Page 3 - Us Banks

Major US banks report rising profits, cautious on economic outlook

JPMorgan's profit jumped 35 per cent on the year-ago quarter, while Wells Fargo profit surged 60 per cent. Citigroup reported a more modest year-on-year 2 per cent gain

Credit Suisse flags $2 bn loss as wind-down proceeds after UBS acquisition

The losses from the loan portfolios won't affect UBS's third-quarter results because the impact was previously taken into account, according to Andreas Venditti, an analyst

Can IT look beyond BFSI? US banking crisis threatened to create a domino

But things are getting better and demand outlook remains strong

15 years since US bank Lehman Brothers fall: Looking back to look ahead

15 years ago, a US investment bank collapsed and changed the financial world forever. Or, did it?

Potential for Indian IT sector stocks likely to see some rerating

Much of the bad news seems priced in, and a gradual recovery in US tech spending could happen from Q2

JPMorgan, other top banks likely to face ratings cut, says Fitch Ratings

Stocks sink on downgrade warning

Disinflation spreads across several emerging markets and selloff deepens

In Hungary, which has the highest interest rate in the European Union, inflation dipped below 20% for the first time in 11 months. The government expects the rate to fall below 10% by October

Moody's cuts 10 US banks on back of mounting funding costs, office exposure

"Collectively, these three developments have lowered the credit profile of a number of US banks, though not all banks equally," it wrote in some of the assessments

Fed launches long-awaited instant payments service, modernising system

The Fed said on Thursday in a statement that 35 banks and credit unions were currently utilizing the service, as well as the Treasury Department's Bureau of Fiscal Service

Wells Fargo raises outlook for interest income after profit surges 57%

Wells Fargo reported profit of $1.25 per share for the three months ended June 30, beating analysts' average estimate of $1.16 per share, according to Refinitiv data

Fed may tighten financial rules after US bank failures, says Powell

Federal Reserve Chair Jerome Powell said Thursday that the central bank may have to tighten its oversight of the American financial system in the wake of the failure of three large US banks this spring. Powell said in prepared remarks delivered at a banking conference in Madrid that tougher regulations put in place after the 2007-2008 financial crisis have made large multinational banks much more resilient to widespread loan defaults, such as the bursting of the housing bubble that led to that crisis. But the collapse of Silicon Valley Bank, Signature Bank and First Republic Bank exposed different vulnerabilities that the Fed will likely address through new proposals, Powell said. He did not provide details, but other Fed officials have said banks should be required to hold more capital in reserve to guard against loan losses. Such proposals are likely to face resistance from the banking industry and some congressional Republicans, who argue that the Fed had the necessary tools to

Largest US banks would survive severe recession, Fed's 'stress tests' show

The nation's 23 largest banks passed the Federal Reserve's so-called stress tests this year, a sign that the nation's banking system remains resilient despite the recent banking crisis that led to the failure of Silicon Valley Bank, Signature Bank and First Republic Bank. The Fed's report issued Wednesday did show some relative weakness among the midsize banks and "super regional" banks, with some getting a passing grade with a smaller cushion than usual. Those results could raise eyebrows among investors and policymakers. Fed policymakers also hinted that they could make the tests harder in future iterations, due to the banking crisis earlier this year. We should remain humble about how risks can arise and continue our work to ensure that banks are resilient to a range of economic scenarios, market shocks, and other stresses, said Michael Barr, the Fed's vice chair for supervision, in a statement. The stress tests have become an annual report card for the nation's financial system

Bank of America to expand in 4 US states, closing gap with JPMorgan

Bank of America will open new financial centers in Nebraska, Wisconsin, Alabama and Louisiana as part of a four-year expansion across nine markets, including Louisville, Milwaukee and New Orleans

JPMorgan to pay $290 mn to Epstein's victims in class action lawsuit

JPMorgan Chase announced a $290 million tentative settlement Monday with the victims of Jeffrey Epstein who had accused the bank of being the financial conduit that allowed the financier to continue operating a sex trafficking operation. Epstein was arrested in 2019 on federal charges accusing him of paying underage girls for massages and then molesting them at his homes in Florida and New York. He was found dead in jail in August of that year, at age 66. A medical examiner ruled his death a suicide. The lawsuit filed in Manhattan federal court in November sought to hold JPMorgan financially liable for Epstein's decades-long abuse of teenage girls and young women. A related lawsuit has been filed in the U.S. Virgin Islands. The proposed settlement comes roughly two weeks after JPMorgan Chase CEO Jamie Dimon testified in a deposition for the case, where he denied knowing about Epstein and his crimes until the financier was arrested in 2019, according to a transcript of the videotap

CEO Jamie Dimon has 'no plans' to run for office, says JPMorgan spokesman

Bill Ackman said last week that Dimon should run for president in 2024, describing him as a political centrist who could beat President Joe Biden in a primary or Trump in election

JP Morgan Chase lays off around 1,000 employees of First Republic Bank

JP Morgan Chase is laying off roughly 1,000 employees of First Republic Bank nearly a month after it was seized by regulators. The vast majority of First Republic employees, roughly 7,200 before it ran into trouble, were offered jobs by JPMorgan, meaning that about 15 per cent of the bank's employees were let go. First Republic cut roughly 25 per cent of its workforce before JPMorgan stepped in. Bank employees that are not being offered jobs at JPMorgan will get an additional 60 days of pay and benefits, the bank said. Additional payments to those being let go will be based on how long they worked at First Republic. First Republic Bank, based in San Francisco, became the second-largest bank failure in US history. Regulators sold all of its deposits and most of its assets to JPMorgan Chase to restore order after three banks, including Signature and Silicon Valley banks, collapsed and threatened to undermine faith in the US banking system. The banks were unique, however, due to the

First Citizens-owned Silicon Valley Bank to lays off about 500 employees

"It is increasingly clear that we must make decisions to right-size our scope and scale to remain competitive"

JPMorgan sees $3 bn net interest income boost from First Republic deal

JP Morgan agreed to take into its books $173 bn of the failed bank's loans, $30 billion of securities and $92 billion of deposits after First Republic was shuttered by authorities earlier this month

Morgan Stanley's James Gorman, who arrived shortly before crisis, to retire

Morgan Stanley's long-time CEO James Gorman will retire in the next 12 months, he said Friday at the bank's annual shareholder meeting. Gorman said the bank is looking at three senior internal candidates to be the investment bank's new top executive. Gorman said he plans to remain at the bank as executive chairman of the board for a period of time after a successor is named. Gorman joined Morgan Stanley as chief operating officer of its Global Wealth Management Group in early 2006 and was co-president of the Wall Street bank within a year. Gorman became CEO in 2010 in the wake of the financial crisis, when the storied investment bank came dangerously close to collapsing. Morbding securities and making deals grew highly volatile. Gorman made it his mission to stabilize Morgan Stanley's business for the long term. The firm built out its wealth management business substantially, a business that brings in regular fee income instead of when deals close, and a division he was very famili

How US banks, Fed are prepping for default and the chaos which might follow

A severe and prolonged global economic recession would be all but guaranteed, and the reputation of the US and the dollar as beacons of stability and safety would be further tarnished