Hints and tips:
...IntraFi said: “Bipartisan laws and regulations have long recognised the value of reciprocal deposits as a stable source of funding that supports local banks and community lending.”...
...There are more than 4,100 commercial banks in the US, according to the FDIC. “We’re one of the few countries that has a large infrastructure of small regional and community banks,” said Peltz....
...Flagstar is a subsidiary of New York Community Bancorp. Shares of both banks soared after the deals were announced....
...While community banks mostly rely on deposits insured by the FDIC, regional banks’ business clients maintain significant levels of uninsured deposits....
...The number of problem banks in the US has jumped 18 per cent, regulators warned, as New York Community Bank was stabilised by a $1bn capital raise led by former US Treasury secretary Steven Mnuchin....
...Banks hold higher allowances — for example, 10 per cent — for unsecured lending such as credit card loans, compared with 2 or 3 per cent for commercial real estate loans, which have lower default rates....
...Since 2009, the FDIC has issued 86 new insured commercial bank charters....
...The FDIC, a banking regulator that insures depositors, is also responsible for resolving failed banks....
...Quarterly earnings were also hit by a $5bn increase in provisions for bad loans, a $4bn loss on banks’ securities portfolios, and higher costs as lenders cut staff and restructured their operations, the...
...Management’s go-to message was that NYCB’s acquisition of Signature Bank, one of the banks that shut down last year, pushed it into a new size category for regulation....
...Investors find FHLB debt attractive due to strict collateralisation polices, implied guarantee status and the “super lien” position allowing for a priority claim should the FDIC become the receiver of a...
...It’s not as if it makes much sense to build a relationship with a bank that doesn’t look like it’ll be in business for long. Case-in-point was the reopened SVB, FDIC-bridge-bank version....
...A week ago, when New York Community Bancorp rescued Signature Bank, it took mostly cash as assets and left Signature’s loan book with the government....
...The estate’s own creditors and stakeholders, or the receiver for one of its now former subsidiaries?”...
...We just saw this one bank, New York Community Bank, starting in late January, it started to falter because it hadn’t put enough money away to cover this growing problem that it and lots of other banks have...
...Insurance Corporation (FDIC) as receiver....
...The deal follows a similar takeover announced a week ago for Signature Bank, the operations of which were sold to New York Community Bank-owned Flagstar....
...This is sure to please the influential trade association for that part of the sector, the Independent Community Bankers of America, which has been arguing for a distinction between big and small banks since...
...Harris’s agency appointed the FDIC as Signature’s receiver....
...As compensation for the deal, NYCB is granting the FDIC the right to buy shares in NYCB that could be worth as much as $300mn....
...News clip Washington Mutual has gone under the FDIC, took over Washington Mutual yesterday, then sold its assets to JPMorgan Chase for nearly $2bn....
...They and community banks were heroes during the 2008 crisis, continuing to lend even as many mega banks pulled back....
...Another indication is that FHLB debt counts as a high-quality liquid asset for satisfying bank liquidity requirements....
...Community Bancorp/ Signature Bank (March) First Citizens/ Silicon Valley Bank (March) JPMorgan Chase/ First Republic Bank (May) UBS/ Credit Suisse (June) In any M&A deal, so-called purchase accounting...
...If history is any guide, the FDIC will try to spread the special systemic risk assessment over as long as a period as it can, in an effort to prop up bank earnings in uncertain times, though its power to...
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