Tag: business

FDIC prepares to place First Republic under receivership

  • 30/04/2023
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April 28 (Reuters) – The US Federal Deposit Insurance Corporation (FDIC) is preparing to place First Republic Bank (FRC.N) under receivership imminently, a person familiar with the matter said on Friday, sending shares of the lender down nearly 50% in extended trading.

The US banking regulator decided the troubled regional lender’s position has deteriorated and there is no more time to pursue a rescue through the private sector, the source told Reuters, requesting anonymity because the matter is confidential.

US officials have coordinated urgent talks to rescue the lenders in recent days as private-sector efforts led by the bank’s advisers have yet to reach a deal, according to three sources familiar with the situation.

The FDIC, Treasury Department and Federal Reserve are among government bodies that have orchestrated meetings with financial companies about putting together a solution for the troubled lenders, two of the sources said.

The FDIC asked banks including JPMorgan Chase & Co (JPM.N) and PNC Financial Services Group (PNC.N) to submit final bids for First Republic Bank by Sunday, Bloomberg News reported on Saturday.

The banking regulator reached out to banks late Thursday seeking indications of interest, including a proposed price and estimated cost to the agency’s deposit insurance fund, the report said.

The FDIC said in an email: “We would not comment on or confirm whether we are bidding an open institution,” in response to a request for comment.

PNC Financial declined to comment on the Bloomberg report. JPMorgan did not immediately respond to a voicemail and email seeking comment.

Separately, the Wall Street Journal reported on Friday that JPMorgan and PNC are vying to buy the First Republic following its seizure by the government, which could come as soon as this weekend.

If the San Francisco-based lender fell into receivership, it would be the third US bank to collapse since March. First Republic said this week its deposits had slumped by more than $100 billion in the first quarter.

Shares of the bank closed down 43%, worsening a stock ratio that has wiped out 75% of its value this week. The stock lost more than half of its value on Friday and touched a record low of $2.99.

Reuters Graphics

At its lowest, the bank had a market capitalization of nearly $557 million, a far cry from its peak valuation of more than $40 billion in November 2021.

Shares of some other regional banks also fell, with PacWest Bancorp (PACW.O) down 2% after the bell while Western Alliance (WAL.N) was down 0.7%.

News of the imminent move to put First Republic in receivership came the same day the Federal Reserve and FDIC detailed their supervisory lapses before deposit runs caused the collapse of Silicon Valley Bank and Signature Bank in March.

The Fed’s assessment of its inadequacies in identifying problems and pushing for fixes at Santa Clara, California-based SVB came with promises for tougher supervision and stricter rules for banks.

Large banks had orchestrated an earlier lifeline for the First Republic, injecting into the bank

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New Finance Rich List Led By Ken Griffin, Jeff Yass

  • 28/04/2023
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Step aside, Buffett. Today’s money moguls are moving fast.

From the Medicis to the Morgans, the business of lending, trading or investing money has long been a path to astonishing riches. The largest fortunes go to the risk-takers and innovators who are comfortable at the cutting edge of mainstream finance. To learn how such wealth is built today, Bloomberg Markets identified 25 financial titans* who’ve ascended to the top of the list within the past decade.

This generation of megarich is being powered by computer-driven trading companies, led by Ken Griffin’s Citadel Securities and Jeff Yass’s Susquehanna International Group. Alex Gerko was the UK’s biggest taxpayer last year after his quantitative trading firm XTX Markets paid out a dividend of more than £1.3 billion ($1.6 billion).

Although none of the billionaires on this list have yet surpassed Warren Buffett, the 92-year-old known for his savvy in managing conglomerate Berkshire Hathaway Inc., they represent a new era of financial wealth accumulation. Buffett and private equity moguls such as Blackstone Inc.’s Steve Schwarzman built their fortunes through long-term investments; Griffin, Yass and Gerko have leveraged technology to make superfast decisions about where prices are going, moving in and out of positions in fractions of a second. If you need to worry about where prices are going long term, you’re not doing it right.

Some hedge funds and private equity investors made the list, though they tend to share an interest in buying emerging technology companies. These include Tiger Global Management’s Chase Coleman and Vista Equity Partners’ Robert Smith. (Griffin also founded a hedge fund, Citadel.) Startup founders such as Guillaume Pousaz of Checkout.com and Stripe’s Patrick and John Collison also made the cut. One group that’s absent from the list: women.

The following is derived from Bloomberg’s daily ranking of the world’s billionaires as of March 23. To maintain a focus on the new builders of wealth, the list excludes people who (1) were already among the 300 richest at the end of 2013, (2 ) inherited a significant portion of their fortune, (3) are age 70 or older or (4) have retired from their businesses.

*Actually 26, to include both Collison brothers.

Photos: Bloomberg (23), Jeff Yass: Courtesy Susquehanna International Group, Qi Shi: VCG/Getty Images, John Overdeck: Getty Images.

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ArticlesFix Launches New Website Offering Tips and Info on Business, Finance, Grants, Scholarships, Career, and Job

  • 26/04/2023
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Ilorin, Kwara- ArticlesFix, a leading online platform for providing valuable information on various topics, has launched a new website to bridge the information gap for students and job seekers. The website publishes tips and tricks multiple times a week on issues such as business and finance, grants, scholarships, careers, and jobs.

The new website is designed to provide up-to-date information and actionable advice on various essential topics for students and job seekers. With its user-friendly interface and easy-to-navigate layout, ArticlesFix offers a seamless browsing experience, making it easier for users to find the information they need.

Bolaji Qudus, the contact person for ArticlesFix, said: “We are excited to launch this new website, which we believe will be an invaluable resource for students and job seekers. Our goal is to provide high-quality information that is both informative and actionable to help people achieve their goals.”

ArticlesFix is ​​committed to providing accurate, reliable and up-to-date helpful information for students and job seekers. The website’s team of experts carefully curates content to ensure readers receive the best advice possible. Whether users seek tips on securing a scholarship, navigating the job market, or managing their finances, ArticlesFix has got them covered.

Moreover, ArticlesFix understands the importance of staying current with industry trends and developments in the job market. To ensure that their content remains relevant and useful, the team at ArticlesFix constantly updates their website with the latest news, insights and best practices. By doing so, they equip students and job seekers with the knowledge they need to make informed decisions and adapt to the ever-changing landscape of their respective fields. By providing comprehensive resources in one accessible platform, ArticlesFix aims to empower users to take control of their futures and achieve success on their own terms.

For more information, please visit the ArticlesFix website at www.articlesfix.com or contact Bolaji Qudus at [email protected].

About ArticlesFix

ArticlesFix is ​​an online platform that provides valuable information on various topics, including business and finance, grants, scholarships, careers, and jobs. The platform aims to bridge the information gap for students and job seekers by offering up-to-date and actionable advice. The website is dedicated to providing accurate, reliable and high-quality information that helps readers achieve their goals.

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Company Name:

ArticlesFix


Contact Person:

Bolaji Qudus


E-mail:Send Email
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Nigeria


Websites:https://www.articlesfix.com

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PERSONAL FINANCE: Women and retirement and the financial considerations | Business

  • 25/04/2023
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As women plan for retirement, they must consider several realities that statistically set them apart from men, including the probability of earning less money and living longer.

Of course, every person’s situation is unique, but the fact that women generally spend more years in retirement with fewer assets than their male counterparts can create challenges. Here are some factors women should consider when planning for retirement.

Anticipate a long lifespan

In the United States, on average, women outlive men by five years. 1 As a result, in 2022 there were twice as many women aged 85 and above compared to men. 2 A longer lifespan means more years in retirement and a need for additional savings.

Overcome the income gap

Women workers generally earn less than their male counterparts, roughly 82 cents or less on average for every dollar a man earns. 3 Recent trends show that women are closing this gap by increasing their education level, entering more nontraditional fields and negotiating their salary when changing jobs. However, the data also shows that as women age, the income disparity widens.4

Women are also more likely to have gaps in their work histories due to caregiving responsibilities that have historically been handled disproportionately by women. These work hiatuses may reduce earnings over their work life, impacting Social Security and retirement benefits.

Take charge of your financial well-being

These strategies can help you be proactive and save toward the retirement you deserve:

• Make regular contributions to retirement accounts. Automatic monthly payments make it easy to save every month. Max out any employer matches available to you.

• Open an IRA. You can fund a traditional IRA with pre-tax contributions, which may help reduce your tax bill by deferring taxes on those dollars until you are in retirement. Or you can make after-tax contributions to a Roth IRA. Withdrawals from Roth accounts are not taxed, assuming it has been open for at least five years and the withdrawals are made after you reach 59½ years of age. Note that there are income limits attached to Roth accounts.

• Make catch-up contributions. Annual contribution limits for retirement accounts change when you reach age 50 and beyond. You are allowed to make catch-up contributions to increase your 401(k) and IRA. Check current guidelines at IRS.gov.

• Live within your means. This is an obvious one. Overspending creates debt. Interest rates on unpaid balances can grow unmanageable. Get a handle on your expenses and ensure you’re saving more than you spend so you can put excess money away for retirement.

• Leverage the power of compounding by investing early and often. The money that is invested can earn interest, which can then earn its own interest. This compound effect leads to optimal growth over time.

• Advocate for higher wages. You have the right to be fairly compensated at work. If disparities exist, don’t be afraid to negotiate for the salary you deserve or pursue a higher paying job.

• Postpone retirement or

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First Republic Bank deposits tumble more than $100 billion as it explores options

  • 25/04/2023
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April 24 (Reuters) – First Republic Bank (FRC.N) shares a sank of more than 20% after the closing bell on Monday as it said deposits plunged by more than $100 billion in the first quarter and it was exploring options such as restructuring its balance sheets.

The deposit slump overshadowed profits that beat expectations for the beleaguered company, shored up through deposits from US banking giants last month after two regional lenders collapsed.

The San Francisco-based First Republic plans to shrink its balance sheet and slash expenses by cutting executive compensation, paring back office space, and laying off nearly 20% to 25% of employees in the second quarter, it said Monday.

The company also aims to increase its insured deposits and cut borrowings from the Federal Reserve Bank.

“We’re taking steps to meaningfully reduce our expenses to align with our focus on reducing the size of the balance sheet,” CEO Mike Roffler said in a post-earnings conference call. The briefing lasted less than 15 minutes and ended without executives taking questions from analysts.

Managers’ decision to forgo a question-and-answer session with analysts was reminiscent of calls during the 2008 financial crisis, said Timothy Coffey, an analyst at Janney Montgomery Scott LLC who had dialed in.

The First Republic also said it was “pursuing strategic options” to help expedite progress on strengthening the bank, without providing details.

The lender was studying all options open to it, according to a person familiar with the matter, speaking on condition of anonymity because the discussions were private.

The source said the bank was looking for the US government to help by convening parties who could potentially play a role in buoying the First Republic’s fortunes, including private equity firms and big lenders.

First Republic came into intense focus after Silicon Valley Bank (SVB) and Signature Bank collapsed last month, shaking the confidence in US regional banks and prompting customers to move billions of dollars to bigger institutions.

“With the closure of several banks in March, we experienced unprecedented deposit outflows,” said Neal Holland, First Republic’s finance chief.

Deposits fell to $104.47 billion in the first quarter from $176.43 billion in the fourth quarter despite the lenders getting a $30 billion lifeline in combined deposits from US banking heavyweights, including Bank of America Corp. (BAC.N), Citigroup Inc. (CN), JPMorgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N).

Without the $30 billion of deposits provided by big banks, the decline in deposits would have been almost $102 billion.

“We had an estimated net outflow of deposits to be around $40 billion,” Coffey told Reuters. “Losing that much in deposits and having to replace them with borrowings is very expensive.”

A First Republic Bank branch is pictured in Midtown Manhattan in New York City, New York, US, March 13, 2023. REUTERS/Mike Segar

TOUGH ROAD AHEAD

Still, deposits began to steady in the week of March 27 and have remained stable through April 21, the company said.

The lenders earned $1.23 a share in the first

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