Interest rates

The Federal Reserve has voted unanimously to cut the interest rate 50 basis points to 1.10% effective March 4, in the first emergency rate cut since 2008.

The San Francisco bank has revised its guidance downward, while also cautioning that an outbreak of the coronavirus could take an even bigger bite out of profits in 2020.

The decline in net interest income was among the reasons year-over-year profits at the U.S. operations fell for the first time since 2012.

The FDIC’s Quarterly Banking Profile said lackluster net interest income, likely resulting from lower short-term interest rates, drove a decline in fourth-quarter and full-year earnings.

Banks' lowering of origination fees and loosening of underwriting standards often foreshadow a downturn.

An intraparty rift went public Wednesday over legislation that would impose a 36% rate limit on all consumer loans. Critics are concerned it would cut off minority borrowers’ access to small-dollar loans and hurt some community banks.

The move by the European bank regulator is a policy shift as profitability at the region's banks continues to suffer from negative rates; the German bank paid $1.1 million to win business from a senior Saudi royal.

The president tapped the pair in July for the two remaining vacancies, but the formal announcement of his intention to nominate them didn’t come until this week.

Brian Moynihan said banks must be mindful of pricing and risk as they contend with lower yields on loans and securities.

While his focus is on organic growth in Texas and California, Curt Farmer says he would consider a deal in those states if the right one comes along.