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☆ Blackstone, the massive private-equity firm, just wants to be your friendly, neighborhood lender
▼ + stars: | 2023-05-25 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

Your friendly neighborhood lender, BlackstoneWhat's the first thing that pops into your head when you think of a regional bank? Nouriel Roubini, the famed economist known as "Dr. Doom" isn't too optimistic about the future of regional banks. Never one to miss a chance to make money, Blackstone CEO Stephen Schwarzman said his firm can "fill the void" left by regional banks tightening up their lending activity. Regional banks happen to be one of the biggest lenders in commercial real estate. Doom' is feeling bearish on regional banks.

☆ BNY expands short-term investment options as investors chase yields
▼ + stars: | 2023-05-22 | by ( Laura Matthews | ) www.reuters.com time to read: +2 min

NEW YORK, May 22 (Reuters) - BNY Mellon is expanding its offering of short-term investment products as investors chase higher yields, the bank announced on Monday. The bank is now offering access to mutual funds, interest-bearing deposits and sponsored cleared repurchase agreement sweep products through its LiquidityDirect platform, a portal for institutional investors. BNY currently oversees $1.3 trillion of cash investments across deposits, money market funds and other instruments. Cash management is quickly becoming a top priority for finance executives as some regional banks, a key source of market liquidity, undergo stress as rates rise. LiquidityDirect saw a 16% increase in money-market funds flows in mid-March, BNY data showed.

☆ JPMorgan expects $3 bln income boost from First Republic deal
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +1 min

NEW YORK, May 22 (Reuters) - JPMorgan Chase & Co's (JPM.N) net interest income would rise by $3 billion this year due to its purchase of failed First Republic Bank, according to a presentation published ahead of its investor day on Monday. The largest U.S. lender agreed to take into its books $173 billion of the failed bank's loans, $30 billion of securities and $92 billion of deposits after First Republic was shuttered by authorities earlier this month. The Wall Street giant is in the process of integrating First Republic, which will likely take about 12 months. First Republic was the third U.S. regional lender to fail since March in a sector-wide upheaval that roiled financial stocks, deepened worries of a crisis and heaped pressure on mid-sized banks. Reporting by Nupur Anand and Lananh Nguyen in New York and Mehnaz Yasmin in Bengaluru; Editing by Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.

☆ BlackRock moves from 'overweight' to 'neutral' on credit
▼ + stars: | 2023-05-22 | by ( ) www.reuters.com time to read: +1 min

[1/2] People are seen in front of a showroom that hosts BlackRock in Davos, Switzerland Januar 22, 2020. REUTERS/Arnd WiegmannMay 22 (Reuters) - BlackRock Investment Institute on Monday said it was moving from "overweight" to "neutral" on credit, saying yields are not enough to compensate investors for tightening credit conditions. In a research note, it also said it was moving from "underweight" to "neutral" on private markets following recent weakness in the U.S. regional banking industry. "The fallout from the banking sector troubles and further tightening of credit conditions adds to the pressure on public credit but could be a potential boon for private credit," the investment management company said. The BlackRock Investment Institute is an arm of U.S.-based investment firm BlackRock that provides proprietary investment research.

May 22 (Reuters) - First Citizens BancShares Inc (FCNCA.O), which acquired Silicon Valley Bank following its collapse, sued HSBC Holdings PLC (HSBA.L) on Monday, accusing it of poaching more than 40 of the failed bank's employees in order to launch its own U.S. venture banking business. The lawsuit filed in San Francisco federal court says HSBC violated federal law by hiring away the workers so it could gain access to Silicon Valley Bank's (SVB) trade secrets including information about clients in the tech and healthcare sectors. First Citizens in the lawsuit said it is seeking more than $1 billion in damages. First Citizens later in March purchased SVB's assets and deposits for up to $500 million in stock - a fraction of what the bank was worth before it failed. In April, HSBC had said it had hired dozens of Silicon Valley Bank employees to help the bank establish a dedicated practice focused on serving companies in technology and healthcare and investors who support them.

"With loan terms tougher and tighter, the option for private credit providers is on steroids," said Drew Schardt, head of investment strategy at Hamilton Lane, one of the largest investment firms in private markets. Pietrzak sees "attractive" assets in auto and consumer lending. POISED TO GAIN SHAREInvestors providing private credit comprise 12% of the $6.3 trillion U.S. commercial credit market, according to Fitch Ratings. "The tightening of lending standards creates opportunities for private credit to gain share," said Lyle Margolis, Fitch's head of private credit. While private credit funds have grown swiftly, the risks they pose to the financial system appear limited, the Federal Reserve wrote in a report this month.

☆ Gold ticks up as traders navigate U.S. debt limit hitch, Fed cues
▼ + stars: | 2023-05-22 | by ( ) www.cnbc.com time to read: +2 min

Pure 1,000-gram gold bars produced by South Korea's LS-Nikko are stacked in a dealers room in Seoul on January 9, 2009. Gold prices edged up on Monday as drawn-out discussions around the U.S. debt ceiling and Federal Reserve Chair Jerome Powell's less-hawkish comments added to the safe-haven bullion's appeal. Spot gold was up 0.1% at $1,978.06 per ounce as of 0347 GMT, while U.S. gold futures eased 0.1% to $1,979.40. Markets are now pricing in a 86.2% chance of the Fed standing pat on rates next month, the CME FedWatch tool showed. Spot silver fell 0.2% to $23.77 per ounce, platinum eased 0.1% to $1,061.68 and palladium dipped 0.3% to $1,508.54.

☆ Fed's Bowman backs 'targeted' bank rules reform but not 'radical' change
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +2 min

"Radical reform of the bank regulatory framework - as opposed to targeted changes to address identified root causes of banking system stress - is incompatible with the fundamental strength of the banking system," she said. During testimony to Congress this week, Barr was repeatedly asked about Bowman's views, which were first laid out in detail last week. He said he welcomed any third-party independent reviews to follow his own review of the failure of Santa Clara, California-based SVB. Barr's review, which was published in late April, found problems in the Fed's own approach to supervision that he said needed fixing. Bowman did not touch on monetary policy or the economic outlook in her prepared remarks.

☆ ECB eyes additional steps to tackle bank deposit risks
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +2 min

The ECB said it was actively working with other global supervisors to understand which lessons could be learnt. "It may be beneficial to explore how factors such as high deposit base concentration and a predominant reliance on uninsured deposits could be dealt with in the Pillar 2 framework," the ECB said. The ECB can impose additional capital and liquidity requirements if it sees fit. It would use liquidity requirements to address liquidity risks. The Pillar 2 liquidity framework focuses on liquidity risks that are not fully addressed by Pillar 1 requirements: the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR).

☆ Analysis: Investment banking faultlines trigger European job shake-up
▼ + stars: | 2023-05-19 | by ( Sinead Cruise | ) www.reuters.com time to read: +5 min

Applications for financial services roles globally rose by 67% in the first quarter of 2023 against the same period last year, according to eFinancialCareers. Britain has already said it will scrap a cap on bank bonuses under plans to attract global financial sector talent. Worries about possible contagion triggered by the frailty of the U.S. regional banking system have also put some bank staff on a quest for more secure employment, sources say. Duncan Finlayson, managing director of the FinTech & Financial Services practice at Raines International, said some wanted meetings with chief financial officers to better understand the financial health of prospective employers. "Without a doubt some of the more established financial services platforms are under more heavy scrutiny," he said.

WASHINGTON, May 19 (Reuters) - U.S. Treasury Secretary Janet Yellen told bank CEOs on Thursday that more mergers may be necessary after a series of bank failures, CNN reported on Friday, citing two people familiar with the matter. The Treasury readout did not mention bank mergers, but CNN quoted sources as saying that consolidation was discussed. Yellen told Reuters in an interview in Japan last week that pressures on U.S. regional bank earnings may lead to more concentration in the sector and regulators will likely be open to such mergers. But the report that she gave a similar message directly to bank CEOs, alongside news that talks over the U.S. debt ceiling were at an impasse, had a significant impact on markets on Friday. Two-year Treasury yields initially dropped by some 11 basis points on Friday after the report, while benchmark 10-year yields fell by about five basis points.

☆ Morning Bid: Hopeful ahead of the weekend
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in U.S. and global markets from Yoruk Bahceli. Markets are heading into the weekend basking in optimism that a debt ceiling deal to avert a catastrophic U.S. Treasury default will be struck soon. His team have reported progress in talks and House Speaker Kevin McCarthy has said a deal is "doable" by Sunday. The S&P 500 is up 1.8% this week, set for its best week since end-March when markets were in panic mode around a banking crisis dragging down the economy. Fed speakers also sounded the alarm; Dallas Fed President Lorie Logan and St Louis Fed President James Bullard said on Thursday U.S. inflation doesn't look like it's cooling fast enough to merit a rate hike pause.

☆ US regional bank stocks fall after Yellen says more bank mergers necessary
▼ + stars: | 2023-05-19 | by ( ) www.reuters.com time to read: +2 min

NEW YORK, May 19 (Reuters) - Shares of U.S. regional lenders fell on Friday after CNN reported that U.S. Treasury Secretary Janet Yellen told bank chief executives that more mergers may be necessary following a series of bank failures. Yellen also reaffirmed the strength and soundness of the country's banking system at the meeting with bank CEOs on Thursday in the aftermath of the collapse of Silicon Valley Bank, Signature Bank, and First Republic Bank. The KBW Regional Banking Index (.KRX) fell 3%, with shares of PacWest Bancorp (PACW.O) and Western Alliance (WAL.N) among the biggest losers as they shed 4% each. The regional bank crisis has been partly blamed by some on aggressive interest rates by the U.S. Federal Reserve, which forced some lenders to seek new capital to make up for a fall in the value of assets linked to interest rates. The debt ceiling dispute has weighed on market sentiment, including for regional bank stocks.

☆ Our conviction in Morgan Stanley remains solid, despite the CEO's planned departure
▼ + stars: | 2023-05-19 | by ( Kevin Stankiewicz | In Kevinstankiewicz | ) www.cnbc.com time to read: +5 min

Jim on Friday matched Gorman's confidence in the future of Morgan Stanley, saying its stock looked very attractive at current levels. The day before Gorman took over as CEO, on Jan. 1, 2010, Morgan Stanley stock closed at $29.60 per share. Investors like steadiness, so they're willing to pay more for every dollar of wealth-and-asset-management revenue compared with investment banking and trading. Over time, this dynamic should allow Morgan Stanley to command a higher price-to-earnings ratio. James Gorman, chairman and chief executive officer of Morgan Stanley, speaks during a Bloomberg Television interview in Beijing, China, on Thursday, May 30, 2019.

The markets are headed toward a positive week and certain stocks stood out from the rest. The S & P 500 and Nasdaq Composite were up 1.5% and 2.9% week to date, respectively. Regional bank stocks were among this week's most notable gainers after a difficult few weeks. Regional bank stocks Comerica and Zions Bancorporation saw the largest gains this week, with shares surging 22.7% and 21.8%, respectively. Semiconductor design company Synopsys ' stock jumped 12.5% week to date and hit a new 52-week high Friday.

Dow Jones Industrial Average (.DJI) constituent Cisco Systems Inc's (CSCO.O) shares fell 4.3% in premarket trading after it said a large backlog of products weighed on demand for new orders from customers. Shares of Walmart Inc (WMT.N) rose 1.7% after the retailer raised its annual sales and profit targets, befitting from inflation-wary consumers trading down to cheaper groceries. ET, Dow e-minis were down 31 points, or 0.09%, S&P 500 e-minis were up 1.75 points, or 0.04%, and Nasdaq 100 e-minis were up 15 points, or 0.11%. Bath & Body Works Inc (BBWI.N) gained 13% after the beauty and skincare firm raised its annual profit forecast. Japan's Prime Minister Fumio Kishida said he welcomed and expected more investment from global chipmakers in the country.

☆ PacWest, Western Alliance lead rebound in US regional lenders
▼ + stars: | 2023-05-18 | by ( ) www.reuters.com time to read: +1 min

May 18 (Reuters) - Battered shares of PacWest Bancorp and Western Alliance Bancorp edged higher premarket on Thursday as the U.S. midsize lenders looked to sustain a recent rebound powered by bets that the worst of the regional banking turmoil was over. PacWest Bancorp (PACW.O), which is currently exploring strategic options, climbed 7.2% and was set to build on a 22% gain recorded for the week till Wednesday. Shares of Western Alliance (WAL.N) climbed 7.2%, also poised to extend their near 27% surge this week after the Phoenix-based lender reported strong deposit growth in an attempt to reassure investors of its financial health after three regional lenders failed in recent months. The KBW Regional Banking Index (.KRX) jumped 7.2% on Wednesday, recording its biggest percentage gain in nearly two years. Among other movers on Thursday, Zion Bancorp (ZION.O) climbed 2.6% and First Horizon (FHN.N) added 2.4%.

☆ Why is the US dollar so strong again?
▼ + stars: | 2023-05-18 | by ( Harry Robertson | ) www.reuters.com time to read: +4 min

LONDON, May 18 (Reuters) - If investors agree on one thing this year, it's that the dollar is going to fall. The go-to explanation of currency strategists right now is the debt-ceiling debacle is boosting the dollar. Traders currently expect the U.S. central bank to cut interest rates sharply later this year as a recession takes hold, yet Tan is skeptical. If the dollar rises slightly, some traders may be forced to close out their short positions by buying the dollar, which then boosts its value. But a simple technical indicator is that it is very atypical for you to have a straight-line decline in the dollar."

☆ Buy this resilient regional bank trading at a 50% discount, Bank of America says
▼ + stars: | 2023-05-18 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

M & T Bank is well positioned for a downturn and is a bargain for investors looking to take advantage of its selloff this year, Bank of America said in a note Thursday. Regional banks have been slammed since the banking crisis began in March with the collapse of Silicon Valley Bank. While M & T Bank isn't immune to headwinds from worsening credit quality, rising fund costs and increased regulation, its management team is operating from a position of strength, Bank of America analyst Ebrahim Poonawala said. "In an industry where market share consolidation (organic or via M & A) is likely to continue, we view the bank as a relative winner," Poonawala said. Shares are trading at 7.7 times price-to-earnings for 2023 and 7.9 times for 2024, he pointed out.

May 17 (Reuters) - Shares of U.S. regional lenders jumped on Wednesday on growing investor confidence that the worst of the banking crisis was likely over, following news of strong deposit growth at Western Alliance Bancorp (WAL.N). Arthur Hogan, chief market strategist at B. Riley Wealth, said Western Alliance's deposit growth disclosure was good news for worried investors. "Western Alliance, one of the most hard-hit banks, came out with a filing showing deposit increase. Western Alliance shares, which are down 41% year-to-date, surged 10% to $34.81, erasing losses recorded over the last two weeks. Other regional lenders closed higher: PacWest Bancorp (PACW.O), whose stock has lost nearly 76% of its value year-to-date, spiked 22%.

☆ SVB Financial defeats FDIC effort to seize incoming tax refunds
▼ + stars: | 2023-05-17 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

Judge Martin Glenn in Manhattan handed a victory to SVB Financial in broader dispute over FDIC's efforts to recoup its costs in rescuing the failed Silicon Valley Bank, preventing the regulator from claiming future tax refunds that SVB Financial valued at $300 million. FDIC sought to escrow those funds while the regulator determines whether they properly belong to the seized bank or the bankrupt parent company. Glenn ruled that FDIC had no authority to intercept checks that were clearly written out to "SVB Financial." He ordered FDIC to return the intercepted checks by Friday, and to send any future tax refunds checks to SVB Financial. FDIC argued that the tax refunds may be owed to the seized bank, which is now run by First Citizens BancShares, under a tax agreement between the bank and its former parent company.

Wall Street's main indexes climbed to session highs by early afternoon trading as shares of Tesla Inc (TSLA.O) extended gains to rise 3.9% after its annual shareholder meeting on Tuesday. U.S. regional banks rose, led by a 14.0% rise in Western Alliance Bancorp (WAL.N) as the lender's deposit growth exceeded $2 billion and brokerage Bank of America Global Research resumed coverage of the bank with a "buy" rating. The KBW Regional Banking Index (.KRX) jumped 5.4% after losing 1.8% in the previous session, while S&P 500 banks (.SPXBK) added 3.4%. The S&P 500 retail index (.SPXRT) rose 1.3%. The S&P index recorded 12 new 52-week highs and 14 new lows, while the Nasdaq recorded 46 new highs and 99 new lows.

"Global debt is now $45 trillion higher than its pre-pandemic level and is expected to continue increasing rapidly," said the IIF in its quarterly Global Debt Monitor. The report partly focused on the effects of last year's rapid rise in rates in some bank balance sheets. The IIF voiced its concern that tighter lending practices among smaller banks would hurt some businesses and households harder. "Shadow banks now account for more than 14% of financial markets, with the majority of growth stemming from a rapid expansion of U.S. investment funds and private debt markets." "With the interest rate differential between EMs and mature markets diminishing, EM local currency debt is less appealing for foreign investors," the IIF said.

Shares of U.S. regional banks rose, led by a 12.6% rise in Western Alliance Bancorp (WAL.N) as the lender's deposit growth exceeded $2 billion and brokerage Bank of America Global Research resumed coverage of the bank with a "buy" rating. The KBW Regional Banking Index (.KRX) rose 3.1% after losing 1.8% in the previous session, while S&P 500 banks (.SPXBK) added 2.4%. "Cautious optimism expressed from both President Biden and Speaker (Kevin) McCarthy about the progress of the debt talks has made people feel a little bit better," said Michael James, managing director of equity trading at Wedbush Securities. Retailers Target Corp(TGT.N) and TJX Companies Inc (TJX.N) forecast current-quarter profit below expectations despite beating estimates for the first quarter. Advancing issues outnumbered decliners by a 2.69-to-1 ratio on the NYSE and by a 1.39-to-1 ratio on the Nasdaq.

☆ Experian's outlook highlights North America lending woes
▼ + stars: | 2023-05-17 | by ( Eva Mathews | ) www.reuters.com time to read: +2 min

May 17 (Reuters) - Experian Plc's (EXPN.L) annual revenue growth forecast on Wednesday signalled a challenging economic backdrop, especially in North America, where the failure of three U.S. regional banks has hurt confidence in the sector. Experian's key customers include banks, non-traditional lenders and insurance providers, which use its credit reports and scores to analyse and make decisions around credit risk, fraud prevention and lending terms. "Tighter lending conditions (especially in North America) are impacting some of Experian's business lines with more direct volume exposure, including its core credit bureau and marketplace, which together account for about 17% of group revenue," Bank of America analysts said. About 67% of Experian's group revenue comes from the North America region. For the year ended March 31, Experian's organic revenue growth of 7% to $6.59 billion compared with analysts' consensus of $6.64 billion.

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