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Deposits

All articles tagged with #deposits

finance1 year ago

"Challenges and Rescues: NYCB's Shaky Ground and $1 Billion Lifeline"

New York Community Bancorp (NYCB) lost 7% of its deposits in one month, dropping to $77.2 billion as of March 5, following a $1 billion capital infusion led by Steve Mnuchin's investor group. The bank's stock rose nearly 6% after the announcement, and Fitch Ratings viewed the capital infusion positively. Former Treasury Secretary Mnuchin's firm, along with other investors, will take control of NYCB, with former Comptroller of the Currency Joseph Otting becoming the new CEO. The bank plans to reduce its dividend and evaluate opportunities to reduce commercial real estate concentration, while emphasizing that deposit performance has been resilient despite recent challenges.

via Yahoo Finance|
#capital-infusion#deposits#finance
finance1 year ago

"NYCB's Deposit Losses and Mnuchin's $1bn Deal: Inside the Bank's Struggle"

Customers of New York Community Bank withdrew $6 billion in deposits, causing a 7% decrease, but it's not a bank run. The bank secured a $1 billion investment and saw its shares rise after a steep plunge. NYCB is in crisis mode after reporting a surprise loss and being downgraded to junk status by credit rating agencies. The bank also announced a dividend cut and faces concerns about setting aside more reserves and estimating losses from soured loans, which could limit its profitability.

via CNN|
#bank-run#deposits#dividend
finance1 year ago

"NYCB Faces Flight Risk as Moody's Downgrades Ratings Again"

Moody's Investors Service downgraded New York Community Bank's deposit rating by four notches, putting it three levels below investment grade, potentially triggering contractual obligations and raising concerns about a flight of deposits. The bank's stock has plummeted 72% this year, and its ability to retain deposits is under scrutiny, with potential impacts on its "Banking as a Service" business and mortgage escrow unit. Analysts warn of increased costs and potential funding challenges for the bank as it grapples with the aftermath of the ratings downgrade.

via CNBC|
#deposits#finance#financial-risk
finance1 year ago

"NYCB's Stock Rises as Deposits Increase Amid Credit Downgrade Concerns"

New York Community Bancorp's stock dropped despite reassurances from its new executive chairman about the bank's strong foundation and deposit base, following a 60% decline in value and a credit rating downgrade. The bank reported increased deposits and plans to bring in new executives, but investors remained unconvinced as shares fell further. The bank's focus on reducing its exposure to commercial real estate loans amid concerns about the market's instability has raised worries of a potential banking crisis, with regulators closely monitoring the situation and expressing concerns about the impact on the banking sector.

via CNN|
#banking-crisis#commercial-real-estate#deposits
finance1 year ago

NYCB's Stock Volatility: Assessing Strength Amid Credit Rating Downgrade

New York Community Bancorp, Inc. reported updated financial information, including approximately $83.0 billion in total deposits, with 72% insured and collateralized, and $37.3 billion in total liquidity, exceeding uninsured deposits with a coverage ratio of 163%. The company's president and CEO, Thomas R. Cangemi, highlighted actions taken to fortify the balance sheet and strengthen risk management processes, emphasizing the investment in enhancing risk management framework. The company also provided cautionary statements regarding forward-looking information and outlined principal risks and uncertainties. New York Community Bancorp, Inc. is the parent company of Flagstar Bank, N.A., with market-leading positions in multi-family lending, mortgage origination and servicing, and warehouse lending.

via PR Newswire|
#deposits#finance#financial-update
finance2 years ago

Americans' Financial Savvy Soars as Money Market Funds and CDs Surge

Money market funds in the US have been paying over 5% since April 2023, prompting Americans to flock to them. In response, banks are now competing for deposits by offering attractive interest rates on certificates of deposit (CDs). Large CDs of $100,000 or more have surged by 60% since the Federal Reserve began its rate hikes, reaching $2.1 trillion at the end of October. Small CDs of less than $100,000 have also seen a significant increase, rising from $36 billion in May 2022 to nearly $1 trillion by the end of September. Banks are also offering higher interest rates on savings accounts to compete with money market funds.

via WOLF STREET|
#banks#cds#deposits
finance2 years ago

Banking Glitch Causes Deposit Delays and Auto Payment Risks

A glitch in the network that processes electronic transfers between U.S. bank accounts has caused delays in settling deposits, with some payments remaining stalled. The Clearing House Payments Co., owned by major banks including Citibank, Wells Fargo, Bank of America, and J.P. Morgan Chase, acknowledged a technical error that masked payment information, preventing immediate processing. Customers have expressed concerns about delayed paycheck deposits affecting automatic payments such as mortgages, rent, and credit-card bills. The company apologized for the error and is working with banks and the Federal Reserve to resolve the issue.

via OregonLive|
#banking-glitch#clearing-house-payments-co#customer-complaints
finance2 years ago

Schwab's Net Interest Revenue Declines as Clients Withdraw Cash

Charles Schwab Corp reported a 24% decline in net interest revenue as clients moved cash into higher-yielding products, causing deposits to fall 28% to $284.4 billion in the third quarter. Despite persistently elevated interest rates, the company stated that cash realignment activity is beginning to slow down. Schwab's adjusted earnings per share slightly beat analysts' estimates, and the firm expects an 8-9% decline in full-year 2023 revenue compared to the prior year. The company plans to issue more debt to build up extra liquidity and has identified opportunities for increased efficiency to deliver at least $1 billion of annual expense savings.

via Yahoo Finance|
#cash-sorting#charles-schwab-corp#deposits
finance2 years ago

Wells Fargo Customers Alarmed as Deposits Vanish

Wells Fargo customers experienced another incident where deposits were not showing up in their accounts, causing panic and financial difficulties. The bank acknowledged the issue, stating it affected a limited number of customers and most instances were resolved, but did not provide further details. This comes as Wells Fargo faces allegations of phony bank accounts and unlawful activity. Customers nationwide were affected by the outage, leading some to consider moving their money to other banks.

via Yahoo Finance|
#banking#customer-complaints#deposits
business2 years ago

Apple's High-Yield Savings Accounts Attract $10 Billion in Deposits

Apple has announced that its high-yield savings accounts, offered in partnership with Goldman Sachs, have accumulated over $10 billion in deposits since their launch approximately 3.5 months ago. The accounts offer a 4.15% annual percentage yield rate and have no fees, minimum deposits, or minimum balance rules. Additionally, 97% of customers have chosen the option to automatically deposit their cashback rewards into their savings accounts. This news comes amid reports that Goldman Sachs is negotiating to potentially offload its Apple Card partnership.

via Fox Business|
#apple#business#deposits
finance2 years ago

Apple Card's Savings Account Surpasses $10 Billion in Deposits

Apple Card's high-yield Savings account, offered by Goldman Sachs, has surpassed $10 billion in deposits since its launch in April. The Savings account allows users to grow their Daily Cash rewards with a high-yield APY of 4.15 percent. 97 percent of Savings customers have chosen to have their Daily Cash automatically deposited into their account, promoting healthy savings habits. The account has no fees, minimum deposits, or balance requirements, and users can easily manage their Savings account directly from Apple Card in Wallet.

via Apple|
#apple-card#deposits#finance
finance2 years ago

Investors Optimistic as Regional Banking Crisis Subsides

Results from regional banks this past week indicate that the regional banking crisis may be over, as deposits have increased at most smaller banks and investors have responded by pushing stocks higher. However, many of these banks still face challenges, such as paying more for deposits, which cuts into profitability. Additionally, they are bracing for higher capital requirements from the Federal Reserve. Analysts caution that the recent rally in bank stocks may be due to low expectations rather than a significant shift in earnings outlook, and they advise caution in estimating future earnings results.

via Yahoo Finance|
#capital-requirements#deposits#finance
finance2 years ago

The Cost of Deposits: Banks' Profit Outlook Under Pressure

US banks are facing higher funding costs as they compete to keep or attract depositors, with bank deposit rates reaching their highest level in over a decade. These increased costs are eating into banks' net interest margin, a key measure of profitability. As a result, some mid-sized regional banks may see a drag on their second-quarter results and lower earnings estimates for the rest of the year. The first set of second-quarter earnings from major US banks, including JPMorgan Chase, Citigroup, Wells Fargo, and State Street, will be closely watched by investors. Additionally, banks heavily reliant on investment banking, such as Goldman Sachs, may face challenges due to a recent decline in deal making.

via Yahoo Finance|
#banks#deposits#finance