Signature Bank Stock (OTC:SBNY), Trade Ideas

Signature Bank

Signature Bank is a New York-based commercial bank. It is engaged in offering a wide range of business and personal banking products and services. The operating segments of the company are Commercial banking and Specialty finance. The company operates in New York and derives a majority of its revenue from the Commercial banking segment, which consists principally of commercial real estate lending, fund banking, venture banking, commercial and industrial lending, and commercial deposit gathering activities. Specialty Finance consists of financing and leasing products, including equipment, transportation, taxi medallion, commercial marine, municipal, and national franchise financing and leasing.

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SBNY

American banks are grappling with a staggering $650 billion in unrealized losses on their bond investments — but there could be a way out.

US Banks Are Struggling With $650 Billion In Unrealized Losses On Bond Holdings — Here&#39;s How They Can Get Out

Equities

Large Cap

PNC Financial Services Group Inc&#39;s (NYSE: PNC) PNC Bank disclosed buying a portfolio of select capital 

PNC Bank Acquires $16.6B Select Capital Commitments Facilities Of Signature Bridge Bank

Economics

During an interview in Paris this week, Treasury Secretary Janet Yellen said that an increase in interest rates and recent banking instability are likely to prompt more banks to pursue mergers this year, while adding that the rising costs of retaining

Yellen Sees Bank Mergers, Earnings Pressure Following March Crisis

SIGNATURE BANK (NY) by Signature Bank (New York, NY)

SIGNATURE BANK D/S PFD A by Signature Bank (New York, NY)

<a href="https://www.benzinga.com/news/23/08/33799989/rising-risk-us-banks-face-deposit-flight-threat-with-shrinking-profits">American banks are grappling with a staggering</a> $650 billion in unrealized losses on their bond investments &mdash; but there could be a way out.
What Happened:&nbsp; The&nbsp;losses resulted from banks pouring trillions into low-yield Treasury bonds before the Federal Reserve&#39;s rate hikes.
With the surge in interest rates, the value of these bonds has taken&nbsp;a nosedive, putting the banks in a precarious position.
According to a&nbsp;<a href="https://markets.businessinsider.com/news/bonds/bond-market-crash-banks-unrealized-losses-treasurys-rates-balance-sheet-2023-11?_gl=1*vm41kl*_ga*MTg0NzY4ODM4Mi4xNjg2OTgyMzcy*_ga_E21CV80ZCZ*MTY5OTcyNTg3OC4xNjMuMS4xNjk5NzI2MjU5LjQ1LjAuMA..">report </a>by Insider, the earlier failures of banks such as Silicon Valley Bank, First Republic Bank (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/frc#NYSE">FRC</a>), and Signature Bank (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbny#NASDAQ">SBNY</a>) were partly due to the diminishing value of their bond holdings.&nbsp;
Tracing back to the pandemic&#39;s onset, many banks received an influx of consumer deposits, which were then invested in government debt.
Also Read:&nbsp;<a href="https://www.benzinga.com/news/23/10/35478783/us-banks-witness-whopping-100-billion-deposit-drop-in-just-three-weeks-fed-survey-raises-alarm">US Banks Witness Whopping $100 Billion Deposit Drop In Just Three Weeks, Fed Survey Raises Alarm</a>
By the end of 2021, these investments exceeded $4 trillion, with yields under 2%. However, the rapid escalation in interest rates, exemplified by the tripling of the 10-year U.S. Treasury yield in less than two years, led to a sharp decline in bond prices, according to Insider.&nbsp;
To navigate these unrealized losses, banks are now considering various strategies, the outlet reported.&nbsp;It noted that&nbsp;one approach involves holding&nbsp;low-yield debt until it matures.&nbsp;
Another tactic is selling some or all&nbsp;low-yield bonds to reinvest in higher-yielding ones, which could compensate for the banks&#39;&nbsp;losses through increased interest earnings.
In addition, a potential decrease in interest rates could enhance the value of the banks&#39;&nbsp;bond assets, diminishing the banks&#39;&nbsp;unrealized losses.
Despite these strategies, the banking sector remains under pressure, as seen in the performance of related stocks and ETFs.
As per the report, the SPDR S&amp;P Bank ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kbe#NYSE">KBE</a>) and the SPDR S&amp;P Regional Bank ETF (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/kre#NYSE">KRE</a>) have experienced notable declines this year, reflecting investor apprehension about the sector&#39;s future profitability.
Now Read:&nbsp;<a href="https://www.benzinga.com/news/23/08/33799989/rising-risk-us-banks-face-deposit-flight-threat-with-shrinking-profits">Rising Risk: US Banks Face Deposit Flight Threat With Shrinking Profits</a>
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Shutterstock

US Banks Are Struggling With $650 Billion In Unrealized Losses On Bond Holdings — Here's How They Can Get Out

PNC Financial Services Group Inc&#39;s&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/pnc#NYSE">PNC</a>) PNC Bank disclosed buying a portfolio of select capital&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/10/n35061379/pnc-bank-acquires-16-6-billion-select-capital-commitments-facilities-of-signature-bridge-bank-n-a" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">commitments facilities worth $16.6 billion from&nbsp;Signature Bridge Bank, N.A.</a>
The transaction was made through an agreement with the Federal Deposit Insurance Corporation (FDIC) as Receiver.
The portfolio acquisition, which includes funded loans of $9 billion, will be financed with cash on hand.&nbsp;
The transaction is expected to be immediately accretive to PNC&#39;s earnings, representing an EPS of $0.10 in Q4 2023.
The deal will not materially impact PNC&#39;s total assets, capital ratios, or tangible book value per share.&nbsp;
The bank will provide additional information on the transaction in the Q3 earnings call on October 13, 2023.
In July, PNC reported Q2 revenues increased 3.5% Y/Y to $5.293 billion, missing the consensus of $5.450 billion, and EPS of&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/news/earnings/23/07/33263901/why-pnc-financial-shares-are-sliding-today" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">$3.36 exceeded the consensus of $3.28</a>.&nbsp;
As of June 30, 2023, PNC had average loans of $324.5 billion and average&nbsp;<a class="editor-rtfLink" href="https://www.benzinga.com/pressreleases/23/07/n33262698/pnc-reports-second-quarter-2023-net-income-of-1-5-billion-3-36-diluted-eps" style="background-image:initial; background-position:initial; background-size:initial; background-repeat:initial; background-attachment:initial; background-origin:initial; background-clip:initial; margin-top:0pt; margin-bottom:0pt; color:#4a6ee0" target="_blank">deposits of $425.7 billion</a>.&nbsp;
Price Action: PNC shares are trading lower by 0.08% at $119.92 on the last check Tuesday.

Flushing Financial Corporation (the &quot;Company&quot;) (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/FFIC#NASDAQ">FFIC</a>), the parent holding company for Flushing Bank (the &quot;Bank&quot;), announced today that it has acquired a commercial real estate lending team from the former Signature Bank. 
&nbsp;
Frank Korzekwinski, Chief of Real Estate Lending, stated &quot;We are pleased to welcome Chris Penino, Christy Archer, and Kim Carson to our high-quality Commercial Real Estate Lending group. We are confident that they will assimilate quickly into the Flushing Bank culture and will attract and develop full-banking relationships from their existing and prior client rosters.&quot;
John R. Buran President and CEO, stated, &quot;The recent market disruptions have presented an opportunity to acquire talent from competitors negatively impacted by the banking crisis. We are particularly pleased to bring this team on board at a time when, despite continuing rate-related head winds, our loan pipeline continues to grow.&quot;

Management

FFIC

Flushing Bank Announces Acquisition Of Former Signature Bank Team

During an interview in Paris this week, Treasury Secretary Janet Yellen said&nbsp;that an increase in interest rates and recent banking instability are&nbsp;likely to prompt more banks to pursue mergers this year, while adding that&nbsp;the rising costs of retaining<a href="https://www.benzinga.com/personal-finance/financial-advisors/23/04/31821450/u-s-banks-may-tighten-lending-and-eliminate-need-for-more-fed-rate-hikes-yell"> depositors are contributing to this trend.</a>
According to Yellen, several&nbsp;smaller banks&nbsp;noted that&nbsp;they are paying more on savings accounts after the Federal Reserve began&nbsp;raising rates quickly last year. That&nbsp;trend has continued following the collapses of Silicon Valley Bank and Signature Bank (OTCMKTS: SBNY) in March,&nbsp;<a href="https://www.wsj.com/articles/yellen-says-more-bank-mergers-likely-this-year-96f69e73?mod=hp_lead_pos5" target="_blank">reported</a>&nbsp;the Wall Street Journal.&nbsp;
During the interview, Yellen said that paying higher rates for deposits is now denting those banks&#39; profitability.
Many banks are facing challenges due to the Federal Reserve&#39;s rate increases. Concerns over their sustainability led to significant drops in the stocks of midsize banks earlier this year.
The Financial Stability Oversight Council, the panel of regulators led by Yellen, met last week to discuss the banking sector, focusing on risks banks face in lending for commercial real estate. Yellen&nbsp;said those risks primarily lie in the loans smaller banks have extended for office buildings.
Also Read:&nbsp;<a href="https://www.benzinga.com/government/23/05/32333847/yellen-sounds-alarm-at-g7-default-risk-puts-us-national-security-interests-in-jeopardy">Yellen Sounds Alarm At G7: Default Risk Puts US National Security Interests In Jeopardy</a>
While higher interest rates have increased the cost of many commercial mortgages,&nbsp;Yellen said she doesn&#39;t expect office-building loan defaults to cause broad fallout, though it could cause other banks to fail, the Wall Street Journal&nbsp;reported.
&quot;There may be some problems from this, but I think it&#39;s going to be manageable,&quot; Yellen said, according to the publication. &quot;I don&#39;t really think that this is systemic.&quot;&nbsp;
According to the Wall Street Journal, Yellen said she doesn&#39;t expect a return to the same instability seen earlier in the year but believes that weaker second-quarter earnings could pressure stock prices and&nbsp;lead&nbsp;some banks to merge.
&quot;I don&#39;t think it&#39;s a huge threat to the sector, but there will probably be banks that end up wanting to merge,&quot; Yellen said.
According to her, more consolidation in the banking industry could be healthy, though Yellen&nbsp;has warned against the biggest banks becoming even bigger.
Yellen is&nbsp;in Paris this week to discuss&nbsp;with global leaders the debt burdens faced by developing nations, especially those grappling with climate-related disasters.
Now Read:&nbsp;<a href="https://www.benzinga.com/news/23/06/32978843/janet-yellen-sees-lower-odds-of-us-recession-says-inflation-has-declined-significantly">Janet Yellen Sees Lower Odds Of US Recession, Says Inflation Has Declined Significantly</a>
Photo: Shutterstock

24 Exchange, a trading platform that secured $14 million in funding in late 2021, which included support from Point72 Ventures led by Steve Cohen, has decided to discontinue <a href="https://www.benzinga.com/markets/cryptocurrency/23/06/32921880/tokenization-could-unlock-5-trillion-market-driven-by-stablecoins-and-cbdcs-bernstein-repo">its spot cryptocurrency product.</a>
This comes as global regulators intensify their scrutiny of cryptocurrencies.
The Bermuda-based exchange, which was founded in 2018 and commenced operations in 2019, initially enjoyed robust support for its crypto trading product.
However, the company&rsquo;s Chief Executive Officer&nbsp;Dmitri Galinov <a href="https://www.bloomberg.com/news/articles/2023-06-23/bermuda-based-steve-cohen-backed-24-exchange-shuts-down-spot-crypto-product#xj4y7vzkg">told </a>Bloomberg&nbsp;that there was a decline in interest and demand following the collapse of FTX (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/ftt/usd">FTT</a>) and crypto-affiliated entities such as Signature Bank (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sbny#OTC">SBNY</a>) and Silvergate Capital Corp. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/si#NYSE">SI</a>).
While 24 Exchange has made the decision to discontinue its spot crypto product, it won&#39;t be doing the same for another key offering. Galinov stated, &quot;The trading venue will still offer its crypto non-deliverable forward product to clients seeking to hedge their digital-asset exposure.&quot;
Also Read:&nbsp;<a href="https://www.benzinga.com/markets/cryptocurrency/23/06/32971553/kaito-raises-funds-boasts-87m-valuation-as-on-chain-crypto-search-engine-debuts">Kaito Raises Funds, Boasts $87M Valuation As On-Chain Crypto Search Engine Debuts</a>
Prior to this, 24 Exchange, which primarily caters to banking and other institutional clients, had sought approval from the U.S. Securities and Exchange Commission (SEC) to offer round-the-clock trading in equities.
The exchange had intended to enable customers to trade equities in increments as small as one one-thousandth of a share.
&ldquo;Anyone who wants to trade crypto 24/7 would also like to trade Apple or Microsoft 24/7.&rdquo; However, the company&rsquo;s plans met with delays, and according to Galinov, they &quot;ran out of time.&quot;
24 Exchange now aims to resubmit its application to the SEC for 24/7 <a href="https://www.benzinga.com/markets/cryptocurrency/23/06/32966846/the-great-accumulation-of-bitcoin-etf-filings-signal-a-new-era-for-crypto-investment-say-e">equities trading by the end of summer.</a>
Read Next:&nbsp;<a href="https://www.benzinga.com/markets/cryptocurrency/23/06/32971002/bitgo-calls-off-prime-trust-acquisition-in-the-crypto-custody-space">BitGo Calls Off Prime Trust Acquisition In The Crypto Custody Space</a>
Join Benzinga&#39;s Future of Crypto in NYC on Nov. 14, 2023 to stay updated on trends like AI, regulations, SEC actions &amp; institutional adoption in the crypto space.&nbsp;<a href="https://www.benzinga.com/events/crypto/" rel="noopener noreferrer" target="_blank">Secure early bird discounted tickets now</a>!

Coverage of Bitcoin, Etherum, Ripple and all the latest digital currencies.

Cryptocurrency

$FTT

Steve Cohen-Backed 24 Exchange Pulls The Plug On Spot Crypto Trading As Regulatory Pressure Intensifies

Remember when&nbsp;New York-based&nbsp;Signature Bank&nbsp;(OTCPK: SBNY) became the third financial institution&nbsp;<a href="https://www.benzinga.com/government/23/03/31311974/signature-bank-closed-by-regulators-fed-announces-backstop-to-safeguard-depositors" target="_blank">to collapse&nbsp;</a>following&nbsp;the demise of&nbsp;Silicon Valley Bank&nbsp;and&nbsp;Silvergate Capital Corp? This led to some unexpected, if&nbsp;ironic, consequences...the&nbsp;federal government was&nbsp;funding&nbsp;the marijuana industry.&nbsp;
<img alt="" src="https://www.benzinga.com/files/u156031/pexels-kindel-media-7668042.jpg" style="height:465px; width:620px" />
<h3>What Happened</h3>
Shortly after Signature Bank collapsed&nbsp;partly due to&nbsp;its investment&nbsp;in cryptocurrency, the Federal Deposit Insurance Corporation (FDIC)&nbsp;transferred all of Signature&#39;s&nbsp;deposits and assets&nbsp;to&nbsp;Signature Bridge Bank, N.A., a full-service bank&nbsp;the agency operates as it markets the&nbsp;<a href="https://www.benzinga.com/news/23/03/31312372/shuttered-signature-banks-deposits-substantial-assets-transferred-to-bridge-bank-by-fdic-what-you-sh" target="_blank">institution to potential bidders</a>.
A bridge bank structure is designed to &quot;bridge&quot; the gap until the&nbsp;FDIC can stabilize the failed institution and implement an orderly resolution.
Several days later, the FDIC announced that the wholly owned subsidiary of New York Community Bancorp, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nycb#NYSE">NYCB</a>)&nbsp;had&nbsp;entered into a purchase and assumption agreement under which&nbsp;40 former Signature Bank&nbsp;branches&nbsp;<a href="https://www.benzinga.com/government/23/03/31414147/new-york-community-bancorp-unit-to-buy-deposits-certain-assets-of-signature-bank-fdic" target="_blank">would operate </a>under New York Community Bancorp&rsquo;s&nbsp;Flagstar Bank, N.A.
Roughly $60 billion in loans remained in FDIC receivership. Flagstar Bank&rsquo;s bid did not include approximately $4 billion of deposits related to the former Signature Bank&rsquo;s digital banking business, noted <a href="https://cannabisnow.com/did-the-us-government-inadvertently-just-fund-the-cannabis-industry/">Cannabis Now</a>.
<h3>Why It Matters </h3>
Mina Mishrikey, leader of the private equity firm&nbsp;Merida Capital Holdings&nbsp;that&nbsp;focuses&nbsp;on the cannabis and hemp industries, acknowledged that the seizures pushed the federal government to become a provider of financial services to the marijuana industry,&nbsp;<a href="https://cannabisnow.com/did-the-us-government-inadvertently-just-fund-the-cannabis-industry/" target="_blank">reported the outlet</a>.
How so? It turns out that while the&nbsp;majority of financial institutions deny&nbsp;services to cannabis operators because marijuana is federally illegal, Signature Bank was servicing some regulated marijuana businesses.&nbsp;The lack of banking services is one of the cannabis industry&#39;s&nbsp;most enduring&nbsp;struggles.
&ldquo;The irony is that the US government is now banking cannabis, whether they know it or not&nbsp;because they took over Signature Bank,&rdquo; Mishrikey said&nbsp;on an&nbsp;Alpharoot podcast.
In April a group of bipartisan lawmakers introduced a cannabis banking bill in Congress. The&nbsp;Senate Banking Committee&nbsp;led by&nbsp;committee chair&nbsp;Senator&nbsp;Sherrod Brown (D-OH),&nbsp;<a href="https://www.benzinga.com/markets/cannabis/23/05/32348648/schumer-booker-wyden-join-chorus-at-historic-senate-hearing-on-cannabis-banking-include-broader-" target="_blank">heard testimony</a>&nbsp;on the&nbsp;SAFE Banking Act&nbsp;on May 11 for nearly two hours before adjourning without a vote.
Brown said recently that&nbsp;a long-awaited&nbsp;vote&nbsp;on cannabis banking reform could happen&nbsp;&quot;in the next two or three weeks,&quot; as the panel would consider other measures as well.
While the future of the SAFE Act&nbsp;is debatable,&nbsp;&ldquo;the irony is the federal government, at least temporarily, was itself a bank for the industry,&rdquo; Mishirkey said.&nbsp;
Photo: Courtesy of <a class="Link_link__mTUkz clickable_clickable__Klxi1 spacing_noMargin__Q_PsJ" href="https://www.pexels.com/@kindelmedia/" rel="nofollow">Kindel Media </a>on Pexels 
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&nbsp;

Cannabis

NYCB

Did The Federal Government (Un)Knowingly Finance The Marijuana Industry?

Macro Economic Events

Federal Reserve

SIVBQ

Senator Sherrod Brown Addresses Silicon Valley Bank And Signature Bank Executives In Hearing

Jamie Dimon, the CEO and chairman of JPMorgan Chase &amp; Co&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>), expressed concern about the impact of potential Federal Reserve <a href="https://www.benzinga.com/markets/cryptocurrency/23/05/32361863/bitcoin-tumbles-ether-slumps-while-memecoins-like-pepe-crash-whats-happening">overregulation on American banks. </a>
His remarks come in the wake of several significant banking failures this year, including <a href="https://www.benzinga.com/topic/signature-bank">Signature Bank</a> (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sbny#OTC">SBNY</a>), Silvergate Capital Corp.&#39;s&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/si#NYSE">SI</a>)&nbsp;<a href="https://www.benzinga.com/topic/silicon-valley-bank">Silicon Valley Bank</a> and&nbsp;First Republic Bank (OTCMKTS: FRCB), which was <a href="https://www.benzinga.com/analyst-ratings/analyst-color/23/05/32121948/great-deal-for-jpmorgan-bank-analysts-weigh-in-on-first-republic-acquisition">bought by JPMorgan Chase on May 1</a>.
In an <a href="https://www.bloomberg.com/news/videos/2023-05-11/jpmorgan-s-dimon-regulations-will-get-worse-for-banks-video">interview </a>with Bloomberg, Dimon pointedly criticized the approach to supervision in the sector, suggesting the key players to hold accountable for these failures are the chief executives and board members of these institutions, rather than focusing solely on compliance with regulations.
Dimon voiced his concerns about the Federal Reserve&#39;s inclination to add to the already extensive regulatory framework. He suggested that the current 200,000-page stress test is not the panacea for the ongoing banking crisis.
Also Read:&nbsp;<a href="https://www.benzinga.com/markets/cryptocurrency/23/05/32367495/chamber-of-commerce-backs-coinbase-crypto-revolution-or-regulatory-disaster">Chamber Of Commerce Backs Coinbase &mdash; Crypto Revolution Or Regulatory Disaster?</a>
According to Dimon, the burden of additional regulations could create obstacles for banks, particularly smaller ones, where he noted&nbsp;&quot;some of these community banks now have more compliance people than loan officers.&quot;
He recommended a more balanced and comprehensive approach to regulation:
&quot;At one point, it&#39;s making it harder for them to do business. There are already hundreds of rules in place.&quot;
Dimon also questioned the reliability of stress tests, warning that an overemphasis on these could lead to overlooking other potential issues.
He believed&nbsp;focusing solely on one stress test gives a &quot;false sense of security.&quot;
Interestingly, Dimon noted&nbsp;the Federal Reserve had been blindsided by the problems that emerged in the banking industry, with not a single Fed <a href="https://www.benzinga.com/markets/cryptocurrency/23/05/32345762/silvergate-capital-crumbles-hundreds-of-jobs-on-the-chopping-block-starting-friday">governor having anticipated the banking crisis.</a>
Read Next:&nbsp;<a href="https://www.benzinga.com/markets/cryptocurrency/23/05/32365258/binance-us-shakeup-is-cftc-lawsuit-pushing-out-founder-changpeng-zhao">Binance.US Shakeup: Is CFTC Lawsuit Pushing Out Founder Changpeng Zhao?</a>
Photo: Steve Jurvestson via <a href="https://www.flickr.com/photos/jurvetson/8362210873/in/photolist-dJWvXx-bg6vWP-DjqVuL-q15ADn-cgsPXw-jxvDvY-eF1K2G-jxwPGQ-YDDCdS-eF2b7b-bjFgVe-eF1Q6w-eEY6rh-ZFCTDm-eEYdVY-ZFCVmj-YDDyVj-LPVSd6-ZFCXJW-eEUB38-YCKtHZ-eEUBQr-YDDHYj-YDDNym-chKEyU-chKH5E-chKEbw-chKE9Y-chKGJC-eEUAcH-chKHtQ-chKFVu-chKFsm-eEUJJV-chKEaQ-chKGo9-eEUEiv-eF1P8f-eF1FEo-eESvV2-eEUFUk-eEUDuD-eEURi8-eF1Mv3-eF1ULL-eEUXQc-chKF5q-eEV1hp-eF1VJh-eEYxZh">Flickr Creative Commons</a>

Government

Regulations

FIRST REPUBLIC BK CA by First Republic Bank (San Francisco, California)

FRCB

JPMorgan CEO Jamie Dimon Calls Out the Fed: Too Many Rules, Questions Reliability Of Stress Tests

Three of the largest five banking failures have happened in 2023, and more failures may be lurking. The structural problems that caused First Republic Bank (FRC), Signature Bank (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sbny#OTC">SBNY</a>), and Silicon Valley Bank (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sivbq#OTC">SIVBQ</a>) to fail remain: the Federal Reserve&rsquo;s interest rate policy is still pressuring valuation in banks&rsquo; held-to-maturity portfolios, high Treasury yields still mean there&rsquo;s a more meaningful alternative to stocks than there&rsquo;s been in years, and credit quality remains at risk, with delinquency and default rates rising. While it may be tempting to step into weakness hoping to time it correctly, that&#39;s may be a risky bet.
It seems that the sharp rebound in KRE and KBE on Friday was driven by a combination of oversold conditions and short covering. Given the recent challenges faced by regional banks and the potential for government intervention regarding short selling, traders likely wanted to cover their short positions ahead of the weekend to minimize risk. This short covering, combined with oversold conditions, likely contributed to the strong rally in both KRE and KBE.
If the government were to disallow short selling of bank stocks, it could indeed lead to a significant move in both the KRE and KBE, as well as individual bank stocks. The rationale behind such a decision would be to stabilize the financial sector during times of market stress and prevent excessive downward pressure on bank stocks.
In the past, there have been instances where governments have imposed temporary restrictions on short selling during periods of financial crisis, such as the 2008 financial crisis. In September 2008, the U.S. Securities and Exchange Commission (SEC) temporarily banned short selling of 799 financial stocks to protect the integrity and quality of the securities market and strengthen investor confidence.
As of May 4, 2023, the top holdings of the SPDR S&amp;P Regional Banking ETF (ARCA: KRE) are as follows:
New York Community Bancorp Inc.&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nycb#NYSE">NYCB</a>) - 14,418,623 shares held, with a total market cap of $6,487.56 million and a 5.18% weight in the fund.
M&amp;T Bank Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtb#NYSE">MTB</a>) - 806,838 shares held, with a total market cap of $19,074.68 million and a 3.47% weight in the fund.
Regions Financial Corporation (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/rf#NYSE">RF</a>) - 5,241,006 shares held, with a total market cap of $14,719.35 million and a 3.12% weight in the fund.
Citizens Financial Group Inc.&nbsp;(OTC: <a class="ticker" href="https://www.benzinga.com/stock/cfin#OTC">CFIN</a>) - 3,086,093 shares held, with a total market cap of $12,030.05 million and a 2.90% weight in the fund.
Huntington Bancshares Incorporated (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hban#NASDAQ">HBAN</a>) - 7,949,975 shares held, with a total market cap of $13,627.73 million and a 2.84% weight in the fund.
As of May 4, 2023, the top holdings of the SPDR S&amp;P Bank ETF (KBE) are as follows:
First Citizens BancShares Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/fcnca#NASDAQ">FCNCA</a>) - 3.07% weight, with a price of $1003.76 and a 4.83% change.
New York Community Bancorp Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/nycb#NYSE">NYCB</a>)&nbsp;- 2.51% weight, with a price of $10.06 and a 5.89% change.
MGIC Investment Corp&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/mtg#NYSE">MTG</a>)&nbsp;- 2.14% weight, with a price of $14.76 and a 2.68% change.
JPMorgan Chase &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/jpm#NYSE">JPM</a>) - 1.92% weight, with a price of $136.69 and a 1.92% change. Apollo Global Management Inc (APO) - 1.91% weight, with a price of $60.52 and a 4.

CFIN

FCNCA

HBAN

Financial & Bank Stocks In Question - Is It Time To Step Into The KRE Or The KBE Yet?

The recent failures of Silicon Valley Bank, Signature Bank (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sbny#OTC">SBNY</a>), and First Republic&nbsp;(NYSE: <a class="ticker" href="https://www.benzinga.com/stock/frc#NYSE">FRC</a>) and the poor performance of other regional banks serve as a reminder of the underappreciated risks of investing in bank stocks. It&rsquo;s not just the inherent banking risks that should make investors selective in buying bank stocks. The historical relative performance of bank stocks should also cause consternation for investors.
<h3 id="h-key-takeaways">Key Takeaways</h3>
<ul>
<li>Fractional reserve banking allows banks, not the Fed or government, to create money.</li>
<li>Banks typically only have an approximate 10% equity cushion supporting their assets.</li>
<li>Such leverage creates bankruptcy risk if banks are not hedged properly for interest rate and credit risk.</li>
<li>Bank stocks have underperformed conservative sectors and the broader S&amp;P 500 (ARCA: SPY).</li>
<li>Despite the broad risks, there are good banks that can be investment worthy.</li>
</ul>
<h3>Fractional Reserve Banking</h3>
All money is lent into existence.
Read that sentence as many times as it takes to grasp. Its understanding is critical to understanding the U.S. banking system.
Despite what the media or financial pundits may say, banks, not the Fed or government, create money!
Under the fractional reserve banking system, on which America&rsquo;s financial system operates, money is &ldquo;created&rdquo; via loans. Here is a simple example:
<ul>
<li>You deposit $1,000 into a bank.</li>
<li>Your neighbor borrows $900 from the same bank to buy a TV from Costco.</li>
<li>The bank holds the remaining $100 as reserves.</li>
<li>Costco deposits the $900 into its account at the same bank.</li>
<li>The bank turns around and lends $810 of Costco&rsquo;s $900 deposit.</li>
<li>The cycle continues as money multiplies despite the actual cash in the financial system remaining at $1,000.</li>
</ul>
Whether or not your neighbor pays back the $900, you and Costco have a combined $1,900 in your accounts. In this case, the $900 the bank created via the loan to your neighbor is new money out of thin air.&nbsp;
Fractional reserve banking, as we diagram, works well until there is a bank run and or enough loans are defaulted upon or lose sufficient value.
<h3>Bank Balance Sheets</h3>
We examine the aggregate balance sheet for all U.S. commercial banks to take fractional reserve banking to a working level and appreciate why small and mid-sized banks are struggling.
<a href="https://realinvestmentadvice.com/wp-content/uploads/2023/05/bank-balance-sheet-and-leverage.png"><img alt="leverage on bank balance sheets" src="https://sp-ao.shortpixel.ai/client/to_auto,q_lossless,ret_img,w_624,h_420/https://realinvestmentadvice.com/wp-content/uploads/2023/05/bank-balance-sheet-and-leverage.png" style="height:420px; width:624px" /></a>
As the graph shows, commercial banks hold about $23 trillion in assets against $20.8 trillion in liabilities. The difference, $2.2 trillion, is the banking sector&rsquo;s equity. The yellow shading represents the implied leverage ratio. As it shows, banks collectively hold less than 10% of equity versus their assets. We break down the assets and liabilities in the pie charts below to recognize why such high leverage can be problematic.
<h3>Decomposing Assets and Liabilities</h3>
Commercial bank liabilities are mainly small and large deposits. The rest of the funding comes from the debt markets, other banks, and the Fed at times.
<a href="https://realinvestmentadvice.com/wp-content/uploads/2023/05/bank-liabilities.png"><img alt="commercial bank assets and liabilities" src="https://sp-ao.shortpixel.ai/client/to_auto,q_lossless,ret_img,w_624,h_416/https://realinvestmentadvice.com/wp-content/uploads/2023/05/bank-liabilities.png" style="height:416px; width:624px" /></a>
Bank assets are often diversified across numerous types of loans and securities. Some of their assets, like Treasury securities and MBS, are very liquid. On the other hand, some of the loans and real estate debt are illiquid.
Liquidity allows us to assess how fast and costly a bank can sell assets if needed. About half of the collective assets are liquid and can be sold quickly and with little cost. A good number of the remaining assets can be sold or securitized and sold, but the process may take a little time and cost money. Some assets are entirely illiquid and could take quite a while to sell.
<a href="https://realinvestmentadvice.com/wp-content/uploads/2023/05/bank-assets.png"><img alt="commercial bank assets and liabilities" src="https://sp-ao.shortpixel.ai/client/to_auto,q_lossless,ret_img,w_624,h_416/https://realinvestmentadvice.com/wp-content/uploads/2023/05/bank-assets.png" style="height:416px; width:624px" /></a>
When the value of a bank&rsquo;s assets or liabilities changes, equity provides a cushion. Today, bank stockholders are questioning whether some banks have enough equity cushion. If losses exceed a bank&rsquo;s equity, the bank is essentially bankrupt. As we noted earlier, for an average bank, that entails a 10%+ loss on its assets.
<h3>Leverage Is Dangerous</h3>
The graph below shows that commercial bank deposits have fallen by approximately $1 trillion over the last year. Hence, banks must source new deposits, borrow money, and sell assets to compensate.
<a href="https://realinvestmentadvice.com/wp-content/uploads/2023/05/bank-deposits.png"><img alt="bank deposits and bank runs" src="https://sp-ao.shortpixel.ai/client/to_auto,q_lossless,ret_img,w_1024,h_683/https://realinvestmentadvice.com/wp-content/uploads/2023/05/bank-deposits-1024x683.png" style="height:416px; width:624px" /></a>
Fleeing deposits started the problems for Silicon Valley Bank and others. They also spurred a second problem. Many banks price assets on their balance sheet at the price they acquired them. Due to higher interest rates, the current value in almost all cases is less than they paid.
Many banks require cash to replace deposits. As such, they have options. They can raise new deposits, which entails paying customers over 4% versus the paltry near 0% they currently pay depositors. Or they can sell assets. A collective leverage ratio of 10 to 1 means it only takes a 10% loss on a bank&rsquo;s assets to wipe out its equity cushion. Risk-free U.S. Treasury notes and mortgages lost about 20% of their value in 2022.&nbsp;Since getting new deposits was not feasible for Silicon Valley Bank, it had to sell assets and recognize losses more significant than its equity cushion.
<h3>Digital Bank Runs</h3>
Bank runs are dangerous for the highly leveraged banking sector. Such is why the Fed acted quickly to support banks. Further, bank runs are often psychological events and are not necessarily rational. We put First Republic, which was fundamentally solid, in that camp.
Concern over a bank&rsquo;s viability can quickly snowball into default. Unlike prior bank runs, depositors can wire funds 24/7 from a bank in seconds.&nbsp;As a result of a digital bank run, Silicon Valley Bank collapsed as its customers withdrew about $42 billion, representing a quarter of its deposits in days.
Unlike the financial crisis, today&rsquo;s bank issues are a function of higher interest rates/lower bond prices and not credit losses. As a result of faulty accounting rules enacted during 2008, the Fed, bank regulators, and many banks did not adequately address lower bond prices due to higher interest rates. Hedging interest rate risk was costly from an accounting perspective and, therefore, not fully encouraged by the management of many banks.
The key takeaway is that bank runs, and leverage are risks that all banks and, therefore, bank stockholders take. Bank runs are not always rational. It appears falling stock prices, and not bank fundamentals, are driving depositors to move money from some banks.
<h3>Past Performance</h3>
Investing is always a risk-reward proposition. Almost any risk is worth taking but only at the right price.&nbsp;Therefore with a better understanding of bank risks, does the historical performance of the bank sector warrant taking the risk?&nbsp;
The graph below compares price returns on the KBW Bank Stock Index versus the S&amp;P 500 and the conservative S&amp;P Utilities and Staples Index. Since 1997, the KBW bank stock index has returned 40.03%, or 1.47% annually, well below the market and the conservative sectors mentioned above.&nbsp;More stunning, since 1997, the average yield on a risk-free 2-year U.S. Treasury note was 4.98%, over three times the return on risky bank stocks.
<a href="https://realinvestmentadvice.com/wp-content/uploads/2023/05/bank-stock-performance.png"><img alt="bank stock performance" src="https://sp-ao.shortpixel.ai/client/to_auto,q_lossless,ret_img,w_1024,h_683/https://realinvestmentadvice.com/wp-content/uploads/2023/05/bank-stock-performance-1024x683.png" style="height:416px; width:624px" /></a>
<h3>Summary</h3>
Banking is risky and subject to rational and irrational bank runs. That doesn&rsquo;t mean investors should avoid bank stocks. Instead, potential bank stockholders must carefully assess whether the expected returns account for a bank&rsquo;s leverage, degree of risk-taking, and hedging and factor in how sticky their deposits genuinely are.&nbsp;
Like any business, there are good banks and bad banks. JP Morgan, for instance, has proven to be very well managed. During the financial crisis, they hedged well against loan losses. Such risk awareness and hedging agility allowed them to buy assets from troubled institutions at steep discounts. Similarly, they are benefiting from the latest banking crisis. JP Morgan stock is up over 700% since 1997. Said performance bests the performance of the banking index and the S&amp;P 500.
&nbsp;
Michael Lebowitz, CFA&nbsp;is an Investment Analyst and Portfolio Manager for&nbsp;<a href="https://realinvestmentadvice.com/investing/" target="_blank">RIA Advisors</a>.&nbsp;specializing in macroeconomic research, valuations, asset allocation, and risk management.&nbsp;RIA Contributing&nbsp;Editor and Research Director.&nbsp;CFA is an Investment Analyst and Portfolio Manager;&nbsp;Co-founder of&nbsp;720 Global Research.&nbsp;

Small Cap

Analyst Ratings

Bank Stocks: Do The Rewards Warrant The Risk?

U.S. Senate Banking Committee Said May 16 Hearing, Examining The Failures Of Silicon Valley Bank And Signature Bank

VORBQ

Nasdaq Announced Will Delist Common Stock, Preferred Stock Of Signature Bank; Will Delist Common Stock, Preferred Stock Of SVB Financial Group; Will Delist Common Stock, Warrant Of Virgin Orbit

Talk show host John Oliver has shared commentary on Jim Cramer previously and held nothing back when discussing the CNBC host&#39;s&nbsp;past comments about cryptocurrency and FTX co-founder Sam Bankman-Fried.
What Happened: During an episode of &ldquo;Last Week Tonight with John Oliver,&rdquo; the host<a href="https://www.benzinga.com/markets/cryptocurrency/23/04/31989339/john-oliver-blasts-crypto-as-risky-casino-game-it-is-something-someone-with-a-laptop-made-"> ripped the cryptocurrency sector.</a>
Included in the episode, which airs on HBO and HBO Max, units of Warner Bros. Discovery (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/wbd#NASDAQ">WBD</a>), was commentary on&nbsp;Cramer flipping on&nbsp;his opinion of Sam Bankman-Fried, the now disgraced co-founder of bankrupt cryptocurrency platform FTX.
The episode featured comments from Cramer criticizing Bankman-Fried after FTX collapsed.
&ldquo;That guy is a clueless idiot. He&rsquo;s a pathological liar. He&rsquo;s a con man,&rdquo; were among the comments from Cramer played during the show.
The video also showed Cramer saying Bankman-Fried got away with four years of financial murder.
After the clips, the camera then moves to Oliver.
&ldquo;Wow, those are some harsh words there from the squawking parrot on every pirate&rsquo;s shoulder,&rdquo; Oliver said.
Oliver then plays a clip of Bankman-Fried being interviewed and praised by Cramer on CNBC.
&ldquo;Well, Sam, I gotta tell you it&rsquo;s an honor to have you&nbsp;because I think you&rsquo;re pretty much a visionary,&rdquo; Cramer says in the clip.
Oliver says the clip of Cramer saying this about Bankman-Fried is &ldquo;not great, but also not surprising.&rdquo; The HBO host goes on to offer examples of Cramer being wrong, including recommending Bear Stearns days before it collapsed, recommending Netflix stock before it went down 70% and also recommending Kevin Spacey as a spokesperson for Google, Facebook and Twitter.
&ldquo;Jim Cramer is the only person who could look you in the eye and say you are going to die tomorrow, and give you an immediate sense of calm knowing that you&rsquo;re going to live for another 50 years.&rdquo;
The clip from the&nbsp;Oliver-led show was <a href="https://twitter.com/wallstmemes/status/1650540873673846806">shared </a>on Twitter by Wall Street Bets, where one user was quick to point out that Tesla CEO Elon Musk may have been the first to point out that Cramer was wrong a lot.
In the clip, Musk is asked what he would say about people like Cramer not recommending&nbsp;Tesla shares during its IPO.
&ldquo;Yeah sure no Jim, we&rsquo;re no Bear Stearns, but I think we&rsquo;re going to do okay,&rdquo; Musk said in the clip.
Related Link: <a href="https://www.benzinga.com/news/22/10/29184870/i-want-you-to-bet-against-me-jim-cramer-calls-out-new-inverse-etf-with-his-42-years-of-success">&#39;I Want You To Bet Against Me&#39;: Jim Cramer Calls Out New Inverse ETF&nbsp;</a>
Why It&rsquo;s Important: The comments from Oliver come as Cramer&rsquo;s track record of often being on the opposite side of stock picks <a href="https://www.benzinga.com/news/23/03/31155409/betting-against-jim-cramer-now-a-reality-what-investors-should-know-about-the-inverse-cramer-etf-and">led to the creation</a> of The Inverse Cramer Tracker ETF (BATS: <a class="ticker" href="https://www.benzinga.com/stock/sjim#BATS">SJIM</a>) from Tuttle Capital.
<a href="https://www.benzinga.com/etfs/specialty-etfs/23/03/31299793/exclusive-jim-cramer-recommended-svb-financial-in-february-an-example-of-his-reverse-midas-to">Cramer previously recommended</a> SVB Financial (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sivbq#OTC">SIVBQ</a>) despite it being one of the top performing S&amp;P 500 stocks at the time. The bank has since collapsed and the stock trades on the OTC for under $1.
&ldquo;(The) stock&rsquo;s still cheap,&rdquo; Cramer said when shares were trading at over $320. &ldquo;You could argue that SVB 40% up is barely a drop in the bucket.&rdquo;
Tuttle Capital CEO and CIO Matthew Tuttle previously told Benzinga the comments on SVB Financial were &ldquo;another example of the reverse Midas touch and why there is such a desire to bet against&rdquo; Cramer.
Cramer<a href="https://www.benzinga.com/news/23/03/31326993/jim-cramer-named-signature-bank-among-his-top-banking-stocks-did-reverse-midas-touch-strike-again"> also recommended</a> Signature Bank (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sbny#OTC">SBNY</a>) previously, another bank that has collapsed and is now worth less than $1 per share.
A past Cramer show looked at four stocks in the financial sector that could benefit from rising interest rates.
&ldquo;Let&rsquo;s start with number one, let&rsquo;s start with Signature Bank,&rdquo; Cramer said, while highlighting the company&rsquo;s commercial banking and private offices that focus on the wealthy.
Cramer <a href="https://www.benzinga.com/news/23/03/31311261/jim-cramer-touts-this-bank-as-very-good-one-amid-svbs-collapse-a-warning-signal">also recommended</a> First Republic Bank (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/frc#NYSE">FRC</a>) in a series of tweets in March, calling it a &ldquo;very good bank.&rdquo; Shares of First Republic Bank are down over 50% in the last month.
<a href="https://www.benzinga.com/news/22/07/28246487/a-lot-of-smart-people-and-jim-cramer-read-this-situation-wrong-comedian-john-oliver-attacks-cnbc-hos">Oliver previously took on</a> Cramer for his comments made in November 2021 about inflation and the Fed. Oliver said the comments from Cramer have not aged well, &ldquo;much like Jim Cramer.&rdquo;
The HBO host also attacked Cramer for his high energy and shouting in the clips by saying the CNBC host &ldquo;answers the question of what if a garbage can full of cocaine and business school pamphlets wished to a be a real boy.&rdquo;
Oliver&rsquo;s latest attack on Cramer highlights that&nbsp;the CNBC host often shares opinions or predictions that end up being wrong. While Cramer is also right sometimes, investors and social media have more fun pointing out when he is wrong.
Read Next: <a href="https://www.benzinga.com/news/23/04/32000505/take-that-jim-cramer-and-bill-gates-joe-rogan-thinks-the-cybertruck-is-great-heres-what-he-says">Take That Jim Cramer And Bill Gates, Joe Rogan Thinks The Cybertruck Is Great&nbsp;</a>
Photo via Shutterstock.&nbsp;

Media

SJIM

John Oliver Joins Inverse Jim Cramer Craze, Says You'd Live '50 Years' If Cramer Predicted You'd Die 'Tomorrow'

Asset Sales

White House's Brainard Says Community Banks Should Be Exempted From Assessments For Losses To FDIC Insurance Fund After SVB, Signature Failures

<a href="https://www.wsj.com/articles/auditors-didnt-flag-risks-building-up-in-banks-6506585c" title="https://www.wsj.com/articles/auditors-didnt-flag-risks-building-up-in-banks-6506585c">https://www.wsj.com/articles/auditors-didnt-flag-risks-building-up-in-banks-6506585c</a>

SIVB

Wall Street Journal Earlier Reported: Auditors Didn't Flag Risks Building Up in Banks

Stocks trading apps have revolutionized the way people&nbsp;<a href="https://www.benzinga.com/money/investing">invest</a>&nbsp;in the stock market. With the rise of these apps, more people have easy access to the stock market and can make investments with just a few clicks.
Thanks to these apps, investing has become cheaper, more accessible, and more transparent. It has helped to level the playing field and give individual investors more opportunities to invest in the stock market.
There is, therefore, no surprise that there is a boom in stock trading apps. Stock trading apps&nbsp;<a href="https://www.businessofapps.com/data/stock-trading-app-market/">generated</a>&nbsp;$22.8 billion in revenue in 2021, with Robinhood Markets Inc. (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/hood#NASDAQ">HOOD</a>) emerging as the best-performing zero-commission platform giving people an avenue to easily invest in stocks. In that same year, over 130 million people used stock trading apps &mdash; a 49% increase on 2020 figures.
However, while stock trading apps continue to witness significant popularity, investors have been urged to exercise caution and do their own research before making any investments.
The <a href="https://www.benzinga.com/government/23/03/31323955/the-big-picture-why-silicon-valley-bank-collapsed-a-simple-explainer">collapse</a> of Silicon Valley Bank (SVB), Credit Suisse Group AG (SWX: CSGN) and Signature Bank (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/sbny#NASDAQ">SBNY</a>) has highlighted some&nbsp;<a href="https://economictimes.indiatimes.com/markets/stocks/news/lessons-to-learn-from-silicon-valley-banks-collapse-for-investors/articleshow/98869221.cms?utm_source=contentofinterest&amp;utm_medium=text&amp;utm_campaign=cppst">lessons</a>, including the need for investors to be abreast with trends and changes in the market, so events don&rsquo;t take them by surprise.
For some investors, events in the U.S. and the global banking industry took them by surprise primarily because they didn&rsquo;t get access to real-time information on how some of these banking stocks were performing. The need to get reliable real-time information to investors has inspired the launch of a new app, <a href="https://equities.chat/">Equichat</a>, a crossover between a trading app and messaging platform.
With over three billion people&nbsp;<a href="https://www.businessofapps.com/data/messaging-app-market/">using</a>&nbsp;messaging apps in 2021, making them one of the most popular app types, the company believes its app is strategically placed to take advantage of the two booming platforms to address the challenges stock app users face.
<h2>What Makes Equichat Unique?</h2>
Equichat&rsquo;s platform provides investors with a secure and user-friendly environment, enabling them to make informed decisions while staying connected to the market. The unique proposition of Equichat lies in its ability to leverage technology to create a new way of investing.
The stock messaging app allows investors to discover, discuss and trade stocks &mdash; exploring over 10,000 dedicated stock channels across all major U.S. stock exchanges. Users enjoy real-time discussion, in-app trading, streaming stock quotes and instant news alerts.
The app&rsquo;s ability to offer a real-time messaging platform that connects investors with their brokers seamlessly and efficiently could go a long way to decouple and save investors from the traditional model of investing that involves visiting a broker, discussing investment choices, and then placing an order. The traditional model was also often time-consuming and inefficient, especially in today&rsquo;s fast-moving investment landscape.
Integrating chat and trading into one app seems no easy feat, and this achievement could highlight Equichat&rsquo;s unique value proposition of paving the way for a new era of investment, where technology and human interaction work together to create a better investment experience for all.
<h2>A Breakdown Of Equichat&rsquo;s Features</h2>
<ul>
<li>Real-Time Discussion: Chat with like-minded investors across 10,000+ dedicated stock channels.</li>
<li>Broker Connect: Link up your online broker to sync your portfolio and trade stocks from the app.</li>
<li>Streaming Newswire: Market-moving news and headlines delivered in real-time as they cross the wires.</li>
<li>Market Movers: Track the biggest gainers, decliners and high-volume stocks across all major exchanges.</li>
<li>Earnings Calendar: Scan the earnings calendar to determine which companies report daily.</li>
<li>Follow Feed: Create a custom Follow Feed to track the activity of other investors and traders.</li>
<li>Custom Watchlist: Build and share your custom stock Watchlist with other investors.</li>
<li>Direct Messaging: Meet fellow shareholders, discuss new ideas and expand your investor network.</li>
</ul>
A key advantage of Equichat is its focus on user experience. The platform is designed to be intuitive and user-friendly, enabling investors to quickly and easily navigate the platform while ensuring that all client data is protected.&nbsp;
Equichat is completely free for investors and can be downloaded from the<a href="https://apps.apple.com/us/app/equichat/id1489071395?utm_source=BZ"> App Store</a> and the<a href="https://play.google.com/store/apps/details?id=chat.equities.mobile&amp;utm_source=BZ"> Play Store</a>.
Featured Photo by <a href="https://www.shutterstock.com/g/Ground+Picture">Ground Picture</a> on <a href="https://www.shutterstock.com/image-photo/business-man-trader-investor-analyst-using-1938041704">Shutterstock</a>
This post contains sponsored advertising content. This content is for informational purposes only and is not intended to be investing advice

Fintech news covering the emerging Financial Technology services sector

Fintech

HOOD

All In One Place: This Hybrid Mobile App Could Be Changing The Way Investors Discuss And Trade Stocks

FDIC Says The Face Values Of The Two Portfolios Are ~$27B, ~$87B, Respectively

FDIC Announces Upcoming Sale Of Loan Portfolio From Former Signature Bank, New York

The SPDR S&amp;P 500 ETF Trust (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/spy#NYSE">SPY</a>)&nbsp;logged a weekly gain to finish off a volatile but positive first quarter marked by more Federal Reserve tightening and a banking crisis driven by <a href="https://www.benzinga.com/government/23/03/31323955/the-big-picture-why-silicon-valley-bank-collapsed-a-simple-explainer">the collapse of Silicon Valley Bank</a>.
On Friday, the Bureau of Economic Analysis reported the personal consumption expenditures price index increased<a href="https://www.benzinga.com/news/23/03/31607473/feds-preferred-inflation-measure-comes-in-cooler-than-expected-as-banking-crisis-complicates-powells"> by 5%</a> year-over-year in the month of February, down from 5.4% in January. Core PCE, which excludes volatile food and energy prices and is the Fed&#39;s preferred inflation gauge, was up 4.6%, below analyst estimates of a 4.7% gain.
On Thursday, former U.S. President Donald Trump <a href="https://www.benzinga.com/news/23/03/31610132/from-presidential-portrait-to-mug-shot-whats-next-for-donald-trump-after-new-york-indictment">was indicted</a> on roughly 30 criminal counts of document fraud stemming from alleged hush money payments made to adult film star Stormy Daniels in 2016 when he was the front-runner in the&nbsp;Republican presidential primary. On Friday, news of Trump&#39;s indictment triggered a relief rally in special purpose acquisition company Digital World Acquisition Corp (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/dwac#NASDAQ">DWAC</a>), which is expected to merge with Trump&#39;s Truth Social.
Related Link:&nbsp;<a href="https://www.benzinga.com/news/23/03/31610132/from-presidential-portrait-to-mug-shot-whats-next-for-donald-trump-after-new-york-indictment">From Presidential Portrait To Mug Shot: What&#39;s Next For Donald Trump After New York Indictment?</a>
Top U.S. bank regulators from the Federal Reserve, Federal Deposit Insurance Corporation and the Treasury <a href="https://www.benzinga.com/government/23/03/31556391/biden-eyes-new-regulations-as-congress-dives-into-silicon-valley-signature-bank-failures">were grilled</a> in Congressional hearings this week about how they handled the mid-March collapses of Signature Bank (OTC: <a class="ticker" href="https://www.benzinga.com/stock/sbny#OTC">SBNY</a>) and Silicon Valley Bank. Lawmakers from both sides of the aisle blasted regulators for incompetence and lack of transparency that undermined confidence in the banking sector.
The S&amp;P 500 gained more than 5% and the Nasdaq Composite gained more than 14% in the first quarter of 2023, driven higher by easing inflation numbers. The S&amp;P 500 shrugged off concerns about instability in the banking sector to finish its second consecutive quarter of greater than 5% gains.
It&#39;s EVGo Time: Evgo Inc (NASDAQ: <a class="ticker" href="https://www.benzinga.com/stock/evgo#NASDAQ">EVGO</a>) shares jumped more than 30% on Thursday after the electric vehicle maker reported a fourth-quarter revenue beat and issued 2023 guidance that was better than feared.
In the holiday-shortened week ahead, investors will get more quarterly reports from Conagra Brands Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/cag#NYSE">CAG</a>) on Tuesday, Levi Strauss &amp; Co (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/levi#NYSE">LEVI</a>) on Wednesday and Constellation Brands, Inc. (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/stz#NYSE">STZ</a>) and Lamb Weston Holdings Inc (NYSE: <a class="ticker" href="https://www.benzinga.com/stock/lw#NYSE">LW</a>) on Thursday.
Economic Numbers: Following the February PCE inflation data, Wall Street will get more key economic updates on Monday when the Institute of Supply Management releases its March Manufacturing Purchasing Managers Index reading and on Friday when the Labor Department releases its March U.S. jobs report.
Photo via Shutterstock.&nbsp;

DWAC

EVGO

LEVI

Inflation Eases, S&P 500 Rally Continues Ahead Of Next Week's Critical Jobs Report

FDIC Invokes NYCB Equity Rights To Gain On Signature Takeover

These Financial Services stocks are trading higher:-Hippo Holdings Inc (HIPO) stock is trading at $18.50, an increase of $4.04, or 27.94%, on high volume.  Hippo Holdings Inc gets a Sentiment Score of Bearish from InvestorsObserver and receives an average analyst recommendation of Strong Buy with a price target of $19.67.

Financial Services Stocks on the Move Wednesday: HIPO, CIFR, ETCG, FACO, NYCB, SBNY, DWAC, DWACW

These Financial Services stocks are trading higher:-Grayscale Bitcoin Cash Trust (BCH) (BCHG) stock is trading at $7.97, a rise of $0.66, or 9.17%, on high volume.  Grayscale Bitcoin Cash TR Bch gets a Sentiment Score of Very Bullish from InvestorsObserver.  -Commercial International Bank EpCIB (CIBEY) stock is trading at

Financial Services Stocks Moving Up and Down Thursday: BCHG, CIBEY, PSQH, LTCN, SBNY, CNF, TPVG, RILY

A Year On, SVB's Killer Is Still At Large

New York Community Bancorp: Lessons From My Best And Worst Investment Ever

These Financial Services stocks are trading higher:-Palomar Holdings Inc (PLMR) stock is trading at $82.68, a gain of $6.61, or 8.68%, on high volume.  Palomar Holdings Inc gets a Sentiment Score of Bullish from InvestorsObserver and receives an average analyst recommendation of Strong Buy with a price target of $80.00.  -

Financial Services Stocks Moving Thursday: PLMR, SBNY, STI, CRD.A, GOCO, FUTU, ARBK, BRPHF

These Financial Services stocks are trading higher:-Solidion Technology Inc (STI) stock is trading at $1.89, a gain of $0.59, or 44.61%, on high volume.  Solidion Technology Inc gets a Sentiment Score of Bearish from InvestorsObserver. Solidion Technology Inc next reports earnings on MarchÂ 20. -Root Inc (ROOT) stock is tra

Financial Services Stocks on the Move Friday: STI, ROOT, SBNY, CIFR, OPRT, BCHG, ETCG, TYGO

Giverny Capital Rochon Global Portfolio 2023 Annual Letter To Partners

NVCR, SBNY and VITL are among after hour movers

MGNX, SBNY and SLP are among after hour movers

CVAC, SBNY and CRMD are among after hour movers

AAPL

ALHC

AMZN

ANNX

ARBK

BACRP

BCHG

BNKD

BNKU

BRPHF

CADL

CDZIP

CERO

CIBEY

CIFR

CRMD

CSCO

CUBB

CUBI

CVAC

DPST

DWACW

ETON

FACO

FCNCB

FCNCO

FCNCP

FRCCL

FRCHL

FRCIL

FRCJL

FRCKL

FRCLL

FRCML

FTXO

FUTU

GANX

GOCO

GOOG

GOOGL

GUTS

HIPO

INTC

KBWB

KBWR

KODK

KURA

LESL

LGVC

LTCN

MGNX

MSFT

NONOF

NVCR

NVDA

OMGA

OPRT

ORCL

OZKAP

PACW

PLMR

PSQH

PTLO

QABA

RELY

RILY

ROOT

SBNYL

SCHW

SIVPQ

STRO

TPVG

TSLA

TSVT

TWKS

TYGO

VITL

VLYPO

VLYPP

Press Releases

SBNY Deadline Monday: ROSEN, Top Ranked Investor Counsel, Encourages Signature Bank Investors with Losses in Excess of $1 Million to Secure Counsel Before Important Monday Deadline in First Filed Securities Class Action Commenced by the Firm - SBNY, SBNYP

Legal

SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Signature Bank of Class Action Lawsuit and Upcoming Deadline – SBNY; SBNYP

SBNY 2-DAY DEADLINE ALERT: Hagens Berman Encourages Signature Bank (SBNY) Investors with Substantial Losses to Contact Firm's Attorneys Before May 15th Deadline in Securities Fraud Class Action

SBNY Important Deadline Monday: ROSEN, National Trial Lawyers, Encourages Signature Bank Investors with Losses in Excess of $1 Million to Secure Counsel Before Important Monday Deadline in First Filed Securities Class Action Commenced by the Firm - SBNY, SBNYP

CLASS ACTION ALERT: The Law Offices of Vincent Wong Remind Signature Investors of a Lead Plaintiff Deadline of May 15, 2023

SBNY FINAL DEADLINE: Hagens Berman, National Trial Attorneys, Alerts Signature Bank (SBNY) Investors to Today's Deadline in Securities Fraud Class Action

SBNY FINAL DEADLINE TODAY: ROSEN, A TOP RANKED LAW FIRM, Encourages Signature Bank Investors with Losses in Excess of $1MM to Secure Counsel Before Important May 15 Deadline in Securities Class Action Filed by the Firm – SBNY, SBNYP

DEADLINE ALERT for SBNY/SBNYP, GOOG/GOOGL, and NSC: The Law Offices of Frank R. Cruz Reminds Investors of Class Actions on Behalf of Shareholders

SBNY ALERT: The Klein Law Firm Announces a Lead Plaintiff Deadline of May 15, 2023 in the Class Action Filed on Behalf of Signature Bank Shareholders

Signature Bank: Please contact the Portnoy Law Firm to recover your losses; May 15, 2023 deadline