Tag: Banks

May12023 by Waqas-ChNo Comments

Congress reacts to bank failure

Chairman Sherrod Brown, D-Ohio, left, and ranking member Sen. Tim Scott, R-S.C., arrive for the Senate Banking, Housing and Urban Affairs Committee hearing discussing recent bank failures, April 27, 2023.Tom Williams | Cq-roll Call, Inc. | Getty ImagesWASHINGTON — Lawmakers who sit atop key banking committees praised the federal takeover of First Republic Bank on Monday, and held up the sale of its assets to JP Morgan Chase as a successful public-private collaboration to protect the U.S. financial system."This prompt and cost-effective sale of the bank protects depositors, limits contagion and ensures that no cost is borne to our nation's taxpayers," said Rep. Maxine Waters of California, the top Democrat on the House Financial Services Committee.The Republican chairman of the committee...

Apr292023 by Waqas-ChNo Comments

JPMorgan Chase, Bank of America asked for bids

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A First Republic bank branch in Manhattan on April 24, 2023 in New York City.Spencer Platt | Getty ImagesU.S. regulators have asked banks for their best and final takeover offers for First Republic by Sunday afternoon, in a move that authorities hope will calm markets and cap a period of uncertainty for regional lenders.JPMorgan Chase and PNC are likely bidders for the ailing lender, which would be seized in receivership and immediately sold to the winning bank, according to people with knowledge of the situation. The Wall Street Journal reported those banks' interest late Friday.related investing newsOther companies are likely to step up. Bank of America is among several other institutions that are weighing a potential bid for First Republic, according to people with knowledge of the m...

Apr152023 by Waqas-ChNo Comments

Yellen says U.S. banks may tighten lending and negate need for more Fed rate hikes

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U.S. Treasury Secretary Janet Yellen speaks during a news conference at the Treasury Department in Washington, U.S., April 11, 2023. Elizabeth Frantz | ReutersU.S. 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 CNN "Fareed Zakaria GPS" interview that policy actions to stem the systemic threat caused by last month's failures of Silicon Valley Bank and Signature Bank had caused deposit outflows to stabilize, "and things have been calm," according to a transcript released on Saturday."Banks are likely to become somewhat more cautious in this environment," Yellen said in the interview, which is schedul...

Apr142023 by Waqas-ChNo Comments

Citigroup (C) earnings Q1 2023

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Citigroup reported rising net income and better-than-expected revenue for the first quarter, boosting its stock Friday even as the bank's executives expressed caution about the path of the U.S. economy.Here is how Citigroup's key metrics compared with expectations.$4.6 billion in net income vs. $4.3 billion in the same period last year$21.45 billion in revenue vs. $19.99 billion expected, according to Refinitiv.Citigroup reported earnings of $2.19 per share for the quarter. It was not clear how comparable that number is to estimates, but it appeared to be a solid beat, based on both GAAP and adjusted earnings per share.Shares of the bank rose about 4%.Stock Chart IconStock chart iconCiti's stock rose after the bank reported better-than-expected results for the first quarter. The results...

Mar252023 by Waqas-ChNo Comments

$100 billion pulled from banks but system called ‘sound and resilient’

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A First Citizens Bank branch in Dunwoody, Georgia, on Thursday, March 23, 2023.Elijah Nouvelage | Bloomberg | Getty ImagesRegulators again assured the public that the banking system is safe, as fresh data showed customers recently pulled nearly $100 billion in deposits.Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and more than a dozen other officials convened a special closed meeting of the Financial Stability Oversight Council on Friday.A readout from the session indicated that a New York Fed staff member briefed the group on "market developments.""The Council discussed current conditions in the banking sector and noted that while some institutions have come under stress, the U.S. banking system remains sound and resilient," the statement said. "The Council a...

Mar182023 by Waqas-ChNo Comments

BlackRock denies report that it’s preparing a takeover bid for Credit Suisse

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BlackRock headquarters in New York, US, on Friday, Jan. 13, 2023. via Getty ImagesMichael Nagle | Bloomberg | Getty ImagesBlackRock has denied a report that it is preparing a takeover bid for embattled Swiss lender Credit Suisse."BlackRock is not participating in any plans to acquire all or any part of Credit Suisse, and has no interest in doing so," a company spokesperson told CNBC Saturday morning.related investing newsIt comes after the Financial Times reported that the U.S. asset manager was working on a bid to acquire the bank, citing people familiar with the situation. UBS has also been mooted as a potential buyer, with the FT reporting Friday that it is in talks to take over all or part of Credit Suisse, after a tough week for the bank which saw its stock price slide. This is a d...

Mar172023 by Waqas-ChNo Comments

$30 billion First Republic rescue plan should temper future bank runs

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The move by major banks on Thursday to extend a much needed lifeline to First Republic should help reignite confidence in the sector after a difficult week, Wall Street says. A group of 11 prominent banking players, including Bank of America , Citigroup , JPMorgan and Morgan Stanley , pledged Thursday to inject $30 billion worth of deposits into First Republic in an effort to rescue the struggling firm . "We view the move by the industry as a positive step to stem contagion amid the regional bank crisis," wrote Evercore ISI's John Pancari in a Thursday note. "We believe the move sends a message of broader stability for the sector and should help further temper depositor fears," and enables the "bank to fight another day." First Republic shares have plummeted 58% this week, after the fai...

Mar152023 by Waqas-ChNo Comments

SVB crisis could prompt BOJ to delay making changes: Ex-board member

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"The second half of next year is [the] possible timing for when the Bank of Japan will end its negative interest rate policy," said former Bank of Japan board member Takahide Kiuchi (pictured here in 2017).Bloomberg | Bloomberg | Getty ImagesJapan's central bank could delay any changes to its monetary policy in light of the turmoil that the Silicon Valley Bank crisis has triggered in financial markets, a former board member told CNBC.And any changes to its ultra-dovish stance could be delayed by as much as a year, said Nomura Research Institute economist Takahide Kiuchi, who served on the Bank of Japan's policy board from 2012 to 2017.Kiuchi previously expected that incoming governor Kazuo Ueda would accelerate the BOJ's normalization of monetary policy — including widening its current ...

Dec162022 by Waqas-ChNo Comments

CBI registers three more cases against Mehul Choksi

Business

NEW DELHI: The Central Bureau of Investigation (CBI) on Friday registered three more FIRs in Mumbai against fugitive businessman Mehul Choksi for cheating and criminal breach of trust. The FIRs were registered on the complaint of the Deputy General Manager of Punjab National Bank. The first FIR reads that complaint against Mehul Chinubhai Choksi, the Director/Promotor of the holding company viz. M/s Gitanjali Gems Ltd and also a guarantor for credit limits sanctioned to M/s Nakshatra Brands Limited, the Director of M/s Nakshatra Brands Limited viz. Dhanesh Vrajlal Sheth, unknown public servants, if any and others for having committed offence of cheating, criminal misappropriation of assets and criminal breach of trust thereby causing a loss of Rs. 807.72 Crore to the consortium members ...

Dec142022 by Waqas-ChNo Comments

Banks wrote off Rs 10 lakh cr NPAs: FM

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NEW DELHI: Banks have written off bad loans worth Rs 10,09,511 crore in the last five financial years, FM Nirmala Sitharaman informed Parliament on Tuesday. The non-performing assets (NPAs), including those which full provisioning has been made on completion of four years, are removed from the balance sheet of the bank concerned by way of write-offs, she said in a reply to the Rajya Sabha. As borrowers of written-off loans continue to be liable for repayment and the process of recovery of dues from the borrower in written-off loan accounts continues, write-off does not benefit the borrower, she said. Banks continue to pursue recovery actions initiated in written-off accounts through various recovery mechanisms. !(function(f, b, e, v, n, t, s) { window.TimesApps = windo...