Markets met the news of the Federal Reserve's 25 basis point interest rate cut with a quick rally, followed by an equally quick retreat.
The Dow Jones Industrial Average jumped 200 points on the news when it was announced at 2pm, but within 15 minutes had fallen by about 130 points. The Nasdaq Composite — which had been down all day — jumped about 75 points before retreating back to where it was. The KBW Bank index, however, rose by roughly 0.75% on the news and has largely retained those gains.
The Federal Open Market Committee's 25 basis point rate cut was broadly in line with market expectations, though investors may have anticipated more appetite on the committee for a larger 50 basis point cut at the September meeting. Only Stephen Miran, who was sworn in as a Fed governor Tuesday morning, dissented from the majority, favoring a 50bps cut.
The FOMC's summary of economic projections showed nine members of the committee's full membership — including voting and non-voting members of the committee — expect interest rates to reach between 3.5% and 3.75% by the end of the year, suggesting two 25 basis points cut in 2025. But another six members of the committee anticipate rates remaining at between 4% and 4.25 through 2025, while two members expect a single additional 25bps cut this year. One member expected interest rates to rise again to between 4.25 and 4.5%, while another single member expected interest rates to fall to 3% by year-end.
-
A report from Democratic staff on the Senate Permanent Subcommittee on Investigations said accounting firm KPMG gave Silicon Valley Bank, Signature Bank and First Republic clean audits despite internal warnings, fraud allegations and apparent risks of failure.
1h ago
-
Visa is introducing a premium service to the Middle East, and Lloyds Banking says its cash protection product is showing results. Plus, Brex teams up with Doordash and more in the American Banker global payments and fintech roundup.
12m ago
-
-
A bill on reciprocal deposits passed the committee unanimously, while another measure on custodial deposits passed by a wide, bipartisan margin.
September 16
-
Google has launched its Agent Payments Protocol, an open protocol that establishes a payment-agnostic framework for users, merchants and payments in agentic AI. Payment companies such as Adyen, American Express, Mastercard and PayPal helped develop the protocol.
September 16
Big banks with the strongest financial performance varied in asset size, geographies and services.
Each of the top-performing banks with more than $50 billion of assets used their own mix of revenue streams to drive performance.
Among banks with between $10 billion and $50 billion of assets, those that targeted narrow lending markets rose to the top.
The 5-year-old experiment of tying executive compensation to achieving diversity goals appears to be ending. The abrupt shift comes amid the Trump administration's crackdown on DEI.
The CEOs of smaller regional banks received fatter bonuses last year than their big-bank counterparts, possibly thanks to low performance expectations at the smaller banks after the 2023 banking crisis.
The OCC's approval of SmartBiz buying a bank opens the door to other fintech M&A deals for accessing bank charters, which can help a fintech stay in business.
The 10 winning innovations span categories from AI and payments to risk and compliance. An overall winner will be announced at American Banker's Digital Banking event on June 2.
The Brazilian neobank expanded its bank accounts for minors with new features in 2024 by adding high-yield savings "boxes" and expanding parental controls.
As real-time payments become more common, UBB's partnership with fintech Pidgin offers a roadmap for smaller banks to stay relevant.
As the class action lawsuit settlement industry became overwhelmed with fraud, a bank and a fraud scoring company teamed up to fight back.
Bankers are concerned about stablecoins gaining traction due to the passage of the GENIUS Act, and also continue to sound the alarm about the failure to resolve check fraud disputes, according to the latest quarterly survey from IntraFi.
Pulaski Savings Bank's failure will cost the FDIC's Deposit Insurance Fund 57.6% of its total assets.
The CEO of First Northwest Bancorp is promising to fight a lawsuit claiming the lender helped a client perpetrate a Ponzi scheme that bilked a hedge fund out of more than $100 million.
Most Influential Women in Payments honorees say the dramatic expansion in technology presents new opportunities and challenges as employers evolve away from traditional business models.
Honorees from American Banker's Most Influential Women in Payments discuss spotting tangible uses for innovation, rather than buying into hype.
Each year, American Banker recognizes the women who are advancing the payments industry in banking, retail, acquiring, processing and more.
- Crypto-as-a-service, stablecoins and tokenized deposits all present opportunities for banks, according to Nathan McCauley, co-founder and CEO of Anchorage Digital.Sponsored by IntraFi
-
The banks have invested in gen AI and embedded finance, respectively.
August 12
-
Each year, American Banker chooses five teams that embody the spirit of collaboration and illustrate how teamwork can have a substantial impact on a bank's top and bottom lines.
4h ago
-
The goal of the regional banking team members is to partner across their respective business lines or service areas to bring in more clients to BofA and to better serve existing clients.
4h ago
-
Led by chief SBA lending officer Anna Chung, the team oversees Hanmi's Small Business Administration lending operation, a longstanding component of the $7.8 billion-asset company's business model.
4h ago
-
Led by Jennifer Warren, who serves as the head of Wilmington Trust, the teamwork resulted in over $2 billion in revenue expansion for the institutional client services division.
4h ago
-
The bank launched Business Essentials, a bundled suite of banking and payment services, following more than a year of development by a cross-functional team from business banking, branch and small business banking, payments, sales and technology teams.
4h ago
