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☆ Bank fears will likely lead to even more market volatility in the week ahead
▼ + stars: | 2023-03-24 | by ( Patti Domm | In | ) www.cnbc.com time to read: +8 min

Market turbulence could reign supreme once again in the week ahead, as investors worry about the potential for more trouble rippling through the banking system. The broader market was initially under pressure Friday as investors became jittery about Deutsche Bank . "The market is saying: 'You, the Fed, do not appreciate the slowdown that is going to hit us,'" Chandler said. "The market is going to do a lot better and it held onto its gains despite all the things that rocked the market. He added that market concern about banks has risen, and there is concern credit tightening will hurt the economy.

Check out the companies making headlines in midday trading. GameStop -- The famed meme stock gained 2.5% in midday trading. The bank stock had been down about 14% after the bank's credit default swaps jumped without an apparent catalyst. Wells Fargo and JPMorgan — Shares of commercial bank giants were lower in midday trading, with Wells Fargo pulling back 2.3% while JPMorgan fell 2.2%. Activision Blizzard and Microsoft — Shares jumped 5% after the U.K. Competiton and Markets Authority dropped some of its concerns with the potential purchase of the company by Microsoft.

☆ Here are a financial advisor's 4 most important money tips for parents with young kids
▼ + stars: | 2023-03-24 | by ( Greg Iacurci | ) www.cnbc.com time to read: +4 min

Save for future education costsThere are tax-advantaged ways to save for your child's future education. Among the most popular is the 529 plan, which allows parents to invest money for higher education and other costs. While each state has its own 529 plan, parents can invest in a plan outside of their state. "I think parents should ask, do they want to relinquish ownership of this money when their child is an adult?" There are other avenues for parents to invest for their kids, but they may be more challenging.

☆ Stocks making the biggest moves midday: Nvidia, First Republic, Nike, GameStop and more
▼ + stars: | 2023-03-22 | by ( Samantha Subin | ) www.cnbc.com time to read: +4 min

Wall Street analysts lauded the company's artificial intelligence leadership following its developer conference Tuesday. First Republic Bank — Shares of the regional bank were down nearly 16% on Wednesday. Its results can't be compared with Wall Street estimates because too few analysts cover the company. Petco Health and Wellness — Shares fell 17.5% after the company reported earnings. The Wall Street firm believes the self-driving car software stock is too expensive and could fall 35% from Tuesday's close.

☆ A retro red, blue, and white Credit Suisse ski cap is attracting ferocious bids online — and prices are now up to $200
▼ + stars: | 2023-03-21 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Credit Suisse merch is popping up in online marketplaces following the 167-year-old lender's merger with UBS. Branded gold bars and bags are some of the other Credit Suisse merch available on the platforms. One listing of the Credit Suisse cap started at 80 francs on March 19. Bidding on other Credit Suisse merch — such as this tote bag and a coin bank — also attracted four and five bids, respectively. And while Credit Suisse merch may be attracting buyers, the same cannot be said for the shares of the 167-year-old lender.

☆ SVB Collapse Shows Smaller Banks Can Pose Risk in Numbers
▼ + stars: | 2023-03-20 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

WASHINGTON—For 15 years, regulators and legislators have assumed the biggest risks to the financial system came from a handful of “too big to fail” banks. This month’s failure of Silicon Valley Bank and Signature Bank—and last week’s bank-led rescue of a third lender, First Republic Bank —suggests that focus on size may have blinded officials to the threat posed by smaller lenders, observers and former regulators say.

☆ Live updates: Credit Suisse-UBS deal and global stock market news
▼ + stars: | 2023-03-20 | by ( Aditi Sangal | ) edition.cnn.com time to read: +1 min

A week after Signature Bank failed, the Federal Deposit Insurance Corporation said it has sold most of its deposits to Flagstar Bank — a subsidiary of New York Community Bank. New York Community Bank bought substantially all of Signature’s deposits and a total of $38.4 billion worth of the company’s assets. That includes $12.9 billion of Signature’s loans, which New York Community Bank purchased at a steep discount — it paid just $2.7 billion for them. New York Community Bank also paid the FDIC stock that could be worth up to $300 million. That’s likely why New York Community Bank was unwilling to take on all of Signature’s assets.

☆ Saudi National Bank loses over $1 billion on Credit Suisse investment
▼ + stars: | 2023-03-20 | by ( Natasha Turak | ) www.cnbc.com time to read: +1 min

Signage for Credit Suisse Group AG outside a building, which houses the company's branch, in Tokyo, Japan, on Monday, March 20, 2023. UBS Group AG agreed to buy Credit Suisse Group in a historic, government-brokered deal aimed at containing a crisis of confidence that had started to spread across global financial markets. Saudi National Bank — Credit Suisse's largest shareholder — confirmed to CNBC Monday that it had been hit with a loss of around 80% on its investment. The Riyadh-based bank holds a 9.9% stake in Credit Suisse, having invested 1.4 billion Swiss francs ($1.5 billion) in the 167-year-old Swiss lender in November of last year, at 3.82 Swiss francs per share. Under the terms of the rescue deal, UBS is paying Credit Suisse shareholders 0.76 Swiss francs per share.

☆ One country, two crypto systems: Hong Kong harbors crypto hub ambitions despite China's crackdown
▼ + stars: | 2023-03-20 | by ( Lee Ying Shan | ) www.cnbc.com time to read: +5 min

Sopa Images | Lightrocket | Getty ImagesThe crypto industry has had a rough year with digital currency markets crashing and companies collapsing across the board. Hong Kong is planning to introduce new rules in June that will require crypto trading platforms to be licensed by the Securities and Futures Commission. Bitcoin ATMs, operated by Coinhero, in Hong Kong, China, on Wednesday, Dec. 21, 2022. While Hong Kong harbors high crypto ambitions and boasts relatively lower tax policy on businesses, the city could still potentially find competition with other crypto hubs. The logo of Bitcoin cryptocurrency at a store in Hong Kong on Thursday, Feb. 10, 2022.

☆ Chuck Schumer vows to fight the latest GOP attempt to block student-loan forgiveness in Congress 'with everything we have'
▼ + stars: | 2023-03-20 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +4 min

The GAO confirmed to the GOP lawmakers that the debt relief is a rule that can be subject to oversight. The Government Accountability Office confirmed to the GOP lawmakers that it considers Biden's debt relief plan a rule, and "no exception applies." Since Biden announced his debt relief, Republicans have criticized the policy and introduced legislation to block the president from implementing loan forgiveness. "We will continue to fight this cruel Republican attempt to end student debt relief with everything we have." Biden's debt relief plan is currently blocked due to two conservative-backed lawsuits that paused its implementation in November.

☆ Dow futures rise more than 100 points after UBS buys Credit Suisse to stem bank crisis: Live updates
▼ + stars: | 2023-03-19 | by ( Hakyung Kim | ) www.cnbc.com time to read: +3 min

S&P 500 futures and Nasdaq-100 futures climbed 0.3%. UBS agreed to buy Credit Suisse for 3 billion Swiss francs, or $3.2 billion, with the combined bank to have $5 trillion in assets. But traders may be anxious for more to be done by regulators to stem the slide in regional banks. The SPDR Regional Banking ETF (KRE) tumbled 14% last week. "I think there's there's been an overreaction to the regional banks ... And that likely represents an opportunity," said Hogan.

New York CNN —Global banks just suffered their worst week since 2008. Credit Suisse and First Republic: Two more banks wobbled but remained upright through the week. Meanwhile, First Republic bank received a $30 billion lifeline on Thursday from some of the largest banks in the United States. US-traded shares of Credit Suisse were down nearly 7% and First Republic shares plunged by about 33% on Friday. That doesn’t mean that banks taking money from the FHLB and participating in the Federal Reserve’s emergency Bank Term Lending Program, which lent out $12 billion to banks this week, are in big trouble.

☆ Credit Suisse faces fateful weekend. Will UBS step up with a rescue bid?
▼ + stars: | 2023-03-18 | by ( Mark Thompson | ) edition.cnn.com time to read: +3 min

London CNN —The fate of Credit Suisse could be decided in the next 36 hours after a torrid week for Switzerland’s second biggest bank. But by Friday, analysts were speculating that a full-blown rescue would be needed, and reports began to swirl of a possible takeover by its biggest Swiss rival, UBS (UBS). The FT said the boards of UBS and Credit Suisse were expected to meet separately over the weekend. Credit Suisse and UBS both declined to comment to Reuters. “BlackRock is not participating in any plans to acquire all or any part of Credit Suisse, and has no interest in doing so,” a BlackRock spokesperson told CNN.

First Republic Bank was forced to seek a lifeline this week, receiving tens of billions of dollars from other banks. These are known as unrealized losses — they turn into real losses only if the banks have to sell the assets. +2 % 0 –4 First Republic Pacific Western Signature −8 Plotted quarterly ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 –4 Silicon Valley Western Alliance Zions −8 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 First Republic Pacific Western Signature –4 −8 Plotted quarterly ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 Silicon Valley Western Alliance Zions –4 −8 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 First Republic Pacific Western Signature –4 −8 Plotted quarterly ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 +2 % 0 Silicon Valley Western Alliance Zions –4 −8 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 Source: Federal Financial Institutions Examination Council Note: Includes both “held-to-maturity” and “available-for-sale” securities, meaning both long- and short-term investments. Banks’ cash and noncash assets Plotted quarterly $200 billion Pacific Western Signature 150 100 First Republic 50 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 $200 billion Western Alliance Zions 150 100 50 Silicon Valley 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 Banks’ cash and noncash assets $200 billion Pacific Western Signature 150 100 50 First Republic 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 $200 billion Western Alliance Zions 150 100 50 Silicon Valley 0 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 ’19 ’20 ’21 ’22 Source: Federal Financial Institutions Examination CouncilMidsize banks like SVB do not have the same regulatory oversight as the nation’s biggest banks, who, among other provisions, are subject to tougher requirements to have a certain amount of reserves in moments of crisis. Last weekend, the Fed announced a program that offers loans of up to one year to banks using the banks’ government bonds and certain other assets as collateral.

☆ Moral hazard? Hawkish pause? What these terms mean and why should investors care
▼ + stars: | 2023-03-17 | by ( Zev Fima | ) www.cnbc.com time to read: +7 min

Two phrases are being thrown around on CNBC and elsewhere: "moral hazard" and "hawkish pause." Now that's not to say there isn't a middle ground, a scenario in which deposits are 100% guaranteed nationwide and regulations are put in place to protect against any resulting moral hazard. This is an interesting solution that does address the concern of moral hazard — at least at First Republic Bank — while providing needed liquidity. Given the Fed's dual mandate to ensure price stability and maximize unemployment, the argument for a rate hike is relatively straightforward — keep going until inflation reaches more sustainable levels. Two possible scenarios: a rate hike with more dovish commentary or the "hawkish pause."

☆ Big banks to the rescue
▼ + stars: | 2023-03-17 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

Goldman Sachs' decision to charge employees for coffee might not be that outrageous after all! The largest US banks — headlined by Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo — just pledged a total of $30 billion in deposits to First Republic Bank. As detailed in a release announcing the news, the 11 banks, which also included Goldman Sachs and Morgan Stanley, believe the move "demonstrates their overall commitment to helping banks serve their customers and communities. I can't imagine the big banks looking to pull the rug out from First Republic four months from now, but this money was a deposit, not a donation. Read more about how big banks came to the rescue of First Republic with $30 billion in deposits.

☆ Some VC firms have started moving money back into Silicon Valley Bank, marking the latest turn in the bank's wild week
▼ + stars: | 2023-03-17 | by ( Huileng Tan | ) www.businessinsider.com time to read: +5 min

Some VC firms have started moving their money back to Silicon Valley Bank. The bridge bank took over the deposits of the Silicon Valley Bank, a financial institution that served nearly half of all US venture-backed companies, per its website. Another group of VC firms also came out in support of Silicon Valley Bank, issuing a joint statement on Tuesday. Taneja also started a drive for VC firms to express their support for Silicon Valley Bank over the weekend. The bank run at Silicon Valley Bank triggered concerns about the financial health of smaller, regional banks in the US, spurring a crisis of confidence in the sector.

☆ Stocks making the biggest moves premarket: Nvidia, First Republic, FedEx and more
▼ + stars: | 2023-03-17 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

FedEx — Shares were up 11.6% after the company's fiscal third-quarter earnings topped analysts expectations. FedEx reported adjusted earnings of $3.41 per share, topping a Refinitiv consensus forecast of $2.73 per share. Credit Suisse — The Swiss bank's U.S.-traded shares were down 4.1% during premarket trading. Credit Suisse shares have had a volatile week after its largest investor announced it would not provide additional funding to the bank. First Republic Bank — Shares of the bank declined 13.3% during premarket trading.

☆ How First Republic became such a hot mess
▼ + stars: | 2023-03-17 | by ( Allison Morrow | ) edition.cnn.com time to read: +2 min

“It’s the biggest example of a bank that could go down and shouldn’t go down — a first-class bank,” said a source close to the 48-hour deal to infuse First Republic with $30 billion in cash. San Francisco-based First Republic, the 14th-largest bank in the country, received the cash infusion from 11 rivals, including America’s largest lenders. When JPMorgan Chase CEO Jamie Dimon on Thursday reached out to Treasury Secretary Janet Yellen and Federal Reserve Board Chair Jerome Powell, “Very quickly the conversation turned to First Republic,” the source told CNN. Its rescuers are also struggling, with JPMorgan Chase (JPM) down 3% and Bank of America (BAC) falling 4%. Investors saw similarities between First Republic and the failed Silicon Valley Bank — another midsize Bay Area-based lender with a deep-pocketed client base.

☆ What caused the global banking crisis this week and will it lead to a recession?
▼ + stars: | 2023-03-17 | by ( Mark Thompson | ) edition.cnn.com time to read: +7 min

Silicon Valley Bank’s customers were frantically pulling their money from the California-based lender before US regulators intervened to take control. Thursday, March 16 — First Republic Bank was teetering on the brink as customers withdrew their deposits. In guaranteeing all deposits at Silicon Valley Bank and Republic Bank, the US Federal Reserve is on the hook for $140 billion. Then there’s the $54 billion the Swiss National Bank offered Credit Suisse in the form of an emergency loan. The $318 billion the Fed has loaned in total to the financial system is about half what was extended during the global financial crisis.

☆ Billionaire investor Bill Ackman says US banks depositing $30 billion into First Republic creates a 'false sense of confidence'
▼ + stars: | 2023-03-17 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Bill Ackman said a plan to deposit $30 billion into First Republic Bank creates a "false sense of confidence." "Spreading the risk of financial contagion to achieve a false sense of confidence in FRB is bad policy," he said. The collapse of Silicon Valley Bank and Signature Bank, New York has rattled the banking sector, sparking fears of a contagion that could lead to the next global financial crisis. First Republic has been assuring customers of its liquidity since the implosion of Silicon Valley Bank — which in turn triggered concerns about the financial health of regional banks. First Republic Bank's shares closed 10% higher at $34.27 apiece on Thursday and were 6% lower in pre-market trade at 5.41 a.m. on Friday.

☆ Stocks making the biggest moves after hours: FedEx, First Republic Bank and more
▼ + stars: | 2023-03-16 | by ( Hakyung Kim | ) www.cnbc.com time to read: +1 min

A worker sorts packages at a FedEx Express facility on Cyber Monday in Garden City, New York, US, on Monday, Nov. 28, 2022. FedEx reported adjusted earnings of $3.41 per share, topping analysts' estimates of $2.73 per share, according to Refinitiv. Meanwhile, the company's revenue fell below expectations. FedEx posted $22.17 billion in revenue, while analysts had estimated $22.74 billion. First Republic Bank — The bank's shares were down 15% during after-hours trading.

☆ HSBC bought Silicon Valley Bank UK in record time — here's how events unfolded
▼ + stars: | 2023-03-16 | by ( Silvia Amaro | ) www.cnbc.com time to read: +2 min

HSBC came to the rescue of Silicon Valley Bank UK in a crucial deal for the whole banking sector. Silicon Valley Bank — a U.S. lender with clients mostly in the tech and health-care startup world — was deemed insolvent by American regulators on Friday. Consequently, the Bank of England announced Friday that, "absent any meaningful further information," it would be placing Silicon Valley Bank UK into an insolvency procedure. More than 200 companies — depositors with SVB UK — wrote Saturday to the U.K.'s Treasury asking for help. They said that some would not be able to comply with payroll deadlines without accessing their deposits with SVB UK.

☆ Credit Suisse: Why it’s struggling and why that’s a big deal
▼ + stars: | 2023-03-16 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +5 min

Credit Suisse is one of the biggest financial institutions in the world. “Credit Suisse is much more globally interconnected … not just a Swiss problem but a global one.”Why is Credit Suisse struggling now? That engulfed other banks facing big problems, including Credit Suisse, which has been a slow-moving car wreck for decades. In 2014, Credit Suisse pleaded guilty to federal charges that it illegally allowed some U.S. clients to evade their taxes. Credit Suisse acted as an underwriter when the company went public on the Nasdaq in 2019.

☆ Stocks making the biggest moves midday: First Republic, Signet Jewelers, Snap and more
▼ + stars: | 2023-03-16 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +3 min

A customer walks past an ATM outside of a First Republic Bank branch in Manhattan Beach, California, on March 13, 2023. First Republic Bank — Shares of First Republic erased earlier losses and were last up about 22%. UiPath — The stock surged 17.5% after the automation software company reported fourth-quarter adjusted earnings per share of 15 cents, beating the StreetAccount estimate of 6 cents per share. Adobe — The software maker saw its stock jump nearly 5% after the company reported fiscal first-quarter results that topped Wall Street estimates. The Wall Street firm said the stock has fallen to levels that are attractive.

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