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...The UK sent a warship to the neighbouring country at the end of last year as part of Britain’s backing for the Commonwealth nation....
...This requires it to handle or “resolve” failed banks in a way that is least costly to the FDIC’s deposit insurance fund, except in extraordinary circumstances. There are valid reasons for this....
...The FDIC seized the loans from the former Signature Bank, one of a trio of lenders that failed or closed in early March, kicking off a period of turmoil for the banking sector....
...As a result, more banks would need to fail for Porticoes to be able to use money it has raised — and the list of potential targets is slim....
...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....
...The big banks are lending as much as they can, with the four largest US banks having $4tn of loans and leases outstanding, according to FDIC data....
...The Federal Deposit Insurance Corporation, which released the numbers on Thursday as part of its quarterly review, does not name the individual banks that are on its so-called problem bank list....
...Regulators have long argued for such a link as they lectured bankers to clean up their acts in the service of financial stability....
...That matters, as it takes a majority vote to finalise a rule,” Seiberg, who is managing director in TD Cowen’s Washington research group, wrote in a note to clients on Thursday....
...Noting that the FDIC had faulted the board of Silicon Valley Bank for the lender’s failure, Kennedy suggested that Gruenberg and fellow board members should be held to account in the same way....
...In September, the FDIC began its auction of Signature Bank’s assets and hired adviser Newmark to oversee the process....
...US banks now hold $1.40 in reserves for every dollar of delinquent commercial real estate loans, down from $2.20 a year ago, according to the FDIC data, and the lowest cover banks have had to absorb potential...
...As with so much of what the Fed has done in recent years, the BTFP had profound unintended consequences for market functioning....
...The relatively high cost of deposits should make the FDIC’s new rules more palatable for lenders....
...Nearly a year after Silicon Valley Bank collapsed, it is tempting to dismiss the US regional banking crisis as a very loud tempest in a relatively small teapot....
...In September, Discover agreed to improve its consumer compliance management system under a consent order from the FDIC....
...Blackstone is marketing the BP and BCG office known as “Cargo”, formerly home to the Financial Conduct Authority, which it bought in 2014 for about £165mn....
...In retrospect, the report said, “for an institution of its size, sophistication, and risk profile, the bank should have taken additional proactive measures to mitigate interest rate risk” such as selling...
...While the US is often criticised as overbanked, the number of banks has been in sharp decline, falling every year from levels in the 2000s of 8,000 to just over 4,100 in 2022....
...Part of the reason for the profit drop was last year’s banking turmoil — the Federal Deposit Insurance Corporation imposed a one-time charge on many US banks in order to pay for losses, which the FDIC’s...
...Citigroup also said it expensed $780mn in the fourth quarter for severance and other charges related to the bank’s restructuring, which is expected to result in thousands of layoffs....
...The FDIC’s postmortem on First Republic lays down the increasingly establishment view matter-of-factly [my emphasis]: In retrospect, it does not appear that banks or banking regulators had sufficient appreciation...
...Larger banks such as JPMorgan Chase, Bank of America and Wells Fargo also saw their profits fall in the final quarter of 2023....
...The US Federal Deposit Insurance Corporation stepped in at struggling institutions such as Silicon Valley Bank to backstop uninsured deposits. It now wants to recoup the cost to replenish its funds....
...For context, single-family residential mortgages made up 34% of FDIC-insured bank loan books in 2009, a far higher level than the 9.3% of loan books currently made up by CRE loans....
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