Global News

[ad_1] Stocks rebound as Yellen testifies on banks Yellen testifies on Capitol Hill as bank stocks see slight rebound 05:51 Treasury Secretary Janet Yellen will tell America's top banking lobby Tuesday morning that the government has a playbook if other financial institutions, like Silicon Valley Bank, collapse and pose a risk to banking sector. In a speech to the American Bankers Association, Yellen discusses the government's emergency rescue of SVB and Signature Bank 's depositors — and says similar action could be taken in the event of a bank run.  "The steps we took were not focused on aiding specific b

[ad_1] In what is by now a familiar pattern, the fate of another regional lender hangs in the balance as investors bail from the sector following the sudden collapse of three prominent banks in a matter of weeks.  Shares of PacWest Bancorp crumbled after the close of trading on Wednesday, diving 55% to $2.88 amid a report by Bloomberg News that the $44 billion bank is weighing its strategic options, including a possible sale. The market drop followed a 28% plunge in Los Angeles-based PacWest's stock price the previous day.  PacWest, whose shares are down 78% over the last three months, has hired a financial adviser and is also considering a breakup or trying to raise capital, according to Bloomberg. Wall Street has grown increasingly wary of midsize lenders since the March 10 collapse of Silicon Valley Bank  (SVB) and the failure only days later of Signature Bank after depositors rushed to withdraw their money.  As investors soured

[ad_1] Traders on the floor of the NYSE, Oct. 21, 2022. Source: NYSE Stock futures were little changed Tuesday after the S&P 500 posted its third positive session in a row and banking sector concerns continued to ease. Futures tied to the Dow Jones Industrial Average rose 35 points, or 0.1%. Meanwhile, S&P 500 futures traded around the flatline, and Nasdaq-100 futures dipped 0.1%. Lyft shares gained 4% in the premarket after the ridesharing company announced a new CEO and that its cofounders would step away from their day-to-day roles. PVH Corp. shares popped 12% on strong quarterly results. The moves follow a mixed session on Monday. Investors fought to extend last week's gains, but tech shares came under pressure. The Dow Jones Industrial Average added 194.55 points, or 0.6%, while the S&P 500 gained 0.16%. The Nasdaq Composite dipped 0.47% as tech stocks moved lower. A slew of positive news reports helped lift sentiment on Wall Street, including First

[ad_1] JPMorgan Chase's move to acquire most of First Republic Bank's assets  this week hasn't stemmed investor concerns about the financial prospects for other regional lenders. The stock prices of Comerica, PacWest Bancorp, Western Alliance Bank and Zions Bank shares fell sharply Tuesday as attention shifted to other financial players that could be at risk of the startling bank runs that have taken down First Republic, Silicon Valley Bank and Signature Bank in recent weeks.  "Wall Street is quickly hitting the sell button as banking turmoil appears it is not going away anytime soon and is ready to focus on the next weakest link — potentially distressed lenders with tremendous exposure to commercial real estate," Edward Moya, a senior market analyst at Oanda, said in a research note. Shares of Los Angeles-based PacWest, with $44 billon in assets, plunged 28%, while $65 billion Western Alliance tumbled 15%. The KBW

[ad_1] A worker cleans the exterior of a First Republic bank on April 26, 2023 in San Francisco, California.  Justin Sullivan | Getty Images Regulators took possession of First Republic on Monday, resulting in the third failure of an American bank since March, after a last-ditch effort to persuade rival lenders to keep the ailing bank afloat failed. JPMorgan Chase , already the largest U.S. bank by several measures, emerged as winner of the weekend auction for First Republic. It will get all of the ailing bank's deposits and a "substantial majority of assets," the New York-based bank said . JPMorgan is getting about $92 billion in deposits in the deal, which includes the $30 billion that it and other large banks put into First Republic last month. The bank is taking on $173 billion in loans and $30 billion in securities as well. The Federal Deposit Insurance Corporation agreed to share losses on mortgages and commercial loans that JPMorgan assumed in the transaction

[ad_1] First Republic Bank was teetering for weeks before it was seized  early Monday by regulators, who then accepted a bid from banking giant JPMorgan Chase to acquire almost all of its assets.  That move is leading to a host of questions about what happens next, such as the sale's impact on depositors and shareholders.  Here's what to know about the bank's collapse. Why did First Republic Bank collapse? The California Department of Financial Protection and Innovation took over First Republic early Monday because the regulator had determined that the bank was conducting its business in an "unsound manner." The California regulator then appointed the Federal Deposit Insurance Corporation (FDIC) as the bank's receiver. The collapse follows the March seizure by regulators of Silicon Valley Bank and Signature Bank, both of which had experienced bank runs.  Like Silicon Valley Bank, a significant share of