Connect with us

bank

$512,900,000,000 in Unrealized Losses Hit US Banks As Number of ‘Problem Banks’ Rises To 66: FDIC

Published

on


The number of US banks with major issues is on the rise, according to the Federal Deposit Insurance Corporation (FDIC).

The agency’s Second Quarter 2024 Quarterly Banking Profile shows the number of lenders on its “Problem Bank List” rose quarter-on-quarter from 63 to 66.

It’s the fifth consecutive quarterly increase of banks rated 4 or 5 on the CAMELS ratings system since the second quarter of 2023.

A rating of 4 on the CAMELS system indicates a bank is suffering from financial, operational or managerial issues that could reasonably threaten viability if unresolved, while a rating of 5 indicates a bank is critically deficient and requires immediate remedial attention.

“The number of problem banks represent 1.5% of total banks, which is within the normal range for non-crisis periods of 1% to 2% of all banks. Total assets held by problem banks increased $1.3 billion to $83.4 billion.”

Number and Asset of Bank on the Problem Bank List - second quarter 2024

Meanwhile, US banks continue to saddle billions of dollars in unrealized losses on securities. The FDIC reports $512.9 billion in total unrealized losses in the second quarter, a 0.7% quarter-on-quarter decrease.

Says FDIC chairman Martin Gruenberg,

“Interest rates increased modestly in the second quarter, putting downward pressure on bond prices, but the resulting increase in unrealized losses was more than offset by the sale of bonds by several large banks that resulted in substantial realized losses.

This is the tenth straight quarter that the industry has reported unusually high unrealized losses since the Federal Reserve began to raise interest rates in first quarter 2022.”

The dangers of unrealized losses came into focus last year amid the collapse of Silicon Valley Bank, when concerns about the lender’s balance sheet triggered a bank run.

Today, Gruenberg says the US banking industry continues to demonstrate resilience, but risks remain.

“…The industry still faces significant downside risks from uncertainty in the economic outlook, market interest rates, and geopolitical events. These issues could cause credit quality, earnings, and liquidity challenges for the industry.

In addition, weakness in certain loan portfolios, particularly office properties, credit cards, and multifamily loans, continues to warrant monitoring. These issues, together with funding and margin pressures, will remain matters of ongoing supervisory attention by the FDIC.”

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney





Source link

bank

$18,883 Drained From Wells Fargo Account, Bank Says Reimbursement Not Happening, Customer Says She’s Leaving

Published

on


A Wells Fargo customer says she’s done with the bank after an impostor posing as the lender drained $18,883 from her account.

Colorado resident Melanie Sponselee says she received an alert on her phone that appeared to be from Wells Fargo asking if she had made a large transaction, reports the NBC-affiliated news station 9News.

She replied “no,” and immediately received a phone call from someone pretending to be with the bank, claiming her accounts were compromised and that they would help her open a new one.

After talking with the scammers, Sponselee says she quickly began to worry she was being duped and raced to Wells Fargo.

“There’s a branch down the street from my house. I got on the phone, got in my car, five minutes later after I got off the phone, I walked into the branch. They were like – oh, I’m sorry. We don’t have an appointment until 1pm.

Also, on the way to Wells Fargo, I called the bank five times, and every time I tried to ask for help the call kept getting dropped. That happened six times.”

Ultimately, the scammers stole $18,883 via wire transfer. Wells Fargo contacted the corresponding bank and says it clawed back $3,300.

The bank refuses to refund the rest.

“My expectations would have been, when I asked for help, to immediately help me. Immediately. Take it seriously.

And also, that they would protect me, that they would back me up. They would fix it.”

When asked about its decision to not reimburse, Wells Fargo repeated what it told Sponselee – wire transfers are usually irreversible, even if a customer reports the crime quickly.

The bank has declined to answer specific questions about Sponselee’s case.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney





Source link

Continue Reading

bank

FV Bank and Visa launch new cards to merge crypto and USD

Published

on



FV Bank and Visa have partnered to introduce new debit and corporate expense cards, which were announced at Money 20/20 in Las Vegas.

FV Bank’s new Visa cards let customers spend fiat and digital assets globally, marking a first in integrated banking and crypto solutions for individuals and businesses.

According to the bank, these cards will allow FV Bank customers, both in the U.S. and internationally, to access and spend funds from their traditional USD and digital asset balances, offering global payment options at millions of locations.

Fiat or crypto 

With these cards, FV Bank clients can spend or withdraw cash from their bank accounts, either through traditional funds or by converting digital assets such as Bitcoin (BTC), Ethereum (ETH) and stablecoins like USDC (USDC).

This means users with cryptocurrency held in FV Bank’s custody accounts can now instantly convert and use their assets in real-world transactions. The bank’s principal Visa membership also ensures cardholders have access to various payment methods, including tap-to-pay, chip, and magstripe.

Corporate clients benefit from expense cards that allow companies to set spending limits, authorize specific users, and track expenses in real time, all manageable via FV Bank’s app. 



Source link

Continue Reading

bank

Billion-Dollar Bank Refuses To Reimburse Customer After $10,000 Stolen From Account – Until the Media Gets Involved: Report

Published

on


America’s 20th-largest bank by total assets is accused of refusing to reimburse a customer who lost money to a scammer impersonating the lender.

It started when Thomas McConnell’s wife received a text message claiming to be from USAA asking her to verify a credit card purchase, reports Fox San Antonio.

“After responding ‘no’ she did not make the charge, she immediately got a call from someone she thought worked at USAA. ‘On the caller ID it said USAA,’ McConnell recounted. He says his wife was asked to pass along sensitive account information. Thinking she was talking to a USAA agent, she did.

When she checked her account, and did not see a pending charge, she called USAA to tell them about the fraud alert. ‘And they said well that’s not us,’ McConnell said. It was in that moment she knew she’d been tricked.”

According to the report, the McConnells’ lost approximately $10,000 after about half the amount was transferred from out of their checking account while $5,600 was charged to their USAA credit card.

Fox San Antonio reports that the McConnells neither received an alert on the unusual transaction nor that their credit card had been used.

After the incident, which occurred in August of 2022, Thomas McConnell called USAA several times trying to get his money back but without any success.

According to Fox San Antonio, the McConnells had to borrow from family members to help with their living expenses and they continued to pay off the interest on the credit card charge.

However, Thomas McConnell recently decided to turn to Fox San Antonio’s The Problem Solver for help, and the couple now has their funds back.

The bank has also returned the interest the McConnells were forced to pay throughout the ordeal.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney





Source link

Continue Reading
Advertisement [ethereumads]

Trending

    wpChatIcon