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☆ Your Guide to Second-Quarter Bank Earnings
▼ + stars: | 2023-07-14 | by ( ) www.wsj.com time to read: 1 min

JPMorgan's profit jumped after it rescued First Republic. (Clarissa Bonet for The Wall Street Journal)Bank earnings have started to roll in, with early-morning reports from JPMorgan, Citigroup and Wells Fargo. The question at the top of everyone's mind: Is Bank Crisis '23 over? Things have calmed down since March, when Silicon Valley Bank and Signature Bank collapsed in spectacular fashion. First Republic's demise, which followed in early May, was supposed to be the finale.

Persons: Clarissa Bonet Organizations: Wall, Bank, JPMorgan, Citigroup, Silicon Valley Bank, Signature Bank Locations: Republic, Wells Fargo

☆ Twenty-four central banks will have digital currencies by 2030 - BIS survey
▼ + stars: | 2023-07-10 | by ( Karin Strohecker | ) www.reuters.com time to read: +3 min

Central banks around the globe have been studying and working on digital versions of their currencies for retail use to avoid leaving digital payments to the private sector amid an accelerating decline of cash. Most of the new Central Bank Digital Currencies (CBDCs) will emerge in the retail space, where eleven central banks could join peers in the Bahamas, the Eastern Caribbean, Jamaica and Nigeria which already run live digital retail currencies, the BIS found in its survey of 86 central banks conducted late 2022. On the wholesale side, which in future could allow financial institutions to access new functionalities thanks to tokenisation, nine central banks could launch CBDCs, the BIS said. "Enhancing cross-border payments is among the key drivers of central banks' work on wholesale CBDCs," the authors of the report wrote. Pilot testing in China now reaches 260 million people and two other big emerging economies, India and Brazil, plan to launch digital currencies next year.

Persons: Francois Lenoir, CBDC, Karin Strohecker, Mark Potter Organizations: REUTERS, Francois Lenoir LONDON, Bank for International Settlements, Central Bank Digital, BIS, Swiss National Bank, European Central Bank, Silicon Valley Bank, Signature Bank, Thomson Locations: Brussels, Belgium, Bahamas, Eastern Caribbean, Jamaica, Nigeria, China, India, Brazil, Silicon, stablecoins

☆ San Francisco Fed president: Silicon Valley Bank’s failure wasn’t our fault
▼ + stars: | 2023-07-10 | by ( Bryan Mena | ) edition.cnn.com time to read: +6 min

Washington, DC CNN —Silicon Valley Bank failed because regulators were far too slow to take action, San Francisco Federal Reserve Bank President Mary Daly said Monday in her first extended remarks about the collapse. SVB operated in Daly’s district before the regional bank’s stunningly rapid failure in March, but she noted she doesn’t have a supervising role. Daly said the supervisors at the San Francisco Fed simply report issues to the Fed’s Board of Governors, which is ultimately responsible for fixing any regulatory issues. “My job is to support the supervision that the vice chair of supervision has set out, so how do I do that? The possibility of a rate hike in September remains unclear, though Powell said he wouldn’t take consecutive rate hikes off the table.

Persons: Mary Daly, SVB, ” Daly, Michael Barr, Democratic Sen, Elizabeth Warren, Daly, Jerome Powell, Warren, ”, Barr, it’s, It’s, Powell, Loretta Mester, Mester, “, Raphael Bostic, ” Bostic, ” — CNN’s Elisabeth Buchwald Organizations: DC CNN, Valley Bank, San Francisco Federal Reserve Bank, Brookings Institution, Signature Bank, First Republic Bank, Democratic, San Francisco Fed, Fed’s, of Governors, Fed, San Francisco, Cleveland Fed, University of California, Atlanta Fed, trickling, Cobb County Chamber of Commerce Locations: Washington, Daly’s district, Washington ,, San Francisco Fed, San Diego, Cobb County, Atlanta

☆ Fed's Barr lays out plan to order more capital for large U.S. banks
▼ + stars: | 2023-07-10 | by ( ) www.cnbc.com time to read: +2 min

Federal Reserve Board Vice Chair for Supervision Michael Barr testifies before a House Financial Services Committee hearing on the response to the recent bank failures of Silicon Valley Bank and Signature Bank, on Capitol Hill in Washington, March 29, 2023. The Federal Reserve's top regulatory official laid out a sweeping plan to increase capital requirements for the nation's largest banks, saying recent bank failures underlined the need for regulators to bolster resilience in the system. Barr said he did not plan to overhaul the U.S. bank capital framework, but instead build on it in several ways, including by fully implementing an international bank capital agreement and expanding annual "stress tests" of bank health. Barr also said the Federal Reserve is close to reaching the appropriate level of interest rates to bring inflation back to the central bank's 2% target but added: "We still have a bit of work to do." Barr's remark came in response to a question on how much further the Fed's policy rate may need to rise to contain inflation.

Persons: Michael Barr, Barr Organizations: Financial, Valley Bank, Signature Bank, Capitol, Federal, Silicon Valley Bank, Federal Reserve Locations: Washington, Silicon

☆ The Fed's own economists don't know if the US will escape a recession or not. They say it's basically a coin toss.
▼ + stars: | 2023-07-06 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

The Fed's own economists aren't sure if the US economy will suffer a recession or not. They believe it's a virtual coin toss whether there's a mild downturn or none at all. Even the Federal Reserve's own economists say it's basically a coin toss, the minutes from the Fed's June meeting show. The central bank's staff predicted that banks would keep pulling back on lending, tightening financial conditions and causing real gross domestic product (GDP) to decline modestly for the next two quarters. They also tend to damp demand, lift unemployment, and pull down asset prices, increasing the risk of a recession.

Persons: —, it's, Jerome Powell Organizations: Service, Silicon Valley Bank, Signature Bank, Fed Locations: Silicon

☆ The pain is just starting for commercial real estate - and plunging prices could reignite the banking crisis and choke the US economy, Columbia professor says
▼ + stars: | 2023-07-04 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

A Columbia professor has issued a bleak outlook for commercial real estate in the US. Office values are plunging and threaten to cause an "urban doom loop," Stijn Van Nieuwerburgh said. If cities become more expensive and less appealing, people are likely to move out, cutting real estate values even more and causing a downward spiral, he said. Pension funds, real estate investment trusts (REITS), and other entities have invested significant sums in CRE, and the office segment specifically. "I do worry that there is potential for a spillover here, that we haven't seen the end of the banking crisis yet," Van Nieuwerburgh said.

Persons: Van Nieuwerburgh, —, Stijn Van Nieuwerburgh Organizations: Service, Columbia Business School, Bank, Signature Bank Locations: Columbia, CRE, Silicon

☆ Wall Street analysts think these 5 bank stocks will do well in the second half
▼ + stars: | 2023-07-02 | by ( Brian Evans | ) www.cnbc.com time to read: +3 min

All 23 banks that the Federal Reserve subjects to its annual stress test passed the key evaluation after the market closed on Wednesday. Nonetheless, the stress test helped lift major banks stocks, including Wells Fargo and JPMorgan Chase , on Thursday. Phoenix-based Western Alliance , meanwhile, is 58% below its 52-week high. WAL YTD mountain Western Alliance stock has slipped more than 38% so far this year. Wells Fargo stock has gained almost 3.5% in 2023 after climbing 3.4% on Thursday following the Fed's stress test.

Persons: Wells, JPMorgan Chase, Goldman Sachs, Goldman, David Solomon, FactSet Organizations: Federal Reserve, Silicon Valley Bank, Signature Bank, First, KBW Bank, PacWest Bancorp, Western Alliance Bancorp, JPMorgan, CNBC Pro, KBW Bank ETF, Goldman, Western Alliance, Western, Wells, San Locations: U.S, Silicon, GreenSky, Phoenix, Wells Fargo, San Francisco

☆ US regulators consider to limit major lenders' borrowings from FHLBs - Bloomberg News
▼ + stars: | 2023-06-30 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Sarah Silbiger/File PhotoJune 30 (Reuters) - U.S. officials are considering to limit the ability of large banks to use Federal Home Loan Banks (FHLBs) as a financial backstop, as part of a broader proposal to overhaul the system, Bloomberg News reported on Friday. The Federal Housing Finance Agency might still adjust its plans before announcing the recommendations in the coming months, the report added. Federal Home Loan Banks are 11 U.S. government-chartered institutions that raise money for low-cost lending to their member regional banks. For many of the member banks, they are a preferred final stop for cash before banks in need turn to the Federal Reserve itself as a last resort. Federal Housing Finance Agency did not immediately respond to a Reuters request for comment.

Persons: Sarah Silbiger, Jaiveer Singh, Shweta Agarwal Organizations: REUTERS, Loan, Bloomberg, Federal Housing Finance Agency, Silicon Valley Bank, Signature Bank, Credit Suisse, Federal, Loan Banks, Federal Reserve, Thomson Locations: Washington , U.S, Silicon, U.S, Bengaluru

☆ The next revolution in monetary policy is underway
▼ + stars: | 2023-06-30 | by ( Felix Martin | ) www.reuters.com time to read: +7 min

LONDON, June 30 (Reuters Breakingviews) - Monetary policy, Milton Friedman said, acts on the economy with long and variable lags. Monetary policy regimes evolve in response to the changing nature of prevailing economic challenges – though this also takes time. The next revolution in monetary policy may be brewing. One question Gopinath did not address is how the financial system came to dominate monetary policy. When contractions hit, however, central banks eased monetary policy and governments loosened their purse strings, just as before.

Persons: Milton Friedman, Gita Gopinath, Gopinath, ’, “, Peter Thal Larsen, Pranav Kiran, Oliver Taslic Organizations: Reuters, International Monetary Fund, Bank for International, IMF, Central, SVB, Signature Bank, Credit Suisse, Fed Funds, BIS, Thomson Locations: Portuguese, Sintra, Korean, United States, Europe, Central, England, London, U.S, China, Ukraine, “

☆ US regulators consider to limit major lenders' borrowings from FHLBs, Bloomberg reports
▼ + stars: | 2023-06-30 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Sarah Silbiger/File PhotoJune 30 (Reuters) - U.S. officials are considering to limit the ability of large banks to use Federal Home Loan Banks (FHLBs) as a financial backstop, as part of a broader proposal to overhaul the system, Bloomberg News reported on Friday. The Federal Housing Finance Agency (FHFA) might still adjust its plans before announcing the recommendations in the coming months, the report added. Federal Home Loan Banks are 11 U.S. government-chartered institutions that raise money for low-cost lending to their member regional banks. For many of the member banks, they are a preferred final stop for cash before banks in need turn to the Federal Reserve itself as a last resort. Federal Housing Finance Agency did not immediately respond to a Reuters request for comment.

Persons: Sarah Silbiger, FHFA, Jaiveer Singh, Shweta Agarwal Organizations: REUTERS, Loan, Bloomberg, Federal Housing Finance Agency, Reuters, Silicon Valley Bank, Signature Bank, Credit Suisse, Federal, Loan Banks, Federal Reserve, Thomson Locations: Washington , U.S, Silicon, U.S, Bengaluru

☆ US banks gird for dose of post-stress-test trauma
▼ + stars: | 2023-06-29 | by ( John Foley | ) www.reuters.com time to read: +8 min

NEW YORK, June 29 (Reuters Breakingviews) - For the biggest U.S. banks, the nerves this year come after the exam. Fed stress tests subject banks to a theoretical market shock and incorporate elements of operational risk, and then spit out a “stress capital buffer” requirement tailored to each firm. The risk for banks is that new rules get piled on top of existing regulations in a process known as gold-plating. U.S. banks are awaiting a proposal from their regulators to revamp capital rules, expected in July. Gruenberg said regulators were considering expanding the reach of a stricter set of capital rules to include banks with over $100 billion in assets.

Persons: Goldman Sachs, Michael Barr, Jamie Dimon, Banks, Morgan Stanley, Jay Powell, PwC, watchdogs, Michelle Bowman, Martin Gruenberg, It’s, Gruenberg, Peter Thal Larsen, Streisand Neto Organizations: YORK, Reuters, Federal Reserve, JPMorgan, Citigroup, Banking Supervision, Basel III, America, State Street, Bank of New York Mellon, Big, Bank, U.S ., Reuters Graphics Reuters, Signature Bank, First, Fed, Federal Deposit Insurance, FDIC, Credit Suisse, Committee, “, “ Basel IV, Federal, Thomson Locations: U.S, Basel, Goldman, Big U.S, Swiss, “ Basel

☆ How safe are America’s biggest banks? The Fed’s imminent stress tests may offer clues
▼ + stars: | 2023-06-28 | by ( Elisabeth Buchwald | ) edition.cnn.com time to read: +5 min

That’s because no stress test scenario could perfectly predict the conditions that would cause a bank to collapse. And besides, that’s not the purpose of stress tests, said Covas, a former Fed economist who developed some of the central bank’s early stress tests. The test scenarios were designed before the banking crisisFed officials update the stress test scenarios each year to capture the latest vulnerabilities in the economy. It’s a misconception that “if no bank fails these stress tests are not useful,” or the tests were too easy, Covas said. “You really don’t need a stress test to figure out that SVB had some significant issues,” he added.

Persons: Francisco Covas, that’s, Covas, “, ”, João Granja, they’ve, SVB Organizations: New, New York CNN, Federal, Bank Policy Institute, University of Chicago Booth School of Business, Fed, Silicon Valley Bank, Signature Bank, First Republic Bank, CNN Locations: New York, Silicon

☆ Why any M&A boom in banks will mirror shale oil in 2020 — all-stock offers and small premiums
▼ + stars: | 2023-06-27 | by ( Scott Schnipper | ) www.cnbc.com time to read: +2 min

Pioneer Natural bought Parsley Energy at an 8% premium. Devon Energy bought WPX Energy at a 3% premium. Bilson points to Yellen last week highlighting a likely decline in earnings when banks report second-quarter earnings next month. That's already reflected in plenty of well-known banks "now trading with mid-single digit forward EPS multiples" as they are suddenly forced to pay more for their deposits, Bilson wrote. There are other hurdles standing in the way of bank deals, Bank of America analysts led by Ebrahim Poonawala said Monday.

Persons: Janet Yellen, there'll, Don Bilson, Gordon Haskett, Bilson, Ebrahim Poonawala, dealmaking, Poonawala, — CNBC's Michael Bloom Organizations: Silicon Valley Bank, Signature Bank, First, Federal Reserve, Dominion, Chevron, Noble Energy, ConocoPhillips, Concho Resources, Energy, Devon Energy, WPX Energy, Yellen, Bank of America, Regulators, U.S . Department of Justice, Federal Trade Commission, MTM Locations: U.S, Wall, Silicon, Toronto, Concho

☆ Are investors ignoring the Federal Reserve’s warning?
▼ + stars: | 2023-06-25 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

CNN —Stocks fell last week as several signs pointed to the Federal Reserve continuing to hike rates this year. The Cboe Volatility Index, known as the VIX, is derived from S&P 500 index options prices and measures volatility expectations. Meanwhile, the May Producer Price Index showed that inflation at the wholesale level cooled to below its pre-pandemic average. Tuesday: Case-Shiller home price index and new home sales. Friday: May Personal Consumption Expenditures Price Index and University of Michigan June consumer sentiment and inflation expectations final reading.

Persons: CNN — Stocks, Jerome Powell, BoE, Tom Graff, Price, ”, Graff, it’s, Liz Young, Gina Bolvin, Bitcoin, Charles Schwab Organizations: CNN Business, Bell, CNN, Federal Reserve, Dow Jones, Nasdaq, Federal, Bank of England, Nvidia, Microsoft, Bolvin Wealth Management, “, Valley Bank, Signature Bank, BlackRock, EDX, Fidelity Digital Assets, Citadel, Index, University of Michigan

☆ Bitcoin price hits its highest level in a year
▼ + stars: | 2023-06-23 | by ( Krystal Hur | ) edition.cnn.com time to read: +1 min

CNN —Bitcoin on Friday shot up to its highest level in about a year. The cryptocurrency rose above $31,400 a coin on Friday, its highest level since 2022, before paring back its gains. BlackRock last week applied to register a bitcoin spot exchange-traded fund, according to a US Securities and Exchange Commission filing. Crypto exchange EDX Markets, backed by firms such as Charles Schwab, Fidelity Digital Assets and Citadel, also launched its digital asset trading platform this week. The SEC earlier this month sued Coinbase, the US’s largest crypto exchange, alleging that it is acting as an unregistered broker.

Persons: CNN — Bitcoin, Bitcoin, Charles Schwab, Coinbase, bitcoin Organizations: CNN, Valley Bank, Signature Bank, BlackRock, US Securities and Exchange Commission, Fidelity Digital Assets, Citadel, SEC, Federal Locations: United States

☆ Small stocks are cheap and finally joining the market rally
▼ + stars: | 2023-06-22 | by ( Krystal Hur | ) edition.cnn.com time to read: +4 min

Small cap stocks are domestic bellwethers, since smaller companies generate most of their revenue from US customers. Investors say that recent gains in small caps are helping prop up the burgeoning bull market, even as a potential economic downturn draws near. Cheap buysNow, the rally in small caps suggests that Wall Street is optimistic about the economy’s health. Some investors say cheap valuations and and hopes for a muted economic downturn means small caps look more attractive than they have in months. Optimism about the economyThe small caps’ rally is also an auspicious sign for the broader economy, says Quincy Krosby, chief global strategist at LPL Financial.

Persons: they’ve, Rambus, ”, John Ragard, Quincy Krosby, Russell, Francis Gannon, Anna Rathbun Organizations: New, New York CNN, Investors, Valley Bank, Signature Bank, First Republic Bank, Apellis Pharmaceuticals, Shockwave, Management, LPL, Penn Capital Management, Royce Investment Partners, Federal Reserve, CBIZ Investment Advisory Services Locations: New York, That’s

☆ Recession obsession, AI boom and wild markets: What Wall Street can expect for the rest of 2023
▼ + stars: | 2023-06-22 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +9 min

So what does the rest of the year have in store for Wall Street? Unfortunately, Wall Street is unlikely to receive the clarity it seeks anytime soon. Still, economists at the Federal Reserve believe that a recession seems more likely by the end of 2023 than not. AI boom: Wall Street has a lot to worry about, but there’s at least one source of market euphoria: artificial intelligence. Satisfying your sweet tooth is about to get more expensiveIf you have a sweet tooth, take note: Cocoa prices have been soaring — and that could drive chocolate prices higher.

Persons: it’s, Rachel, Ross, Mulder, Scully, Sam, Diane, Vladimir, Estragon, Samuel Beckett’s, ”, Michael Arone, Matthew Bartolini, Darrell Cronk, “, Arif Husain, Rowe Price, Wells, Justin Thomson, Liz Ann Sonders, Charles Schwab, Samantha Delouya, It’s, Danielle Wiener, Bronner, El, Paul Organizations: CNN Business, Bell, New York CNN, Investors, State, Federal Reserve, JPMorgan, Wells, Investment Institute, Silicon Valley Bank, Signature Bank, First, State Street, JPMorgan Chase, ”, “, OceanGate Expeditions, Federal Aviation Administration, Virgin Galactic, SpaceX, Rabobank Locations: New York, Silicon, First Republic, Washington, Europe, Asia, United States, China

☆ House Democrats release wave of bank reform bills
▼ + stars: | 2023-06-21 | by ( Chelsey Cox | ) www.cnbc.com time to read: +7 min

WASHINGTON — House Democrats on Wednesday will release a slate of reform bills in response to the recent bank failures that triggered the worst crisis for the sector since 2008. "The failures of Silicon Valley Bank, Signature Bank, and First Republic Bank make clear that it is past time for legislation aimed at strengthening the safety and soundness of our banking system and enhancing bank executive accountability," she said. President Joe Biden called for these actions shortly after the FDIC took over SVB and Signature Bank in March. The bill would have prevented SVB bank executives from cashing out after repeated warnings by regulators, according to Democrats. Neither Signature Bank nor SVB had a bank holding company before they collapsed.

Persons: Maxine Waters, Dodd, Frank, Waters, Joe Biden, Nydia Velazquez, Brad Sherman, Juan Vargas, David Scott, Al Green, Sylvia Garcia of, Emanuel Cleaver, Joyce Beatty, Steven Horsford, Rashida, Velazquez, Sherman, Cleaver, Beatty, Frank Act's, SVB, Vargas, Garcia, Tlaib, Banks, Sean Casten, Josh Gottheimer, Ritchie Torres, Wiley Nickel, Stephen Lynch, Brittany Pettersen Organizations: Financial Services, Washington , D.C, WASHINGTON —, Democrats, Financial Services Committee, Treasury Department, Federal Deposit Insurance Corporation, Silicon Valley Bank, Signature Bank, Banking Committee, Valley Bank, First Republic Bank, FDIC, Democratic, Sylvia Garcia of Texas, Republicans, Sound Banking, Prudential, prudential, Bank, Green, Sherman, Rep, Federal, Office, Federal Reserve, FAIR, Tlaib, Safety, Sherman . Locations: California, Washington ,, New York, Georgia, Missouri, Ohio, Michigan, Green, Horsford, H.R, Silicon, Illinois, New Jersey, North Carolina, Colo

☆ Offices are turning into amenity-filled campuses to entice employees back to work
▼ + stars: | 2023-06-20 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +8 min

Businesses are stuck with trillions of dollars of commercial real estate they need to use. But supply and demand are starting to even out: National demand for office space in May was up 13% from April. But are corporations downsizing the amount of office space they rent as they permanently shift some roles to work from home? Have you seen a shift in the commercial real estate market since the collapse of Silicon Valley Bank and Signature Bank in March? The commercial real estate market is largely a regional business, landlords are local.

Persons: That’s, Bell, Nick Romito, It’s, We’ve, hasn’t, Chris Isidore, Ella Nilsen, Ian, ’ We’ve, Anna Cooban, Greene King, Shepherd Neame, ” Organizations: CNN Business, Bell, New York CNN, US Treasury Department, Federal Reserve, Securities and Exchange Commission, CBRE, Estate Services, Covid, Silicon Valley Bank, Signature Bank, Farm, Allstate, State, Brewers, CNN, Heineken Locations: New York, United States, Silicon, Florida, California, California , Florida, Louisiana, United Kingdom

June 16 (Reuters) - Customers Bancorp (CUBI.N) said on Friday it acquired a $631 million venture banking loan portfolio from U.S. regulator Federal Deposit Insurance Corporation (FDIC) at about 85% of the book value. The portfolio belonged to failed lender Signature Bank, which was put under FDIC receivership in March, a source familiar with the matter told Reuters. Customers Bancorp shares rose on the news to their highest level since early March, and were up 3.3% at $30.23 at midday. On March 12, state regulators closed New York-based Signature Bank, marking this year's second high-profile bank collapse sparked by an exodus of depositors seeking higher returns and safer institutions. Following the bank's closure, the FDIC had announced in April the marketing process for the roughly $60-billion loan portfolio retained in receivership from Signature Bank.

Persons: Michael Perito, Keefe, Perito, Manya Saini, Saeed Azhar, Shailesh Kuber, Richard Chang Organizations: Customers Bancorp, Deposit Insurance Corporation, Signature Bank, Reuters, FDIC, Bancorp, Loans, Bank, New York Community Bancorp, Thomson Locations: Austin, Boston, Southern California, Chicago, New York, Bengaluru

[1/2] A view of the Goldman Sachs global headquarters in Manhattan, New York, U.S., November 15, 2021. The latest round of penny-pinching comes as Goldman Sachs management grew more pessimistic about an economic recovery and dealmaking this year. Goldman Sachs investment banking revenue is down 52% in that same period, the Dealogic data showed. Goldman Sachs trades at 0.97 times its book value, lagging rivals Morgan Stanley and JPMorgan Chase & Co (JPM.N) which trade at 1.45 times and 1.33 times, respectively, according to Refintiv data. Reuters GraphicsThe headcount reductions and cost cutting do not solve Goldman's fundamental challenges: its reliance on investment banking and trading.

Persons: Goldman Sachs, Andrew Kelly NEW, Goldman, David Solomon, John Waldron, Morgan Stanley, pare, Brennan Hawken, Waldron, Saeed Azhar, Lananh Nguyen, Tatiana Bautzer, Andrea Januta, Anna Driver Organizations: REUTERS, Andrew Kelly NEW YORK, Goldman Sachs, Investment, Lazard Ltd, Citigroup Inc, JPMorgan Chase &, Reuters, Thomson Locations: Manhattan , New York, U.S, New York, Bengaluru

☆ Walmart-backed fintech ONE raises savings rate as battle for deposits heats up
▼ + stars: | 2023-06-14 | by ( Siddharth Cavale | ) www.reuters.com time to read: +1 min

NEW YORK, June 14 (Reuters) - ONE, a fintech company backed by Walmart Inc (WMT.N), is offering 5% interest on savings accounts of up to $100,000 as of Wednesday, a source close to the company said, as the battle for consumer deposits intensifies. The rate is more than 12 times the national average of 0.4%, the source said, citing Federal Deposit Insurance Corporation data. Apple Inc began offering 4.15% on its Apple Card savings accounts in April in partnership with Goldman Sachs Inc. Step, a fintech app catering to younger customers, offered 5% in May. All other savings balances will continue to receive a 1.00% annual percentage yield.

Persons: Goldman Sachs, Siddharth Cavale, Richard Chang Organizations: YORK, Walmart Inc, Federal Deposit Insurance Corporation, Apple Inc, Apple, Goldman, Goldman Sachs Inc, Valley Bank, Signature Bank, Coastal Community Bank, Walmart, Thomson Locations: U.S, New York

☆ As regional bank stock rally regains steam, investors should watch out for these spoilers
▼ + stars: | 2023-06-13 | by ( Christina Cheddar Berk | ) www.cnbc.com time to read: +6 min

With the Federal Reserve expected to pause its rate-hiking campaign at this week's meeting, regional banks stocks have made a comeback, but that doesn't mean all the trouble is in the rearview mirror. Still, the upward march resumed on Tuesday, begging the question of what's ahead for bank stocks. As the Treasury sells tens of billions of dollars in Treasury bills, it could pressure bank deposits. Graseck predicts that a reacceleration of deposit outflows would snuff out the bank stock rally. In addition, regional bank earnings estimates, which had been cut severely in March and April, had leveled off in May.

Persons: Jack Ablin, Ablin, outflows, SVB, Aditya Bhave, Bhave, Morgan Stanley, Betsy Graseck, Graseck, Nicholas Colas, Huntington Bancshares, Matt O'Connor, KeyCorp, Albin Organizations: Federal Reserve, Fed, Cresset, Silvergate, Silicon Valley Bank, Signature Bank, PacWest Bancorp, Bank of America, Treasury, DataTrek Research, Citizens Financial Group, Truist, Morgan Stanley U.S, Financials, CRE Conference, Deutsche Bank, TFC Locations: Silicon, Federal, U.S, 2Q23, New York

☆ JPMorgan downgrades this regional bank stock, says earnings power looks challenged over the near term
▼ + stars: | 2023-06-13 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

Rising expenses denting earnings growth create a murky near-term setup for shares of First Horizon , according to JPMorgan. Analyst Steven Alexopoulos moved to a neutral rating on the regional bank stock after a non-rating period, saying that the company's recent investor day failed to improve near-term confidence. The Wall Street firm previously held an overweight rating on shares and $20 price target. Shares of First Horizon faced significant pressure this year as the regional banking crisis unraveled and led to the collapse of Silicon Valley Bank and Signature Bank, and takeover of First Republic. Amid this backdrop, the stock's tumbled nearly 52%, with the firm's $13 price target suggesting 10% upside from Monday's close.

Persons: Steven Alexopoulos, Alexopoulos, CNBC's Michael Bloom Organizations: JPMorgan, Street, Horizon, Silicon Valley Bank, Signature Bank, First Locations: Silicon, First Republic

☆ 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

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