\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n
\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Federal Reserve<\/a> Chair Jerome Powell said this week that recent inflation data has not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought.<\/p>\n\n\n\n

The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

JPMorgan's predicament stems from a series of lawsuits surrounding its dealings in Russia. A Russian court's recent decision to seize funds in JPMorgan accounts followed a lawsuit by state-owned bank VTB, aiming to reclaim funds blocked abroad. In a tit-for-tat move, JPMorgan retaliated by suing VTB Bank in the US, seeking to block its efforts to recover $439.5 million.<\/p>\n","post_title":"Russian Court Reverses Seizure Of JPMorgan's Funds","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"russian-court-reverses-seizure-of-jpmorgans-funds","to_ping":"","pinged":"","post_modified":"2024-05-05 03:42:10","post_modified_gmt":"2024-05-04 17:42:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16452,"post_author":"14","post_date":"2024-04-19 23:53:19","post_date_gmt":"2024-04-19 13:53:19","post_content":"\n

Federal Reserve<\/a> Chair Jerome Powell said this week that recent inflation data has not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought.<\/p>\n\n\n\n

The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

In a recent filing, JPMorgan Chase alerted investors<\/a> that its assets in Russia could face seizure following legal actions in both Russian and US courts. The embattled bank finds itself entangled in various legal challenges concerning its Russian operations, triggered by the imposition of economic sanctions on Russia by the US and European nations in response to the Ukraine conflict.<\/p>\n\n\n\n

JPMorgan's predicament stems from a series of lawsuits surrounding its dealings in Russia. A Russian court's recent decision to seize funds in JPMorgan accounts followed a lawsuit by state-owned bank VTB, aiming to reclaim funds blocked abroad. In a tit-for-tat move, JPMorgan retaliated by suing VTB Bank in the US, seeking to block its efforts to recover $439.5 million.<\/p>\n","post_title":"Russian Court Reverses Seizure Of JPMorgan's Funds","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"russian-court-reverses-seizure-of-jpmorgans-funds","to_ping":"","pinged":"","post_modified":"2024-05-05 03:42:10","post_modified_gmt":"2024-05-04 17:42:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16452,"post_author":"14","post_date":"2024-04-19 23:53:19","post_date_gmt":"2024-04-19 13:53:19","post_content":"\n

Federal Reserve<\/a> Chair Jerome Powell said this week that recent inflation data has not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought.<\/p>\n\n\n\n

The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

JPMorgan's total assets in Russia stand at 243.3 billion rubles, with a significant portion locked in type C accounts. These accounts, predominantly held by foreigners, restrict money movement abroad but also safeguard against seizure, as per presidential decrees. The court's decision not only releases the frozen funds but also enables JPMorgan's Russian subsidiary to resume its operations, including the disbursement of staff wages and tax payments from a separate current account.<\/p>\n\n\n\n

In a recent filing, JPMorgan Chase alerted investors<\/a> that its assets in Russia could face seizure following legal actions in both Russian and US courts. The embattled bank finds itself entangled in various legal challenges concerning its Russian operations, triggered by the imposition of economic sanctions on Russia by the US and European nations in response to the Ukraine conflict.<\/p>\n\n\n\n

JPMorgan's predicament stems from a series of lawsuits surrounding its dealings in Russia. A Russian court's recent decision to seize funds in JPMorgan accounts followed a lawsuit by state-owned bank VTB, aiming to reclaim funds blocked abroad. In a tit-for-tat move, JPMorgan retaliated by suing VTB Bank in the US, seeking to block its efforts to recover $439.5 million.<\/p>\n","post_title":"Russian Court Reverses Seizure Of JPMorgan's Funds","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"russian-court-reverses-seizure-of-jpmorgans-funds","to_ping":"","pinged":"","post_modified":"2024-05-05 03:42:10","post_modified_gmt":"2024-05-04 17:42:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16452,"post_author":"14","post_date":"2024-04-19 23:53:19","post_date_gmt":"2024-04-19 13:53:19","post_content":"\n

Federal Reserve<\/a> Chair Jerome Powell said this week that recent inflation data has not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought.<\/p>\n\n\n\n

The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Impact on JPMorgan's Russian Operations<\/h2>\n\n\n\n

JPMorgan's total assets in Russia stand at 243.3 billion rubles, with a significant portion locked in type C accounts. These accounts, predominantly held by foreigners, restrict money movement abroad but also safeguard against seizure, as per presidential decrees. The court's decision not only releases the frozen funds but also enables JPMorgan's Russian subsidiary to resume its operations, including the disbursement of staff wages and tax payments from a separate current account.<\/p>\n\n\n\n

In a recent filing, JPMorgan Chase alerted investors<\/a> that its assets in Russia could face seizure following legal actions in both Russian and US courts. The embattled bank finds itself entangled in various legal challenges concerning its Russian operations, triggered by the imposition of economic sanctions on Russia by the US and European nations in response to the Ukraine conflict.<\/p>\n\n\n\n

JPMorgan's predicament stems from a series of lawsuits surrounding its dealings in Russia. A Russian court's recent decision to seize funds in JPMorgan accounts followed a lawsuit by state-owned bank VTB, aiming to reclaim funds blocked abroad. In a tit-for-tat move, JPMorgan retaliated by suing VTB Bank in the US, seeking to block its efforts to recover $439.5 million.<\/p>\n","post_title":"Russian Court Reverses Seizure Of JPMorgan's Funds","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"russian-court-reverses-seizure-of-jpmorgans-funds","to_ping":"","pinged":"","post_modified":"2024-05-05 03:42:10","post_modified_gmt":"2024-05-04 17:42:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16452,"post_author":"14","post_date":"2024-04-19 23:53:19","post_date_gmt":"2024-04-19 13:53:19","post_content":"\n

Federal Reserve<\/a> Chair Jerome Powell said this week that recent inflation data has not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought.<\/p>\n\n\n\n

The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

See Related: <\/em><\/strong>United States DOJ Seizes Over 55M Robinhood Shares And US$22M In Relation To SBF And FTX<\/a><\/p>\n\n\n\n

Impact on JPMorgan's Russian Operations<\/h2>\n\n\n\n

JPMorgan's total assets in Russia stand at 243.3 billion rubles, with a significant portion locked in type C accounts. These accounts, predominantly held by foreigners, restrict money movement abroad but also safeguard against seizure, as per presidential decrees. The court's decision not only releases the frozen funds but also enables JPMorgan's Russian subsidiary to resume its operations, including the disbursement of staff wages and tax payments from a separate current account.<\/p>\n\n\n\n

In a recent filing, JPMorgan Chase alerted investors<\/a> that its assets in Russia could face seizure following legal actions in both Russian and US courts. The embattled bank finds itself entangled in various legal challenges concerning its Russian operations, triggered by the imposition of economic sanctions on Russia by the US and European nations in response to the Ukraine conflict.<\/p>\n\n\n\n

JPMorgan's predicament stems from a series of lawsuits surrounding its dealings in Russia. A Russian court's recent decision to seize funds in JPMorgan accounts followed a lawsuit by state-owned bank VTB, aiming to reclaim funds blocked abroad. In a tit-for-tat move, JPMorgan retaliated by suing VTB Bank in the US, seeking to block its efforts to recover $439.5 million.<\/p>\n","post_title":"Russian Court Reverses Seizure Of JPMorgan's Funds","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"russian-court-reverses-seizure-of-jpmorgans-funds","to_ping":"","pinged":"","post_modified":"2024-05-05 03:42:10","post_modified_gmt":"2024-05-04 17:42:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16452,"post_author":"14","post_date":"2024-04-19 23:53:19","post_date_gmt":"2024-04-19 13:53:19","post_content":"\n

Federal Reserve<\/a> Chair Jerome Powell said this week that recent inflation data has not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought.<\/p>\n\n\n\n

The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

The legal tussle between VTB and JPMorgan resulted from claims by the former that the US bank obstructed $439.5 million in its correspondent account in New York during the time VTB faced US sanctions. Consequently, the Russian court initially ordered the seizure of funds in JPMorgan's accounts in Russia. However, with the recent ruling, JPMorgan's assets held in type C accounts, amounting to 204.7 billion rubles, have been freed from seizure.<\/p>\n\n\n\n

See Related: <\/em><\/strong>United States DOJ Seizes Over 55M Robinhood Shares And US$22M In Relation To SBF And FTX<\/a><\/p>\n\n\n\n

Impact on JPMorgan's Russian Operations<\/h2>\n\n\n\n

JPMorgan's total assets in Russia stand at 243.3 billion rubles, with a significant portion locked in type C accounts. These accounts, predominantly held by foreigners, restrict money movement abroad but also safeguard against seizure, as per presidential decrees. The court's decision not only releases the frozen funds but also enables JPMorgan's Russian subsidiary to resume its operations, including the disbursement of staff wages and tax payments from a separate current account.<\/p>\n\n\n\n

In a recent filing, JPMorgan Chase alerted investors<\/a> that its assets in Russia could face seizure following legal actions in both Russian and US courts. The embattled bank finds itself entangled in various legal challenges concerning its Russian operations, triggered by the imposition of economic sanctions on Russia by the US and European nations in response to the Ukraine conflict.<\/p>\n\n\n\n

JPMorgan's predicament stems from a series of lawsuits surrounding its dealings in Russia. A Russian court's recent decision to seize funds in JPMorgan accounts followed a lawsuit by state-owned bank VTB, aiming to reclaim funds blocked abroad. In a tit-for-tat move, JPMorgan retaliated by suing VTB Bank in the US, seeking to block its efforts to recover $439.5 million.<\/p>\n","post_title":"Russian Court Reverses Seizure Of JPMorgan's Funds","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"russian-court-reverses-seizure-of-jpmorgans-funds","to_ping":"","pinged":"","post_modified":"2024-05-05 03:42:10","post_modified_gmt":"2024-05-04 17:42:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16452,"post_author":"14","post_date":"2024-04-19 23:53:19","post_date_gmt":"2024-04-19 13:53:19","post_content":"\n

Federal Reserve<\/a> Chair Jerome Powell said this week that recent inflation data has not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought.<\/p>\n\n\n\n

The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

Despite VTB's claim of $439.5 million being blocked by JPMorgan in a New York correspondent account due to US sanctions, the court has opted to release the frozen funds within Russia. This decision followed JPMorgan's filing, which indicated that the value of claims against it and orders to freeze assets exceeded its available assets in Russia.<\/p>\n\n\n\n

The legal tussle between VTB and JPMorgan resulted from claims by the former that the US bank obstructed $439.5 million in its correspondent account in New York during the time VTB faced US sanctions. Consequently, the Russian court initially ordered the seizure of funds in JPMorgan's accounts in Russia. However, with the recent ruling, JPMorgan's assets held in type C accounts, amounting to 204.7 billion rubles, have been freed from seizure.<\/p>\n\n\n\n

See Related: <\/em><\/strong>United States DOJ Seizes Over 55M Robinhood Shares And US$22M In Relation To SBF And FTX<\/a><\/p>\n\n\n\n

Impact on JPMorgan's Russian Operations<\/h2>\n\n\n\n

JPMorgan's total assets in Russia stand at 243.3 billion rubles, with a significant portion locked in type C accounts. These accounts, predominantly held by foreigners, restrict money movement abroad but also safeguard against seizure, as per presidential decrees. The court's decision not only releases the frozen funds but also enables JPMorgan's Russian subsidiary to resume its operations, including the disbursement of staff wages and tax payments from a separate current account.<\/p>\n\n\n\n

In a recent filing, JPMorgan Chase alerted investors<\/a> that its assets in Russia could face seizure following legal actions in both Russian and US courts. The embattled bank finds itself entangled in various legal challenges concerning its Russian operations, triggered by the imposition of economic sanctions on Russia by the US and European nations in response to the Ukraine conflict.<\/p>\n\n\n\n

JPMorgan's predicament stems from a series of lawsuits surrounding its dealings in Russia. A Russian court's recent decision to seize funds in JPMorgan accounts followed a lawsuit by state-owned bank VTB, aiming to reclaim funds blocked abroad. In a tit-for-tat move, JPMorgan retaliated by suing VTB Bank in the US, seeking to block its efforts to recover $439.5 million.<\/p>\n","post_title":"Russian Court Reverses Seizure Of JPMorgan's Funds","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"russian-court-reverses-seizure-of-jpmorgans-funds","to_ping":"","pinged":"","post_modified":"2024-05-05 03:42:10","post_modified_gmt":"2024-05-04 17:42:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16452,"post_author":"14","post_date":"2024-04-19 23:53:19","post_date_gmt":"2024-04-19 13:53:19","post_content":"\n

Federal Reserve<\/a> Chair Jerome Powell said this week that recent inflation data has not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought.<\/p>\n\n\n\n

The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n

A Russian court has reversed the seizure of JPMorgan's funds in Russia in an ongoing dispute between the US bank and Russian state lender VTB, Reuters <\/em>reported<\/a>. The ruling affects a portion of JPMorgan's assets, specifically those held in type C accounts and used for internal operations such as staff wages and tax payments.<\/p>\n\n\n\n

Despite VTB's claim of $439.5 million being blocked by JPMorgan in a New York correspondent account due to US sanctions, the court has opted to release the frozen funds within Russia. This decision followed JPMorgan's filing, which indicated that the value of claims against it and orders to freeze assets exceeded its available assets in Russia.<\/p>\n\n\n\n

The legal tussle between VTB and JPMorgan resulted from claims by the former that the US bank obstructed $439.5 million in its correspondent account in New York during the time VTB faced US sanctions. Consequently, the Russian court initially ordered the seizure of funds in JPMorgan's accounts in Russia. However, with the recent ruling, JPMorgan's assets held in type C accounts, amounting to 204.7 billion rubles, have been freed from seizure.<\/p>\n\n\n\n

See Related: <\/em><\/strong>United States DOJ Seizes Over 55M Robinhood Shares And US$22M In Relation To SBF And FTX<\/a><\/p>\n\n\n\n

Impact on JPMorgan's Russian Operations<\/h2>\n\n\n\n

JPMorgan's total assets in Russia stand at 243.3 billion rubles, with a significant portion locked in type C accounts. These accounts, predominantly held by foreigners, restrict money movement abroad but also safeguard against seizure, as per presidential decrees. The court's decision not only releases the frozen funds but also enables JPMorgan's Russian subsidiary to resume its operations, including the disbursement of staff wages and tax payments from a separate current account.<\/p>\n\n\n\n

In a recent filing, JPMorgan Chase alerted investors<\/a> that its assets in Russia could face seizure following legal actions in both Russian and US courts. The embattled bank finds itself entangled in various legal challenges concerning its Russian operations, triggered by the imposition of economic sanctions on Russia by the US and European nations in response to the Ukraine conflict.<\/p>\n\n\n\n

JPMorgan's predicament stems from a series of lawsuits surrounding its dealings in Russia. A Russian court's recent decision to seize funds in JPMorgan accounts followed a lawsuit by state-owned bank VTB, aiming to reclaim funds blocked abroad. In a tit-for-tat move, JPMorgan retaliated by suing VTB Bank in the US, seeking to block its efforts to recover $439.5 million.<\/p>\n","post_title":"Russian Court Reverses Seizure Of JPMorgan's Funds","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"russian-court-reverses-seizure-of-jpmorgans-funds","to_ping":"","pinged":"","post_modified":"2024-05-05 03:42:10","post_modified_gmt":"2024-05-04 17:42:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16452,"post_author":"14","post_date":"2024-04-19 23:53:19","post_date_gmt":"2024-04-19 13:53:19","post_content":"\n

Federal Reserve<\/a> Chair Jerome Powell said this week that recent inflation data has not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought.<\/p>\n\n\n\n

The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

\"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

\"Current
Source: Reuters<\/figcaption><\/figure>\n\n\n\n

See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

Retail Sales Report<\/h2>\n\n\n\n

Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

Morgan Stanley's Forecast<\/h2>\n\n\n\n

In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

Operating Committee Members<\/h2>\n\n\n\n

The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Most Read

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Follow The Distributed

ADVERTISEMENT
\n
  • The dispute arose from VTB's claim that JPMorgan obstructed $439.5 million in its correspondent account in New York.<\/li>\n<\/ul>\n\n\n\n

    A Russian court has reversed the seizure of JPMorgan's funds in Russia in an ongoing dispute between the US bank and Russian state lender VTB, Reuters <\/em>reported<\/a>. The ruling affects a portion of JPMorgan's assets, specifically those held in type C accounts and used for internal operations such as staff wages and tax payments.<\/p>\n\n\n\n

    Despite VTB's claim of $439.5 million being blocked by JPMorgan in a New York correspondent account due to US sanctions, the court has opted to release the frozen funds within Russia. This decision followed JPMorgan's filing, which indicated that the value of claims against it and orders to freeze assets exceeded its available assets in Russia.<\/p>\n\n\n\n

    The legal tussle between VTB and JPMorgan resulted from claims by the former that the US bank obstructed $439.5 million in its correspondent account in New York during the time VTB faced US sanctions. Consequently, the Russian court initially ordered the seizure of funds in JPMorgan's accounts in Russia. However, with the recent ruling, JPMorgan's assets held in type C accounts, amounting to 204.7 billion rubles, have been freed from seizure.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>United States DOJ Seizes Over 55M Robinhood Shares And US$22M In Relation To SBF And FTX<\/a><\/p>\n\n\n\n

    Impact on JPMorgan's Russian Operations<\/h2>\n\n\n\n

    JPMorgan's total assets in Russia stand at 243.3 billion rubles, with a significant portion locked in type C accounts. These accounts, predominantly held by foreigners, restrict money movement abroad but also safeguard against seizure, as per presidential decrees. The court's decision not only releases the frozen funds but also enables JPMorgan's Russian subsidiary to resume its operations, including the disbursement of staff wages and tax payments from a separate current account.<\/p>\n\n\n\n

    In a recent filing, JPMorgan Chase alerted investors<\/a> that its assets in Russia could face seizure following legal actions in both Russian and US courts. The embattled bank finds itself entangled in various legal challenges concerning its Russian operations, triggered by the imposition of economic sanctions on Russia by the US and European nations in response to the Ukraine conflict.<\/p>\n\n\n\n

    JPMorgan's predicament stems from a series of lawsuits surrounding its dealings in Russia. A Russian court's recent decision to seize funds in JPMorgan accounts followed a lawsuit by state-owned bank VTB, aiming to reclaim funds blocked abroad. In a tit-for-tat move, JPMorgan retaliated by suing VTB Bank in the US, seeking to block its efforts to recover $439.5 million.<\/p>\n","post_title":"Russian Court Reverses Seizure Of JPMorgan's Funds","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"russian-court-reverses-seizure-of-jpmorgans-funds","to_ping":"","pinged":"","post_modified":"2024-05-05 03:42:10","post_modified_gmt":"2024-05-04 17:42:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16452,"post_author":"14","post_date":"2024-04-19 23:53:19","post_date_gmt":"2024-04-19 13:53:19","post_content":"\n

    Federal Reserve<\/a> Chair Jerome Powell said this week that recent inflation data has not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought.<\/p>\n\n\n\n

    The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

    As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

    \"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

    \"Current
    Source: Reuters<\/figcaption><\/figure>\n\n\n\n

    See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

    Retail Sales Report<\/h2>\n\n\n\n

    Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

    James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

    Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

    It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

    The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

    In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

    Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

    See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

    Morgan Stanley's Forecast<\/h2>\n\n\n\n

    In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

    While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

    As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

    Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

    The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

    In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

    Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

    The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

    See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

    Operating Committee Members<\/h2>\n\n\n\n

    The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

    Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

    Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

    According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

    In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

    As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

    Most Read

    Subscribe To Our Newsletter

    By subscribing, you agree with our privacy and terms.

    Follow The Distributed

    ADVERTISEMENT
    \n
  • The ruling freed assets totaling 204.7 billion rubles.<\/li>\n\n\n\n
  • The dispute arose from VTB's claim that JPMorgan obstructed $439.5 million in its correspondent account in New York.<\/li>\n<\/ul>\n\n\n\n

    A Russian court has reversed the seizure of JPMorgan's funds in Russia in an ongoing dispute between the US bank and Russian state lender VTB, Reuters <\/em>reported<\/a>. The ruling affects a portion of JPMorgan's assets, specifically those held in type C accounts and used for internal operations such as staff wages and tax payments.<\/p>\n\n\n\n

    Despite VTB's claim of $439.5 million being blocked by JPMorgan in a New York correspondent account due to US sanctions, the court has opted to release the frozen funds within Russia. This decision followed JPMorgan's filing, which indicated that the value of claims against it and orders to freeze assets exceeded its available assets in Russia.<\/p>\n\n\n\n

    The legal tussle between VTB and JPMorgan resulted from claims by the former that the US bank obstructed $439.5 million in its correspondent account in New York during the time VTB faced US sanctions. Consequently, the Russian court initially ordered the seizure of funds in JPMorgan's accounts in Russia. However, with the recent ruling, JPMorgan's assets held in type C accounts, amounting to 204.7 billion rubles, have been freed from seizure.<\/p>\n\n\n\n

    See Related: <\/em><\/strong>United States DOJ Seizes Over 55M Robinhood Shares And US$22M In Relation To SBF And FTX<\/a><\/p>\n\n\n\n

    Impact on JPMorgan's Russian Operations<\/h2>\n\n\n\n

    JPMorgan's total assets in Russia stand at 243.3 billion rubles, with a significant portion locked in type C accounts. These accounts, predominantly held by foreigners, restrict money movement abroad but also safeguard against seizure, as per presidential decrees. The court's decision not only releases the frozen funds but also enables JPMorgan's Russian subsidiary to resume its operations, including the disbursement of staff wages and tax payments from a separate current account.<\/p>\n\n\n\n

    In a recent filing, JPMorgan Chase alerted investors<\/a> that its assets in Russia could face seizure following legal actions in both Russian and US courts. The embattled bank finds itself entangled in various legal challenges concerning its Russian operations, triggered by the imposition of economic sanctions on Russia by the US and European nations in response to the Ukraine conflict.<\/p>\n\n\n\n

    JPMorgan's predicament stems from a series of lawsuits surrounding its dealings in Russia. A Russian court's recent decision to seize funds in JPMorgan accounts followed a lawsuit by state-owned bank VTB, aiming to reclaim funds blocked abroad. In a tit-for-tat move, JPMorgan retaliated by suing VTB Bank in the US, seeking to block its efforts to recover $439.5 million.<\/p>\n","post_title":"Russian Court Reverses Seizure Of JPMorgan's Funds","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"russian-court-reverses-seizure-of-jpmorgans-funds","to_ping":"","pinged":"","post_modified":"2024-05-05 03:42:10","post_modified_gmt":"2024-05-04 17:42:10","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16452,"post_author":"14","post_date":"2024-04-19 23:53:19","post_date_gmt":"2024-04-19 13:53:19","post_content":"\n

    Federal Reserve<\/a> Chair Jerome Powell said this week that recent inflation data has not given policymakers enough confidence to ease monetary policy soon, noting that the U.S. central bank may need to keep interest rates higher for longer than previously thought.<\/p>\n\n\n\n

    The latest inflation data showed that U.S. consumer prices rose more than expected in March and with rising costs for gasoline and shelter, the U.S. consumer price index rose 0.4% last month. This marked a 3.5% year-on-year rise while economists surveyed by Reuters had projected a monthly increase of 0.3% and a 3.4% year-on-year gain.<\/p>\n\n\n\n

    As a result, traders reduced their expectations for rate cuts, now indicating approximately a 17% likelihood that the Federal Reserve will decrease rates in June, compared to around 62% just a week earlier. CME Group's FedWatch tool also reported that traders reduced expectations for a July cut to 41% from approximately 76% last week. Michael Hans, chief investment officer at Citizens Private Wealth, said:<\/p>\n\n\n\n

    \"We're in this volatile sticky point right now where the Fed wants to see more data points to give them confidence they'll achieve their 2% inflation goal. The market is reacting because there were much higher expectations coming into this data that there would be a cut in June or July.\"<\/em><\/p>\n\n\n\n

    \"Current
    Source: Reuters<\/figcaption><\/figure>\n\n\n\n

    See Related: <\/em><\/strong>Bitcoin and Ethereum Price Prediction After Inflation Increased Above Expectations<\/a><\/p>\n\n\n\n

    Retail Sales Report<\/h2>\n\n\n\n

    Meanwhile, a report released on Monday showed that retail sales expanded beyond expectations in March, signaling the resilience of the U.S. economy, which contributed to driving benchmark U.S. 10-year Treasury yields to their highest levels in five months on Tuesday.<\/p>\n\n\n\n

    James St. Aubin, chief investment officer at Sierra Mutual Funds in California said that market participants are currently trying to balance this two-sided narrative: U.S. economic growth, which looks good, and at the same time the inflation picture, and interest rates, which will eventually be problematic for the stock market.<\/p>\n\n\n\n

    Some economic analysts said that the U.S. central bank became too focused on inputs after misreading inflation in 2021 and they warned that the Fed risk a recession if it cut rates later than June. Simultaneously, the increase in geopolitical uncertainties presents an extra hurdle and amplifies the possibility of unexpected risks in both markets and economic outcomes and the recommendation for investors is to take a defensive approach in the weeks ahead.<\/p>\n","post_title":"U.S. Central Bank May Need To Keep Interest Rates Higher For Longer. What To Expect In The Upcoming Days?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"u-s-central-bank-may-need-to-keep-interest-rates-higher-for-longer-what-to-expect-in-the-upcoming-days","to_ping":"","pinged":"","post_modified":"2024-04-19 23:53:23","post_modified_gmt":"2024-04-19 13:53:23","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16452","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16441,"post_author":"18","post_date":"2024-04-19 06:31:31","post_date_gmt":"2024-04-18 20:31:31","post_content":"\n

    It's been over a year since the shocking collapse of Silicon Valley Bank (<\/a>SVB) and Signature Bank, but the fallout continues to reverberate through the U.S. regional banking sector. As these smaller lenders prepare to report first-quarter earnings from April 16 onward, industry watchers anticipate they'll be forced to set aside more money to cover potential losses on commercial real estate (CRE) loans and offload more property debt from their books.<\/p>\n\n\n\n

    The renewed focus on regional banks' CRE exposure was sparked by New York Community Bank's surprising Q4 loss driven by markdowns on its real estate portfolio, raising fears about other lenders' vulnerabilities. Multifamily properties with over five units are a particular concern given that regional banks originate most such loans.<\/p>\n\n\n\n

    In a report by Reuters, the office sector's struggles are well-documented as remote work remains prevalent post-pandemic, leaving many buildings plagued by high vacancies that strain borrowers' ability to service debt. But even residential multifamily is facing headwinds, especially in pricey cities like New York and San Francisco where rent hikes were severely restricted pre-COVID based on low interest rates and inflation at the time.<\/p>\n\n\n\n

    Data from the International Monetary Fund (IMF) shows U.S. banks' non-performing CRE loans as a percentage of their total portfolios doubled from 0.4% to 0.81% over the past year as the sector's health deteriorated. The IMF noted lenders have been steadily increasing provisions for souring CRE debt.<\/p>\n\n\n\n

    See Related:<\/em><\/strong> Ripple Takes Aim At Dubai Market, CEO Reveals<\/a><\/p>\n\n\n\n

    Morgan Stanley's Forecast<\/h2>\n\n\n\n

    In a research note, Morgan Stanley forecast the CRE reserve ratio for regional banks could climb by 10-20 basis points this year.<\/p>\n\n\n\n

    While delinquency rates on CRE loans held by banks remain relatively low at 1.2% for 30-day past dues, according to S&P Global Ratings, the rating agency has already downgraded its outlook on five U.S. banks including M&T and Valley National due to CRE market stresses that may impair asset quality.<\/p>\n\n\n\n

    As banks look to shed riskier CRE exposures, some are expected to sell property loans at steep discounts to private equity investors and alternative lenders hungry for higher-yielding debt. Regulatory filings show regional lender PacWest sold construction loans at a $200 million discount last year, while the successor to failed Signature offloaded a 20% equity stake in a $16.8 billion loan portfolio to Blackstone at nearly a 30% markdown.<\/p>\n\n\n\n

    Looking ahead, while few expect a catastrophic systemic event, the road ahead for regional banks appears bumpy as they navigate the CRE downturn. Cost-cutting, capital raises, and further loan sales could feature prominently as smaller lenders aim to fortify their buffers against escalating real estate risks in an uncertain economic climate shaped by lingering inflation, higher interest rates, and potential recessionary pressures.<\/p>\n\n\n\n

    The U.S. regional banking sector must steer through carefully to avoid compounding the damage from SVB's 2023 failure.<\/p>\n","post_title":"Regional Banks in the US Brace for More Commercial Property Fallout After SVB Collapse","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"regional-banks-in-the-us-brace-for-more-commercial-property-fallout-after-svb-collapse","to_ping":"","pinged":"","post_modified":"2024-04-19 06:31:38","post_modified_gmt":"2024-04-18 20:31:38","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16441","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":16284,"post_author":"18","post_date":"2024-04-13 22:38:47","post_date_gmt":"2024-04-13 12:38:47","post_content":"\n

    In the dynamic world of finance, leadership transitions are a critical aspect of a company\u2019s strategic planning. This is particularly true for JPMorgan Chase, the largest U.S. bank, where an orderly CEO transition has become a top priority. This focus on succession planning comes 18 years after Jamie Dimon, a stalwart of the financial industry, took the helm.<\/p>\n\n\n\n

    Succession planning is not unique to JPMorgan Chase<\/a>. It\u2019s a hot topic across Wall Street. For instance, Morgan Stanley recently saw Ted Pick taking over as CEO from James Gorman, who had a 14-year tenure. Similarly, Peter Orszag assumed leadership at Lazard in October. Other banks have also been rotating executives across divisions to provide them with a well-rounded experience.<\/p>\n\n\n\n

    The dialogue around succession at JPMorgan Chase has been gradually intensifying since Dimon\u2019s emergency surgery in March 2020. However, as Chris Marinac, director of research at financial adviser Janney Montgomery Scott, points out, this doesn\u2019t necessarily mean that Dimon will be stepping down immediately.<\/p>\n\n\n\n

    See Related:<\/em><\/strong> In A Strategic Financial Shakeup, Citigroup Appoints JPMorgan's Raghavan As Head of Banking<\/a><\/p>\n\n\n\n

    Operating Committee Members<\/h2>\n\n\n\n

    The board at JPMorgan Chase is investing significant time in developing operating committee members who are well-known to shareholders as strong potential CEO candidates. These include Jennifer Piepszak and Troy Rohrbaugh, the recently appointed co-CEOs of JPMorgan\u2019s expanded commercial and investment bank, consumer and community banking CEO Marianne Lake, and asset and wealth management CEO Mary Erdoes.<\/p>\n\n\n\n

    Meanwhile, Daniel Pinto, the President, and Chief Operating Officer, is seen as the executive who could step in for the CEO in the near term, as he did in 2020 when Dimon had an emergency heart surgery.<\/p>\n\n\n\n

    Dimon hailed U.S. leadership and economic power in his annual letter to shareholders, invoking \u201cliberty and justice for all.\u201d Dimon, who took the reins in 2006, is among a group of financial CEOs whose names have been floated for senior economic roles in government.<\/p>\n\n\n\n

    According to a recent report by Reuters, Dimon\u2019s compensation climbed about 4.3% to $36 million in 2023. Pinto\u2019s total compensation came in at $30 million, while Erdoes was paid $27 million. Piepszak and Lake each earned $18.5 million in 2023, while Chief Financial Officer Jeremy Barnum earned $15 million.<\/p>\n\n\n\n

    In a recent announcement, the lender also shared that two directors on its board - Timothy Flynn and Michael Neal - have decided to retire when their terms expire on the eve of its 2024 annual meeting of shareholders in May.<\/p>\n\n\n\n

    As the finance world keenly watches these developments, JPMorgan\u2019s shares were marginally higher in premarket trading. The bank is set to report its first-quarter results on Friday.<\/p>\n","post_title":"The Succession Plan At JPMorgan Chase: What\u2019s Next?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"the-succession-plan-at-jpmorgan-chase-whats-next","to_ping":"","pinged":"","post_modified":"2024-04-13 22:38:52","post_modified_gmt":"2024-04-13 12:38:52","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=16284","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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