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☆ CNBC Daily Open: Investors sold off, anxious about the monthly U.S. jobs report
▼ + stars: | 2023-03-10 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. For instance, PacWest Bancorp sank 25.45%, a 52-week low, and First Republic Bank dropped 16.51% to trade at a 3-year low. Major banks weren't spared: Bank of America and Wells Fargo both fell by more than 6%. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ Silicon Valley Bank scrambles to reassure clients after 60% stock wipe-out
▼ + stars: | 2023-03-09 | by ( ) edition.cnn.com time to read: +5 min

SVB Financial Group scrambled on Thursday to reassure its venture capital clients their money was safe after a capital raise led to its stock collapsing 60% and contributed to wiping out over $80 billion in value from bank shares. SVB, which does business as Silicon Valley Bank, launched a $1.75 billion share sale on Wednesday to shore up its balance sheet. Investors in SVB’s stock fretted over whether the capital raise would be sufficient given the deteriorating fortunes of many technology startups that the bank serves. The company’s stock collapsed to its lowest level since 2016, and after the market closed shares slid another 26% in extended trade. However, the Information publication reported the bank told four clients that transfers could be delayed.

NEW YORK , March 7 (Reuters) - Bank of America Corp's (BAC.N) Chief Executive Officer Brian Moynihan had a clear message for shareholders on Tuesday: "We are capitalists." The proclamation from the head of the second-largest U.S. lender might seem obvious, but comes at a time when Wall Street titans face more criticism for embracing environmental, social and governance (ESG) considerations. The word "capitalism" is mentioned 22 times in BofA's latest annual report spanning 222 pages, rising from 16 times a year earlier. Still, the CEO acknowledged there are concerns about whether companies share profits or pay people fairly and equitably. The lender outlined its ESG goals in the report, including a pledge to achieve net zero greenhouse gas emissions by 2050 and deploy $1.5 trillion in sustainable finance by 2030.

☆ Richard Rosenberg, former Bank of America chief who doubled its assets, dies
▼ + stars: | 2023-03-06 | by ( Lananh Nguyen | ) www.reuters.com time to read: +1 min

NEW YORK, March 5 (Reuters) - Richard Rosenberg, the former Bank of America Corp (BAC.N) chief executive who presided over a spree of acquisitions that doubled the bank's assets, has died. Rosenberg, a former Navy commander, served as the bank's chairman and CEO from 1990 to 1996. He took the helm as the industry was deregulating and orchestrated several major deals including a $4 billion merger with Security Pacific National Bank, one the largest banking deals of its time. They have since swelled to more $3 trillion after more deals, including the purchase of Merrill Lynch during the 2008 financial crisis. He joined Bank of America in 1987 to run its California operations, helping the company to swing to a profit from losses.

Reuters reported in March 2020 that Syneos was working with investment bank Centerview Partners LLC to explore a sale. Syneos, which has a market capitalization of $3.9 billion and carries a $2.9 billion debt pile, was not immediately available for comment. Based in Morrisville, North Carolina, Syneos helps pharmaceutical companies with clinical trials and to market their drugs. There has been a wave of consolidation among contract research organizations in a bid to lower costs, amass more clinical trial data and win customers. Labcorp (LH.N), for example, said earlier this month that it will complete the spinoff of its contract research organization, called Fortrea, by the middle of this year.

☆ Buffett's Berkshire posts record annual operating profit
▼ + stars: | 2023-02-25 | by ( Jonathan Stempel | ) www.reuters.com time to read: +3 min

Feb 25 (Reuters) - Warren Buffett's Berkshire Hathaway Inc (BRKa.N) on Saturday reported its highest-ever annual operating profit, even as foreign currency losses and lower gains from investments caused fourth-quarter profit to fall. Quarterly operating profit fell 8% to $6.71 billion, or $4,596 per Class A share, from $7.29 billion. Profit also fell at the BNSF railroad, while Berkshire generated more profit from its energy businesses and more income from its insurance investments as interest rates rose. For all of 2022, Berkshire lost $22.82 billion, largely because of losses in its $308.8 billion common stock portfolio. "We're delighted to see the growth in float," said Thomas Russo, a partner at Gardner Russo & Quinn who helps invest $8 billion, about 17% of which is in Berkshire stock.

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☆ U.S. business equipment borrowings grow 6% in January - ELFA
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +1 min

Feb 24 (Reuters) - U.S. companies borrowed 6% more in January to finance equipment investments from a year earlier, industry body Equipment Leasing and Finance Association (ELFA) said on Friday. New business volume, however, was down 32% month-on-month after the typical end-of-quarter, end-of-year spike in new business activity. ELFA, which reports economic activity for the $1 trillion equipment finance sector, said credit approvals were 75.1%, down from 76.6% in December. Washington-based ELFA's leasing and finance index measures the volume of commercial equipment financed in the United States. The Equipment Leasing & Finance Foundation, ELFA's non-profit affiliate, said its confidence index in February stood at 51.8, an increase from 48.5 in January.

NEW YORK, Feb 22 (Reuters) - Bank of America Corp (BofA) (BAC.N) amassed $1.2 billion in expenses for litigation and regulatory investigations last year including fines and settlements, according to a company filing on Wednesday. BofA also paid $225 million in penalties to U.S. financial regulators last year over employees' use of unauthorized messaging platforms including WhatsApp. A pair of banking regulators also fined the bank $225 million over what they called a "botched" handling of jobless benefits during the pandemic. While those three cases led to just over $800 million in combined expenses last year, BofA did not specify what accounted for the remaining $400 million. Some other U.S. banks also received hefty penalties in 2022.

His counterpart at Bank of America Corp (BAC.N), Brian Moynihan, cited resilient consumer finances and spending as positive signs. At a separate event, Bank of America's CEO reiterated what he has been saying for months - that consumer spending remains robust and is underpinning the economy. JOB CUTSDespite some easing concern about an economic slowdown, the bank chiefs said they were managing headcount to constrain costs. It aims to have a workforce of about 213,000 to 214,000 in the next three to four months, Moynihan said, down from 216,823 at the end of 2022. While consumer spending remains healthy, credit card delinquencies are increasing, and growth in Wells Fargo's commercial bank is moderating, he said.

His counterpart at Bank of America Corp (BAC.N), Brian Moynihan, cited resilient consumer finances and spending as positive signs. At a separate event, Bank of America's CEO reiterated what he has been saying for months - that consumer spending remains robust and is underpinning the economy. While consumer spending remains healthy, credit card delinquencies are increasing, and growth in Wells Fargo's commercial bank is moderating, he said. Despite some easing concern about an economic slowdown, the bank chiefs said they were managing headcount to constrain costs. It aims to have a workforce of about 213,000 to 214,000 in the next three to four months, Moynihan said, down from 216,823 at the end of 2022.

☆ Cramer's lightning round: Triton International is not a buy
▼ + stars: | 2023-02-10 | by ( Krystal Hur | ) www.cnbc.com time to read: 1 min

Loading chart...Triton International Ltd : "I'm going to have to say, let's take a pass on that one." Loading chart...Baxter International Inc : "I'd rather see you in Dexcom ." Loading chart...A. O. Smith Corp : "A. O. Smith is the kind of company that makes stuff, does things, returns capital to shareholders. Unity Software Inc : "Unity Software stinks." Loading chart...BigBear.ai Holdings Inc : "How do I say, sell, sell, sell, sell, sell."

☆ Citi's high deposit betas to squeeze interest margins - Moody's
▼ + stars: | 2023-02-08 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

Feb 8 (Reuters) - Citigroup Inc (C.N) may see more net interest margin (NIM) pressure than the other four big U.S. banks this year due to its high deposit betas, or the percentage of changes in interest rates that banks pass on to consumers, a Moody's report showed. That would make it harder for Citi to catch up with rivals on profitability as a higher deposit rate increases a bank's interest expense. Wall Street banks have enjoyed healthy NIMs so far as the Federal Reserve pumped up interest rates to rein in inflation, but deposit betas have also leapt and are now threatening to erode margin expansions. Reuters GraphicsIn a further sign of NIM pressure ahead, Citigroup's cost of interest-bearing deposits swelled to 2.10% from 0.28% during the period, a company presentation showed. Reporting by Mehnaz Yasmin in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of America Cut CEO Brian Moynihan’s Pay 6% in 2022
▼ + stars: | 2023-02-04 | by ( Ben Eisen | ) www.wsj.com time to read: 1 min

Bank of America CEO Brian Moynihan’s pay for the year included restricted stock worth $28.5 million. Bank of America Corp. cut its chief’s pay by about 6% last year, when the company’s stock price and profit fell. CEO Brian Moynihan earned $30 million for 2022, including base salary of $1.5 million and restricted stock worth $28.5 million, according to a regulatory filing released Friday. That compares with a payday of $32 million for 2021.

☆ Renewed U.S. junk bond rally ignites hope for more stuck buyout debt
▼ + stars: | 2023-02-03 | by ( Matt Tracy | ) www.reuters.com time to read: +3 min

This exercise now has more impetus on expectations that junk bond prices will continue to rally in the wake of Powell's comments, which raised hopes of slowing rate hikes and a so-called economic soft landing. Junk bond spreads on average tightened 37 basis points on Wednesday, the day of Powell's remarks, from a day earlier, according to ICE BAML data. This is around the level in September when banks sold only about half of the total $15 billion of debt through a U.S. dollar bond, leveraged loan and a Euro-denominated loan. Reuters could not confirm the exact amount sold in these sales and balance of LBO debt still left with banks. Banks could consider selling larger parcels of LBO debt in the primary bond markets where there has been a surge in new issue supply, said the sources.

☆ BofA trims CEO Moynihan's pay to $30 mln as Wall Street curbs compensation
▼ + stars: | 2023-02-03 | by ( ) www.reuters.com time to read: +1 min

Moynihan's pay included a base salary of $1.5 million and restricted stock. In deciding his compensation, the bank's board cited the executive's leadership in a period of "considerable economic uncertainty." U.S. lending giants have cut or frozen pay for their top executives in recent weeks, citing challenging economic and business conditions. Goldman Sachs Group Inc (GS.N) slashed compensation for CEO David Solomon by 29% to $25 million for 2022, while his counterpart at Morgan Stanley (MS.N), James Gorman, got a 10% pay cut to $31.5 million. At JPMorgan Chase & Co (JPM.N), Jamie Dimon's compensation was held steady at $34.5 million.

☆ Twitter makes first interest payment on Musk buyout debt -sources
▼ + stars: | 2023-01-31 | by ( ) www.reuters.com time to read: +1 min

Twitter paid about $300 million to a group of banks last week, one of the sources said, confirming an earlier Bloomberg story. The banks declined to comment, while Twitter and Musk did not immediately respond to Reuters requests for comment. The sources did not want to identified because the details of the payment are not public. Morgan Stanley's Chief Financial Officer Sharon Yeshaya told Reuters this month the bank's mark-to-market losses on corporate loans include debt to Twitter. Reporting by Saeed Azhar; additional reporting by Matt Tracy; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.

☆ Twitter makes first interest payment on Musk buyout debt - Bloomberg News
▼ + stars: | 2023-01-30 | by ( ) www.reuters.com time to read: +1 min

Jan 30 (Reuters) - Twitter Inc has made its first interest payment under Elon Musk after the billionaire took the social media company private last year using about $12.5 billion of debt, Bloomberg News reported on Monday, citing people with knowledge of the matter. Twitter paid a group of seven banks, led by Morgan Stanley, which became stuck with the debt after they were unable to sell it to outside investors, the report added. Twitter, Musk and Morgan Stanley did not immediately respond to Reuters requests for comment. Twitter has also seen advertisers flee amid worries about Musk's approach to content moderation rules, impacting its revenue. Musk in November also pointed out that Twitter had seen a "massive" drop in revenue and blamed activist groups for pressuring advertisers.

☆ Musk explores raising $3 billion to pay off Twitter debt - WSJ
▼ + stars: | 2023-01-25 | by ( ) www.reuters.com time to read: +1 min

According to the report, Musk's representatives discussed selling up to $3 billion in new Twitter shares in December. Twitter and Elon Musk did not immediately respond to Reuters requests for comment. The Tesla (TSLA.O) boss borrowed $13 billion to close the Twitter acquisition in October from a syndicate of banks including Morgan Stanley (MS.N) and Bank of America Corp (BAC.N). Musk's team has said to people familiar with the finances of the company that an equity raise, if successful, could be used to pay down an unsecured portion of the debt that carries the highest interest rate within the $13 billion Twitter loan package, the report added. Reporting by Tiyashi Datta in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

☆ Bank of America to give stock awards to rank-and-file workers
▼ + stars: | 2023-01-24 | by ( ) www.reuters.com time to read: 1 min

Jan 24 (Reuters) - Bank of America Corp (BAC.N) will give stock awards to most of its global workforce for a sixth consecutive year, the company said in a memo to staff on Tuesday. The second largest U.S. lender will award company shares that vest over four years to 96% of its almost 217,000 workers, according to the memo, which did not specify the amount of shares that would be given out. Eligible bank employees who earn less than $500,000 a year will receive the stock awards, while a smaller number will get cash payments, according to the memo. Reporting by Lananh Nguyen; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

☆ Banks Plan Payment Wallet to Compete With PayPal, Apple Pay
▼ + stars: | 2023-01-23 | by ( Annamaria Andriotis | ) www.wsj.com time to read: 1 min

Wells Fargo is part of a group of big banks that expect to enable 150 million debit and credit cards for use within a digital wallet. Big banks are teaming up to launch a digital wallet that people can use to shop online. Wells Fargo & Co., Bank of America Corp., JPMorgan Chase & Co. and four other banks are working on a new product that will allow shoppers to pay at merchants’ online checkout with a wallet that will be linked to their debit and credit cards.

☆ FASB to Expand Use of Accounting Method to More Tax-Credit Investments
▼ + stars: | 2023-01-19 | by ( Mark Maurer | ) www.wsj.com time to read: +4 min

The Financial Accounting Standards Board is moving to permit companies to apply a certain accounting method to more tax-credit investments, enabling them to record similar spending in a consistent way. Federal and state governments offer tax-credit programs to encourage investment in areas such as affordable housing, community development and clean energy. In recent years, more businesses have invested in renewable-energy tax credits as investors push them to boost corporate sustainability efforts. PREVIEWThe FASB, which sets accounting standards for U.S. companies, on Wednesday voted to allow companies to use this amortization method for any tax-credit investments that meet certain criteria. Bank of America Corp. said in October it was concerned that the proposal was too narrow and that it wouldn’t meet the FASB’s goal of having similar accounting rules for similar tax-credit structures.

☆ Davos 2023: Global bank chiefs get FBI cybersecurity update
▼ + stars: | 2023-01-19 | by ( ) www.reuters.com time to read: +1 min

REUTERS/Dado Ruvic/IllustrationDAVOS, Switzerland, Jan 19 (Reuters) - Global bank and exchange chiefs got insight on cybersecurity and resilience from the U.S. Federal Bureau of Investigation's director during a private session in Davos this week. The financial services executives also compared notes on economic risks, financial stability and sustainability. Klaas Knot, President of the Dutch central bank who chairs the Financial Stability Board, also spoke with the group. He discussed vulnerabilities in the financial system, including risks posed by so-called shadow banks, the sources said. For daily Davos updates in your inbox sign up for the Reuters Daily Briefing here.

☆ Futures slip ahead of Goldman, MS earnings as China data hits sentiment
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: +2 min

SummarySummary Companies Futures down: Dow 0.18%, S&P 0.22%, Nasdaq 0.31%Jan 17 (Reuters) - U.S. stock index futures started the week lower ahead of quarterly results from Goldman Sachs and Morgan Stanley, with downbeat economic data from China denting investor sentiment globally on Tuesday. Goldman Sachs (GS.N) and Morgan Stanley (MS.N) were set to wrap up a mixed season for big bank earnings with their fourth-quarter results due before the bell. Analysts expect year-over-year earnings from S&P 500 companies to decline 2.2% for the quarter, according to Refinitiv data as of Friday. The S&P 500 (.SPX) and the Nasdaq (.IXIC) indexes closed at one-month highs on Friday, with the former up 4.2% so far in 2023. ET, Dow e-minis were down 61 points, or 0.18%, S&P 500 e-minis were down 9 points, or 0.22%, and Nasdaq 100 e-minis were down 35.5 points, or 0.31%.

☆ Morning bid: Dodging a downturn
▼ + stars: | 2023-01-17 | by ( ) www.reuters.com time to read: +5 min

A look at the day ahead in U.S. and global markets from Mike Dolan. Global investors have fretted endlessly about a 2023 recession for the major global economies for more than six months. And Tuesday's latest economic healthcheck showed that the severe hit to Chinese economic activity from the draconian lockdown policies was actually much less than feared. The survey showed that investors' recession expectations peaked at a net 77% of respondents in November but have fallen to 68% in January. The BofA survey showed fund managers may have already repositioned, however, as their allocation to U.S. equities dived in January and a net 39% said they were underweight while preferring euro zone stocks.

☆ Analysis: Bond traders get their swagger back in rate-obsessed markets
▼ + stars: | 2023-01-17 | by ( Lananh Nguyen | ) www.reuters.com time to read: +5 min

REUTERS/Andrew KellyNEW YORK, Jan 17 (Reuters) - Bond traders are stars again on Wall Street. Fixed income, currencies and commodities (FICC) traders bolstered bank profits last year despite dreary deal markets. Bond specialists in the $22 trillion Treasuries market are in high demand as the Federal Reserve and other central banks have aggressively raised interest rates over the past two years. After the financial crisis, central bankers in the United States and advanced economies steadied markets by holding interest rates near zero. On Tradeweb Markets Inc's (TW.O) electronic bond trading platforms, average daily volumes rose almost 10% in 2022.

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