Interest rates

U.S. financial stocks are down nearly 4% this week on rate pressure, but it’s even worse for European banks; the mutual fund giant will automatically sweep investor cash into a money fund yielding 1.9%.

China's decision to stop buying U.S. soybeans and let its currency depreciate raised the prospect of further interest rate cuts. That hurt banks slightly more than the rest of the market on what was a bad day for all equities.

The approach could work as long as the Fed were to add certain thresholds.

The Senate is also expected to pass a budget deal that will increase spending and suspend the debt ceiling.

Several small and midsize banks say they are losing borrowers to rivals and worry the trend could get worse as interest rates decline.

The Columbus, Ohio, company said Thursday that it expects the Federal Reserve to cut interest rates twice this year and two more times in 2020.

Second-quarter earnings at the Chicago custody bank were flat as increased interest costs offset better yields and fee income held steady.

KeyCorp, Regions Financial and others have sacrificed short-term profits to avoid being crushed by an anticipated decline in interest rates.

The Birmingham, Ala., company warned in its earnings call that moves by the central bank could make it harder to lower costs.

The company could rein in deposit costs, cut operational expenses and buy back more shares in anticipation of a Federal Reserve rate reduction. Other banks — especially big ones — could do the same.