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.
Category: TRENDS ON THE U.S. ECONOMIC FRONT – Apr 25 2023
CONGRESS: THE INSIDE DEAL. MEMBERS SOLD BANK STOCKS AHEAD OF CRISIS
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.
BANKS PAY HIGHER INTEREST IN ATTEMPT TO HOLD ONTO CUSTOMERS
Small and regional banks are finding they have to pay higher interest rates on deposits to keep their customers.
LOAN AVAILABILITY HAS TIGHTENED IN KEY MARKETS, FED REPORT SHOWS
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.
M&A SLUMP HITS BANK REVENUES
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.
WEAK TRANSPORT STOCKS POINT TO ECONOMIC SLOWDOWN
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.
ECONOMIC UPDATE – MARKET OVERVIEW
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.
U.S. IN RECESSION, 46 PERCENT OF AMERICANS SAY
The U.S. is not in a recession, economists say, but nearly half of Americans disagree.