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Federal Reserve Chair Jerome Powell said Thursday he expects to see some banks fail due to their exposure to the commercial real estate sector, which has declined significantly in value following the shift to remote work. Powell said the banks that are in trouble with falling office space and retail assets are not the big banks, which were designated as “systemically important” in the aftermath of the 2008 financial crisis. That episode, which resulted in a taxpayer bailout of the financial sector, was also triggered by unsound real estate assets. Rather, the banks at risk of failure now Powell identified...

New York Community Bancorp sent its shares plummeting 26% on Friday after the regional lender said has discovered “material weaknesses” in the ways it tracks loan risks and that its CEO is leaving. The New York-based firm announced late Thursday that CEO Thomas Cangemi would be leaving NYCB — capping off a 27-year tenure at NYCB — and that Alessandro DiNello would take his place, effective immediately. DiNello, NYCB’s executive chairman, had been acting as the bank’s true boss since earlier this month ... One NYCB director, Hanif “Wally” Dahya, said in a Feb. 25 letter that he “did not...

Banks are shutting hundreds of branches a year - this month some 41 closures were announced in a single week and among those affected were nine US Bank locations. Bank of America, Chase, PNC, Citizen, Capital One, First National Bank of Pennsylvania and Huntington also said they were axing branches. Such closures deal a huge blow to customers looking to visit in person to submit a document, make a withdrawal or deposit, cash in a check or simply run through their finances with a trusted bank manager. Others, particularly the elderly, may struggle with accessing banking services online due to...

Aug 22 (Reuters) - S&P Global cut its credit ratings and outlook on multiple U.S. regional banks on Monday, saying higher funding costs and troubles in the commercial real estate (CRE) sector would likely test their credit strength. A sharp rise in interest rates by the U.S. Federal Reserve is fueling liquidity concerns as costs tied to funding deposits surge, the S&P said in a summarized note. The agency cut its ratings on Associated Banc-Corp (ASB.N) and Valley National Bancorp (VLY.O) on funding risks and higher reliance on brokered deposits, while UMB Financial Corp (UMBF.O), Comerica Bank (CMA.N) and KeyCorp...

Goldman Sachs reported significantly lower profit for the second quarter, hurt by write-downs in its consumer and asset-management businesses. The bank on Wednesday said quarterly profit was $1.22 billion, down 58% from a year ago. That amounted to $3.08 per share, which missed the $3.16 per share expected by analysts polled by FactSet. Revenue was $10.9 billion, down 8% from a year ago. That still beat the $10.61 billion expected by analysts. Goldman is the only one among its big-bank peers to miss per-share earnings expectations. And while Citigroup and Morgan Stanley also reported profit declines, Goldman’s was the biggest....

Americans are pulling hundreds of billions of dollars out of banks at the fastest pace in nearly 39 years as many economic experts are beginning to predict a repeat of the 2008 “Great Recession.” According to an analysis of the most recent data from the Federal Deposit Insurance Corporation (FDIC), “depositors took a total of $472 billion out of their accounts in the first quarter of this year – shattering a 39 year record,” the Daily Hodl reported. “The quarterly decline is the largest reduction reported in the QBP since data collection began in 1984. This was the fourth consecutive...

Anonymous: The entire banking system will be destroyed within 48 hours

Between work at home, Bidenflation and The Feral Reserve, commercial real estate and regional banks are suffering … and it could get a lot worse. And Joe Biden (aka, Negan) in general. The work-from-home trend has been taking its toll on office landlords and is now making its way through to banks’ commercial loan portfolios, leading some analysts to predict that more trauma could be on the way for regional banks this year. And in the current climate of bank failures, short sellers, and nervous depositors, banks with large exposures to commercial real estate (CRE) loans are racing to clean...

The largest financial institutions deemed systemically important are expanding even more during the 2023 banking crisis, leading to greater systemic risks, according to economists who spoke to the Daily Caller News Foundation. These developments and future ones will cause more consolidation in the sector. “Increasing the concentration in the banking industry simply increases the systemic risk,” E.J. Antoni, research fellow for Regional Economics at the Heritage Foundation’s Center for Data Analysis, told the DCNF. “There were already concerns about concentrations of deposits in the banking industry, both because a few firms already held such a large portion of the deposits...

I’ve been in Buenos Aires, Argentina, for the last month, including through the recent turmoil in the banking industry in the United States and Europe. It’s a coincidence that has, um, given me some things to think about. For those unfamiliar, the ways people in Argentina navigate the day-to-day economy can sound wild. When you don’t think you can trust the bank, the currency, or anybody in charge, things can get pretty weird pretty fast. Amid super-high inflation, people can’t bet on the value of the Argentine peso staying stable, so when they’re paid in them, they spend them fast...

Silicon Valley Bank dished out $219 million worth of loans to officers, directors and principal shareholders in the months before it collapsed. The money was handed it out in the final quarter of 2022 and was three times higher than the amount borrowed by insiders in the three months before, marking a two-decade record high. It comes as the San Francisco Federal Reserve boss Mary Daly has felt the wrath of both Democrats and Republicans for her failure to act on signs of weakness at the bank, which caved on March 10. The unusually high number of loans is documented...

Reports of a possible share sale, and a second ratings downgrade deeper into 'junk' status, has First Republic trading firmly lower Monday. Frist Republic (FRC) - Get Free Report shares extended declines Monday, and look set to open at an all-time low, following a second credit rating downgrade for troubled San Francisco-based lender over the weekend.

Nearly 200 more banks may be vulnerable to the same type of risk that took down Silicon Valley Bank: The value of the assets they hold. There are 186 banks across the country that could fail if half of their depositors quickly withdraw their funds, a new study published on the Social Science Research Network found. Even insured depositors — those with $250,000 or less in the bank — could have problems getting their cash if these institutions face the sort of run that Silicon Valley saw a week ago. The concern is that these banks hold a significant amount...

Is there anything more Soviet than a bank that lends money to companies making things no one wants to buy? That's the missing puzzle piece on why Silicon Valley Bank went belly up, and Kimberly Strassel of the Wall Street Journal has found it: the failure of the bank was premised on ESG, which descended into wokester lending priorities, creating the abnormal conditions that left the bank ripe for a meltdown. Strassel: Most of these companies weren’t filling some vital market need. Rather, as the Journal reported, SVB was beloved for its willingness to offer “banking services to startups that...

What in the world was she thinking? When a bailout was hastily arranged for uninsured depositors at Silicon Valley Bank and Signature Bank, the implication was that the same thing would be done for uninsured depositors at any other banks that failed. But now U.S. Treasury Secretary Janet Yellen is telling us that is not actually what will happen. She just admitted that depositors at a failed bank will only be protected if officials determine that a “failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences”. So that means that depositors at big banks...

Treasury Secretary Janet Yellen told Sen. James Lankford (R-OK) during a Senate Finance Committee hearing on Thursday that Chinese depositors will be made whole while community banks will have to pay higher fees. Yellen spoke before the Finance Committee to discuss President Joe Biden’s budget proposal, but given the increasing concern over the instability in the banking sector, most questions revolved around the federal government’s response to the collapse of Silicon Valley Bank, Signature Bank, and others.

1929: The biggest economic crisis of the 20th century brought an abrupt end to the euphoria of the Roaring Twenties. Driven from their land, the farmers of the Great Plains were forced to abandon everything they had. They became migrants in their own country, and were treated as such by the vast Californian estates. They became the symbol of an America confronted by its own reality. Built on the work of the iconic photographers of the Great Depression - Dorothea Lange, Walker Evans, and Arthur Rothstein - this full archive documentary analyzes the consequences of the economic collapse in the...

With 'goliaths' like JP Morgan also 'winning', analysts say Jittery customers are flocking to major banks in the wake of the SVB collapse One analyst said 'Goliath is winning' as some speed up their onboarding process to cope with the new demand It comes as SVB's spectacular fall from grace continues to wreak havoc on Wall Street Bank of America has reportedly raked in $15 million in new deposits as customers flee small lenders for 'too big to fail' firms in the wake of the Silicon Valley Bank collapse. So-called 'goliath' banks such as JP Morgan and Wells Fargo are...

JUST IN: First Republic Bank, the San Francisco-based lender that was cut to junk by S&P and Fitch, is exploring strategic options including a sale https://t.co/fRG03oAtZG pic.twitter.com/p5vSNmnTnd— Bloomberg (@business) March 15, 2023

Moody's Investors Services, a credit rating system, put several banks on review for a potential downgrade following the collapse of Silicon Valley Bank (SVB). The Federal Deposit Insurance Corporation (FDIC) announced the closure of Silicon Valley Bank on Friday amid a run on the bank, a move that raised concerns about the potential of future bank collapses. Following that collapse, Moody's placed First Republic Bank (FRC), Zions (ZION), Western Alliance (WAL), Comerica (CMA), UMB Financial (UMBF) and Intrust Financial on review, meaning the banks are now perceived as more risky investments by lenders.