Tag: First Republic Bank

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...

Mar222023 by Waqas-ChNo Comments

Global Shares Jump But Financial System Uncertainties Limit Buying

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The Dow Jones Industrial Average jumped 0.98% and the S&P 500 rallied 1.3%. (File)New York: Global shares leapt on Tuesday after the rescue of Credit Suisse stemmed a rout in equities and whetted risk appetite, although financial system uncertainties limited buying as investors awaited the outcome of a Federal Reserve meeting.The Fed began a two-day meeting earlier on Tuesday and, after a wild few sessions, investors are divided about whether the central bank will raise interest rates by 25 basis points on Wednesday, or skip a chance at raising borrowing costs this month."We expect a 25-basis-point rate hike," economists at TD Securities said in a note. "Post-meeting communication is likely to emphasize that the Fed is not done yet in terms of tightening, with officials also flaggin...

Mar212023 by Waqas-ChNo Comments

Yellin: We have plan in place in case more banks fail

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Stocks rebound as Yellen testifies on banks Yellen testifies on Capitol Hill as bank stocks see slight rebound 05:51 Treasury Secretary Janet Yellen will tell America's top banking lobby Tuesday that the government has a playbook if other financial institutions, like Silicon Valley Bank, collapse and pose a risk to banking sector.In a speech to the American Bankers Association, Yellen discusses the government's emergency rescue of ...

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...

Dec192022 by Waqas-ChNo Comments

2022 didn’t go as expected for bank investors. Stocks to watch for 2023

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Banks finally got a long-awaited boost to interest rates this year after a decade of toiling in a low-rate environment. It didn't go as planned. A year ago, big lenders including Bank of America and Wells Fargo were the top picks of the analyst community because they were expected to benefit from higher rates . Loan growth coupled with vast deposit bases would drive gains in interest income as the Federal Reserve hiked rates, the thinking went. While that trend played out, the bull case was spoiled by inflation at four-decade highs, which forced the Fed to boost rates more than expected , triggering concerns of a recession. In a downturn, banks are exposed to surging loan defaults, reduced loan demand and write-downs on assets. That's why the KBW Bank Index slumped 23% through mid-Decem...