Jennifer Tescher’s Post

“If financial health is what truly matters, then it's time we measure it.” Banks need to earn customers’ trust - the Office of the Comptroller of the Currency points to #financialhealth. A new article in American Banker from our President and CEO Jennifer Tescher digs deeper into the OCC’s new report making the case for #finhealth, why it’s important to the agency, and why it’s something #financialinstitutions should measure. The OCC’s latest initiative encourages that banks measure the financial health of their customers and offers a comprehensive framework for evaluating key financial indicators – vital signs – such as cash flow, liquidity, and payment timeliness. This approach not only enhances customer relationships but also fosters trust and long-term financial stability. We applaud the OCC for encouraging #banks to shift the way they view their purpose: from delivering financial products to helping customers achieve positive financial health outcomes. Read more: https://hubs.li/Q02G66z60

Klaros Group partner and co-founder Brian Graham quoted in POLITICO Morning Money discussing bank earnings. Klaros Group partner Brian Graham, a former industry executive, said earnings for all but the very biggest banks are likely to disappoint relative to Wall Street estimates. The main event will be the impact of interest rates. For smaller regional banks, he’s keeping an eye on early signs of credit issues in commercial real estate, unrealized losses and changes in net interest margin driven by increasing funding costs. Graham told MM there are early signs that the largest banks are building reserves to prepare for credit challenges. #bankingindustry #banks #bankearnings #cre #interestrates https://lnkd.in/gU_aXrtd

In the wake of Fifth Third Bank’s $20 million settlement with the Consumer Financial Protection Bureau, the agency’s leading officials threatened further consequences against the bank’s executives. "The CFPB has caught Fifth Third Bank illegally loading up auto loan bills with excessive charges, with almost 1,000 families losing their cars to repossession," Rohit Chopra, director of the CFPB, said in a press release. "We are ordering the senior executives and board of directors at Fifth Third to clean up these broken business practices or else face further consequences." Learn more about the settlement and the infractions behind it in our latest roundup of top items exploring the issues facing investors. #investor #banking

Largest Banks in the U.S. 2024 https://lnkd.in/gT2wubUJ The financial landscape of the United States is dominated by a few key players, each boasting significant assets and influence. As of 2024, the largest banks in the U.S. continue to play a crucial role in the global economy, shaping financial trends and policies. This article provides an in-depth look at the top banks in the country, highlighting their size, services, and impact on both the national and international stage. 1. JPMorgan Chase & Co. Overview JPMorgan Chase & Co. remains the largest bank in the United States by assets. Headquartered in New York City, JPMorgan Chase offers a comprehensive...

What's interesting here is that RBC served as a "source of financial strength" and rescued City National Bank, as Dodd-Frank intended, because a powerful, huge holding company wouldn't let its subsidiary bank fail and the rest of the enterprise was healthy. In Silicon Valley Bank's case, although SVB Financial was sitting on billions in cash and several other valuable subsidiaries, it notably did not serve as a source of financial strength. In other cases, like Republic First, the holding company was just a shell and could do nothing anyway. #banks #bankholdingcompanies https://lnkd.in/gNvKthre

"In the intervening 364 days, much has changed and much has not. Here’s a look at six points of progress or areas that may need improvement." This report opens with the SVB failure and echos the NYCB crisis within recent weeks. "NYCB’s share price plummeted when reports surfaced that the bank was seeking a cash infusion. The nosedive was steep enough to halt trading. But within hours, NYCB secured $1.05 billion from investors led by former Treasury Secretary Steven Mnuchin." (Investors perhaps from the Middle East.) Six improvement conditions: 1) Upcoming regulation - FRB proposal to increase bank liquidity, plus other FRB operational improvements. 2) Discount Window - "[FR Chair] Powell, in testimony Thursday, acknowledged the window "needs to be brought up technologically into the modern age [and] we need to eliminate the stigma” surrounding its use." 3) Growing "Problem bank" tally - "The FDIC flagged 52 banks in the last quarter of 2023 that it considers weak. That’s eight more than in the previous three months, and the biggest increase since SVB’s failure, according to the Financial Times." 4) Climbing DIF Costs - "The FDIC adjusted upward — to $20.4 billion — the losses derived from SVB and Signature’s failures, the agency disclosed last month, according to Bloomberg. That’s a 25% bump from the $16.3 billion that surviving banks had been estimated in November to owe to replenish the Deposit Insurance Fund." 5) CRE Exposure - "One thing that has changed between 2023 and 2024 is the root pain point of the year’s crisis. Where SVB’s collapse last year stemmed in large part from the sudden flight of many substantial depositors at once, NYCB’s woes this year were spawned through exposure to commercial real estate. The COVID-19 pandemic and subsequent remote-work boom pushed companies to rethink large office footprints — and made space less valuable. At the same time, interest rates skyrocketed, then plateaued, making it unlikely that potential buyers would commit in the long term to office space now." 6) - Inconsistent regulation - "In comments to American Banker, PNC’s Demchak bemoaned banks that “charter shop” — that is, cherry-pick their regulator in search of the easiest path. Among Demchak’s lessons learned from last year’s crisis was a glimpse at inconsistency among regulators. “It astounded me what First Republic and Silicon Valley were able to do” under the watch of the FDIC and the Federal Reserve Bank of San Francisco, Demchak said. “Bluntly, if that was an OCC bank, that never would have happened,” he added." #banks #regulatoryaffairs #federalreserve

When a giant in our industry asks me to comment, I'm grateful. This time, it's BAI, the financial services industry voice with a powerhouse team. Thanks, BAI, for discussing my favorite topic - community banking. This time we are focused on the commercial real estate sector. Community banks work tirelessly to support local communities, meet regulations, and deliver shareholder value. It's a tough balance, and that's why I have immense respect for the industry. Read more about it here: 👇 #communitybanks #cre #realestate

Largest Banks in the U.S. 2024 https://lnkd.in/g_p8qTKf The financial landscape of the United States is dominated by a few key players, each boasting significant assets and influence. As of 2024, the largest banks in the U.S. continue to play a crucial role in the global economy, shaping financial trends and policies. This article provides an in-depth look at the top banks in the country, highlighting their size, services, and impact on both the national and international stage. 1. JPMorgan Chase & Co. Overview JPMorgan Chase & Co. remains the largest bank in the United States by assets. Headquartered in New York City, JPMorgan Chase offers a comprehensive...

Bank of America Q1 financial results : Our Wealth Management team generated record revenue, with record client balances, and investment banking rebounded. Bank of America’s sales and trading businesses continued their strong 2023 momentum this quarter

🏦 Facing the Unforeseen: The Bank that is Facing Adversity After a Year of Resilience. Despite weathering the storms of 2023, New York Community Bancorp, Inc. finds itself in serious trouble. The narrative takes a turn from triumph to challenges, highlighting the harsh realities in the ever-evolving #financial landscape. Dive into the sobering account of a #bank's journey, exploring the complexities that now overshadow its recent #successes. Discover the unfolding story in this thought-provoking article: #Banking #Finance #Challenges #Business #financialadvisor #wealthmanagement BankUnited, Western Alliance Bank, JPMorgan Chase & Co., J.P. Morgan, Federal Deposit Insurance Corporation (FDIC) Read more: Yahoo, Yahoo Finance, https://lnkd.in/e25czjNt