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...Its gain-on-sale margin — which measures how much is earned when mortgages are sold — came in at 2.6 per cent in the first nine months of 2023, compared with 4.5 per cent in 2020....
...This is what happened when the FDIC auctioned off First Republic last year, little more than a month after the collapse of Silicon Valley Bank....
...Before the FDIC shut First Republic down in May and sold most of its assets and liabilities to JPMorgan Chase, the bank was suffering from a sharp share price fall, paper losses on its large mortgage book...
...Republic....
...Read more on First Republic here...
...In 2009, Mnuchin led a group of private equity investors that bought IndyMac, a mortgage lender that failed in the 2008 financial crisis, from the Federal Deposit Insurance Corporation....
...The Federal Deposit Insurance Corporation on Thursday said the number of weak US banks had risen by eight to 52 in the final three months of 2023, the biggest jump since the demise of SVB....
...Republic and Signature....
...Rapid rises in mortgage rates had at first propelled homebuilder stocks, because they made current homeowners holding cheaper fixed-rate loans less willing to sell their properties....
...At present, a branch of the main clearing house the Depository Trust and Clearing Corporation, called the Fixed Income Clearing Corporation, is the only venue where Treasury trades are cleared....
...Berkshire also exited its investments in payments business StoneCo, insurers Globe Life and Markel Corporation, and homebuilder DR Horton....
...The last significant US bank to fail was First Republic, which was closed by the Federal Deposit Insurance Corporation in early May....
...Republic a year ago and that befell the Wall Street investment banks back in 2008....
...That’s why First Republic went under. They have hundreds of billions of dollars of Treasuries, again, with a listed value above true value. That is what drove Silicon Valley Bank out of business....
...Having ridden out a deposit flight that led to the collapse of Silicon Valley Bank and First Republic last year, the challenge for many will be finding a way to increase profits again in 2024....
...Sharing First Republic’s loan losses with JPMorgan will limit the costs to the Federal Deposit Insurance Corporation to $13bn....
...A version of this article was first published by Nikkei Asia on March 6. ©2024 Nikkei Inc. All rights reserved....
...Greece’s credit rating was lifted to investment-grade status in September for the first time 13 years, underlining the country’s economic recovery....
...In December, for the first time, a proposed loan secured against the small shops’ payments was given a preliminary “A” grade credit rating....
...JPMorgan is essentially swallowing First Republic whole. Dimon is going out of his way to knock the target’s assets as he does so....
...First Republic shares have lost more than 97 per cent of their value this year, driven down by concerns about paper losses on its mortgage book and other assets and massive deposit outflows after the March...
...NYCB had been seen as one of the winners of the 2023 crisis that sank Signature, Silicon Valley Bank and First Republic....
...First Republic’s business model of using low-cost deposits to fund cheap mortgages has been squeezed by rising interest rates....
...Interest income from loans, mortgages and securities will not cover interest expense. First Republic shares have dropped 86 per cent so far this year....
...First Republic and SVB were not small banks but there was a reason why some entrepreneur-led tech businesses were banking with them....
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