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Credit Suisse announced it will be borrowing up to 50 billion Swiss francs, about $53.68 billion, from the Swiss National Bank under a covered loan facility and a short-term liquidity facility.

The decision comes shortly after shares of the lender fell sharply Wednesday, hitting an all-time low for a second consecutive day after its top investor, Saudi National Bank, said it won’t be able to provide further assistance.

The latest steps will “support Credit Suisse’s core businesses and clients as Credit Suisse takes the necessary steps to create a simpler and more focused bank built around client needs,” the company said in an announcement.

In addition, the bank is making a cash tender offer in relation to ten U.S. dollar denominated senior debt securities for an aggregate consideration of up to $2.5 billion — as well as a separate offer to four Euro denominated senior debt securities for up to an aggregate 500 million euros, the company said.

“These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders,” Credit Suisse CEO Ulrich Koerner said.

“We thank the SNB and FINMA as we execute our strategic transformation. My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs,” he said.

U.S. futures climbed, with the Dow Jones Industrial Average futures gaining by more than 100 points after the announcement. S&P 500 futures also rose 0.45% and Nasdaq 100 futures climbed 0.54%.

Banks in the Asia-Pacific also pared some of its earlier losses — Japan’s Topix earlier plunged by more than 2% and last traded 1.4% lower.

This post appeared first on NBC NEWS

A group of financial institutions has agreed to deposit $30 billion in First Republic Bank in what’s meant to be a sign of confidence in the banking system, the banks announced Thursday afternoon.

Bank of America, Wells Fargo, Citigroup and JPMorgan Chase will contribute about $5 billion apiece, while Goldman Sachs and Morgan Stanley will deposit around $2.5 billion, the banks said in a news release. Truist, PNC, U.S. Bancorp, State Street and Bank of New York Mellon will deposit about $1 billion each.

“This action by America’s largest banks reflects their confidence in First Republic and in banks of all sizes, and it demonstrates their overall commitment to helping banks serve their customers and communities,” the group said in a statement.

The deposits would be obligated to stay at First Republic for at least 120 days, sources told CNBC’s David Faber. Regional bank stocks initially fell on Thursday but reversed higher after reports from Faber and others about the development of the deposit plan.

The news comes after First Republic’s stock has been pummeled in recent days, sparked by the collapse of Silicon Valley Bank last Friday and Signature Bank over the weekend. Both of those banks had a high number of uninsured deposits, as did First Republic, leading to concern that customers would pull their money out. The new deposits from the major banks are uninsured.

First Republic’s stock, which closed at $115 per share on March 8, traded below $20 at one point Thursday. The stock was halted repeatedly during the session and rose to $40 per share at one point, up more than 20% on the day.

This post appeared first on NBC NEWS

Democratic lawmakers unveiled plans Thursday to largely eliminate the use of cash bail in Wisconsin, clashing with Republicans who proposed a constitutional amendment to make it harder for people to get out of jail before trial.

The Democratic proposal, which almost certainly will not pass the Republican-controlled Legislature, would rely on risk assessments to allow most defendants to be released from jail before trial.

Democrats presented the plan as an alternative to a proposed constitutional amendment Republicans placed on the April 4 ballot that would allow judges to consider the criminal histories of people accused of violent crimes when setting bail. Democratic Gov. Tony Evers cannot veto the amendment if it is ratified by a majority of voters next month. The measure’s sponsor, Republican Sen. Van Wanggaard, said it will allow judges to set higher bail amounts for people they deem a risk to public safety.

But criminal justice advocates warn it could worsen crime rates and increase disparities between rich and poor. Research on bail shows that people who are detained before trial are more likely to plead guilty, often accepting plea deals to end their detainment, and more likely to be unemployed in the years after their release. It’s not uncommon for people to lose their jobs and even their homes while in jail awaiting trial.

‘Incarceration for just a day or two can destroy a person’s life for a crime they may not have even committed,’ Jon McCray Jones, a policy analyst at the ACLU of Wisconsin, said at a news conference Thursday announcing the Democratic bail measures.

Meanwhile, the Republican bail plan came one step closer to completion on Thursday when the Senate judiciary committee voted 5-3 along party lines to approve a bill defining what offenses would be considered violent crimes. The bill will only go into effect if the proposed amendment is approved by voters.

The Republican bill is scheduled for an Assembly vote Wednesday. It must also pass the Senate and be approved by Democratic Gov. Tony Evers to take effect.

Opponents have criticized the list of crimes proposed by Republicans as too extensive. It includes offenses such as watching a cockfight or leaving a firearm where a child gains access to it.

‘It could be devastating to us as a state and our prison and jail population will move out of control,’ said Jerome Dillard, executive director of Ex-Incarcerated People Organizing, or EXPO. The group lost a lawsuit last month seeking to block the bail amendment from the April ballot.

It’s not clear what crimes Democrats plan to include in their own list of violent offenses that could preclude someone from being released before trial. Democratic lawmakers said Thursday that they had not finished writing their proposals. Rep. Ryan Clancy, who is sponsoring the plan alongside Sen. Chris Larson, said it would likely not include misdemeanors.

This post appeared first on FOX NEWS

Numerous Mar-a-Lago staff members have been subpoenaed as part of an investigation into former President Donald Trump’s handling of classified documents, a source familiar with the situation confirmed to Fox News.

The source did not know the exact number of staff members who were issued court orders.

CNN reported that Trump’s communication aide Margo Martin appeared before a grand jury in Washington, D.C., on Thursday, though she declined to answer questions when approached by one of the media company’s reporters.

Special counsel Jack Smith is handling investigations into Trump over the FBI’s discovery of classified documents at his Palm Beach, Florida, home at Mar-a-Lago, as well as his alleged involvement in the Jan. 6, 2021, riot at the U.S. Capitol.

According to CNN, Smith is looking for testimony from people in Trump’s inner circle, including Mar-a-Lago staffers, seeking an insight into things they may have seen or heard while working at the estate.

Sources told CNN that legal services for the staffers are being paid for by Trump entities.

Attorney General Merrick Garland appointed Smith to investigate the entirety of the criminal probe into the unlawful retention of national defense information at Trump’s Mar-a-Lago resort.

In the role, Smith will oversee the investigation into Trump’s retention of classified documents after leaving the White House and whether he obstructed the federal government’s investigation into the matter.

On Aug. 8, FBI agents raided Trump’s home at Mar-a-Lago and seized classified records, including some marked as top secret, according to a warrant and property receipt.

U.S. Magistrate Judge Bruce Reinhart signed the warrant, giving agents the authority to seize ‘all physical documents and records constituting evidence, contraband, fruits of crime, or other items illegally possessed’ in violation of U.S. Code, including documents with classification markings and presidential records created between Jan. 20, 2017, and Jan. 20, 2021.

The property receipt showed FBI agents took approximately 20 boxes of items from the premises, including one set of documents marked as ‘Various classified/TS/SCI documents,’ which refers to top secret/sensitive compartmented information.

Classified documents have also been found at the homes of President Biden and former Vice President Mike Pence, and the Justice Department is handling investigations into those discoveries, as well.

This post appeared first on FOX NEWS

Gov. Roy Cooper on Thursday urged the operators of a large western North Carolina paper mill set to shutter to find a way to keep it running, saying a closure would have a ‘devastating effect’ on the region and its people.

Pactiv Evergreen announced last week that it expected to close its Canton mill during the second quarter as part of a restructuring of its beverage merchandizing operations. About 1,100 employees are expected to lose their jobs.

In a letter, Cooper asked Pactiv Evergreen USA CEO Mike King to ‘explore all options’ to keep the mill operating, whether through a sale, repurposing of the plant, or through any other means.

The mill ‘has been in operation for more than a century and has been the lifeblood of that town and region,’ Cooper wrote. ‘Our priority remains to support the people affected by this unexpected closure by providing any available resources to their relief and recovery.’

The company said in its March 6 announcement that about 1,300 positions would be eliminated with the closing of the Canton mill and a converting facility in Olmsted Falls, Ohio.

Cooper also put the company on notice that the state would seek to recover $12 million in state-funded incentives received to keep the mill operating if it closed.

A Job Maintenance and Capital Development grant agreement announced in late 2014 between the state and two subsidiaries required the company to retain at least 800 full-time workers through the end of 2024, according to Cooper.

‘If you follow through your announced plans, we will demand full repayment of those funds,’ Cooper wrote.

Attorney General Josh Stein on Thursday sent a separate letter to King that went further, demanding his company repay the grant funds immediately based on ‘the company’s clear intent to breach’ the agreement. Stein also reminded King of Pactiv Evergreen’s responsibilities to address any outstanding environmental issues at the mill site.

Local officials have pledged resources to the workers who are expected to be laid off. Cooper’s state government budget proposal released on Wednesday recommended $5 million be set aside to support employee and community needs in Canton. The budget document said any incentives clawed back from the two subsidiaries would be used to help Canton.

This post appeared first on FOX NEWS

The Michigan Court of Appeals on Thursday again rejected an attempt to revive charges in the Flint water scandal, ruling in favor of former Gov. Rick Snyder who was indicted on misdemeanors.

The attorney general’s office has repeatedly tried to convince judges that a landmark decision last summer from the Michigan Supreme Court didn’t actually doom the Flint water prosecution. But prosecutors continue to rack up losses.

In Snyder’s case, the appeals court swept aside the state’s appeal in a one-sentence order.

Snyder was governor in 2014 when Flint, under state management, began using the Flint River as a water source. But unlike the previous supply, the water wasn’t treated to reduce the impact on old pipes, unleashing lead throughout the city.

Snyder, who left office in 2019, was indicted on two misdemeanor counts of willful neglect of duty.

The state Supreme Court last June unanimously said a one-judge grand jury can’t issue indictments. As a result, charges have been dismissed against Snyder, former health director Nick Lyon and six others.

The attorney general’s office, however, isn’t giving up. It’s now asking the Supreme Court to take yet another look at Lyon’s case. He is blamed for some Legionnaires’ disease deaths in the Flint area during the water switch.

The case has been a ‘mess caused by the overly zealous prosecution,’ Lyon’s attorneys said in a recent filing.

This post appeared first on FOX NEWS

Fourteen Republican lawmakers who have their pilot’s license are calling on President Biden to withdraw his nominee to lead the Federal Aviation Administration because he has ‘zero aviation experience.’

‘While Mr. Washington honorably served our nation in the Army, he did not serve in an aviation unit,’ the lawmakers wrote in a Thursday letter to Biden. ‘He is not a pilot, has zero aviation safety experience, and is entirely unqualified to lead the federal agency responsible for keeping the flying public safe.’

The Republicans pointed out that federal law requires the FAA administrator to have ‘experience in a field directly related to aviation,’ and said Biden’s nominee, Phil Washington, doesn’t make the cut.

‘The FAA cannot afford to be led by someone who needs on-the-job training, especially at a time when our aviation system is facing tremendous safety challenges such as multiple near-misses by airlines and the first nationwide ground stop of aircraft since 9/11,’ they wrote.

Signatories to the letter said they have collectively logged thousands of flight hours, including some for the military. But they said Washington ‘has never flown a plane, never worked for an airline or an aircraft manufacturer, and never served as an air traffic controller.’

‘His aviation experience is limited to working at the Denver airport for less than two years,’ they wrote, referring to his current role as CEO of the Denver International Airport. ‘In that role, Mr. Washington is primarily responsible for non-aviation matters, such as the airport’s shops, restaurants, parking, and buildings.’

The letter was signed by Sens. Ted Budd of North Carolina and Mike Rounds of South Dakota, along with 12 ‘congressional aviators.’

Washington’s lack of experience in the aviation industry led to tough questioning from Republicans in the Senate Commerce Committee. Sen. Ted Cruz, R-Texas, urged senators to investigate his background further and has called Washington ‘woefully unqualified.’

Cruz predicted last week that Washington would have trouble winning the votes for confirmation.

The Senate Commerce Committee is set to vote next week on Washington’s confirmation. A successful vote there would send the nomination to the Senate floor.

This post appeared first on FOX NEWS

On this week’s edition of Stock Talk with Joe Rabil, Joe shows how the the 4MA can be used to provide insight into short-term countertrend opportunities. He then explains how these opportunities can be used as a part of a bigger play. He then covers the stock symbol requests that came through this week.

This video was originally broadcast on March 16, 2023. Click this link to watch on YouTube. You can also view new episodes – and be notified as soon as they’re published – using the StockCharts on demand website, StockChartsTV.com, or its corresponding apps on Roku, Fire TV, Chromecast, iOS, Android and more!

New episodes of Stock Talk with Joe Rabil air on Thursdays at 2pm ET on StockCharts TV. Archived episodes of the show are available at this link. Send symbol requests to stocktalk@stockcharts.com; you can also submit a request in the comments section below the video on YouTube. Symbol Requests can be sent in throughout the week prior to the next show. (Please do not leave Symbol Requests on this page.)

In this week’s edition of the GoNoGo Charts show, Alex takes the GoNoGo approach to the markets this week as he looks at the GoNoGo Asset map, noting the NoGo Trends in equities and commodities, while the dollar holds on to its “Go” trend. After running through macro charts of 10-year rates, the dollar, Gold, and Oil, he discusses the struggles of regional banks and advises a risk management approach when looking at a chart such as that of $KRE. He also talks capitalizing on a “NoGo” trade in $GS. Alex then opens up the GoNoGo Sector RelMap and sees that there is break up in the map this week as markets are uncertain. One area of strength is in Technology with the sector outperforming the index as a whole. Digging into tech, we see that semiconductors remain in a relative “Go” trend, so Alex pulls up a chart from an early-week research piece of $NVDA.

This video was originally recorded on March 16, 2023. Click this link to watch on YouTube. You can also view new episodes – and be notified as soon as they’re published – using the StockCharts on demand website, StockChartsTV.com, or its corresponding apps on Roku, Fire TV, Chromecast, iOS, Android, and more!

New episodes of GoNoGo Charts air on Thursdays at 3:30pm ET on StockCharts TV. Learn more about the GoNoGo ACP plug-in with the FREE starter plug-in or the full featured plug-in pack.

What a difference a day makes. So much for Tuesday’s relief rally in banks. The banking contagion continued with Credit Suisse’s fallout, which brought the banking fiasco to a global level. The domino effect was felt in the banking sector once again and continued into Thursday, with national and regional banks getting hit hard. One look at the chart of the KBW Bank Index ($BKX) will give you a good idea of how hard the banking sector was hit. As of Thursday morning, the large banks have lost about $165 billion in market cap. Ouch!

CHART 1: WHEN WILL BANK STOCKS REVERSE? Keep an eye on the KBW Bank Index ($BKX) for any signs of reversal.Chart source: StockCharts.com. For illustrative purposes only.

$BKX has a long way to go before coming close to its 200-day moving average, but what is more interesting is that the index started falling a few days before the Silicon Valley Bank news broke. It’s easy to say in hindsight, but if you had this index in one of your ChartLists, you might have noticed that it fell below its 200-day moving average on March 7, 2023. Silvergate was the first to collapse, but, because they were focused on cryptocurrencies, maybe investors thought it unlikely to spill over to other banks. Regardless, that move below the 200-day MA should have alerted you that something may have been brewing in the banking sector.

What the Regional Bank Crisis Mean for the Economy

Economic growth and banking performance are strongly correlated. In light of the selloff in the banks, along with the more recent inflation data indicating that inflation is cooling, will the Federal Reserve pause their interest rate hikes in their meeting scheduled for next week? The ECB raised interest rates by 50 basis points even after the Credit Suisse fiasco. Given that inflation is still a concern, it’s likely the Fed will raise 25 bps. 

More importantly, what does the banking crisis mean for the overall economy? The implications are still uncertain. That’s because we are in an inflationary environment, and the Fed has stated that its objective is to bring inflation down to 2%. So, on the one hand, the Fed is fighting inflation without significantly slowing the economy, while, on the other hand, it’s trying to bring some stability to the financial markets.

 It’s worth keeping an eye on ratios such as value vs. growth, small caps vs. large caps, stocks vs. commodities, and so on.

As long as the Fed is wrestling with monetary policy decisions, don’t be surprised to see more volatility in the stock markets. Rising interest rates, an inverted yield curve, and a slowing economy may have played a role in exposing some banks to additional risk. What does increased volatility mean for your portfolio? Should you be looking at growth or value stocks? Technology? Gold?

A volatile environment sends people to different asset classes. Gold prices have moved higher since the banking fallout, the Technology sector is another attractive opportunity, and investors are also turning to invest in Bitcoin. Remember, a volatile market means chasing different asset classes to make short-term returns. If that’s not your thing, you may be better off waiting for investor sentiment to settle before deciding where to invest. It’s worth keeping an eye on ratios such as value vs. growth, small caps vs. large caps, stocks vs. commodities, and so on.

The chart below is of value vs. growth stocks. Notice that value stocks have had a steep decline with respect to growth stocks. Keep an eye out for a reversal with follow-through in this ratio.

CHART 2: VALUE STOCKS PLUMMET WITH RESPECT TO GROWTH STOCKS. Does it mean you should invest in growth stocks or something else? During uncertain times, investors move from one asset class to another, hoping to make short-term returns.Chart source: StockCharts.com. For illustrative purposes only.

Some of the large national banks are considered value stocks, and those could see some relief if the downfall is more focused on regional banks. Besides banks, homebuilders, communications networks, and semiconductor stocks make up many value stocks.

The regional bank crisis will likely spill over into homebuilders and real estate investment trusts (REITs). Remember, homebuilders and commercial developers depend on regional banks for loans. If the regional banks tighten lending, it could hurt these industries. On the other hand, lower mortgage rates could help the housing market, but it remains to be seen if the demand will be enough to support homebuilders.

Following Market Breadth

A bigger concern is when banks will start turning around. It’s something to watch, because you could pick up some bank stocks at bargain prices. Two charts to add to your ChartLists would be the SPDR S&P Bank ETF (KBE) and the SPDR S&P Regional Banking ETF (KRE). Let’s focus on KBE, since that encompasses the larger banks, which could see relief quicker than the regional banks.

The chart below analyzes the market breadth of KBE. Market breadth indicators are great at showing when investor sentiment may have changed. StockCharts has a collection of market breadth indicators that can be used for various sectors or the overall market. The bullish percent index of the financials and the advance-decline line are just two out of a long list.

CHART 3: GETTING A SNAPSHOT OF MARKET INTERNALS. Market breadth indicators help identify changes in investor sentiment. Here, two market breadth indicators are applied to the chart of the SPDR S&P Bank Index (KBE).Chart source: StockCharts.com. For illustrative purposes only.

The S&P Financial Sector Bullish Percent Index ($BPFINA) has fallen in step with the SPDR S&P Bank ETF (ticker: KBE) and is well below 30%. This indicates widespread weakness in the Financial sector. It’ll have to turn, move above 30%, and follow through to show a change in investor sentiment. Remember, the bullish percent index is an indicator based on point and figure charts. That means that any rally attempts will have to form higher highs before the bullish percent index reverses.

Another indicator added to the above chart is the advance-decline line. Since the big banks and some of the regional banks tend to be large-cap stocks, you could apply the SPX Advance-Decline line to analyze the banking sector. This line also trending lower, suggesting that there continues to be broad participation in the market decline. More interesting is that, since early February, this line has been trending lower. Try out different market breadth indicators with different sectors to identify which sectors are reversing and which ones are trending. In a volatile market, it’s best to keep an eye on all market sectors.

The Bottom Line

It’s only natural for investors to be reminded of the 2008 crisis and think that the regional bank fallout could elevate the possibility of a recession. But that depends on the depth of the financial stress, which will unravel over time. So, let’s hope this banking crisis is more controlled and the damages are short-lived. In the meantime, be prepared for more volatility.

Disclaimer: This blog is for educational purposes only and should not be construed as financial advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional.