From The Markets article on US banks’ portfolios of commercial real estate:
“Bloomberg’s review found 22 banks with $10 billion to $100 billion of assets hold commercial property loans three times greater than their capital. Half of those firms had growth rates surpassing the thresholds laid out by regulators. The tally was even higher among banks with less than $10 billion of assets: 47 had outsize portfolios, of which 13 had swelled rapidly. The analysis excludes loans for nonresidential buildings that are occupied by their owners.” Source: Bloomberg
SoftBank Group shares jump more than 10% in Tokyo trading, heading for their strongest finish since July 2021.
An upbeat sales forecast from Arm Holdings bolstered sentiment. Question is whether the steep discount to its net asset value could narrow. Source: Bloomberg, Min-Jeong Lee
Large banks are easing lending standards while small banks tighten them Another sign of a K-shaped recovery, albeit in the financial sector
Source: Markets & Mayhem
New York Community Bank stock, $NYCB, the bank that acquired the collapsed Signature Bank, crashes another 25% today.
The stock is now down a massive 61% in 2024 to its lowest level since June 2000. Currently, roughly 40% of NYCB's assets are not under FDIC insurance. The stock's decline accelerated after the bank posted an unexpected $260 million loss in Q4 2023. Is the regional bank crisis back? Is it NYCB just the first domino to fall? Source chart: www.zerohedge.com
Shares of Japanese bank Aozora are collapsing.
Stock's on steepest 2-day drop since it became a public company. Why? Bank reported massive exposure to US commercial real estate. Source: David Ingles, Bloomberg
Multiple small us banks tumbled high-single and double digits.
There is a silver lining though -> the market quickly remembered that it was precisely the bank crisis last March that sparked a powerful Fed response (BTFP), and a violent rally, and we got the same thing today as stocks slingshot sharply higher closing 1.1% higher... Source: www.zerohedge.com
U.S. Banks are facing unrealized losses of roughly $685 billion (updated as of Q3).
This problem isn’t going away any time soon until the Federal Reserve begins cutting. New York Community Bancorp $NYCB might be the next victim. Source: Barchart
NEW YORK COMMUNITY BANK SHARES WERE DOWN AS MUCH AS 40% ON WEDNESDAY.
THE BANK POSTED A SURPRISE LOSS FOR THE FOURTH QUARTER AND ALSO CUT ITS DIVIDEND. THIS IS THE SAME BANK WHO BOUGHT SIGNATURE BANK LAST YEAR AFTER IT COLLAPSED. NOTE IT HAS COMMERCIAL REAL ESTATE (CRE) LOAN EXPOSURE TO THE TUNE OF 71% OF ITS ENTIRE LOAN BOOK.
