PacWest Bancorp Releases Surprisingly Strong Depositor Data
PacWest Bancorp (NASDAQ: PACW), one of the most embattled U.S. regional banks, made an interesting disclosure on March 17 which suggests its depositors have not abandoned ship as quickly as many had anticipated. A much more significant level of departures seems to be reflected in its collapsing stock price. PacWest serves customers in California, North Carolina and […]
Biden Administration Turns to Warren Buffett for Banking Crisis Advice
Washington is getting desperate to contain the unfolding banking crisis, and is now looking for new ways to kick the can down the road for a little while longer. Sources familiar with the matter told Bloomberg on Sunday that the Biden administration was in talks with Warren Buffett over the past week, in an effort […]
UBS Bypasses Shareholder Vote, Will Acquire Credit Suisse for Over $2 Billion
UBS has finally agreed to acquire troubled Credit Suisse (NYSE: CS) for over $2 billion, following emergency meetings with regulators and the Swiss National Bank that resulted in Swiss authorities agreeing to rewrite governance laws otherwise requiring a crucial shareholder vote. As first reported by the Financial Times, UBS has reached a deal to buy […]
Oil Prices Continue to Slide As Supply Outstrips Demand
Oil prices continue to trade like a falling knife. Prices fell more than 10% in the week ended March 17, marking the commodity’s worst week of 2023. The benchmark West Texas Intermediate (WTI) closed at US$66.74 on March 17, its lowest level since December 2021. Remarkably, even further price weakness seems possible. In the fairly sluggish global economy, […]
Reputation on the Rocks: LME Discovers Bags of Nickel Were Replaced With Stones
The London Metal Exchange has yet another embarrassing scandal on its hands: this time, the exchange discovered that bags which were supposed to be filled with nickel were instead full of stones. In a statement to the market distributed on Friday, the LME unveiled it had received “information that a number of physical nickel shipments, […]
Credit Suisse Pushes Back Against $1.0 Billion Buyout Offer From UBS
UBS is said to have officially offered to buy troubled bank Credit Suisse for a figure of up to $1.0 billion, following rumors yesterday that the Swiss government would be changing laws to bypass required shareholder votes. The acquisition, if approved by Credit Suisse’s board, would take the form of an all-share transaction between the […]
Regional Banks: What’s The Draw For Depositors?
On its surface, the U.S. government’s decision to backstop all depositors at SVB Financial Group (NASDAQ: SIVB) and Signature Bank (NASDAQ: SBNY) reads like a constructive development for U.S. banks, particularly for embattled regional banks. After all, depositors will be made whole, even those who had account balances substantially in excess of amounts insured by the Federal Deposit Insurance Corporation […]
Swiss Regulators Prepare to Fast-Track UBS Takeover of Credit Suisse
Swiss regulators are going to expedite the takeover of troubled Credit Suisse (NYSE: CS) by UBS, foregoing shareholder consultations in order to solidify a deal before markets open on Monday. According to people familiar with internal discussions cited by the Financial Times, UBS said it’s going to use emergency measures to circumvent an otherwise mandatory […]
EV Price War Likely To Intensify, Fueled by Aggressive Spending Plans
The price war that Tesla, Inc. (NASDAQ: TSLA) initiated two months ago in the electric vehicle (EV) industry is raging. Tesla has implemented two rounds of price cuts. Several Chinese carmakers have followed suit, and some U.S. EV manufacturers including Lucid Group, Inc. (NASDAQ: LCID) and Ford Motor Company (NYSE: F), on its Mustang Mach-E electric SUV, have felt compelled to reduce […]
Volkswagen Strategizes Mine Investments In Effort to Reduce EV Battery Costs
Volkswagen has unveiled intentions to invest in mining operations, in an effort to eventually cut back on costs associated with the manufacturing of battery cells for its electric vehicles. Keeping in line with Volkswagen’s broader strategy to posses stronger control over the EV battery supply chain, the European automaker is drawing up plans to enter […]