Banking Crisis 2023

The "everything bubble" was great, but with the Fed predicting a mild recession a different approach is needed to protect historically outsized gains.

Meow and Vesto are two firms that help companies invest idle funds in safe instruments such as Treasury bills.

Advisors managing over around $2.5 billion of assets moved since the start of the week, joining employers such as UBS and Wells Fargo, as some doubt their prospects at the former First Republic under new owner JPMorgan Chase.

Although First Republic advisors appear relieved by the restoration of stability in coming under the megabank's umbrella, looming culture clashes could bring more attrition — from both the incoming advisors, and those they're joining.

First Republic Bank was shuttered by regulators early Monday, and all its deposits and most of its assets were acquired by JPMorgan. San Francisco-based First Republic was undone by low-rate mortgages it made to its wealthy customers as well as by the fallout from last month's banking crisis.

The 12-person team's move was unsolicited and adds to what is now almost two dozen advisors who have migrated to the wirehouse from the struggling regional bank.

The moves reflect a wild week of First Republic advisors rushing to firms including JPMC, Morgan Stanley and UBS following their employer's calamitous earnings call Monday.

The troubled lender could fail, get rescued by the nation's largest banks or muddle through as a zombie bank. Federal regulators and the big banks will have to decide which is the least bad option.

Some of the bank's wealth advisors are pitching a rescue plan involving offloading bonds — at above-market values.

The firm saw profits halved over the past year and had a net loss of 98 advisors in the Americas last quarter. But its wealth unit brought in $28 billion of net new money.

The bank said the advisors and associates who left had managed under 20% of wealth management assets, as of the end of the first quarter.

The San Francisco bank, on shaky ground after two regional peers failed last month, said that customers pulled more than 40% of their deposits last quarter. It's been forced to turn to more expensive sources of funding, which analysts said will squeeze its profitability.

After the recent banking crisis, Schwab's stock may do better if the brokerage "de-banked," one analyst argues.

The outflows and expected losses this year at key businesses such as wealth and investment banking highlight the risks for UBS of its planned integration over the next four years.

Cultural differences with UBS, which is absorbing its Swiss rival, could push outflows even higher.

The giant financial institution's performance during the first three months of 2023 is being closely watched by the wealth management industry.

The megabank had another productive recruiting quarter in its wealth units, as it reported record first-quarter revenue Friday.

Startups were left reeling after SVB's failure. But there are challenges to serving young companies.

Analysts say the combined group could generate $7 billion in profits by 2027.