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☆ Safe-haven dollar sluggish as banking fears ebb; yen drops
▼ + stars: | 2023-03-29 | by ( Kevin Buckland | ) www.reuters.com time to read: +3 min

The dollar index , which tracks the currency against six major peers, edged 0.08% higher to 102.57 in Asian trading, following drops of about 0.3% in each of the past two sessions. The weakness comes despite a rise in U.S. Treasury yields, also the result of ebbing demand for the safest assets. The yen remained volatile in the run-up to the end of the Japanese fiscal year on Friday. The dollar jumped 0.59% to 131.68 yen , and touched a one-week high of 131.80. The yen had dropped 0.5% the previous day, when it uncharacteristically moved in the opposite direction with long-term U.S. Treasury yields.

Las Vegas, March 29 (Reuters) - Consumer and mid-sized banks are planning to monitor their internal processes more closely and hold more frequent discussions with regulators as the industry tries to move forward from weeks of turmoil, industry executives say. She spoke as senior executives from regional and mid-sized U.S. banks gathered alongside regulators for the association's annual conference this week. Consumer Financial Protection Bureau Director Rohit Chopra said regulators were focused on maintaining stability of the financial system. In recent weeks, President Joe Biden, Treasury Secretary Janet Yellen and industry executives have made public statements aimed at reassuring depositors. "The banking system is pretty sound," and large and regional banks are well-capitalized, Citigroup Inc (C.N) CEO Jane Fraser said last week.

☆ US Federal Reserve watchdog launches probe of SVB supervision
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +1 min

March 28 (Reuters) - The U.S. Federal Reserve's Office of Inspector General (OIG) has launched an independent review of the failure of Silicon Valley Bank (SVB), an OIG spokesperson said on Tuesday. The review, which was launched on March 14, will assess the board's and the Federal Reserve Bank of San Francisco's supervision of the failed lender, the spokesperson told Reuters in a statement. The independent oversight authority plans to complete its investigation within six months, the spokesperson added. The probe was reported earlier by Bloomberg News. Reporting by Rahat Sandhu in Bengaluru and Pete Schroeder; Editing by Leslie Adler and Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

"I think that any time you have a bank failure like this, bank management clearly failed, supervisors failed and our regulatory system failed," Michael Barr, Fed Vice Chair for Supervision, told Congress. REPORTS DUE MAY 1Both the Fed and FDIC are is expected to produce reports on the failure of Silicon Valley Bank by May 1. Barr told the House Financial Services Committee that he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable. Gruenberg of the FDIC told lawmakers he also became aware of SVB's stress that Thursday evening. "(Fed) staff were working with Silicon Valley Bank basically all afternoon and evening and through the morning the next day to pledge as much collateral as humanly possible to the discount (window) on Friday," Barr said.

☆ Oil gains for 3rd day on Kurdish supply concerns, easing banking fears
▼ + stars: | 2023-03-29 | by ( ) www.cnbc.com time to read: +2 min

Oil wells are seen at an oil facility by the Highway 5 near Bakersfield in California, United States on November 27, 2022. Brent crude futures rose 42 cents, or 0.5%, to $79.07 a barrel at 0046 GMT. A drawdown in U.S. crude oil inventories last week also lent support. U.S. crude oil inventories fell by about 6.1 million barrels in the week ended March 24, according to market sources citing American Petroleum Institute figures on Tuesday. Analysts had expected U.S. crude oil stockpiles to have risen last week, while distillate and gasoline inventories were seen down.

☆ Dollar on the defensive as banking fears ebb; yen drops
▼ + stars: | 2023-03-29 | by ( ) www.cnbc.com time to read: +2 min

In this photo illustration, US 100 dollar bills seen on an American flag. The dollar index , which tracks the currency against six major peers, was flat in early Asian trading, following drops of about 0.3% in each of the past two sessions. The yen remained volatile in the run-up to the end of the Japanese fiscal year on Friday. The dollar jumped 0.51% to 131.59 yen , erasing all of the previous day's 0.5% decline, when it uncharacteristically moved in the opposite direction with long-term U.S. Treasury yields. The token had dipped as low as $26,541 on Monday, after its retreat from a nine-month high of $29,380 last week.

☆ Goldman Sachs picks the winners and losers in regional banks after the SVB collapse
▼ + stars: | 2023-03-29 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

The banking crisis continues to keep investors on edge about the health of regional banks. Now Goldman Sachs has identified what it said are the biggest winners and losers in the industry in the aftermath of the Silicon Valley Bank collapse. The Wall Street investment bank said the biggest short-term risk for regional banks could come from shifting market shares of deposits as corporates look to diversify. Meanwhile, there is the potential that regional banks will need to "pay up" to prevent deposits from moving to other banks "or leave bank balance sheets entirely," Goldman said. These stocks are all down more than 20% in March as investors spooked by the crisis dumped regional bank shares.

☆ Morning Bid: Bank calm, rates firm, Alibaba steals show
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +4 min

A semblance of calm has returned to world markets in the final week of the first quarter as the banking storm abates and the spotlight switched to a share-boosting six-way revamp of Chinese e-commerce giant Alibaba. Investors cheered the surprise move from Alibaba (9988.HK) as a sign Beijing's corporate crackdown may be nearing an end, sending shares of the Jack Ma-founded firm and peers soaring. The surprise move seeks to take advantage of Ermotti's experience rebuilding the bank after the global financial crisis 15 years ago. Broader stock markets were higher across the board, with Wall St futures up almost 1% ahead of the open. Futures markets now show a 50-50 chance of one more Fed rate hike in this cycle in May and half a point of easing by yearend.

DURHAM, North Carolina, March 28 (Reuters) - U.S. President Joe Biden said on Tuesday his administration had done what was possible to address the banking crisis with available authorities, but added the White House response on the matter was "not over yet." The markets seem to be responding," Biden told reporters before departing North Carolina to return to the White House. Asked if his administration had exhausted its unilateral moves, short of congressional action, to address stress in the banking sector, Biden said: "No, it's not over yet. The failures of Silicon Valley Bank (SVB) and, days later, Signature Bank (SBNY.O), set off a broader loss of investor confidence in the banking sector that pummeled stocks and stoked fears of a full-blown financial crisis. The Biden administration quickly adopted a series of emergency measures to protect depositors in the two banks, while the Federal Reserve provided additional liquidity to help banks across the sector cover depositors' needs.

☆ To Some Investors, Banks Look Like Bargains
▼ + stars: | 2023-03-28 | by ( Sam Goldfarb | ) www.wsj.com time to read: 1 min

A growing number of investors are betting on a rebound in the banking sector, wagering that regional lenders are in much better condition than many initially feared after the collapse of Silicon Valley Bank. Bank shares rallied Monday, while U.S. Treasury prices fell, after First Citizens Bancshares reached a deal with federal regulators to buy large pieces of Silicon Valley Bank. The run on SVB that started March 9 had sparked a rout in banks and a surge in demand for Treasurys, reflecting fears that trouble in the financial sector could hurt the broader economy.

☆ The FDIC’s Sweetheart Bank Deal for SVB
▼ + stars: | 2023-03-28 | by ( The Editorial Board | ) www.wsj.com time to read: 1 min

First Citizens Bank headquarters on March 27 in Raleigh, North Carolina. First Citizens BancShares on Sunday night was the lucky winner of the bidding to buy the assets of Silicon Valley Bank, and what a deal it is. Rather than minimize the cost to the deposit insurance fund as required by law, the Federal Deposit Insurance Corp. seems to have chosen the best political match. North Carolina-based First Citizens will acquire all of SVB’s deposits, loans and branches but leave $90 billion in securities and other assets with the FDIC. First Citizens will buy SVB’s $72 billion in loans at a sizable $16.5 billion discount and share future losses or gains with the FDIC.

Dividend stocks may be the way to go for investors as a recession becomes more likely, according to UBS. Dividend stocks on average outperformed the market by 4.5% during the 2001, 2008 and 2020 recessions, the bank said. "Dividend stocks can provide a margin of safety during uncertain times." Given this backdrop, UBS highlighted a slew of dividend stocks with big upsides, based on the bank's price targets. Analysts also forecast three-year dividend growth that's at least in the mid-single digits, in addition to sustainable payout ratios.

March 28 (Reuters) - Immediate investor concerns over the banking sector eased on Tuesday, lifting stock prices, with the European Central Bank's supervisory chief saying recent sector volatility underscored the need to step up regulatory scrutiny. Credit Suisse (CSGN.S) shares rose 1.7%. Top U.S. banking regulators said on Monday they planned to tell Congress that the overall financial system remains on a solid footing after recent bank failures, but will comprehensively review their policies in a bid to prevent future collapses. Regional U.S. lender First Citizens BancShares on Monday scooped up the assets of SVB, in a vote of confidence for the battered banking sector that prompted a rally in bank shares. Bailey said the stresses which led to a crisis in confidence in Credit Suisse were down to specific issues in Switzerland's second-largest bank.

☆ Biden says banking crisis 'not over yet'
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, March 28 (Reuters) - U.S. President Joe Biden said on Tuesday he has done what is possible to address the banking crisis with available authorities but that it is "not over yet." Asked if the administration would not take any more executive action to address the matter, Biden said "Oh no, It's not over yet. We're watching very closely." The failures of Silicon Valley Bank (SVB) and, days later, Signature Bank (SBNY.O), set off a broader loss of investor confidence in the banking sector that pummeled stocks and stoked fears of a full-blown financial crisis. Reporting by Andrea Shalal and Nandita Bose in Washington; Editing by Chris Reese and Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

☆ Stocks gain, US treasury yields rise as banking fear eases
▼ + stars: | 2023-03-28 | by ( Xie Yu | ) www.reuters.com time to read: +3 min

MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) edged up 0.3% by early morning Hong Kong time. U.S. Treasury yields rose on optimism that stress in the banking sector could be contained and as the Treasury Department saw soft demand for a sale of two-year notes. Benchmark 10-year yields rose to 3.5317%, up from its U.S. close of 3.528% on Monday. Two-year yields rose to 3.957%, up from a six-month low of 3.555% on Friday but below the almost 16-year high of 5.084% hit on March 8. By Tuesday morning Hong Kong time, Brent crude futures and West Texas Intermediate U.S. crude were both hovering around Monday’s closing levels.

SummarySummary Companies Futures down: Dow 0.10%, S&P 0.17%, Nasdaq 0.22%March 28 (Reuters) - U.S. stock index futures slipped on Tuesday as Treasury yields rose amid easing worries about a banking crisis following First Citizens BancShares' U.S. regulator-backed deal for failed Silicon Valley Bank. Shares of First Citizens BancShares Inc (FCNCA.O) fell 1% in premarket trading after surging more than 50% on Monday following its deal to acquire the deposits and loans of failed Silicon Valley Bank. Regional banks also rose, led by First Republic Bank's (FRC.N) 2.2% gain after a 12% rally on Monday. Later in the day, Fed Vice Chair for Supervision Michael Barr will testify before the Senate Committee on Banking, Housing and Urban Affairs on "bank oversight" in the first of several hearings on the collapse of Silicon Valley Bank and Signature Bank. ET, Dow e-minis were down 31 points, or 0.1%, S&P 500 e-minis were down 6.75 points, or 0.17%, and Nasdaq 100 e-minis were down 27.75 points, or 0.22%.

☆ For battered U.S. bank shares, earnings may make or break
▼ + stars: | 2023-03-28 | by ( Caroline Valetkevitch | ) www.reuters.com time to read: +3 min

Even so, the S&P 500 bank index (.SPXBK) is down 16% since March 8, two days before Silicon Valley's collapse, with the failure of Signature Bank and problems at other banks adding to the turmoil. Some say quarterly results could be key to what happens next with bank shares. Among other financials, Jefferies Financial Group (JEF.N) is expected to report quarterly results after the closing bell Tuesday. Analysts expect S&P 500 earnings to fall 4.6% in the first quarter of 2023 from the year-ago period. They are forecasting S&P 500 financials (.SPSY) to post year-over-year earnings growth in the first quarter of 5.4%, making it among just four sectors whose earnings are expected to climb.

Bank shares rebounded sharply on Monday after First Citizens BancShares Inc (FCNCA.O) said it would acquire the deposits and loans of Silicon Valley Bank, whose collapse earlier this month sparked a selloff in the sector. "The fact that we've got answers on Silicon Valley Bank, Signature Bank and Credit Suisse means that we have more answers than questions," said Art Hogan, chief market strategist at B Riley Wealth in Boston. Lawmakers are expected to put U.S. bank regulators on the defensive over the unexpected failures of regional lenders Silicon Valley Bank and Signature Bank when they testify before Congress later on Tuesday. The S&P 500 and Dow rose on Monday after the SVB deal was announced, while the Nasdaq Composite closed lower, led by a decline in technology-related stocks. The S&P index recorded five new 52-week highs and no new low, while the Nasdaq recorded 13 new highs and 40 new lows.

March 28 - Crude prices moved in a narrow range in early Asian trade on Tuesday after rallying in the previous session, with oil markets focused on developments in the banking crisis as well as on supply concerns and indications of strengthening demand. Brent crude futures fell 2 cents to $78.10 a barrel at 0018 GMT. Prices rose in the previous session after Turkey stopped pumping crude from Kurdistan via a pipeline following an arbitration decision that confirmed Baghdad's consent was needed to ship the oil. Oil prices also drew support from indications of strong Chinese demand. U.S. crude oil stockpiles were seen rising about 200,000 barrels last week, a preliminary Reuters poll showed on Monday.

WASHINGTON, March 28 (Reuters) - Lawmakers are expected to put top U.S. bank regulators on the defensive over the unexpected failures of regional lenders Silicon Valley Bank and Signature Bank when they testify before Congress on Tuesday. Regulators have vowed to review their rules and procedures after the twin failures while insisting the overall system remains sound. Tuesday's hearing at the Senate Banking Committee will give lawmakers the chance to press watchdogs on what went wrong on their watch, and push preferred policy prescriptions. They just didn't," said Sen. Tim Scott of South Carolina, the top Republican on the Senate Banking Committee, at a banking industry conference last week. Some Democrats, including major bank critic Senator Elizabeth Warren of Massachusetts, have also argued a 2018 bank deregulation law is to blame.

☆ SVB sale puts too-big-to-fail risk in a new bottle
▼ + stars: | 2023-03-28 | by ( John Foley | ) www.reuters.com time to read: +4 min

The sale of SVB to rival First Citizens Bancshares (FCNCA.O) addresses the first part, and doubles down on the second. First Citizens snapped up $110 billion of SVB’s assets over the weekend, at a generous $16.5 billion discount to book value. And for the Federal Deposit Insurance Corp, which is handling SVB’s sale, First Citizens chief Frank Holding is a known quantity. In SVB’s case, the FDIC has agreed to absorb some potential losses in the failed bank’s loan book. The FDIC expects its fund for managing failed banks will take a $20 billion hit.

☆ Oil prices soften; banking crisis and Chinese demand in focus
▼ + stars: | 2023-03-28 | by ( ) www.cnbc.com time to read: +2 min

Oil prices rose in early Asian trade on the prospect that a stalled Iran nuclear deal and Moscow's new mobilization campaign would restrict global supplies. Crude prices retreated on Tuesday after rallying the previous session, with markets focused on developments in the banking crisis and indications of strengthening demand in China. Oil prices were also likely to continue drawing support from indications of recovering Chinese demand. "China's manufacturing and services PMIs will be a major economic driver to oil prices as positive data is most likely to further improve the demand outlook," Teng said. U.S. crude oil stockpiles were seen rising about 200,000 barrels last week, a preliminary Reuters poll showed on Monday.

☆ Analysis: Investors seek value in clobbered U.S. regional bank shares
▼ + stars: | 2023-03-28 | by ( David Randall | ) www.reuters.com time to read: +4 min

The ETF has slumped nearly 26% since March 8, when SVB's troubles became known, while the S&P Regional Banks Select Industry Index (.SPSIRBK) is down around 23%. Concerns over deposit flight are still swirling around some regional banks. He owns shares of large regional banks including Citizens Financial Group Inc (CFG.N), which have fallen about 22% so far this year, and US Bancorp (USB.N), which are down some 18%. Margie Patel, a senior portfolio manager at Allspring Global Investments, has been adding new positions in regional banks over the last few weeks, citing "value." Regional banks "need positive news that shows their deposits are holding firm or growing," said Rick Meckler, a partner at family office Cherry Lane Investments.

☆ Softer dollar buoys gold, but banking optimism limits safe-haven appeal
▼ + stars: | 2023-03-28 | by ( Kavya Guduru | ) www.reuters.com time to read: +2 min

SummarySummary Companies Gold might retest support at $1,945/oz - technicalsU.S. dollar down 0.2%Global stocks rise on TuesdayMarch 28 (Reuters) - Gold prices rose on Tuesday as the dollar slipped, although an improvement in risk appetite after efforts by regulators to allay fears over the global banking system limited the safe-haven metal's appeal. "The U.S. dollar seems to be stabilising, this should entice fresh buying back into the (gold) market," said Clifford Bennett, chief economist at ACY Securities. However, gold remains the "resolute safe-haven" in a "rolling risk environment" for the banking sector as risks of contagion are far more persistent than the market would like to believe, Bennett added. Gold might retest a support at $1,945 per ounce, a break below could open the way towards $1,927, Reuters technical analyst Wang Tao said. Spot silver eased 0.1% to $23.06 per ounce, while platinum rose 0.5% to $976.87 and palladium added 0.7% at $1,418.44.

☆ First Citizens shares hit record high in wake of SVB purchase
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +2 min

March 28 (Reuters) - Shares of First Citizens BancShares Inc (FCNCA.O) climbed to a record high on Tuesday, extending gains for a second day after scooping up the assets of failed peer Silicon Valley Bank. First Citizens BancShares rebounds to record highFirst Citizens rallied as much as 7.2%, briefly hitting an all-time peak of $959.99 before paring gains. Investors sent a record net $236 million into the iShares Regional Bank ETF (IAT.P) over the last two weeks, evidence that some investors are betting on a rebound in fundamentally strong regional lenders following the recent sell-off. Policymakers, regulators and central banks have emphasized that the turmoil is not a precursor to another global financial crisis. Shares of SVB Financial Group , which operated Silicon Valley Bank, traded on Tuesday as an over-the-counter stock and were last at 28 cents per shares, down from about $268 before the bank's collapse, an all but complete loss for its shareholders.

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