Finance

Citigroup's fixed-income traders turned in a record-setting finale to 2022 as the bank, under pressure to improve returns, braced itself for a less certain economy.

The bank spent $16.2 billion in the last three months of 2022, exceeding analyst estimates.

The company said NII will be about $73 billion this year, below the $74.4 billion estimate of analysts. The forecast followed a record haul of $20.2 billion from net interest income in the fourth quarter.

The market volatility and interest rate hikes that gave U.S. banks their biggest windfall last year may prove to be their biggest headache in 2023.

The JPMorgan Chase CEO said the Federal Reserve's rate hikes might need to go beyond what's currently expected, but he's in favor of a pause to see the full impact of last year's increases.

Crypto startups are facing a harrowing time attracting private financiers after the collapse of the digital-asset exchange FTX. Venture capital investment in the industry plunged to its lowest level in almost two years during the fourth quarter of 2022, according to data from the research firm PitchBook.

The impact of a weakening economy on quarterly performance will become clearer by the second week of January as banks begin to report fourth-quarter earnings.

Bank of America was an anchor investor for a new $100 million fund managed by Mendoza Ventures, which backs companies with founders from minority and other diverse backgrounds in the financial technology, artificial intelligence and cybersecurity industries.

The Office of Financial Research proposed a rule that would give it greater transparency into non-centrally cleared bilateral repurchase agreement transactions.

Rising interest rates and the potential for weakening economic activity could result in moderating loan demand in the new year. Some bankers are already being more selective in their lending.