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..., Goldman Sachs, Morgan Stanley, Bank of America and Citigroup....
...’s largest banks to rebuild its depleted deposit insurance fund....
...At PacWest, brokered deposits made up 22 per cent of all deposits at the end of September, up from 11 per cent a year earlier. At Western Alliance, the figure is about 12 per cent of total deposits....
...The US Federal Deposit Insurance Corporation is working on proposals aimed at ensuring asset managers do not seek too much influence over the banks in which they hold large stakes....
...The FSCS report for HSBC’s non-ringfenced bank only included £2mn of deposits for 150 clients, so 99 per cent of eligible deposits and 70 per cent of customers had been wrongly excluded from the scheme....
...For instance, only one percent of banks reclassified securities from AFS to HTM if they relied on uninsured deposits for less than 20% of their total deposit funding....
...There are dozens of these funds in the US but at the moment only one in the UK, again from Global X, called the S&P 500 Annual Buffer UCITS ETF (ticker SPAB)....
...Commercial banks are likely to breathe a sigh of relief after the ECB kept the minimum level of reserves it requires them to deposit with it — and on which they earn zero interest — at 1 per cent, despite...
...The high leverage of banks is largely byproduct of safety nets embedded in insured deposit funding and ability of banks to issue money like claims....
...In the 1970s and 1980s, Regulation Q, which imposed ceilings on interest rates offered to depositors in the US, exacerbated deposit flight to money market funds....
...In the year to mid-April 2023, some $973bn left US banks, according to Federal Reserve data. Often these funds moved to money market funds, which provided higher rates of return....
...Over the past two years, big banks such as JPMorgan Chase, Bank of America, Citigroup and Wells Fargo charged more for loans in lockstep with the Fed lifting interest rates, without passing on the increase...
...JPMorgan Chase, Bank of America, Wells Fargo and Citigroup collectively made $253bn in net interest income (NII) for the whole of 2023 — a 19 per cent jump from 2022’s total....
...At the same time, their fund leverage levels often remain opaque and run through banks themselves. As such, any stress at an investment fund can then trigger problems at counterparty banks....
...Fortunately for BofA, if you include its $564bn of zero-cost deposits, the difference nearly doubles to 2.1 per cent. And it’s a similar story at other US banks....
...The bulk of Russian central bank assets — roughly €190bn — is held at Euroclear, a central securities depository based in Belgium....
...Their injection of funds at $2 a share was “tremendously dilutive” to other shareholders, analysts at Wedbush noted, but helped stabilise the bank and boost the stock price....
...Critics of the current structure argue that banks count on a certain percentage of borrowers falling off the carousel of fixed rates and paying the expensive standard variable rate for a period of time....
...Based on the price of these options, strategists at Bank of America say markets are now pricing in a more than 10 per cent chance of such a scenario within the next six months....
...The measures would reduce the likelihood of a run on deposits by enabling a bank to operate as normal through its difficulties, while allowing depositors to access funds in the usual way rather than waiting...
...of “certain” trades....
...While community banks mostly rely on deposits insured by the FDIC, regional banks’ business clients maintain significant levels of uninsured deposits....
...Deposits remain the lowest cost of funds possible. Banks have enormous depth of relationships and debt underwriting experience....
...When Washington imposed sanctions on the Kremlin-run bank, JPMorgan had to move the funds to a separate escrow account. Under the US sanctions regime, neither VTB nor JPMorgan can access the funds....
...This could mean that “the risk premium of certain credits is not adequately priced anymore,” he added....
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