All articles tagged with #deposits
Ferrari’s CEO Benedetto Vigna defended the Luce amid criticisms, saying the high-priced EV has drawn strong interest from new and existing customers and that deposits have already been placed, with exact numbers due in July; the €550,000 model remains on track for production as the company pushes a new chapter despite backlash.
Ari Melber breaks down a MAGA backlash over Trump Mobile, noting supporters who placed $100 deposits for a gold smartphone are still waiting while Fortune reports no devices have shipped since the rollout began in 2025. The company updated preorder terms to say a device may not be produced, highlighting a broader pattern of unfulfilled promises and credibility concerns for Trump’s brand.
Bank of America CEO Brian Moynihan warned that a Treasury Department study suggests up to $6 trillion of U.S. bank deposits could migrate into stablecoins if interest-bearing stablecoins aren’t restricted, potentially shrinking banks’ deposit bases and raising wholesale funding costs. The report comes as lawmakers rush to finalize a crypto bill that would ban interest on stablecoins unless tied to activities like staking or liquidity provision, amid lobbying from banks and crypto firms and concerns about financial surveillance.
New York Community Bancorp (NYCB) lost 7% of its deposits in one month, dropping to $77.2 billion as of March 5, following a $1 billion capital infusion led by Steve Mnuchin's investor group. The bank's stock rose nearly 6% after the announcement, and Fitch Ratings viewed the capital infusion positively. Former Treasury Secretary Mnuchin's firm, along with other investors, will take control of NYCB, with former Comptroller of the Currency Joseph Otting becoming the new CEO. The bank plans to reduce its dividend and evaluate opportunities to reduce commercial real estate concentration, while emphasizing that deposit performance has been resilient despite recent challenges.
Customers of New York Community Bank withdrew $6 billion in deposits, causing a 7% decrease, but it's not a bank run. The bank secured a $1 billion investment and saw its shares rise after a steep plunge. NYCB is in crisis mode after reporting a surprise loss and being downgraded to junk status by credit rating agencies. The bank also announced a dividend cut and faces concerns about setting aside more reserves and estimating losses from soured loans, which could limit its profitability.
Moody's Investors Service downgraded New York Community Bank's deposit rating by four notches, putting it three levels below investment grade, potentially triggering contractual obligations and raising concerns about a flight of deposits. The bank's stock has plummeted 72% this year, and its ability to retain deposits is under scrutiny, with potential impacts on its "Banking as a Service" business and mortgage escrow unit. Analysts warn of increased costs and potential funding challenges for the bank as it grapples with the aftermath of the ratings downgrade.
New York Community Bancorp's stock dropped despite reassurances from its new executive chairman about the bank's strong foundation and deposit base, following a 60% decline in value and a credit rating downgrade. The bank reported increased deposits and plans to bring in new executives, but investors remained unconvinced as shares fell further. The bank's focus on reducing its exposure to commercial real estate loans amid concerns about the market's instability has raised worries of a potential banking crisis, with regulators closely monitoring the situation and expressing concerns about the impact on the banking sector.
New York Community Bancorp, Inc. reported updated financial information, including approximately $83.0 billion in total deposits, with 72% insured and collateralized, and $37.3 billion in total liquidity, exceeding uninsured deposits with a coverage ratio of 163%. The company's president and CEO, Thomas R. Cangemi, highlighted actions taken to fortify the balance sheet and strengthen risk management processes, emphasizing the investment in enhancing risk management framework. The company also provided cautionary statements regarding forward-looking information and outlined principal risks and uncertainties. New York Community Bancorp, Inc. is the parent company of Flagstar Bank, N.A., with market-leading positions in multi-family lending, mortgage origination and servicing, and warehouse lending.
Money market funds in the US have been paying over 5% since April 2023, prompting Americans to flock to them. In response, banks are now competing for deposits by offering attractive interest rates on certificates of deposit (CDs). Large CDs of $100,000 or more have surged by 60% since the Federal Reserve began its rate hikes, reaching $2.1 trillion at the end of October. Small CDs of less than $100,000 have also seen a significant increase, rising from $36 billion in May 2022 to nearly $1 trillion by the end of September. Banks are also offering higher interest rates on savings accounts to compete with money market funds.
Japanese bankers are facing a new challenge as rising interest rates prompt them to ask customers to pay more for credit, marking a shift from the previous 15 years of offering lower and lower interest rates on loans. This change in strategy is sharpening competition for deposits and benefiting Japanese savers.
A glitch in the network that processes electronic transfers between U.S. bank accounts has caused delays in settling deposits, with some payments remaining stalled. The Clearing House Payments Co., owned by major banks including Citibank, Wells Fargo, Bank of America, and J.P. Morgan Chase, acknowledged a technical error that masked payment information, preventing immediate processing. Customers have expressed concerns about delayed paycheck deposits affecting automatic payments such as mortgages, rent, and credit-card bills. The company apologized for the error and is working with banks and the Federal Reserve to resolve the issue.
Charles Schwab Corp reported a 24% decline in net interest revenue as clients moved cash into higher-yielding products, causing deposits to fall 28% to $284.4 billion in the third quarter. Despite persistently elevated interest rates, the company stated that cash realignment activity is beginning to slow down. Schwab's adjusted earnings per share slightly beat analysts' estimates, and the firm expects an 8-9% decline in full-year 2023 revenue compared to the prior year. The company plans to issue more debt to build up extra liquidity and has identified opportunities for increased efficiency to deliver at least $1 billion of annual expense savings.
Wells Fargo customers experienced another incident where deposits were not showing up in their accounts, causing panic and financial difficulties. The bank acknowledged the issue, stating it affected a limited number of customers and most instances were resolved, but did not provide further details. This comes as Wells Fargo faces allegations of phony bank accounts and unlawful activity. Customers nationwide were affected by the outage, leading some to consider moving their money to other banks.
Apple has announced that its high-yield savings accounts, offered in partnership with Goldman Sachs, have accumulated over $10 billion in deposits since their launch approximately 3.5 months ago. The accounts offer a 4.15% annual percentage yield rate and have no fees, minimum deposits, or minimum balance rules. Additionally, 97% of customers have chosen the option to automatically deposit their cashback rewards into their savings accounts. This news comes amid reports that Goldman Sachs is negotiating to potentially offload its Apple Card partnership.
Apple Card's high-yield Savings account, offered by Goldman Sachs, has surpassed $10 billion in deposits since its launch in April. The Savings account allows users to grow their Daily Cash rewards with a high-yield APY of 4.15 percent. 97 percent of Savings customers have chosen to have their Daily Cash automatically deposited into their account, promoting healthy savings habits. The account has no fees, minimum deposits, or balance requirements, and users can easily manage their Savings account directly from Apple Card in Wallet.