Citigroup on Monday downgraded U.S. stocks in anticipation of a pullback in growth stocks and as well anticipating a recession in the fourth quarter of the year. The brokerage cut its rating on U.S. stocks to “neutral” from “overweight.” Bankrupt SVB Financial Group has sued the U.S. Federal Deposit Insurance Corp to recover the $1.93 […]
The collapses of Silicon Valley Bank (SVB) and Signature Bank in March show that more oversight of midsize lenders is needed, Federal Reserve (Fed) Chair Jerome Powell told lawmakers in his semi-annual testimony. While banking stress occurred in the fallout of the SVB and Signature failures, the Fed chair said that “the U.S. banking system […]
Uninsured deposits at American banks fell by almost $600 billion in the first quarter of 2023, continuing the trend of declining deposits that began last year, suggesting a fall in depositors’ confidence in the banking system. “US banks’ uninsured deposits have fallen since the first quarter of 2022, by both the dollar amounts of uninsured […]
NEW YORK—About 1,000 employees of First Republic Bank are being let go about a month after it was seized by regulators and acquired by JP Morgan Chase. The vast majority of First Republic employees, roughly 7,200 before it ran into trouble, were offered jobs by JPMorgan, meaning that about 15 percent of the bank’s employees […]
Former First Republic CEO Michael Roffler told House lawmakers on May 16 that the California bank fell victim to the widespread panic caused by the collapse of Silicon Valley Bank on March 10 and Signature Bank two days later. The events that unfolded as a result were beyond First Republic’s control, he said. “No one […]
During a Senate Banking Committee hearing on Tuesday, senators denounced the actions of Silicon Valley Bank (SVB) CEO Greg Becker, who has been accused of distributing bonuses and selling stock in the bank shortly before its collapse. “In 2022, in particular, you [Becker] paid yourself a $1.5 million cash bonus even as the value of […]
Former chief executive of Silicon Valley Bank (SVB) Greg Becker issued a public apology before a Senate committee on Tuesday. Becker expressed deep remorse for the devastating impact suffered by SVB’s employees, clients, and shareholders during the recent financial turmoil that led to the bank’s collapse. “I never envisioned myself or SVB being in this […]
Sen. Jon Tester (D-Mont.) questioned panelists at a Senate hearing Thursday about bank executives taking bonuses while running failing institutions. As executives allegedly shirked their responsibilities to keep banks and the banking sector stable, Tester told the Senate Banking Committee hearing that regulators and law enforcement should hold the responsible parties accountable for the current […]
PacWest Bancorp (NASDAQ: PACW) shares fell more than 55 percent in after-hours trading on Wednesday following news that company executives were considering a potential sale. Bloomberg reported, citing anonymous sources, that the regional bank, which has been weakened by the failure of three California-based lenders, has been contemplating a number of strategic alternatives, including a […]
JPMorgan Chase will acquire most of First Republic Bank’s assets for $10.6 billion after U.S. regulators seized control of the embattled institution and facilitated its sale over the weekend. President Joe Biden and JPMorgan Chase CEO Jamie Dimon reiterated that the worst of the crisis is over. “These actions are going to make sure that […]
The U.S. banking system is “safe and sound” after federal regulators facilitated the sale of the distressed First Republic Bank, President Joe Biden confirmed. First Republic became the second-largest bank failure in U.S. history and the third midsize institution to collapse in less than two months. Speaking from the White House on May 1 to […]
First Republic Bank has been seized by the Federal Deposit Insurance Corporation (FDIC), which announced on Monday morning that the beleaguered bank will be bought by JPMorgan Chase. California financial regulators on Monday ordered First Republic Bank closed, with the FDIC appointed as receiver. “To protect depositors, the FDIC is entering into a purchase and […]
U.S. regulators asked large banks to submit their takeover bids for First Republic Bank (NYSE: FRC) over the weekend, in an effort to rescue the troubled bank. The Federal Deposit Insurance Corp. (FDIC) reportedly held an auction, asking multiple banks to solicit bids for FRC before an afternoon deadline on April 30. As of press time, no […]
The banking crisis that formed from the failures of Silicon Valley Bank (SVB) and Signature Bank was the result of a wide range of factors, including Federal Reserve supervisors who did not do enough to make sure that SVB management fixed the company’s problems, according to a new report from the central bank. The Fed Board […]
First Republic Bank announced “unprecedented deposit outflows” in the quarter ended March 31, with the news sending the company’s stock crashing by over 20 percent. For the quarter ended March 31, 2023, First Republic deposits have declined by 40.8 percent since Dec. 31, 2022, according to an April 24 press release (pdf) by the bank. […]
Shares of First Republic Bank plummeted today after it revealed massive withdrawals in the last quarter. The bank is also laying off workers. The cheapest American EV is going away. Stay tuned to find out why GM is ending the car’s production. Manufacturing giant 3M announcing major layoffs today. How many are they letting go, […]
WASHINGTON—Treasury Secretary Janet Yellen said banks are likely to become more cautious and may tighten lending further in the wake of recent bank failures, possibly negating the need for further Federal Reserve interest rate hikes. Yellen said in a “Fareed Zakaria GPS” interview that policy actions to stem the systemic threat caused by last month’s […]
JP Morgan Chase, Wells Fargo, and Citigroup posted results Friday that topped estimates for first-quarter earnings, signaling resilience through the banking crisis in March. Consumer and corporate spending held up in the face of interest rate hikes by the Federal Reserve, though the financial giants are building up rainy-day funds as fears of an economic […]
Wells Fargo beat sales and profit targets in the first quarter compared with a year earlier, boosted by higher interest rates. The quarter saw the collapse of two banks that rattled the financial sector and the broader stock market. Wells Fargo participated with other banks in pumping $30 billion in deposits into First Republic Bank […]
