First Republic Bank

FDIC Chair Martin Gruenberg said Monday that he is prepared to step down less than a week after he rebuffed bipartisan calls to resign, a shake-up that could have implications for an aggressive campaign to impose tougher regulations on US banks. Gruenberg has been reeling from reports revealing a toxic workplace riddled with sexual harassment, bullying, and other misconduct, including a 234-page independent review commissioned following stories published by the Wall Street Journal. As recently as last week, the FDIC boss made it clear he wanted to remain in charge so he could help the agency fix its problems. That changed this week as his support on Capitol Hill eroded. "In light of recent events, I am prepared to step down from my responsibilities once a successor is confirmed," he said in a release. "Until that time, I will continue to fulfill my responsibilities as Chairman of the FDIC, including the transformation of the FDIC’s workplace culture." Perhaps the turning point came after Senate Banking Committee Chair Sherrod Brown (D-Ohio) on Monday called on President Biden to nominate a new chair of the agency to restore the FDIC's workplace culture. Brown did not call for Gruenberg’s resignation during a committee hearing last week. "There must be fundamental changes at the FDIC," Brown said. "Those changes begin with new leadership, who must fix the agency’s toxic culture and put the women and men who work there — and their mission — first." "That’s why I’m calling on the President to immediately nominate a new Chair who can lead the FDIC at this challenging time and for the Senate to act on that nomination without delay," Brown said. Gruenberg’s replacement has to be named by the president and confirmed by the Senate. Biden’s deputy press secretary, Sam Michel, said that "while the FDIC is an independent agency, as we have said, the President, of course, expects the administration to reflect the values of decency and integrity and to protect the rights and dignity of all employees." Read more: What is the FDIC, and how does it work? "The President will soon put forward a new nominee for FDIC Chair who is committed to those values and to protecting consumers and ensuring the stability of our financial system, and we expect the Senate to confirm the nominee quickly." The exit of Gruenberg could have implications for the financial world. It comes just as the FDIC, Federal Reserve, and the Office of the Comptroller of the Currency are pushing for a sweeping overhaul of how banks are regulated in the wake of last spring's regional bank crisis. Last July, US banking regulators proposed raising capital requirements for banks by an aggregate 16%, widening the scope of the new rules to include banks with as low as $100 billion in assets. Officials argued the changes were needed to strengthen banks and better prepare them for shocks like this spring's crisis when the failures of Silicon Valley Bank, Signature Bank, and First Republic triggered deposit withdrawals. Banks, their lobbyists, and some Republican lawmakers argue the proposal would curb lending and hurt the economy. Even Federal Reserve Chairman Jerome Powell has hinted at reservations about the capital proposal and its impact and said that he expects changes to be made. Michael Barr, the Fed's vice chairman for supervision, said Monday that he expects "broad, material changes" to the proposal. Sen. Elizabeth Warren (D.-Mass.) said at the Senate Banking Committee hearing last week that Republicans wanted Gruenberg to resign so they could have more control over bank regulations. "Your resignation would do nothing to improve the culture of the FDIC, but it would give Republicans a veto over bank policy," Warren said at the hearing, which Gruenberg attended. Click here for political news related to business and money policies that will shape tomorrow's stock prices. Read the latest financial and business news from Yahoo Finance» Mehr auf finance.yahoo.com

May 20 (Reuters) - At JPMorgan Chase's investor day on Monday, shareholders will focus on the bank's growth strategy and succession plans. CEO Jamie Dimon and President Daniel Pinto are among the key executives expected to be present. Dimon has run the largest U.S. lender for more than 18 years, and his next steps have been the subject of speculation for years. Contenders for the top job include Jennifer Piepszak and Troy Rohrbaugh, recently appointed co-CEOs of JPMorgan's expanded commercial and investment bank, Marianne Lake, CEO of consumer and community banking, and Mary Erdoes, CEO of asset and wealth management. Here are the key leaders to watch:JAMIE DIMON, CHAIRMAN AND CEO: Dimon, 68, is one of the most influential figures in American business. He often comments on the U.S. economy, politics and public policy issues. The investor day comes at a time when succession is in focus across Wall Street, with new CEOs taking over at Morgan Stanley and Lazard in the recent months. Last May, Dimon signaled he could depart in 3-1/2 years. JPMorgan's board said last month it had identified potential successors to Dimon, paving the way for a leadership transition. It raised Dimon's compensation by 4% to $36 million for 2023. In April, the CEO sold some of his stock in the bank worth about $33 million, completing a previously disclosed plan to sell 1 million shares. He offloaded 821,778 shares in February, equating to about $150 million.DANIEL PINTO, PRESIDENT AND CHIEF OPERATING OFFICER Pinto has spent his entire career at JPMorgan and its predecessor companies. He became the sole president and COO in January 2022 after serving as co-president and chief operating officer. In April, Pinto was cited by the JPMorgan board as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had emergency heart surgery. His total compensation for 2023 came in at about $30 million, according to a filing. Pinto rose through JPMorgan's trading business, running emerging markets, credit and fixed income. He became the co-head of its corporate and investment bank in 2012 and sole CEO of the unit in 2014.JEREMY BARNUM, CHIEF FINANCIAL OFFICER Barnum joined JPMorgan in 1994 and has served as the bank's CFO since 2021. The executive previously led global research for the corporate and investment bank, as well as CFO and chief of staff for the unit from 2013 to 2021. In 2005, he was let go in a broader restructuring of the credit-trading business after a lackluster year. He then headed the London office of hedge fund Blue Mountain Capital Management before returning to JPMorgan as a trader in 2007. MARIANNE LAKE, CEO, CONSUMER & COMMUNITY BANKING (CCB) Lake, a two-decade veteran of the bank, was named the sole CEO of the consumer and community banking business in January. The consumer division accounts for the largest share of JPMorgan's revenue, bringing in $17.65 billion in the first quarter. It houses consumer banking, credit cards, home lending and small business. Lake was among the potential successors to Dimon identified by the board in April. She "has all of the qualities of a great leader," Dimon has said, such as being demanding, drawing information out of people, recognizing talent and also challenging Dimon when she believes he is wrong. Lake previously served as CFO from 2013 to 2019. JENNIFER PIEPSZAK, CO-CEO, COMMERCIAL & INVESTMENT BANK (CIB) Piepszak became the co-CEO of a newly merged commercial and investment banking unit with Troy Rohrbaugh in January. She previously ran the CCB business with Lake and served as CFO from 2019 to 2021. Over nearly three decades at the bank, Piepszak has held leadership roles including CEO of its card services and business banking divisions. Piepszak and Lake were among the executives in charge of integrating First Republic Bank after it was shuttered by authorities on May 1 and acquired by JPMorgan. TROY ROHRBAUGH, CO-CEO, COMMERCIAL & INVESTMENT BANK (CIB) Rohrbaugh became the co-CEO of a newly merged commercial and investment banking unit along with Piepszak in January. He previously was co-head of the markets and securities services business and also ran macro markets. JPMorgan's trading business has boomed in recent years as the Federal Reserve raised interest rates, fueling market volatility and client activity. The bank reported markets revenue of about $8 billion in the first quarter, split between $5.3 billion from fixed-income and $2.7 billion from equities. Rohrbaugh joined JPMorgan in 2005 as a managing director and global head of foreign exchange derivatives.MARY CALLAHAN ERDOES, CEO, ASSET & WEALTH MANAGEMENT Erdoes joined JPMorgan more than 25 years ago and held several senior roles across asset and wealth management before becoming its CEO in 2009. The unit had assets under management of roughly $3.6 trillion and client assets of $5.2 trillion at the end of the first quarter. Sources: Company website, documents, filings, statements and Reuters reports (Reporting by Manya Saini in Bengaluru, additional reporting by Nupur Anand in New York; Editing by Lananh Nguyen and Arun Koyyur)» Mehr auf marketscreener.com

The Goldman Sachs Group, Inc. (GS Quick QuoteGS - Free Report) plans to ramp up its lending services to private equity and asset managers, per Reuters. The bank also intends to expand internationally, filling the gaps created by the problems at regional banks and the recent sale of Credit Suisse.The private equity market has a strong potential to grow as private equity deals are expected to rise, driven by record-high fundraising. These loans are classified as short-term, typically secured by the assets of the borrowing firms and hence have a lesser risk attached to them. Hence, GS’ focus on the private equity market is a strategic fit.Asset-secured lending will allow GS to expand its financing business in fixed income, currency and commodities (FICC) and equities space. The move is in line with the company’s key focus on enhancing the stability of revenue generation in its global banking and markets divisions.In the past to seven years, Goldman's deposit base experienced tremendous growth. The bank is actively seeking to align its asset growth with this expansion. In 2023, GS took over a loan portfolio worth $15 billion from the failed Signature bank. This portfolio included loans to private equity firms and venture capital funds, which is a crucial part of its client base. These loans help manage a smooth flow of working capital for the bank, also known as capital call facilities or subscription line loans. Once Goldman strengthened its operations in the United States, the bank plans to expand its lending into Europe, the U.K. and Asia. They have already added staff in its Dallas and Bangalore offices to handle these loans.Markedly, Goldman decided to refocus on its core strengths of IB and trading operations while scaling back its consumer banking footprint and hence undertook a major business restructuring initiative. In first-quarter 2024, the company completed the sale of GreenSky, its home-improvement lending platform, to a consortium of investors. In second-half 2023, it sold its Personal Financial Management unit to Creative Planning. These are in line with its decision to focus on and grow core businesses where it showcased encouraging results given its strong leadership position, wide scale of operations and exceptional talent.In the past six months, the company’s shares have rallied 39.6% compared with the industry’s growth of 35.8%.Image Source: Zacks Investment ResearchGS currently sports a Zacks Rank #1 (Strong Buy). Apart from GS, major banks like JPMorgan Chase & Co. (JPM Quick QuoteJPM - Free Report) and The PNC Financial Services Group, Inc. (PNC Quick QuotePNC - Free Report) are also increasing their participation in the market worth $800 billion to $1 trillion. Also, JPM stepped up its lending functions after it acquired First Republic Bank in 2023. Similarly, in October 2023, PNC acquired loan commitments from Signature Bank worth approximately $16 billion. These efforts to further grow its loan balances are expected to offer support to the banks’ financials in the long run. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>» Mehr auf zacks.com