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☆ FDIC to propose comprehensive changes to regional US bank living wills
▼ + stars: | 2023-08-14 | by ( ) www.reuters.com time to read: +3 min

REUTERS/Evelyn HocksteinAug 14 (Reuters) - A coming regulatory proposal will overhaul how large regional banks prepare living wills in the event of their failure, U.S. Federal Deposit Insurance Corporation Chairman Martin Gruenberg said on Monday. Banks are currently required to submit plans to regulators detailing how they would wind up their businesses should they fail. "The proposed rule would require a bank to provide a strategy that is not dependent on an over-the-weekend sale," Gruenberg said. The proposal would also require banks to identify parts that could be sold separately, Gruenberg said, noting that could reduce their size and "expand the universe of possible acquirers." The proposal would require additional information from banks with more than $50 billion in assets, but not full resolution plans, he said.

Persons: Martin J, Gruenberg, Evelyn Hockstein, Martin Gruenberg, Banks, Douglas Gillison, Richard Chang Organizations: Deposit Insurance, Banking, Housing, Urban Affairs, REUTERS, U.S . Federal Deposit Insurance, . U.S, Brookings Institution, Regulators, Valley Bank, Signature Bank, Thomson Locations: Washington , U.S, U.S ., ., Washington

☆ What does Moody’s downgrade mean for markets?
▼ + stars: | 2023-08-09 | by ( Krystal Hur | ) edition.cnn.com time to read: +5 min

CNN —Moody’s on Monday evening downgraded 10 US banks and put the credit ratings of six others on review, an indication that the agency could also eventually downgrade those institutions. Some investors say that while the Moody’s downgrade isn’t groundbreaking, it’s a reminder that the economy, and markets, still have challenges ahead. Moody’s downgraded Commerce Bank, BOK Financial, M&T Bank, Old National Bank, Prosperity Bank, Amarillo National Bank, Webster Financial, Fulton Financial, Pinnacle Financial and Associated Bank. Wall Street firms fined $549 million for using WhatsApp and other channelsWells Fargo is among a number of Wall Street firms that admitted Tuesday to using WhatsApp, Signal and other messaging platforms for “off-channel” communications in violation of federal recordkeeping requirements. The Securities and Exchange Commission said the Wall Street firms acknowledged wrongdoing and have agreed to pay penalties totaling $289 million, reports my colleague Matt Egan.

Persons: CNN — Moody’s, JPMorgan Chase, Wells, Goldman Sachs, BNY, Cullen, Frost, ” Moody’s, ”, Kara Murphy, Fitch, Christopher Marinac, Janney Montgomery Scott, Price, Matt Egan, Houlihan Lokey, Alicia Wallace Organizations: CNN Business, Bell, CNN, Bank, Dow Jones, Nasdaq, JPMorgan, Banking, BNY Mellon, Northern Trust, Frost Bankers, Truist Financial, US Bank, Moody’s, Commerce Bank, BOK, T Bank, National Bank, Prosperity Bank, Amarillo National Bank, Webster Financial, Fulton Financial, Pinnacle Financial, Associated Bank, PNC Financial Services, Financial, Citizens Financial, Fifth Third Bank, Huntington Bank, Regions Financial, Cadence Bank, FNB Corp, Simmons, Ally Financial, Bank OZK, Valley Bank, Signature Bank, Federal Reserve, Kestra Investment Management, Consumer, Wall Street, Securities, Exchange Commission, SEC, BNP, SG Americas, BMO Capital Markets, Mizuho Securities, SMBC Nikko Securities, Federal Reserve Bank of New Locations: Wells Fargo, Amarillo, Marinac, Wells, SMBC Nikko Securities America, WhatsApp, Federal Reserve Bank of New York, York

Moody's cut the ratings of 10 U.S. banks by one notch and placed some banking giants on review for potential downgrades. The downgraded banks include M&T Bank (MTB.N), Pinnacle Financial Partners (PNFP.O), Prosperity Bank and BOK Financial Corp (BOKF.O). The banks placed on review for downgrade include BNY Mellon (BK.N), US Bancorp (USB.N), State Street (STT.N) and Truist Financial (TFC.N). Moody's changed its outlook to negative from stable for Capital One (COF.N), Citizens Financial (CFG.N) and Fifth Third Bancorp (FITB.O), among others. The ratings agency also affirmed the ratings of PNC Financial Services Group (PNC.N), Citizens, and Huntington Bancshares (HBAN.O) alongside other banks.

Persons: Moody's, BNY Mellon, Huntington, Juby Babu, Muralikumar Anantharaman Organizations: Moody's Corporation, T Bank, Pinnacle Financial Partners, Prosperity Bank, BOK Financial Corp, BNY, US Bancorp, Truist, Silicon Valley Bank, Signature Bank, Citizens, Fifth Third Bancorp, PNC Financial Services, Thomson Locations: Manhattan , New York, U.S, Silicon, Bengaluru

☆ Moody’s warns it could cut credit ratings of 6 big US banks
▼ + stars: | 2023-08-08 | by ( Olesya Dmitracova | ) edition.cnn.com time to read: +2 min

CNN —Moody’s has put the credit ratings of six large US banks, including Bank of New York Mellon, State Street and Northern Trust, under review for a possible downgrade. A lower credit rating could push funding costs for those banks even higher. This, in turn, has raised fears that banks, which finance many commercial real estate deals, could suffer losses as a result. “Most regional banks have comparatively low regulatory capital versus the largest US banks and global peers,” Moody’s noted Monday. Moody’s also downgraded 10 smaller US banks Monday, including Commerce Bancshares (CBSH), BOK Financial Corporation and M&T Bank Corporation.

Persons: CNN — Moody’s, Dow, Cullen Frost, ” Moody’s, Moody’s Organizations: CNN, Bank of New York Mellon, State, Northern Trust, Nasdaq, Silicon Valley Bank, Signature Bank, First, U.S . Bancorp, Commerce, BOK Financial Corporation, T Bank Corporation Locations: Silicon, First Republic, United States

☆ Moody's cuts ratings of 10 U.S. banks and puts some big names on downgrade watch
▼ + stars: | 2023-08-08 | by ( Elliot Smith | ) www.cnbc.com time to read: +4 min

Moody's cut the credit ratings of a host of small and mid-sized U.S. banks late Monday and placed several big Wall Street names on negative review. Moody's also changed its outlook to negative for 11 banks, including Capital One , Citizens Financial and Fifth Third Bancorp . Among the smaller lenders receiving an official ratings downgrade were M&T Bank , Pinnacle Financial , BOK Financial and Webster Financial . "Meanwhile, many banks' Q2 results showed growing profitability pressures that will reduce their ability to generate internal capital. Though the stress on U.S. banks has mostly been concentrated in funding and interest rate risk resulting from monetary policy tightening, Moody's warned that a worsening in asset quality is on the horizon.

Persons: Moody's, Cullen, Frost, Jill Cetina, Ana Arsov Organizations: New York Stock Exchange, Bank, New York Mellon, U.S . Bancorp, Truist, Frost Bankers, Northern Trust, Capital, Citizens Financial, Fifth Third Bancorp, T Bank, Pinnacle Financial, BOK, Webster, Regional, Silicon Valley Bank, Signature Bank, Credit Suisse, UBS, Federal Reserve, Fed Locations: New York City, U.S, Regional U.S, Silicon, Europe, Swiss

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 19, 2023. The ratings agency also warned that the sector's credit strength would likely be tested by funding risks and weaker profitability. Big banks Goldman Sachs (GS.N) and Bank of America (BAC.N) eased 0.8% and 1.4%, respectively, in premarket trading, while Bank of New York Mellon and U.S. Bancorp shed 2.3% each. "It also means that the concern that we had in March over those three bank defaults, is not over yet." Remarks by Philadelphia Fed President Harker and Richmond Fed President Barkin will be closely watched for cues about the U.S. central bank's rate path after mixed messages from New York Fed President John Williams and Fed Governor Michelle Bowman on Monday.

Persons: Brendan McDermid, Eli Lilly, Moody's, Goldman Sachs, Sam Stovall, Chris Montagu, Thursday's, Harker, Barkin, John Williams, Michelle Bowman, LLY.N, Zachary Kirkhorn, Elon Musk, Bansari Mayur Kamdar, Johann M, Sriraj Organizations: New York Stock Exchange, REUTERS, Dow, Nasdaq, Bank of New York Mellon, US Bancorp, Truist, Bank of America, U.S . Bancorp, U.S . Treasury, CFRA, Silicon Valley Bank, Signature Bank, Citi, Wall Street, Dow e, Philadelphia, Richmond Fed, New York Fed, United Parcel Service, Elon Musk ., Alibaba, Thomson Locations: New York City, U.S, Silicon, Richmond, New, Elon Musk . U.S, Bilibili, Bengaluru

☆ Fed policy is weighing on US banks. Here's everything to know about the Moody's downgrades.
▼ + stars: | 2023-08-08 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

In what amounted to 27 rating actions on US banks, Moody's pointed to rising costs of capital, deteriorating profits, and climbing risks to assets. In effect, much of the stress on banks Moody's is responding to can be chalked up to the Federal Reserve's policy decisions over the past year and a half. "Most banks' deposits were flat or down only modestly, but the mix worsened, with non-interest-bearing deposits declining and banks paying more for deposits," Moody's strategists wrote. So Moody's downgrades aren't all doom and gloom for these firms, and it's always possible the moves are reversed once the outlook turns rosier. Banks are in the money business, he explained, and the Fed has made money harder to come by.

Persons: Moody's, Service It's, they've, it's, Michael Bell, Honigman, Banks, Bell Organizations: Bank of New York Mellon, US Bancorp, Service, Northern Trust, State Street, Capital, Citizens Financial, Fifth Third Bancorp, Bank, KBW Nasdaq, Fed, Silicon Valley Bank, First Republic Bank, Signature Bank, Reserve, Moody's, Treasury Locations: Wall, Silicon, Japan

☆ JPMorgan, Bank of America and 4 other Wall Street titans are set to pay $8.9 billion after this spring's banking fiasco
▼ + stars: | 2023-08-07 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

JPMorgan, BofA, and Wells Fargo are among those refilling the FDIC's deposit insurance fund. The FDIC's fund recently took a $13 billion hit following the failure of First Republic Bank. Wall Street's largest lenders are set to pay nearly $8.9 billion to refill the Federal Deposit Insurance Corporation (FDIC) coffers after this spring's banking fiasco. JPMorgan tops the list as the biggest contributor, expected to pay $3 billion towards the US government's deposit insurance fund, according to Bloomberg. What followed was a $15.8 billion hole in the FDIC's deposit insurance fund.

Persons: Wells, Goldman Sachs, Morgan Stanley, Jamie Dimon Organizations: titans, JPMorgan, First Republic Bank, Morning, Deposit Insurance Corporation, Bloomberg . Bank of America, Citi Group, FDIC, Silicon Valley Bank, Signature Bank, Fed Locations: Wells Fargo, Silicon

☆ Geopolitical risks are a top global threat to businesses, survey finds
▼ + stars: | 2023-08-03 | by ( Sumathi Bala | ) www.cnbc.com time to read: +4 min

Around 36% of businesses polled view geopolitical tensions as top risks currently — such as those related to issues over Taiwan, South Korea, and Russia-NATO. The latest third quarter 2023 Global Risk Survey covered 127 businesses from July 6-27 this year. Risks aheadGeopolitical risks continue to factor prominently for businesses as a major concern for the next five years. "As reported last quarter, more than three-fifths of respondents view geopolitical risks as a very significant risk to the global economy over the medium term," said Thompson. "An intensification of geopolitical tensions could potentially trigger significant deglobalization of trade and the financial system," he added.

Persons: Fred DUFOUR, FRED DUFOUR, Fred Dufour, Jamie Thompson, Fitch, Biden, Vladimir Putin, Thompson, Kevin O'Leary Organizations: Getty, Afp, Oxford Economics, Fitch downgrades, UBS, NATO, U.S, Reuters, Atlantic Treaty Organization, . Federal, Silicon Valley Bank, Signature Bank Locations: Beijing, Taiwan, South Korea, Russia, Washington, U.S, China, it's, Ukraine, Republic, Silicon

July 28 (Reuters) - U.S. banks should incorporate the Federal Reserve's emergency lending facility known as the "discount window" as part of their contingency funding plans, federal banking regulators said in updated guidance on Friday. The discount window, a key Fed facility long associated with providing emergency loans to banks, is "an important tool" banks can use to manage liquidity risk, bank regulators including the Federal Reserve and Federal Deposit Insurance Corp said in an updated interagency policy statement. The bank runs earlier this year that forced regulators to shut down Silicon Valley Bank and Signature Bank in mid-March "underscored the importance of liquidity risk management and contingency funding planning," the agencies said. The updated guidance comes after Dallas Fed President Lorie Logan said in May that banks should be prepared to borrow regularly from the Fed's discount window, particularly after the March bank failures demonstrated the importance of effective liquidity risk management. The bank regulators also said that financial institutions should establish and maintain operational readiness to use the discount window, including conducting periodic small value transactions.

Persons: Lorie Logan, Hannah Lang, Dan Burns, Marguerita Choy Organizations: Federal Reserve, Federal Deposit Insurance Corp, Bank, Signature Bank, Dallas, Thomson Locations: Washington

July 28 (Reuters) - U.S. banks should incorporate the Federal Reserve's emergency lending facility known as the "discount window" as part of their contingency funding plans, federal banking regulators said in updated guidance on Friday. The discount window is "an important tool" banks can use to manage liquidity risk, bank regulators including the Federal Reserve and Federal Deposit Insurance Corp said in an updated interagency policy statement. Bank runs in mid-March that forced regulators to shut down Silicon Valley Bank and Signature Bank "underscored the importance of liquidity risk management and contingency funding planning," the agencies said. "Banks are now working to see that they are ready to use the discount window, and we are strongly encouraging them to do that," he said. Reuters GraphicsThe guidance also said financial institutions should establish and maintain operational readiness to use the discount window, including conducting periodic small value transactions.

Persons: Lorie Logan, Jerome Powell, Banks, Hannah Lang, Dan Burns, Marguerita Choy, Richard Chang Organizations: Federal Reserve, Federal Deposit Insurance Corp, Bank, Signature, Dallas, Reuters, Thomson Locations: Washington

☆ Bank failure: Kansas Heartland Tri-State Bank closed by FDIC
▼ + stars: | 2023-07-28 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +1 min

New York CNN —Heartland Tri-State Bank of Elkhart, Kansas, failed on Friday, with the Federal Deposit Insurance Corporation taking control. The FDIC agreed to assume all the deposits of Heartland Tri-State Bank to protect customers, entering a purchase and assumption agreement with Dream First Bank of Syracuse, Kansas. That means the four branches of Heartland Tri-State Bank will reopen as branches of Dream First Bank on Monday. Heartland Tri-State Bank is the first bank to fall since First Republic, the nation’s second-largest bank failure ever, in early May. Heartland Tri-State Bank had approximately $139 million in total assets and $130 million in total deposits, the FDIC said.

Organizations: New, New York CNN, Heartland Tri, State Bank of, Federal Deposit Insurance Corporation, State Bank, Dream, Bank of, Silicon Valley Bank, Signature Bank, FDIC, Dream First Bank . Heartland Tri, Bank Locations: New York, State Bank of Elkhart , Kansas, Heartland, Bank of Syracuse , Kansas, Republic, Silicon

☆ This regional bank could soon become a 'massive market share taker,' JPMorgan says
▼ + stars: | 2023-07-28 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

There's a "new energy" now at New York Community Bank , JPMorgan says. New York Community Bank has undergone a significant transformation over the past year. After its merger with midwestern-based Flagstar Bank, NYCB acquired certain assets and liabilities of Signature Bank. It also absorbed teams from the former First Republic Bank, making it a home to 127 private banking teams in more than 10 cities combined. With regional banking stocks still "out of favor," investors can currently buy NYCB shares at an 11% discount to its peers in terms of tangible book value, he added.

Persons: NYCB, Tom Cangemi, Steven Alexopoulos, Alexopoulos, — CNBC's Michael Bloom Organizations: New York Community Bank, JPMorgan, Flagstar Bank, Signature Bank, First Republic Bank, York Community, First Republic

☆ 'Shark Tank' investor Kevin O'Leary warns of more regional bank failures as the Fed presses ahead with interest-rate increases
▼ + stars: | 2023-07-28 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

"Shark Tank" investor Kevin O'Leary has warned of more regional bank failures as the Fed keeps raising interest rates. "You keep squeezing the toothpaste tube, you keep rolling it up, you keep raising rates, and you know things are going to break," he said. The Fed announced a quarter-point rate rise on Wednesday in a bid to cool inflation down to 2%. The collapses of Silicon Valley Bank, Signature Bank, and First Republic, have shown the damage higher interest rates have done to smaller US lenders. "We've started to see the cracks, the Titanic has not [sunk]," O'Leary said of the bank collapses.

Persons: Kevin O'Leary, Jerome Powell, We've, " O'Leary Organizations: Fed, Service, Federal Reserve, CNBC, Valley Bank, Signature Bank, First Locations: Wall, Silicon, First Republic, United States

☆ FDIC launches sale of $18.5 billion of Signature Bank loans
▼ + stars: | 2023-07-28 | by ( ) www.reuters.com time to read: +1 min

July 28 (Reuters) - The U.S. Federal Deposit Insurance Corporation (FDIC) set in motion the sale of an $18.5 billion loan portfolio from Signature Bank this week, a set of loans linked to major private equity and investing firms, according to the regulator's website. The FDIC hired Newmark Group (NMRK.O) in March to sell about $60 billion of Signature Bank's loans, after state regulators decided to close down the failed lender amid a turmoil in regional banks earlier this year. The sale was launched on July 25 and is limited to FDIC-insured depository institutions, the Bloomberg report said. The notice reads that the loans for sale "consist of subscription credit facilities to private equity funds." Reporting by Pritam Biswas in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

Persons: Thoma, Newmark, Pritam Biswas, Arun Koyyur Organizations: U.S, Federal Deposit Insurance Corporation, Signature Bank, Starwood Capital Group, Carlyle Group, Blackstone, Thoma Bravo, Brookfield Asset Management, Bloomberg, FDIC, Newmark Group, Thomson Locations: Bengaluru

☆ How you could be impacted by higher bank capital requirements
▼ + stars: | 2023-07-27 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +5 min

Their risk-level assessments have been the basis for informing how much capital they need to hold on top of baseline requirements. Silicon Valley Bank accumulated a lot of paper losses, or unrealized losses, from holding bonds while the Fed hiked interest rates. But it did not need to hold capital to protect depositors from those losses. Some also expressed concerns that banks would pass on their higher capital costs to consumers in the form of higher fees to maintain their profit levels. However, UBS, Citizens Bank and Capital One will have to hold more capital.

Persons: wouldn’t, ”, Banks, aren’t, Steven Kelly, won’t, SVB, Jonathan McKernan, Michelle Bowman, Kelly, ” Kelly, JPMorgan Chase, Morgan Stanley Organizations: New, New York CNN, Federal Reserve, Federal Deposit Insurance Corporation, Huntington Bank, Silicon Valley Bank, Signature Bank, Valley Bank, FDIC, ”, Manufacturers, JPMorgan, JPMorgan Chase, Bank of America, UBS, Citizens Bank, Capital, Nasdaq Locations: New York, Basel, Banc, California, Silicon

☆ Banc of California and PacWest Bancorp will merge into a new bank holding $36 billion in assets
▼ + stars: | 2023-07-26 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Banc of California and PacWest Bancorp shares surged after announcing an all-stock merger. The new bank will have $36 billion in assets and $30.5 billion in total deposits. Banc of California shares jumped 8.4% to $15.85 apiece in after-hours trade, extending gains from an 11% rise on Tuesday. The all-stock deal will result in a new bank with $36 billion in combined assets, Banc of California and PacWest announced on Tuesday. It will have $25.3 billion in total loans and $30.5 billion in total deposits.

Persons: PacWest, Jared Wolff, Warburg Pincus, Wolff, We've, Timothy Coffey, Janney Montgomery Scott Organizations: PacWest Bancorp, Morning, Warburg, Centerbridge, Reuters, Silicon Valley Bank, Signature Bank, JPMorgan, First Republic Bank, First Citizens Bank, New York Community Bancorp Locations: California, Banc, Silicon, Signature Bank , New York

☆ How Regional Banks Got Healthy Again
▼ + stars: | 2023-07-26 | by ( Emily Flitter | More About Emily Flitter | ) www.nytimes.com time to read: +1 min

After depositor runs led to the collapse of Silicon Valley Bank and Signature Bank this spring, investors and onlookers wondered how similarly sized institutions would fare. Would they have to merge with bigger banks? Then, when a third lender, First Republic Bank, flirted with destruction for weeks before being bought by JPMorgan Chase in May, it was hard to see how depositors would ever feel comfortable trusting midsize banks again. Quarterly earnings reports released this month detailing midsize banks’ performance from April through June have shown that their balance sheets look healthier than they did last quarter, with higher-quality loans and more money set aside to cover surprise losses. The KBW Nasdaq Regional Banking Index, a proxy for the industry, is rebounding after plunging 35 percent during the crisis.

Persons: depositor Organizations: Silicon Valley Bank, Signature Bank, First Republic Bank, JPMorgan Chase, Nasdaq, Banking Locations: Silicon

Republicans and Democrats in Congress have pledged tighter oversight of banking regulators following the collapse of Silicon Valley Bank and Signature Bank. Some in Congress are concerned that the Federal Reserve's current inspector general is not independent enough to serve as a check on the central bank. Unlike the Pentagon and other big agencies, the Fed's internal IG, currently Mark Bialek, reports directly to the Fed board. Under the Senators' plans, the holder of the role would instead be appointed by the President and confirmed by the Senate. Specifically, they objected to having the IG's salary tied to the compensation of Fed officials who the IG is tasked with investigating.

Persons: Elizabeth Warren, Evelyn Hockstein, Rick Scott, Democrat Elizabeth Warren, Mark Bialek, Warren, Scott, Bialek, David Morgan, Costas Pitas, Paul Thomasch, Stephen Coates Organizations: Banking, Housing, Urban Affairs Committee, Capitol, REUTERS, WASHINGTON, Democrat, Reuters, Republicans, Democrats, Congress, Silicon Valley Bank, Signature Bank, Federal, Pentagon, Fed, Senators, Thomson Locations: Washington , U.S, Silicon, Congress

☆ US lending 'meltdown' shows big investment slump is underway, economist says
▼ + stars: | 2023-07-24 | by ( Joseph Wilkins | ) www.businessinsider.com time to read: +3 min

US commercial and industrial lending slumped sharply this year, the chief economist at the Institute of International Finance said. Robin Brooks has called it a "staggering meltdown" – and warns a big slump in US investment is on its way. Credit flows have declined amid higher interest rates and tighter lending standards following this year's banking turmoil. Furthermore, a sharp surge in US interest rates since early 2022 has made borrowings much more expensive, potentially damping demand. "Meltdown in US commercial and industrial (C&I) loan growth is staggering," he tweeted on Sunday.

Persons: Robin Brooks, Alastair Borthwick, Borthwick Organizations: Institute of International Finance, Service, Silicon Valley Bank, Big, Federal Reserve, Bank of America Locations: Wall, Silicon, America

☆ UBS hit with $387 million in fines for ‘misconduct’ by Credit Suisse in Archegos dealings
▼ + stars: | 2023-07-24 | by ( Samantha Delouya | ) edition.cnn.com time to read: +2 min

CNN —UBS is being fined for missteps by Credit Suisse less than two months after UBS completed an emergency takeover of its former rival. On Monday, the Federal Reserve said it would fine UBS for “misconduct” by Credit Suisse in its risk management of Archegos Capital Management, an investment fund that collapsed in 2021. All told, the fines levied against UBS announced Monday total $387 million – including fines from the Swiss government and the Bank of England. In its announcement of the fine, the Federal Reserve Board said that Credit Suisse practiced “unsafe and unsound” credit risk management practices in its dealings with Archegos. UBS and Credit Suisse have also been ordered to submit a plan to strengthen oversight of their US operations and senior management in the next 120 days.

Organizations: CNN, UBS, missteps, Credit Suisse, Federal Reserve, Archegos Capital Management, Bank of England, Warner Brothers Discovery, Federal Reserve Board, Archegos, “ Credit Suisse, ”, Silicon Valley Bank, Signature Bank, Swiss Locations: Swiss, “, Wall, Switzerland

☆ Commercial real estate loans are the next big risk for lenders. See the top 20 banks with the most property debt exposure, from JPMorgan to Wells Fargo.
▼ + stars: | 2023-07-20 | by ( Alex Nicoll | Daniel Geiger | ) www.businessinsider.com time to read: +3 min

Rising interest rates and remote work have put commercial real estate in the hot seat. With the help of Trepp, we've compiled a list of the top bank lenders for commercial real estate. The rising property losses are the result of rising interest rates, which have dramatically increased the cost of borrowing for highly leveraged commercial real estate investors. Office property owners are most at risk thanks to the remote-work phenomenon, which has been emptying out offices for three years now. Big names like Blackstone, Brookfield, and Starwood all have defaulted on properties and real estate securities in recent months.

Persons: we've, Wells, Chase, It's, Goldman Sachs, Newmark, Michael Santomassimo, Santomassimo, We've Organizations: JPMorgan Chase, Wells Fargo, Starwood, Bank of America, Signature Bank, New York Community Bank, Mortgage Bankers Association, Wells, Trepp, Federal Reserve, SEC Locations: Blackstone, Brookfield

☆ Flagstar Bank hires six First Republic teams to expand private banking
▼ + stars: | 2023-07-20 | by ( ) www.reuters.com time to read: +1 min

July 20 (Reuters) - Flagstar Bank, a subsidiary of New York Community Bancorp (NYCB.N), said on Thursday it has hired six private client banking teams from the now-defunct First Republic Bank. Three of the teams are based on the West Coast and three teams are based in New York City, the bank said in a statement. Flagstar Bank also bought deposits and loans of New York-based Signature Bank from U.S. regulators after Signature was closed in March. The recruitment from First Republic is the second major hire of its private bankers by a regional bank after it was seized by regulators and bought by JPMorgan (JPM.N) in May. Citizens Financial Group (CFG.N) recently added 50 new senior private bankers and another 100 support staff in Boston, Florida, New York and San Francisco, mostly from First Republic.

Persons: Banks, Morgan Stanley, Manya Saini, Saeed Azhar, David Holmes Organizations: Flagstar Bank, New York Community Bancorp, Republic Bank, West Coast, Bank, Signature, JPMorgan, Citizens Financial, First, Wall, Bank of America, Thomson Locations: West, New York City, New York, U.S, Republic, Boston , Florida , New York, San Francisco, First Republic, Bengaluru

☆ Premarket stocks: Bank CEOs are already complaining about new regulations they haven't even seen yet
▼ + stars: | 2023-07-19 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Investors, worried about the economic atmosphere and the recent regional banking collapse, breathed a sigh of relief at the results. Jamie Dimon, head of JPMorgan Chase, commented on the bank’s Friday earnings call that non-bank financial rivals were “dancing in the streets” as regulators get ready to increase bank capital requirements. “This is great news for hedge funds, private equity, private credit, Apollo, Blackstone,” Dimon said of the proposed regulations. The change, they say, will increase the financial system’s resilience following the failures of three regional banks earlier this year. “The capital in the industry is sufficient,” said Bank of America CEO Brian Moynihan on his company’s earnings call Tuesday morning.

Persons: Jamie Dimon, JPMorgan Chase, ” Dimon, ”, Jeremy Barnum, Barnum, don’t, Brian Moynihan, “ They’ve, Morgan Stanley, James Gorman, Elizabeth Warren, Richard Blumenthal, Tammy Duckworth, Martin Gruenberg, “, Taylor Marr, That’s, they’re, Bryan Mena, Neil Saunders Organizations: CNN Business, Bell, New York CNN, Silicon Valley Bank, JPMorgan, Blackstone, of America, CNBC, Valley Bank, Signature Bank, Federal Deposit Insurance, Redfin, Retail, Commerce Department Locations: New York, Silicon, Basel, Massachusetts, Elizabeth Warren , Connecticut

☆ The bond and stock markets might finally agree on Fed expectations
▼ + stars: | 2023-07-16 | by ( Krystal Hur | ) edition.cnn.com time to read: +4 min

CNN —The bond and stock markets are finally seeing eye to eye when it comes to the Federal Reserve. Stocks and the 10-year Treasury’s real yield have begun moving inversely again, according to a research note from Morgan Stanley. That’s a reversal from earlier this year, when yields and stocks both moved higher. A concurrent rally both in bond yields and stocks is atypical. The Consumer Price Index report for June showed that annual inflation slowed to 3%, marking its lowest rate since March 2021.

Persons: Morgan Stanley, George Cipolloni, they’re, ”, Price, Michael Kushma, We’re, Laura He, Read, Goldman Sachs Organizations: CNN Business, Bell, CNN, Federal Reserve, Stocks, Valley Bank, Signature Bank, Penn Mutual Asset Management, Nasdaq, Cyberspace Administration, Financial Services, Bank of America, US Bancorp, Ally, American Express Locations: China

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