Banking

The fund, which aims to create a self-sustaining, nationwide secondary market for CDFI microloans, has made progress, but it remains far short of its goal, its managing director said.

It's clear that credit unions buying community banks is bad for businesses, bad for communities and bad for government tax revenue.

The Federal Deposit Insurance Corp. is poised to exempt smaller lenders from kicking in extra money to replenish the government's bedrock Deposit Insurance Fund, and instead saddle the biggest banks with much of the bill.

The FDIC's recent proposal to provide business accounts targeted deposit insurance coverage up to ten times the current rate is gaining traction among industry experts. But a great deal rests on the details, and any reform will probably have to wait until after 2024.

The Cleveland-based bank says it will submit to a racial equity audit conducted by an outside law firm, as Citigroup and Wells Fargo have previously done. The bank's decision follows a request that regulators investigate Key's mortgage lending practices for alleged redlining.

Industry leaders had predicted that JPMorgan Chase's regulator-assisted purchase of First Republic would bolster investors' faith in the sector. But the stock prices of certain regional banks have continued to fall, prompting concerns that selloffs could lead to deposit outflows.

The Federal Reserve flagged multiple "deficiencies" at Du Quoin State Bank in an order that bars the Illinois depository from paying dividends without its regulators' approval. The central bank has identified interest rate risk as a key issue at a time when rising rates have contributed to three bank failures.

Liberty Bank, an $11.6 million-asset lender in Salt Lake City, is the first FDIC-supervised bank in six years to be hit with the lowest Community Reinvestment Act rating possible twice in a row. Regulators identified an unspecified "illegal credit practice" during their review of the bank's performance.

Merger arbitrage traders were expecting hiccups in Toronto-Dominion Bank's proposed takeover of First Horizon, but they were unprepared for its cancellation.

The companies cited an inability to secure regulatory approvals after postponing multiple times a closing that had been originally expected last fall.

On one level, the failed bank's narrative mirrors the interest rate misplay and depositor panic at Bay Area neighbor Silicon Valley Bank. But it's also a deeply personal story about Herbert, who founded First Republic in the 1980s, championed its aggressive growth and failed in a last-ditch attempt to engineer a private-sector rescue.

Kaua'i Federal Credit Union in Lihue is launching an "economic resiliency center" for members in the Kapa'a community. It hopes to support minority-owned businesses throughout the area by providing access to housing resources and other funding.

Ninety-eight percent of owners reported that they had not changed their business's primary financial institution in the last month, according to a National Federation of Independent Business survey out Wednesday.

Sens. Elizabeth Warren, D-Mass., and John Kennedy, R-La., will examine the role of the Federal Reserve in bank failures in a hearing scheduled for May 10.

Angelino "Gino" Cayanan, who was most recently CFO for Los Angeles Police Federal Credit Union, will lead the $1.2 billion-asset Noble.

A noted futurist argues that banks that rely on traditional methods of attracting and growing deposits are setting themselves up for failure in an increasingly online world.

Meow and Vesto are two firms that help companies invest idle funds in safe instruments such as Treasury bills.

Industry leaders hoped that the emergency sale of First Republic Bank would quell investors' fears, but many banks saw big stock price declines on Tuesday. The instability could put pressure on lawmakers and policymakers to take more decisive action.