Hints and tips:
...Wells Fargo recently cited WeWork’s troubles among its reasons for adding a $20.5mn mortgage on 599 Broadway, a midsized office building in lower Manhattan, to its watchlist of loans at risk of missed payments...
...The Wall Street Journal first reported that JPM and PNC had been asked to bid....
...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...
...Others say it’s signal: unaffordable house prices, expensive mortgages, low unemployment and/or higher immigration are keeping the rental market hot....
...(To specify, it’s the weighted average coupons of newly issued bonds backed by commercial mortgages.) Even lower-investment-grade tranches of CMBS are carrying unusually high interest rates....
...Its funding costs also rose rapidly and it racked up large paper losses on its mortgage book and other long-dated assets....
...Before 2008, it was assumed that innovations such as securitised mortgage products would promote resilience by spreading default risk beyond banks....
...PNC, for example, puts a cumulative loss number of 7.1% on the office book, and Wells Fargo is at 5.8%. And banks emphasise that this will take years to play out, not a couple of quarters....
...PNC, for example, proposed selling parts of First Republic’s loan book to either BlackRock or Apollo in an effort to make the offer more attractive....
...The shares of First Republic, a California bank with some similarities to SVB, had been hit particularly hard amid fears that it would be forced to sell its mortgage portfolio at a steep loss to cover deposit...
...Shares in JPMorgan were up in early trading in New York, but US regional banks were under pressure, with Citizens and PNC both falling....
...Weil’s piece points out that the six banks (JPMorgan Chase, Wells Fargo, Truist, US Bancorp, PNC and Charles Schwab) together moved half a trillion dollars in securities from AFS to HTM last year....
...First Republic, which is basically a bank for rich people, holds a ton of big home mortgages on its balance sheet — about half of its total assets....
...In the US, banks run the gamut — from top-tier Wall Street names such as JPMorgan to regional powerhouses such as PNC and community banks with less than $100mn in assets....
...And Santander has pared back its home mortgage lending while doubling down on car finance by purchasing the minority stake in its car loans subsidiary which it did not already own....
...“The scams are growing daily,” said PNC chief executive Bill Demchak. “It’s not enough that we apportion blame after the fact.”...
...The subprime mortgage crisis of 2007-8 showed the potential dangers in this area....
...The market has more confidence that the big regional banks like US Bank (USB), Truist (TFC) and PNC, which depend less on capital markets, will be able to maintain their returns....
...Last month Spain’s BBVA announced a retreat from the US retail market with the sale of its operations to Pittsburgh-based PNC....
...From Shearson Lehman, Schlosstein brought Susan Wagner and, later, Hugh Frater, two of its smartest mortgage bond specialists....
...Midland Loan Services — part of the financial services group PNC and one of the country’s largest special servicers, named on almost $100bn worth of CMBS deals — has increased its staff by double-digits....
...Should the property slip further, it will be passed to its special servicer, Midland Loan Services, part of PNC. Midland declined to comment. 3....
...(Billy Nauman) Sin stocks cheer Trump’s bank lending gambit In 2019, JPMorgan Chase, PNC and other banks announced they would no longer do business with private prison operators — a sector dominated by...
...My friend, a western Pennsylvania native, still banks at PNC Financial, a Midwestern banking powerhouse. The number of PNC branches and ATMs in New York can be counted on one hand....
...A softer spot was fee revenues, which were flat versus the year before, held back in part by the mortgage business....
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