{"id":66727,"date":"2023-03-20T09:04:10","date_gmt":"2023-03-20T13:04:10","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=66727"},"modified":"2023-03-20T09:04:10","modified_gmt":"2023-03-20T13:04:10","slug":"coffee-with-greta-banks-still-in-focus","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/03\/20\/coffee-with-greta-banks-still-in-focus\/","title":{"rendered":"Coffee With Greta: Banks Still In Focus"},"content":{"rendered":"

DJIA Futures: <\/b>+125 (+0.4%)<\/span><\/p>\n

SPX Futures:<\/b> +13 (+0.3%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+32 (+0.3%)<\/span><\/p>\n

Good morning friends!<\/span><\/p>\n

Futures are rising as a crucial Fed week begins and uncertainty remains about the global banking system.\u00a0<\/span><\/p>\n

Let\u2019s get right to it!<\/span><\/p>\n

UBS Buys Credit Suisse<\/span><\/h2>\n

Credit Suisse <\/b>(CS) shares are plunging 56.7% ahead of the open after <\/span>UBS Group <\/b>(UBS) bought the Swiss bank over the weekend.\u00a0<\/span><\/p>\n

UBS shares are up 1.8%.<\/span><\/p>\n

UBS agreed to buy Credit Suisse for $3.2 billion in a deal orchestrated by Swiss regulators and the Swiss National Bank.\u00a0<\/span><\/p>\n

The Swiss National Bank pledged a loan of up to $108 billion to support the takeover and said,\u00a0 \u201cWith the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation.\u201d<\/span><\/p>\n

The Swiss government meantime granted a guarantee to assume losses up to 9 billion Swiss francs from certain assets over a preset threshold \u201cin order to reduce any risks for UBS\u201d.<\/span><\/p>\n

Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares they hold.\u00a0<\/span><\/p>\n

The UBS Chairman said, \u201cThis acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure.\u201d<\/span>
\n<\/span>
\n<\/span>The combined bank will have $5 trillion worth of invested assets.\u00a0<\/span><\/p>\n

First Republic Slides On Credit Rating Downgrade<\/span><\/h2>\n

First Republic <\/b>(FRC) shares are tumbling 17.2% in premarket trade after S&P cut the bank\u2019s credit rating again.\u00a0<\/span><\/p>\n

S&P reduced its rating on the bank to B+ from BB+ on Sunday.\u00a0<\/span><\/p>\n

That grade is in the \u201cjunk\u201d rating category and signifies the bank is risky and has a higher than average chance of default.\u00a0<\/span><\/p>\n

S&P said, \u201cThe deposit infusion from 11 U.S. banks, the company\u2019s disclosure that borrowings from the Fed range from $20 billion to $109 billion and borrowings from the Federal Home Loan Bank (FHLB) increased by $10 billion, and the suspension of its common stock dividend collectively lead us to the view that the bank was likely under high liquidity stress with substantial deposit outflows over the past week.\u201d<\/span><\/p>\n

FDIC To Sell Signature Bank Assets To Flagstar Bank<\/span><\/h2>\n

New York Community Bancorp <\/b>(NYCB) shares are jumping 29.2% ahead of the open after the FDIC announced an agreement to sell Signature Bank\u2019s assets to the bank\u2019s subsidiary, Flagstar Bank.<\/span><\/p>\n

Flagstar will assume basically all of Signature\u2019s deposits, some of its loan portfolios, and all 40 of its former branches.\u00a0<\/span><\/p>\n

Roughly $60 billion of loans and $4 billion of deposits will remain in control of the regulator.\u00a0<\/span><\/p>\n

Under the arrangement, Flagstar will buy $12.9 billion of loans for $2.7 billion.<\/span><\/p>\n

The FDIC estimates the deal will cost its Deposit Insurance Fund approximately $2.5 billion.\u00a0<\/span><\/p>\n

Fed Week Begins<\/span><\/h2>\n

The Fed kicks off its next policy meeting on Tuesday with the rate hike decision on Wednesday.\u00a0<\/span><\/p>\n

CME Group\u2019s FedWatch Tool shows nearly 68% of traders expecting a 25 basis point hike this week with 32% anticipating no hike.\u00a0<\/span><\/p>\n

The lower expectations come after turmoil spread across the banking sector following the collapse of Silicon Valley Bank and Signature Bank.\u00a0<\/span><\/p>\n

Traders will be paying close attention to Fed Chair Jerome Powell\u2019s press conference on Wednesday to hear his comments about the banking system.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

DJIA Futures: +125 (+0.4%) SPX Futures: +13 (+0.3%) NASDAQ Futures: +32 (+0.3%) Good morning friends! Futures are rising as a crucial Fed week begins and uncertainty remains about the global banking system.\u00a0 Let\u2019s get right to it! UBS Buys Credit Suisse Credit Suisse (CS) shares are plunging 56.7% ahead of the open after UBS Group (UBS) bought the Swiss bank over the weekend.\u00a0 UBS shares are up 1.8%. UBS agreed to buy Credit Suisse for $3.2 billion in a deal orchestrated by Swiss regulators and the Swiss National Bank.\u00a0 The Swiss National Bank pledged a loan of up to $108 billion to support the takeover and said,\u00a0 \u201cWith the takeover of Credit Suisse by UBS, a solution has been found to secure financial stability and protect the Swiss economy in this exceptional situation.\u201d The Swiss government meantime granted a guarantee to assume losses up to 9 billion Swiss francs from certain assets over a preset threshold \u201cin order to reduce any risks for UBS\u201d. Credit Suisse shareholders will receive 1 UBS share for every 22.48 Credit Suisse shares they hold.\u00a0 The UBS Chairman said, \u201cThis acquisition is attractive for UBS shareholders but, let us be clear, as far as Credit Suisse is concerned, this is an emergency rescue. We have structured a transaction which will preserve the value left in the business while limiting our downside exposure.\u201d The combined bank will have $5 trillion worth of invested assets.\u00a0 First Republic Slides On Credit Rating Downgrade First Republic (FRC) shares are tumbling 17.2% in premarket trade after S&P cut the bank\u2019s credit rating again.\u00a0 S&P reduced its rating on the bank to B+ from BB+ on Sunday.\u00a0 That grade is in the \u201cjunk\u201d rating category and signifies the bank is risky and has a higher than average chance of default.\u00a0 S&P said, \u201cThe deposit infusion from 11 U.S. banks, the company\u2019s disclosure that borrowings from the Fed range from $20 billion to $109 billion and borrowings from the Federal Home Loan Bank (FHLB) increased by $10 billion, and the suspension of its common stock dividend collectively lead us to the view that the bank was likely under high liquidity stress with substantial deposit outflows over the past week.\u201d FDIC To Sell Signature Bank Assets To Flagstar Bank New York Community Bancorp (NYCB) shares are jumping 29.2% ahead of the open after the FDIC announced an agreement to sell Signature Bank\u2019s assets to the bank\u2019s subsidiary, Flagstar Bank. Flagstar will assume basically all of Signature\u2019s deposits, some of its loan portfolios, and all 40 of its former branches.\u00a0 Roughly $60 billion of loans and $4 billion of deposits will remain in control of the regulator.\u00a0 Under the arrangement, Flagstar will buy $12.9 billion of loans for $2.7 billion. The FDIC estimates the deal will cost its Deposit Insurance Fund approximately $2.5 billion.\u00a0 Fed Week Begins The Fed kicks off its next policy meeting on Tuesday with the rate hike decision on Wednesday.\u00a0 CME Group\u2019s FedWatch Tool shows nearly 68% of traders expecting a 25 basis point hike this week with 32% anticipating no hike.\u00a0 The lower expectations come after turmoil spread across the banking sector following the collapse of Silicon Valley Bank and Signature Bank.\u00a0 Traders will be paying close attention to Fed Chair Jerome Powell\u2019s press conference on Wednesday to hear his comments about the banking system.<\/p>\n","protected":false},"author":41,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-66727","post","type-post","status-publish","format-standard","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66727","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/comments?post=66727"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66727\/revisions"}],"predecessor-version":[{"id":66735,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66727\/revisions\/66735"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=66727"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=66727"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=66727"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}