{"id":66786,"date":"2023-03-27T08:55:47","date_gmt":"2023-03-27T12:55:47","guid":{"rendered":"https:\/\/blog.t3live.com\/?p=66786"},"modified":"2023-03-27T08:55:47","modified_gmt":"2023-03-27T12:55:47","slug":"coffee-with-greta-banks-bounce-back","status":"publish","type":"post","link":"https:\/\/blog.t3live.com\/2023\/03\/27\/coffee-with-greta-banks-bounce-back\/","title":{"rendered":"Coffee With Greta: Banks Bounce Back"},"content":{"rendered":"

DJIA Futures: <\/b>+226 (+0.7%)<\/span><\/p>\n

SPX Futures:<\/b> +26 (+0.7%)<\/span><\/p>\n

NASDAQ Futures: <\/b>+41 (+0.3%)<\/span><\/p>\n

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

Futures are rising as regional bank stocks rebound.<\/span><\/p>\n

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

First Citizens To Buy Silicon Valley Bank Assets<\/span><\/h2>\n

First Citizens Bancshares <\/b>(FCNCA) shares are surging 49% ahead of the open after reaching a deal to buy Silicon Valley Bank\u2019s deposits and loans.\u00a0\u00a0<\/span><\/p>\n

The bank will purchase around $72 billion of SVB assets at a discount of $16.5 billion from regulators.<\/span><\/p>\n

Another $90 billion in securities and other assets will remain \u201cin receivership for disposition by the FDIC\u201d.<\/span><\/p>\n

The FDIC said it \u201creceived equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, common stock with a potential value of up to $500 million.\u201d<\/span><\/p>\n

The 17 former SVB branches that were opened as bridge banks after the collapse will open as \u201cFirst-Citizens Bank & Trusty Company\u201d today.\u00a0<\/span><\/p>\n

Regional Banks Bounce<\/span><\/h2>\n

First Republic Bank <\/b>(FRC) shares are rallying 31.9% in premarket trade, leading the rebound in regional banks.\u00a0<\/span><\/p>\n

The <\/span>SPDR S&P Regional Banking ETF<\/b> (KRE) is up 4%.\u00a0<\/span><\/p>\n

The jump comes after several positive developments for regional banks over the weekend.\u00a0<\/span><\/p>\n

Bloomberg reported on Saturday that U.S. officials are considering expanding the federal programs that provide more liquidity to banks.\u00a0<\/span><\/p>\n

That\u2019s reportedly meant to help First Republic while it continues to search for a buyer.<\/span><\/p>\n

CNBC reported that the deposit inflows to large banks from smaller regional banks has also slowed significantly.\u00a0<\/span><\/p>\n

Minneapolis Fed President On Banking Crisis<\/span><\/h2>\n

Minneapolis Fed President Neel Kashkari commented on the banking crisis in an interview with CBS\u2019 Face The Nation on Sunday, saying \u201cit definitely brings us closer\u201d to a recession.<\/span><\/p>\n

Kashkari said, \u201cWhat\u2019s unclear for us is how much of these banking stresses are leading to a widespread credit crunch. And then that credit crunch, just as you said, would then slow down the economy.\u201d<\/span><\/p>\n

But he also expressed confidence in the strength of the banking system saying, \u201cThe banking system has a strong capital position and a lot of liquidity and has the full support of the Federal Reserve and other regulators standing behind it.\u201d<\/span><\/p>\n

Kashkari said it\u2019s too early to predict how this will impact the next interest rate decision in May.\u00a0<\/span><\/p>\n

CME Group\u2019s <\/span>FedWatch<\/span><\/a> Tool shows 61.3% of traders expect the bank to keep rates unchanged while 38.7% expect another 25 basis point hike.<\/span><\/p>\n

The Fed\u2019s preferred inflation gauge for February will be released this Friday.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

DJIA Futures: +226 (+0.7%) SPX Futures: +26 (+0.7%) NASDAQ Futures: +41 (+0.3%) Good morning friends! Futures are rising as regional bank stocks rebound. Let\u2019s get right to it! First Citizens To Buy Silicon Valley Bank Assets First Citizens Bancshares (FCNCA) shares are surging 49% ahead of the open after reaching a deal to buy Silicon Valley Bank\u2019s deposits and loans.\u00a0\u00a0 The bank will purchase around $72 billion of SVB assets at a discount of $16.5 billion from regulators. Another $90 billion in securities and other assets will remain \u201cin receivership for disposition by the FDIC\u201d. The FDIC said it \u201creceived equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, common stock with a potential value of up to $500 million.\u201d The 17 former SVB branches that were opened as bridge banks after the collapse will open as \u201cFirst-Citizens Bank & Trusty Company\u201d today.\u00a0 Regional Banks Bounce First Republic Bank (FRC) shares are rallying 31.9% in premarket trade, leading the rebound in regional banks.\u00a0 The SPDR S&P Regional Banking ETF (KRE) is up 4%.\u00a0 The jump comes after several positive developments for regional banks over the weekend.\u00a0 Bloomberg reported on Saturday that U.S. officials are considering expanding the federal programs that provide more liquidity to banks.\u00a0 That\u2019s reportedly meant to help First Republic while it continues to search for a buyer. CNBC reported that the deposit inflows to large banks from smaller regional banks has also slowed significantly.\u00a0 Minneapolis Fed President On Banking Crisis Minneapolis Fed President Neel Kashkari commented on the banking crisis in an interview with CBS\u2019 Face The Nation on Sunday, saying \u201cit definitely brings us closer\u201d to a recession. Kashkari said, \u201cWhat\u2019s unclear for us is how much of these banking stresses are leading to a widespread credit crunch. And then that credit crunch, just as you said, would then slow down the economy.\u201d But he also expressed confidence in the strength of the banking system saying, \u201cThe banking system has a strong capital position and a lot of liquidity and has the full support of the Federal Reserve and other regulators standing behind it.\u201d Kashkari said it\u2019s too early to predict how this will impact the next interest rate decision in May.\u00a0 CME Group\u2019s FedWatch Tool shows 61.3% of traders expect the bank to keep rates unchanged while 38.7% expect another 25 basis point hike. The Fed\u2019s preferred inflation gauge for February will be released this Friday.<\/p>\n","protected":false},"author":41,"featured_media":66789,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[739],"tags":[],"class_list":["post-66786","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-coffee-with-greta"],"_links":{"self":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66786","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=66786"}],"version-history":[{"count":2,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66786\/revisions"}],"predecessor-version":[{"id":66791,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/posts\/66786\/revisions\/66791"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media\/66789"}],"wp:attachment":[{"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/media?parent=66786"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/categories?post=66786"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.t3live.com\/wp-json\/wp\/v2\/tags?post=66786"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}