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Us Banking System

All articles tagged with #us banking system

finance2 years ago

Bank CEOs Brace for New Regulations Amidst Complaints and Uncertainty

CEOs of America's largest banks, including JPMorgan Chase and Bank of America, are already expressing concerns about upcoming regulations that will increase capital requirements for banks. They argue that the proposed rules are excessive, limit US competitiveness abroad, and could slow the economy. On the other hand, Senate Democrats believe strengthening capital requirements is necessary for the resiliency and safety of the US banking system. The battle between bank regulators and bank executives will shape the future of the US banking industry.

via CNN|
#bank-ceos#capital-requirements#earnings-season
finance2 years ago

US Banking System Faces $541 Trillion Exodus in 'Severely Adverse' Scenario, Warns Federal Reserve

The Federal Reserve has warned that in a "severely adverse" scenario, over $541 billion will exit the US banking system. The annual bank stress test revealed that while large US banks would survive a severe recession, a group of 23 banking giants, including JPMorgan Chase, Bank of America, and Wells Fargo, would experience significant losses. These losses include $424 billion in loan losses, $18 billion in additional losses, $94 billion in trading and counterparty losses, and $5 billion in securities losses. Despite the potential losses, all 23 banks tested remained above their minimum capital requirements during the hypothetical recession.

via The Daily Hodl|
#economic-recession#federal-reserve#finance
finance2 years ago

US Banking System Sees Massive Deposit Fluctuations Amidst Economic Uncertainty.

US depositors added $86.58 billion to their bank accounts in the last week, reversing the trend of deposit flight. US banks now have a total of $17.23 trillion in deposits, down from $18.10 trillion one year ago. A new report from the FDIC shows Americans withdrew $472 billion in the first quarter of 2023, with most of the money coming from uninsured deposits. Money market funds are on the receiving end of much of the cash that’s exited the banking system as investors seek safety and yield. JPMorgan CEO Jamie Dimon relayed an optimistic outlook on the US banks as a whole, saying the banking system is healthy.

via The Daily Hodl|
#deposits#fdic#finance
finance2 years ago

FDIC Reports Record Drop in US Bank Deposits, Causing Banking Crisis and Stock Tumbles.

The US banking system saw a decline in total deposits in Q1 2023, even as insured deposits rose, due to withdrawals of uninsured deposits amid the banking crisis caused by the failures of three regional banks. The decline in overall deposits was driven by depositors with uninsured balances in excess of the FDIC’s $250,000 limit on insured deposits. The FDIC's Deposit Insurance Fund (DIF) saw its balance decline by $12.1 billion from the end of Q4 2022 to March 31, 2023, when it stood at $116.1 billion. The decline was due to loss provisions for actual and anticipated bank failures.

via Fox Business|
#bank-failures#fdic#finance
business2 years ago

First Republic Bank faces massive job cuts after JPMorgan acquisition.

About 1,000 employees of First Republic Bank are being laid off after it was seized by regulators and acquired by JP Morgan Chase. The vast majority of First Republic employees were offered jobs by JPMorgan, meaning that about 15% of the bank's employees were laid off. First Republic Bank became the second-largest bank failure in U.S. history, and regulators sold all of its deposits and most of its assets to JPMorgan Chase to restore order after three banks collapsed and threatened to undermine faith in the U.S. banking system.

via ABC News|
#banking#business#first-republic-bank
finance2 years ago

Gold Continues to Soar, Upside Potential Ahead

Gold and silver futures prices hit record highs due to safe-haven demand amid a jittery US banking system and worries about a US and/or global economic recession. The US stock market is sharply lower as risk aversion is keen late this week. The European Central Bank raised its main interest rate by a quarter-point, as expected. The US Federal Reserve's interest rate increase on Wednesday was no help for the US banking system, parts of which are shaky. PacWest Bancorp, a California-based lender, is in trouble, and its stock price saw a 60% decline in after-hours trading Wednesday.

via Kitco NEWS|
#european-central-bank#federal-reserve#finance
finance2 years ago

Gold prices surge to new heights amid safe-haven demand and bullish forecasts.

Comex gold futures prices hit a new record high of $2,085.40 an ounce on safe-haven demand amid a jittery U.S. banking system and worries about a U.S. and/or global economic recession. Silver prices are also higher. The Federal Reserve's interest rate increase was no help for the U.S. banking system, parts of which are shaky. The European Central Bank is meeting Thursday and is expected to raise its main interest rate by a quarter-point. The marketplace is now looking forward to Friday's April U.S. jobs report from the Labor Department.

via Kitco NEWS|
#federal-reserve#finance#gold
finance2 years ago

Citi CEO Jane Fraser on US Banking, Property Fears, and Debt Ceiling Debate

Citi CEO Jane Fraser says the US banking system is strong and safe, despite JPMorgan's acquisition of First Republic Bank, which she believes will help calm markets. Fraser remains focused on transforming her global bank, while JPMorgan's purchase of First Republic will bolster its presence in wealth management. The acquisition marks the largest bank failure since the 2008 financial crisis, but Fraser believes the overall US banking system is strong and safe.

via Yahoo Finance|
#asset-liability-management#citi#finance
finance2 years ago

FDIC proposes reforms to US deposit insurance system.

The Federal Deposit Insurance Corp. (FDIC) has recommended that the US replace its decades-old policy of insuring up to $250,000 in bank deposits with a targeted overhaul that would allow regulators to cover higher amounts. The proposal would offer business account coverage at higher levels than ordinary consumer deposits receive. The move comes as the FDIC contends with the third US bank failure this year, and aims to calm both depositors and markets.

via Yahoo Finance|
#bank-deposits#fdic#finance
finance2 years ago

Jamie Dimon warns of ongoing banking crisis repercussions.

Jamie Dimon, CEO of JPMorgan Chase, has warned that the crisis facing the US banking system "is not yet over" in his annual letter to shareholders. He noted that the recent collapse of two major US banks and the failures of Silicon Valley Bank and Signature Bank had provoked "lots of jitters in the market" and were likely to prompt lenders to pull back in the months ahead, increasing the odds of an economic recession. However, he did not expect the turmoil to lead to a global crisis akin to 2008, noting that it involved "involved fewer players and fewer issues".

via BBC|
#finance#financial-crisis#jamie-dimon
cryptocurrency2 years ago

Bitcoin's Performance Amidst Banking Turmoil and Market Fluctuations.

Bitcoin has outperformed other digital assets since mid-February, with its dominance as a percentage of total crypto market cap increasing to 47.7% from 43.9% in March, according to a report by Coinbase. The US banking system turmoil has reinforced bitcoin's store-of-value properties, and its existence outside of the traditional financial system offers a hedge against current conditions. Bitcoin's relative outperformance also reflects investor concerns about the regulatory status of other digital assets and thinner liquidity specific to some BTC versus stablecoin trading pairs.

via CoinDesk|
#bitcoin#coinbase#cryptocurrency
finance2 years ago

The Impending Collapse of the US Dollar Reserve System.

The US banking system is dysfunctional and the era of dollar-based reserves and floating exchange rates is coming to an end, with the pain being transferred from banks to the real economy. The geopolitical consequences will be enormous, with the shift to a multipolar reserve system and advantage to China's RMB as a competitor to the dollar. Gold will play a bigger role as no other currency can replace the dollar. The greatest danger to dollar hegemony comes from the exhaustion of the financial mechanism that made it possible for the US to run up a negative $18 trillion net foreign asset position during the past 30 years.

via Asia Times|
#deutsche-bank#dollar-reserve-system#finance
finance2 years ago

"Regulators Affirm Soundness of U.S. Banking System Despite Recent Failures"

The US banking system remains "sound and resilient" despite stress on some institutions, according to the US Treasury's Financial Stability Oversight Council (FSOC). The multi-regulator body of financial regulators, led by Treasury Secretary Janet Yellen, met to discuss current conditions in the banking sector and noted that while some institutions have come under stress, the US banking system remains sound and resilient. The meeting came as markets continued to seesaw amid concerns that a two-week-old banking crisis sparked by the failures of Silicon Valley Bank and Signature Bank could worsen, spreading more runs on smaller banks.

via Reuters|
#bank-failures#finance#financial-stability-oversight-council