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Former Trump administration figures and bankers are discussing plans to end U.S. government control of mortgage-finance giants Fannie Mae and Freddie Mac if Trump wins the presidential election. The government's stakes in Fannie and Freddie could be valued at hundreds of billions of dollars, allowing for a potential sale of over $100 billion of securities. The talks aim to ensure that the companies will be well capitalized and not pose a risk to the U.S. housing market. Privatizing Fannie Mae and Freddie Mac is seen as a way to reduce the country's deficit and return money to taxpayers, but opponents argue that it could decrease access to credit for home buyers and increase the risk for taxpayers. [Extracted from the article]

The article examines how credit-builder cards from fintech companies allow users to enhance their credit scores without traditional borrowing. Topics include the unusual credit reporting practices of fintechs, the challenges faced by traditional credit scoring systems, and the mixed responses from credit-reporting agencies.

Fannie Mae and Freddie Mac, government-backed entities that purchase and securitize loans in the U.S. mortgage market, are planning to implement stricter rules for commercial-property lenders and brokers. The move comes as regulators and prosecutors are cracking down on fraud in the multitrillion-dollar market. The new rules would require lenders to independently verify financial information related to borrowers for multifamily properties, confirm a borrower's cash adequacy and source of funds, and complete due diligence on property appraisals. These rules aim to address fraudulent mortgage schemes that have been exposed in recent years. [Extracted from the article]

Vernon Hill, the founder and CEO of Commerce Bank and Metro Bank, has a history of upending traditional banking practices. He kept his banks open on Sundays, threw extravagant parties, and stocked branches with dog treats and "Magic Money Machines." However, Hill's rule-breaking eventually caught up with him. He was fired from Commerce Bank due to conflicts of interest and left Metro Bank after an accounting scandal. His latest project, Republic First Bancorp, was seized by regulators after shareholders ousted Hill. The bank's rapid growth and risky investments led to its collapse. Despite his failures, Hill's influence can still be seen in TD Bank's slogan, "America's Most Convenient Bank." [Extracted from the article]

Regulators have seized Republic First Bancorp, a troubled Philadelphia bank, and sold it to regional lender Fulton Financial. This is the fourth high-profile bank failure since last spring. Republic First faced similar problems as the three regional banks that failed last year, including paper losses on bonds and high proportions of uninsured deposits. Fulton Financial's acquisition of Republic First will nearly double its size in the Philadelphia market. The failure of Republic First is not expected to spark a wider crisis in confidence, but regional banks are still on shaky ground due to higher interest rates and potential regulatory requirements. [Extracted from the article]

Regional banks in the United States are experiencing a decline in profits due to higher interest rates. The plain-vanilla business model of these banks, which involves taking deposits and making loans, has become less profitable as they face pressure to pay higher interest rates on deposits. In the first quarter, profit fell by more than a fifth at U.S. Bancorp, Truist Financial, M&T Bank, Citizens Financial Group, KeyCorp, and Huntington Bancshares. However, some regional banks have seen a rebound in fee businesses such as wealth management and investment banking. The Federal Reserve's indication of keeping rates high for longer poses a challenge for banks without much diversity and scale. Additionally, banks are under scrutiny due to high-profile failures and potential stricter capital rules. Many regional and community banks also hold high concentrations of commercial real estate, which could lead to losses if valuations decline. Despite recent stock market gains, bank stocks have not fully recovered from previous selloffs. [Extracted from the article]

Mortgage rates have risen to nearly 7%, which is a significant threshold that could impact the housing market's recovery. The increase in rates is due to shifts in expectations for the Federal Reserve. Higher mortgage rates make homeownership more difficult for many Americans, as even a small difference in interest rates can add significant costs over the life of a loan. The recent uptick in rates is not as sharp as last year, but it still poses challenges for buyers and sellers. [Extracted from the article]

Bank stocks, particularly New York Community Bancorp (NYCB), experienced a decline after signs of trouble at the lender and a smaller peer raised concerns about the stability of the sector. NYCB's credit rating was downgraded to junk by Fitch Ratings and Moody's Investors Service due to its exposure to commercial real estate loans that have fallen in value. Additionally, a deal to support Republic First Bancorp, another regional bank, collapsed after the bank revealed internal control issues. While regional banks have managed to avoid a full-blown crisis, they still face challenges such as high interest rates and upcoming commercial real estate loan maturities. [Extracted from the article]

New York Community Bancorp (NYCB) has faced significant challenges after making transformative acquisitions and crossing the $100 billion asset threshold. The bank reported a loss for the fourth quarter, reduced its dividend, and highlighted concerns about its property loan books. NYCB is considering selling assets and shrinking the bank to address these issues. While there are fears about the bank's stability, analysts and bankers believe that there is little evidence of an acute crisis, and the problems faced by NYCB are not systemic. NYCB customers are closely monitoring the situation, with some considering alternative banking options. [Extracted from the article]

Shares of New York Community Bancorp (NYCB) plunged 38% after the company reported a fourth-quarter loss and reduced its dividend. NYCB swung to a loss of $252 million, compared to a profit of $172 million in the same period the previous year. The bank's loan losses increased, and it set aside more money for potential future losses. The decline in NYCB's stock price raised concerns among investors, reminiscent of the bank crisis in early 2023 when several banks failed. NYCB's total assets surpassed $100 billion after acquiring the assets of Signature Bank and Flagstar Bancorp. The company's CEO stated that they are adjusting to the regulatory demands of being a large bank. [Extracted from the article]

Regional banks in the United States, including KeyCorp, Citizens Financial Group, PNC Financial Services Group, and Truist Financial, experienced a significant drop in profits in the fourth quarter of 2023. Midsize players like Comerica and Zions Bancorporation also struggled. The Federal Reserve's potential rate cuts offer some relief, but uncertainty surrounding the rate outlook has made it difficult for banks to forecast their net interest income for the year. Regional banks have faced challenges in absorbing the costs of higher interest rates and have had to shrink themselves back to health. [Extracted from the article]

Big banks are set to report their fourth-quarter earnings, which will show how their customers fared in a harsher interest rate environment. Despite higher borrowing costs, households have continued to spend and borrow, and businesses have hired at a healthy pace. The largest banks, including JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup, are expected to collectively post over $21 billion in profits for the fourth quarter, although this is a more than 20% decline from the previous year. The banks will also face special fees related to the failures of Silicon Valley Bank and Signature Bank. [Extracted from the article]

Rural community banks in America are facing a banking crisis due to their large bond portfolios. Industry Bancshares, the parent company of six banks in eastern Texas, is currently underwater by over $75 million because of its investments in long-term bonds. The Federal Reserve's rapid interest rate increases have caused the value of these bonds to plummet. Many community banks, like Industry, are struggling to protect themselves from interest rate risks and are facing losses that have alarmed depositors, investors, and regulators. These banks typically focus on local lending and have been hit hard by the pandemic, as loan growth has been slow and deposits have been invested in securities that have lost value. Regulators are now closely scrutinizing banks with high concentrations of securities. Industry Bancshares is considering strategic options, including a capital raise and potential mergers or shrinking its balance sheet. The potential decline of community banks would have significant impacts on local economies, as they often provide essential credit and sponsorships for local events. [Extracted from the article]

The article discusses how the Federal Reserve's rate hikes have made it more difficult for Americans to buy homes. Homeownership has become increasingly unaffordable, with high home prices and rising mortgage rates causing many potential buyers to give up. Despite high mortgage rates, home prices continue to rise due to a lack of available homes. First-time and young buyers are particularly affected, with rents also increasing faster than the cost of buying a home. The article concludes by noting that traditional strategies, such as adjustable-rate mortgages, are no longer as effective in mitigating the impact of rising rates. [Extracted from the article]

Comerica, a Texas-based bank, is under investigation by regulators after a technology upgrade in May resulted in errors on transactions for trust clients. The bank's wealth-management unit was left short millions of dollars, and executives warned that they may have to write down any funds they couldn't recover. The issues primarily affected clients whose trust assets are administered by Comerica and managed by third parties. The bank has experienced difficulties in pulling in reimbursements, leading to a shortfall in its own funds. Comerica has halted wealth-management fees for some accounts and is concerned about potential litigation from trust clients. [Extracted from the article]

Citizens Financial Group, a regional lender based in Providence, Rhode Island, has launched a new private bank for wealthy customers, taking inspiration from the collapsed First Republic Bank. Citizens is spending millions of dollars to hire former First Republic staffers in an effort to crack the market for high-net-worth individuals. The bank aims to replicate the customer service and successful aspects of First Republic, which attracted wealthy customers with bureaucracy-free banking and low rates on loans. However, Citizens faces challenges in building this business, including higher interest rates and potential tougher regulations. [Extracted from the article]

Regions Financial, a bank based in Alabama, is taking steps to prepare for the impact of extreme weather events on its lending operations. The bank has a dedicated team, known as the "SWAT Team" or the "Weather Team," that monitors weather forecasts and sends out early-morning emails to colleagues to prepare for disasters. The bank has also changed its loan underwriting and monitoring processes to consider climate change risks, such as flood exposure and the availability of property insurance. While Regions has not made a pledge to become carbon neutral, it is taking steps to mitigate climate-related risks. [Extracted from the article]

Republic First Bancorp, a Philadelphia-based bank with $6 billion in assets, has reached a deal with an investor group to receive a $35 million infusion aimed at stabilizing its finances. The bank is also in talks to raise an additional $40 million to $65 million from other investors. Republic First has faced challenges including paper losses on bonds, large amounts of uninsured deposits, and a failed attempt to raise capital. While the investor group's investment will strengthen the bank's balance sheet, it will only partially address the bank's capital shortfall. [Extracted from the article]

Regional banks such as KeyCorp, Citizens, and Truist have reported significant profit declines in the third quarter. In response, these banks have announced plans to downsize and become smaller, simpler companies. The Federal Reserve's rapid interest rate increases have made it more expensive for banks to obtain and retain deposits, leading to higher interest expenses. Smaller banks are also facing potential trouble due to consumer strain, high costs, and concentrations of commercial real estate. Some banks have already begun merging, and there is concern about the overall health of regional banks. [Extracted from the article]

Investors are after yields of over 6% on newly originated mortgage-backed securities, compared with around 4.5% a year ago and less than 2% two years ago, according to Mark Tecotzky, vice chairman and head of credit strategies at Connecticut-based Ellington Management Group. Keywords: wsjfinance; wsjfinance-ws; Banking; Mortgage Banks/Real Estate Credit; Banking/Credit; Financial Services; Corporate Funding; Corporate Debt Instruments; Corporate Actions; Corporate/Industrial News EN wsjfinance wsjfinance-ws Banking Mortgage Banks/Real Estate Credit Banking/Credit Financial Services Corporate Funding Corporate Debt Instruments Corporate Actions Corporate/Industrial News N.PAG N.PAG 1 08/28/23 20230825 NES 230825 Borrowing costs have risen more than the benchmark Treasury yields they track, pushing up interest rates for buyers Mortgage rates pushed to a fresh two-decade high this week, making it tougher for the housing market to emerge from its stark slowdown. [Extracted from the article]

Photo illustration: Madeline Marshall In the first quarter, community banks lost about $60 billion in deposits that were over the deposit insurance limit, the FDIC said. First-quarter profit at OceanFirst fell by nearly half from the previous quarter, in part because the bank paid more in interest on customer deposits and loans largely from the FHLB. When the Fed started raising interest rates to fight inflation, the conventional wisdom was that it would be a boon for Main Street banks. [Extracted from the article]

The article reports on the fatal stabbing of Lieutenant Alison Russo-Elling, a veteran paramedic of the New York City Emergency Medical Service, by 34-year old Peter Zisopoulos in Astoria neighborhood in Queens, New York City. It describes the attack on Russo-Elling based on a surveillance video obtained from the site of the crime scene.

Watch Next Watch more video contentGo to Video Center Mr. Powell stressed that the Fed is still focused on its campaign to curb inflation despite the bank turmoil, but he signaled that further rate hikes could be limited. Keywords: Chemicals; Fertilizers; Banking; Commercial Banking; Trusts/Funds/Financial Vehicles; Financial Investment Services; Agrochemicals; Basic Materials/Resources; Banking/Credit; Exchange Traded Funds EN Chemicals Fertilizers Banking Commercial Banking Trusts/Funds/Financial Vehicles Financial Investment Services Agrochemicals Basic Materials/Resources Banking/Credit Exchange Traded Funds N.PAG N.PAG 1 03/24/23 20230323 NES 230323 The Fed chairman also says there is no reason to think the problems that led to Silicon Valley Bank's downfall are systemic Graph: The Federal Reserve raised interest rates by the expected quarter percentage point. [Extracted from the article]

Keywords: Chemicals; Fertilizers; Banking; Commercial Banking; Financial Investment Services; Diversified Holding Companies; Agrochemicals; Basic Materials/Resources; Business/Consumer Services; Banking/Credit EN Chemicals Fertilizers Banking Commercial Banking Financial Investment Services Diversified Holding Companies Agrochemicals Basic Materials/Resources Business/Consumer Services Banking/Credit N.PAG N.PAG 1 03/16/23 20230314 NES 230314 Investors responding to bank failures back away from banks with large amounts of uninsured deposits Graph: Shares of First Republic sold off sharply on Monday as a selloff in regional bank stocks continued. Chemicals, Banking, Commercial Banking, Financial Investment Services, Diversified Holding Companies, Agrochemicals, Fertilizers, Basic Materials/Resources, Business/Consumer Services, Banking/Credit The bank failures have raised questions about banks' funding and their exposure to businesses that investors judge unlikely to prosper with rising interest rates. [Extracted from the article]