SVB

Nearly half of US adults are worried about the safety of their money in banks, per a Gallup survey. Comparatively, 30% of adults said they were "not too worried." The poll followed the collapse of SVB and Signature Bank but predated the failure of First Republic. Loading Something is loading. Thanks for signing up! Access…

Shares of PacWest and Western Alliance each fell more than 25%, leading bank stocks lower on Tuesday.  The slide follows First Republic being seized by regulators and taken over by JPMorgan this week. "This part of the crisis is over," JPMorgan's Jamie Dimon said after his bank took over First Republic.   Loading Something is loading.…

US commercial real estate faces higher interest rates, tighter lending, and maturing debts. The sector's woes may hit asset prices and spread to other industries, an expert at Goldman Sachs says. If authorities don't help, there could be severe fallout from the current situation, Jeff Fine said. Loading Something is loading. Thanks for signing up!…

Don't be fooled by the buoyant trend so far in the current earnings season, according to Wharton professor Jeremy Siegel.  That's because the effects of an ongoing credit crunch are yet to show up in companies' earnings data, according to him. Siegel said the Fed should therefore pause its interest-rate hikes, but doesn't think policymakers…

There's an area of the stock market that will outperform amid higher interest rates, Charles Schwab said. The bank pointed to short-duration stocks, which beat the rest of the market in 2022. Their outperformance could continue if interest rates stay high, Charles Schwab said. Loading Something is loading. Thanks for signing up! Access your favorite…

Mohamed El-Erian said the US economy can avoid a recession unless the Fed makes another policy error.  The top economist noted recent jobs data shows solid payrolls growth and higher labor-force participation. Some analysts fear the Fed could "overtighten" and end up undermining US economic growth.   Loading Something is loading. Thanks for signing up!…

A Monday New York Fed survey found that Americans' feel like their access to credit is deteriorating.  Fed Chair Jerome Powell previously said the banking stress that started with Silicon Valley Bank could trigger a credit crunch. The survey also found that Americans' inflation expectations increased at the short-term and medium-term, but decreased in the…

Top SVB depositors got letters from Sen. Elizabeth Warren and Rep. Alexandria Ocasio-Cortez. The lawmakers asked about the nature of their connections to the failed lender, according to a Bloomberg.  "Silicon Valley Bank's unusually cozy relationship with its clients increased the threat of contagion when the bank went under."  Loading Something is loading. Thanks for…

Silicon Valley Bank was a "textbook case of mismanagement," a top Fed official has said.  The collapsed bank grew quickly, and failed to manage interest rate and liquidity risks, Michael Barr said.  SVB's failure could call for a tightening of banking rules to prevent similar incidents, he added.  Loading Something is loading. Thanks for signing…

Ratings agencies S&P Global and Fitch cut First Republic's credit rating to junk status. The bank is now considering various options, including a sale and boosting liquidity Bloomberg reported. It could attract interest from larger lenders if it goes on sale. Loading Something is loading. Thanks for signing up! Access your favorite topics in a…