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Nov 16 (Reuters) - Crypto lender Genesis Global Capital suspended redemptions on Wednesday citing the failure of crypto exchange FTX, while court papers showed FTX founder Sam Bankman-Fried faces legal action, as its sudden collapse ripples across the industry. LEGAL ACTIONMeanwhile, U.S. court filings showed Bankman-Fried is facing legal action in the United States from investors alleging the company's yield-bearing crypto accounts violated Florida law. Bloomberg on Tuesday also reported that U.S. and Bahamian authorities were discussing the possibility of bringing Bankman-Fried to the United States for questioning. Elsewhere, crypto exchange Binance, in a response to a hearing on the crypto industry by a British parliamentary committee on Monday, said it had not contributed to FTX's collapse. The U.S. House Financial Services Committee said Wednesday it plans to hold a hearing in December to investigate the collapse of cryptocurrency exchange FTX.

☆ Crypto broker Genesis suspends redemptions, new loans to shore up liquidity
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +1 min

Nov 16 (Reuters) - Genesis is temporarily suspending redemptions and new loan originations at its lending business, the crypto broker saidon Wednesday, the latest sign of the industry fallout from last week's collapse of major crypto exchange FTX. loading"We have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business. We are working diligently to shore up the necessary liquidity to meet our lending client obligations," a Genesis spokesperson said in a statement. The suspension at Genesis "has no impact on the business operations of DCG and our other wholly owned subsidiaries", Digital Currency Group tweeted. Genesis Trading's derivatives business has approximately $175 million in locked funds on FTX, the company said Thursday.

☆ Crypto Lender Genesis Suspends Withdrawals After FTX Collapse
▼ + stars: | 2022-11-16 | by ( Caitlin Ostroff | Vicky Ge Huang | ) www.wsj.com time to read: 1 min

Cryptocurrency lender Genesis told clients that it is suspending redemptions and new loan originations following the collapse of crypto exchange FTX. The swift demise of FTX, which filed for bankruptcy last week, created unprecedented turmoil for Genesis, causing the company’s lending arm to be unable to meet all withdrawal requests, the company told clients on a Wednesday call. The company said it would deliver a plan next week for its lending business.

Nov 16 (Reuters) - Crypto broker Genesis Global Capital is suspending redemptions and new loan originations at its lending business, it said on Wednesday, in the latest sign of the industry fallout from last week's collapse of major crypto exchange FTX. "We have taken the difficult decision to temporarily suspend redemptions and new loan originations in the lending business. We are working diligently to shore up the necessary liquidity to meet our lending client obligations," a Genesis spokesperson said in a statement. U.S. court filings showed Sam Bankman-Fried, FTX's founder, is being sued in a U.S. class action by investors alleging the company's yield-bearing crypto accounts violated Florida law. The proposed class action filed late on Tuesday in Miami alleges that FTX yield-bearing accounts were unregistered securities that were unlawfully sold in the United States.

The lending arm of the bank serves an institutional client base and is known as Genesis Global Capital. Genesis Trading, which acts as Genesis Global Capital's broker/dealer, is independently capitalized and operated separately from that lending unit, interim CEO Derar Islim told customers on a call Wednesday, according to CoinDesk. He reportedly added that Genesis' trading and custody services remain fully operational. Sam Bankman-Fried's cryptocurrency exchange FTX filed for Chapter 11 bankruptcy protection in the U.S. last week, according to a company statement posted on Twitter. Approximately 130 additional affiliated companies are part of the proceedings, including Alameda Research, Bankman-Fried's crypto trading firm, and FTX.us, the company's U.S. subsidiary.

☆ Grayscale Bitcoin Trust falls as cryptocurrencies slide again
▼ + stars: | 2022-11-16 | by ( ) www.reuters.com time to read: +2 min

Nov 16 (Reuters) - Grayscale Bitcoin Trust (GBTC.PK), the world's largest bitcoin fund, fell almost 7% on Wednesday, as investors dumped more digital assets after last week's high-profile unraveling of crypto exchange FTX. The trust is a close-ended fund, whose short-term price is driven by supply, demand and market sentiment unlike an exchange traded fund that generally trades in line with its value. In June, Grayscale sued the U.S. Securities and Exchange Commission for nixing the digital asset manager's proposal to convert bitcoin trust into a spot bitcoin exchange traded fund. Grayscale bitcoin fund, which has $10.7 billion worth of bitcoin under management, has slumped about 75% in the past 12 months. Grayscale Ethereum Trust (ETHE.PK), which has $3.8 billion assets under management, shed 81% in the past year.

☆ Tom Brady and Gisele Bundchen named in lawsuit against FTX
▼ + stars: | 2022-11-16 | by ( Allison Morrow | ) edition.cnn.com time to read: +6 min

Genesis said it was working with advisers “to explore all possible options,” adding that it would release a plan for the lending business next week. “We’re working tirelessly to identify the best solutions for the lending business, including among other things, sourcing new liquidity,” the company said. The suspension comes as the entire crypto industry is on edge following the unraveling of Sam Bankman-Fried’s FTX exchange and Alameda Research hedge fund, both of which filed for bankruptcy late last week. On Wednesday an FTX investor sued Bankman-Fried as well as several celebrities who have endorsed the platform, including Tom Brady, Gisele Bundchen and Steph Curry. “The deceptive FTX platform maintained by the FTX entities was truly a house of cards,” the proposed class-action lawsuit states.

☆ Real-estate tech firms are getting hammered by a cataclysmic reckoning that one VC called a cross between the 2001 dot-com bust and the 2008 market crash
▼ + stars: | 2022-11-16 | by ( Daniel Geiger | ) www.businessinsider.com time to read: +10 min

The proptech sector is battling two challenges at once: a slowing housing market and a tech bust. For almost a decade, a growing group of companies have thrived by introducing tech innovations to a stubbornly analog real-estate industry. "Now we're seeing something that feels like a confluence between the 2001 dot-com bust in the venture-capital world and the 2008 market crash in real estate. Shares of both Opendoor and Redfin, which once drew investor attention to the soaring proptech industry, are worth roughly one-tenth what where they were a year ago. The company hasn't laid off any of its 300-person staff — including a roughly 50-person tech team — and doesn't plan to, Matthews said.

☆ NY Fed: Consumer debt rises in third quarter on strong demand, high inflation
▼ + stars: | 2022-11-15 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

That said, overall mortgage debt during the third quarter rose by $282 billion and hit $11.67 trillion at the end of September, the New York Fed said. The rise in consumer level debt took place in an economy where unemployment was low and consumer demand was high amid the worst levels of inflation seen in 40 years. INFLATION BOOSTS CONSUMER SPENDINGThe New York Fed report said that during the third quarter there was a 15% increase in credit card balances, which was the largest such increase in more than 20 years. The report noted that student loan balances declined slightly during the third quarter and stood at $1.57 trillion. A report from the New York Fed in September said that the president's plan could cancel out just under half a trillion dollars' worth of existing debt.

☆ Household debt soars at fastest pace in 15 years as credit card use surges, Fed report says
▼ + stars: | 2022-11-15 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

Households increased debt during the third quarter at the fastest pace in 15 years due to hefty increases in credit card usage and mortgage balances, the Federal Reserve reported Tuesday. The increase follows a $310 billion jump in the second quarter and represents a $1.27 trillion annual increase. The biggest contributors to that debt load came from mortgage balances, which rose $1 trillion from a year ago to $11.7 trillion, and credit card debt, which climbed to $930 billion. New York Fed researchers attributed the credit card growth to "very robust" consumption, rising prices and consumers using substantial levels of savings that remain on accounts. Auto loan debt, while posting only a slight increase on a quarterly basis, is up 5.6% from a year ago.

☆ Piraeus Bank swings to 9-month profit, ups full-year guidance
▼ + stars: | 2022-11-11 | by ( George Georgiopoulos | ) www.reuters.com time to read: +2 min

The bank reported net earnings of 729 million euros ($746.86 million) after a loss of 3.085 billion euros in the nine-month period in 2021. Net earnings in the third quarter grew to 116 million euros from 92 million in the second quarter. Piraeus Bank generated 0.28 euros of earnings per share in the nine-month period and expects to outperform its previous 0.35 euro full-year 2022 guidance, he said. Its performing-loans portfolio expanded by 800 million euros in the third quarter and by 2.3 billion in the nine-month period, topping a revised annual target of 2.0 billion euros. Likewise, net fee income rose 12% year-on-year in the nine-month period thanks to new loan originations and bancassurance.

☆ WAFD Bank reports loan originations down 70% in last 2 months
▼ + stars: | 2022-11-10 | 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 EmailWAFD Bank reports loan originations down 70% in last 2 monthsBrent Beardall, president and CEO of WAFD bank, joins 'The Exchange' to discuss housing loan demand slowing, the consequences of government stimulus and net outflows data.

☆ Wells Fargo, Ford and Apple are in the news. Here's our take on the Club stocks
▼ + stars: | 2022-11-02 | by ( Paulina Likos | ) www.cnbc.com time to read: +4 min

Club holdings Wells Fargo (WFC), Ford (F) and Apple (AAPL) are in the news Wednesday, with potential implications for our investment outlook. Wells Fargo The news: Wells Fargo could initiate another round of layoffs at its home mortgage division amid a collapse in homebuyer demand, according to a CNBC report . In its fiscal-third quarter, revenue from Wells Fargo's home lending unit fell 52% year-over-year, due to lower mortgage originations. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. A pedestrian walks by a Wells Fargo home mortgage office in San Francisco.

☆ Mississippi River water woes, retail overstock trailers: Latest supply chain stresses for economy
▼ + stars: | 2022-10-17 | by ( Lori Ann Larocco | ) www.cnbc.com time to read: +5 min

The towboat Roberta Tabor pushes barges up the Mississippi River in Granite City, Illinois, US, on Friday, July 9, 2022. Bloomberg | Bloomberg | Getty ImagesAccording to the National Weather Service Memphis Office, the Mississippi River is projected to tie the all-time record of -10.70 feet, either later today or tonight. The Mississippi River is a vital waterway for trade and the lower water levels have impacted the amount of commodities that can be imported or exported out of New Orleans. "Our members depend upon adequate water levels in the Mississippi River system, to reach domestic and international export markets. The East Coast congestion has had a massive impact on vessel reliability.

☆ Blackstone, Apollo brace for deteriorating commercial real estate market that one analyst says could lose 30% of its value
▼ + stars: | 2022-09-29 | by ( Kelsey Neubauer | Alex Nicoll | ) www.businessinsider.com time to read: +8 min

Year-over-year price growth has already slowed for commercial properties, signaling souring outlooks that could reduce values by 20 to 30%, the strategists wrote in a report. Executives at the Bisnow event pointed to high rents on multifamily properties, though growth is softening. Yardi"If this doesn't clear the market, then I don't know what does," Marcus said of her multifamily properties, which she described as large and relatively new. Andrew Holm, a cohead of US investments at Ares, the owner of more than $50 billion in commercial real estate, is hunkered down for the long haul, however. At the Bisnow event, he was so bearish on commercial real estate that he struggled to name a single sector that might be attractive over the next six months.

☆ Wells Fargo is undergoing a major transformation under CEO Charlie Scharf. These are the units most affected.
▼ + stars: | 2022-06-28 | by ( Business Insider | ) www.businessinsider.com time to read: +8 min

Wells has been revamping its wealth business and shrinking its mortgage unit under Charlie Scharf. Change is hard — just ask Charlie Scharf, CEO of Wells Fargo. And for every scandal Wells Fargo has put behind it, a new one seems to crop up. Wells Fargo has fired dozens of loan officers accused of misusing appraisal waivers. Wells Fargo CEO Charlie Scharf has called the change in leadership at the bank a 'dramatic change.'

Persons: Wells, Charlie Scharf, Scharf, He's, Wells Fargo, Abbot Downing, Goldman Sachs, pare, Fannie Mae, Freddie Mac, Read, — Organizations: Federal, Wells Fargo Advisors, JPMorgan, Federal Reserve, Bloomberg, New York Times, Wells Locations: Wells Fargo, San Francisco, Wells

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