WASHINGTON - (03/23/05) -- As was widely expected, the FederalReserve on Tuesday lifted the target rate for overnight Fed Funds,the benchmark for short-term rates, for the seventh time over thelast nine months, to 2.75%. The Fed said it expected to keepraising short-term borrowing costs at a 'measured' pace, wordingbelieved to imply modest quarter-point increases when the CentralBank's Federal Open Market Committee meets again in May and June.The Fed began lifting the overnight rate, to which short-term rateson adjustable-rate mortgages, home equity loans and credit cardloans are tied, last June, when the rate sat at a five-decade lowof just 1%. "This going to put more pressure on credit unions'bottom lines by pushing up short-term rates without a similarincrease in long-term rates. It makes it more difficult fordepository institutions to generate net income," Bill Hampel, chiefeconomist for CUNA, told The Credit Union Journal.
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Synovus Financial demonstrated at an industry conference how it is using Microsoft's Copilot to help its staff address customers' concerns.
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The U.S. arm of Spanish banking giant Santander has hired Swati Bhatia to oversee retail banking and its digital transformation efforts. Bhatia joins at "an inflection point" for the company, which aims to be "a digital bank with branches," CEO Tim Wennes said.
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Mariya Rosberg is named Americas head of banking and financial services at Marsh McLennan's Oliver Wyman unit; startup ZayZoon raised $15 million in a new funding round; and more in the weekly banking news roundup.
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Last year, the Raleigh, N.C.-based Integrated called off a deal to sell itself to MVB Financial after bank stocks took a hit in the aftermath of the regional bank failures. Capital hopes to expand its government-guaranteed lending with the transaction.
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Once a prominent figure spurring financial institutions to engage in cryptocurrency, Bankman-Fried's downslide began with the collapse of the digital asset exchange FTX in late 2022 and hit rock bottom with his sentencing to 25 years in prison.
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But the 30-year fixed rate mortgage is still near 7%, and that remains the overhang on the housing market, Freddie Mac said.
March 28