/Mike SegarMarch 17 (Reuters) - Shares of First Republic Bank (FRC.N) lost almost 33% on Friday, totaling a loss of around 80% in the last 10 sessions, despite a rescue package with $30 billion in deposits injected by large U.S. banks. Founded in 1985, First Republic had $212 billion in assets and $176.4 billion in deposits as of the end of last year, according to its annual report. The rescue package came less than a day after Swiss bank Credit Suisse (CSGN.S) clinched an emergency central bank loan of up to $54 billion to shore up its liquidity. The ratings agency had downgraded its outlook on the U.S. banking system to negative earlier this week.

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