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27 июля, 18:00

Federal Reserve Board announces termination of enforcement action with M&T Bank Corporation and Manufacturers & Traders Trust Company

Federal Reserve Board announces termination of enforcement action with M&T Bank Corporation and Manufacturers & Traders Trust Company

26 июля, 04:00

Business Customers Are Tired Of Being Bilked Of Billions; Demand Rate Increases On Their Bank Deposits

As we're all well aware by now, once Trump was elected on November 8th the Fed suddenly decided it was no longer necessary to prop up asset prices in the United States with artificially low interest rates.  As such, they've embarked on their first rate-hiking spree since the last one ended just over a decade ago.    Meanwhile, in light of the fact that the Fed has raised rates by 75bps over the past 6 months, we recently wondered aloud just how long the big banks could continue to stiff Americans out of interest payments on their deposits.  As the Wall Street Journal points out today, despite three Fed rate hikes over the past several months, the average rate paid on deposits at the 16 largest banks in the U.S. has risen a paltry 10 bps. Meanwhile, with nearly $12 trillion held in deposit accounts at U.S. commercial banks, each 25bps of foregone interest is costing depositors about $30 billion a year, all of which is flowing straight to the bottom line of the large banks.   In the end, we concluded that the banks would continue to suppress deposit rates for as long as their customers continued to ignore the fact that they were getting shafted but that, over the long haul, math and greed would prevail and depositors would demand higher rates. Alas, it seems as though the "long haul" that we predicted has arrived well ahead of schedule...at least for business customers anyway.  As the Wall Street Journal points out today, corporate customers are starting to demand higher rates on deposits and, for the most part, the large banks are acquiescing. Consumers are giving banks a pass when it comes to shopping for higher interest rates on deposit accounts. Businesses, on the other hand, are becoming more demanding.   With short-term interest rates on the rise, corporate depositors are seeking bigger payouts for their deposits, and big banks have started capitulating.   The reason: Small rate increases are often worth just pennies to many consumers, but they can translate into meaningful dollars on large corporate deposits of millions or even billions of dollars.   And companies have greater leverage with banks since in many cases they also bring in lucrative investment banking and trading business.   “The jig is up,” said James Gilligan, assistant treasurer at Kansas City, Mo.-based power company Great Plains Energy Inc. He said many companies, including his, have negotiated better deposit pricing with banks where they also borrow. Treasurers who have the flexibility to move their money are also seeking out higher rates. Of course, the reality is that banking institutions offer fairly commoditized products with minimal differentiation and barriers to switching, aside from the pure hassle, are not that extensive.  So while banking executives may tout their position of power in negotiating to keep deposit rates lower for longer, in the end they'll be forced to take whatever rate the market demands... “The way we approach pricing these days is, we defend our turf,” says Tayfun Tuzun, chief financial officer at Fifth Third Bancorp , the Cincinnati-based bank. Mr. Tuzun said U.S. banks are also being pressured by competition from overseas banks that want to build their deposits. Some are willing to pay 1.25% or 1.3%, he said, while a typical corporate deposit rate for a large account in the U.S. currently is about 0.9% to 1%.   More corporate customers say that day is now passing. “A year ago, it was not worth the time it takes to make a phone call” and push for a higher rate, said Jeff Glenzer, vice president at the Association for Financial Professionals, an industry group for corporate treasurers. “The higher the rate becomes, the more attractive it is to worry about where the money sits.”   Most banks are already awash in more deposits than they need, causing some analysts to predict they’ll be stingy on corporate deposit rates, especially with loan growth softening in recent months.   “We’ll use pricing to start relationships,” said Darren King, CFO of M&T Bank Corp. , based in Buffalo, N.Y. “But over time, relationships need to work for both us and the customer.” And, then again, maybe Yellen will completely cave on rate hikes if equity markets ever decide to decline for more than 30 minutes at a time and this whole discussion will be moot.

21 июля, 18:31

People's United (PBCT) Beats on Q2 Earnings, Revenues Rise

People's United (PBCT) witnessed a rise in its loans and deposits but expenses flared up.

19 июля, 15:55

M&T Bank (MTB) Q2 Earnings Beat on Higher Revenues

M&T Bank Corporation (MTB) came out with earnings per share of $2.38 beating the Zacks Consensus Estimate of $2.28 in second quarter 2017.

18 июля, 17:02

M&T Bank (MTB) to Post Q2 Earnings: What's in the Offing?

M&T Bank Corporation (MTB) is likely to benefit from higher net interest income, but lower fee income and increase in expenses might dampen the results.

12 июля, 16:45

Will JPMorgan's (JPM) Q2 Earnings Dampen Stress Test Cheer?

Weak trading and investment banking businesses might hurt JPMorgan's (JPM) Q2 earnings.

11 июля, 21:51

3 Major Bank Stocks Set to Beat Earnings Estimates in Q2

Investors are keen to see if banks can replicate their impressive first-quarter results.

30 июня, 16:54

Northern Trust Hits New 52-Week High: What's Driving It?

On Jun 29, shares of Northern Trust Corporation (NTRS) hit a new 52-week high of $98.72. Is There More Steam Left?

30 июня, 16:30

The Zacks Analyst Blog Highlights: Wells Fargo, Citigroup, JPMorgan Chase, Bank of America and U.S. Bancorp

The Zacks Analyst Blog Highlights: Wells Fargo, Citigroup, JPMorgan Chase, Bank of America and U.S. Bancorp

29 июня, 16:18

What Other than Organic Growth Braces Comerica (CMA) Stock?

Comerica Incorporated's (CMA) robust organic growth and strong balance sheet position the stock well to move higher.

27 июня, 16:20

Fifth Third's Ratings Affirmed by Moody's, Outlook Stable

Ratings of Fifth Third Bancorp (FITB) and its subsidiaries have been affirmed by the Moody's Investors Service, a rating arm of Moody's Corporation (MCO).

23 июня, 20:32

Top Stock Reports for Oracle, Allergan & Abbott

Top Stock Reports for Oracle, Allergan & Abbott

23 июня, 16:07

Why it's Better to Hold BNY Mellon (BK) in Your Portfolio

The Bank of New York Mellon Corporation's (BK) efficient cost-saving initiatives and easing margin pressure position it well for future growth. However, higher dependence on fee-based income sources makes us apprehensive.

21 июня, 16:29

Synovus Rides on Inorganic Growth Strategy: Time to Buy?

On Jun 20, we issued an updated research report on Synovus Financial Corp (SNV).

20 июня, 16:08

3 Reasons that Make Community Trust (CTBI) a Solid Pick Now

Community Trust Bancorp, Inc. (CTBI), with robust fundamentals and growth opportunities, is likely to perform well in the near term.

01 июня, 15:59

Wells Fargo Sees Municipal Business Ban in New York City

Troubles for Wells Fargo & Company (WFC) seem unlikely to end anytime soon. Recently, the bank was banned by The New York City Banking Commission from underwriting new bonds in the U.S. municipal bond market and renewing the existing contracts.

25 мая, 16:13

Wells Fargo's Ratings Affirmed by Moody's, Outlook Stable

Moody's Investors Service affirmed all the ratings of Wells Fargo & Company (WFC) and its subsidiaries. The Wall Street biggie's long-term deposit rating has been affirmed at A2, senior debt rating at Aa2 and subordinated debt rating at Aa3.

23 мая, 16:20

Regions (RF) Reflects Effective Cost Control: Time to Hold?

Regions Financial Corporation (RF) is one such stock. Though the company displays mixed prospects for revenue growth, cost-saving initiatives are anticipated to support bottom-line growth. However, strict regulations and litigation issues remain concerns.

22 мая, 15:04

Why Synovus (SNV) Should be Added to Your Portfolio Now

Synovus Financial Corp. (SNV) is one such stock that not only beat estimates this time, but has also been witnessing upward estimate revisions, reflecting analysts' optimism about its future prospects.

18 мая, 16:49

KeyCorp Hikes Dividend by 11.8%: Time to Own the Stock?

KeyCorp (KEY) announced an 11.8% rise in its quarterly cash dividend.