1 week ago Fed officials’ opposition to rate cut signals growing challenge from hawks

Two regional central bank presidents say they would have kept interest rates on hold this week

Politics

2 w. ago Americans brace for food stamps to run out: ‘the greatest hunger catastrophe since the Great Depression’

Nearly 42 million people in danger as federal government shutdown continues and Snap funding to end 1 NovemberUS politics – follow liveTwo decades ago, Sara Carlson, then a mother of three, was newly single because of a traumatic event, and the US’s food stamp program, now called the Supplemental Nutrition Assistance Program (Snap), helped her feed her children with free food supplies.“I wouldn’t have been able to afford to live,” said Carlson, 45, who lives in Rochester, Minnesota, and now works as an operations manager for a wealth-management firm and serves on the board of Channel One Regional Food Bank, which works to increase food access. Continue reading...

Politics

3 w. ago B&M shares sink as finance chief quits after accounting error

Failure to ‘correctly recognise’ freight costs triggers latest in a series of profit warnings for UK discount retailer

Economics

3 w. ago What is private credit, and should we be worried by the collapse of US firms?

First Brands and Tricolor failures raise concerns for wider financial sector, including traditional banksThe collapse of two US firms, First Brands and Tricolor, has shone a light on private credit and its growing influence in the global economy.The failures have led to ballooning losses at traditional banks, and, coupled with worries about the health of US regional banks, have raised concerns about weak lending standards and potential threats from an opaque corner of the so-called shadow banking sector. Continue reading...

Economics

3 w. ago Nearly £11bn wiped off UK banks after US regional banking fears spooked markets – business live

European stock markets have fallen after two US regional lenders disclosed on Thursday that they were exposed to alleged fraud by borrowersGlobal markets fall and gold hits record high amid jitters over US banksUS regional bank stocks fall amid Wall Street concern over credit marketsStorm clouds are gathering over the financial markets, warns Richard Hunter, head of markets at interactive investor:There are increasing signs of storm clouds gathering over markets, with little relief from the building wall of worry.Already grappling with stretched stock valuations in the AI space, an unresolved government shutdown and a deteriorating relationship between Beijing and Washington, investors were exposed to a new source of concern in the form of lending practices and bad loans for US regional banks. Continue reading...

Economics

3 w. ago Jefferies was ‘defrauded’ by First Brands, says chief executive

Rich Handler’s comments came as investors dumped US regional bank stocks over credit quality worries

Politics

3 w. ago FTSE 100 slides as US regional bank worries rock markets – business live

Fear index jumps, and European markets follow Asia lower, as bad loan fears hit valuationsGlobal markets fall and gold hits record high amid jitters over US banksUS regional bank stocks fall amid Wall Street concern over credit marketsStorm clouds are gathering over the financial markets, warns Richard Hunter, head of markets at interactive investor:There are increasing signs of storm clouds gathering over markets, with little relief from the building wall of worry.Already grappling with stretched stock valuations in the AI space, an unresolved government shutdown and a deteriorating relationship between Beijing and Washington, investors were exposed to a new source of concern in the form of lending practices and bad loans for US regional banks. Continue reading...

Economics

3 w. ago FTSE 100 heading for worst day since April as US regional bank worries rock markets – business live

Rolling coverage of the latest economic and financial news, as FTSE 100 share index sheds 150 points in early tradingUS regional bank stocks fall amid Wall Street concern over credit marketsStorm clouds are gathering over the financial markets, warns Richard Hunter, head of markets at interactive investor:There are increasing signs of storm clouds gathering over markets, with little relief from the building wall of worry.Already grappling with stretched stock valuations in the AI space, an unresolved government shutdown and a deteriorating relationship between Beijing and Washington, investors were exposed to a new source of concern in the form of lending practices and bad loans for US regional banks. Continue reading...

Economics

3 w. ago Stock markets hit by US regional bank worries and trade tensions – business live

Rolling coverage of the latest economic and financial newsFears are swirling today that we could be facing a repeat of the US regional banking crisis of 2023.That episode led to the demise of US bank SVB and then Europe’s Credit Suisse.An initially positive risk mood turned during the US session yesterday after news that Zions Bancorp (-13.14%) made a $50m charge-off while Western Alliance (-10.81%) alleged it also suffered from fraud on loans to the same borrowers linked to distressed commercial mortgages.While this was an ostensibly isolated story at two banks each less than $10bn market cap, the event drew inevitable comparisons to the regional bank stress that followed the collapse of SVB in March 2023 and raised broader questions over potential credit quality issues after a lengthy period of elevated rates and expansion in private credit, following also the bankruptcy of subprime auto lender Tricolor last month. Continue reading...

Economics

3 w. ago US regional bank stocks fall amid Wall Street concern over credit markets

Zions and Western Alliance reveal problems with bad loans as scrutiny of regional banks’ lending practices increasesUS regional banking stocks fell sharply on Thursday after two banks disclosed issues with bad and fraudulent loans, amplifying concerns on Wall Street around the state of credit markets.Zions Bancorp announced it had a $50m charge-off over two bad loans from its subsidiary, California Bank & Trust in San Diego. Western Alliance also said it was dealing with a fraudulent borrower. Continue reading...

Economics

3 w. ago US regional bank shares sink on credit worries after fraud disclosures

Western Alliance and Zions Bank disclose exposure to alleged fraud

Politics