The 11 federal home loan banks (FHLBs), an obscure corner of the government’s financial apparatus, played a key role in saving banks from possible failure during the March banking crisis triggered when Signature and Silicon Valley banks failed at the same time.
At least eight members of Congress or their close family members dumped or cashed in on bank shares in March as the industry’s crisis was unfolding, according to data compiled by data firm 2iQ’s “Capital Trades” watchdog project and reported by The New York Times.
Small and regional banks are finding they have to pay higher interest rates on deposits to keep their customers.
The U.S. Federal Reserve’s “Beige Book,” a periodic summary of business conditions across the country, shows that it is now harder for businesses to secure loans in California, New York, and Texas, Wall Street on Parade reported.
Goldman Sachs, JPMorgan Chase, and Morgan Stanley were among the major banks reporting a slump in revenues from their investment banking divisions, which structure and consult on mergers and acquisitions.
The Dow Jones Transportation Index, made up of 20 transport-related stocks from airlines to trucking companies, has lagged behind the overall Dow Jones Industrial Average by about 6.9 points since February, The Wall Street Journal reported.
Last Friday, Moody’s Investors Service downgraded regional lenders, including U.S. Bancorp, Zions Bancorp, Bank of Hawaii Corp., Washington Federal Inc., Western Alliance Bancorp, Associated Banc-Corp., Comerica Inc., UMB Financial Corp., First Hawaiian Inc., Intrust Financial Corp., and First Republic.
The U.S. is not in a recession, economists say, but nearly half of Americans disagree.