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Tag: C

  • The Feds Foul Play Around Cannabis

    The Feds foul play around cannabis exposes misinformation, fear tactics, and how Washington ignores 88% of Americans

    While nearly 88% of Americans support some form of legal cannabis, the old guard in Washington continues to misrepresent the will of the people. This isn’t a quiet disagreement over policy — it’s a stubborn act of defiance by a political class clinging to outdated narratives, using fear and misinformation to stall progress. The Feds foul play around cannabis includes misleading federal ad campaigns to state-level repeal efforts and congressional inaction, the message from the establishment is clear: even overwhelming public consensus won’t shake their prohibitionist reflex.

    RELATED: Zohram Mamdani And NYC’s Legal Marijuana

    The federal government’s recent “Make America Fentanyl Free” initiative sounds like a noble effort — until you look closer. The campaign warns Americans fentanyl-laced cannabis is contributing to a spike in overdose deaths, echoing rhetoric found on official websites like Get Smart About Drugs, a DEA-linked platform.

    But credible health experts and toxicologists have called this claim a myth. Studies and verified cases show virtually no evidence of widespread fentanyl-contaminated marijuana. The CDC’s own overdose data reveal more than 100,000 overdose deaths annually are overwhelmingly tied to synthetic opioids, not cannabis. By folding marijuana into the fentanyl crisis narrative, the campaign blurs science and fear — conflating a regulated, state-legal product with the nation’s deadliest illicit drugs.

    In Massachusetts, prohibitionists are running a petition drive critics say tricks voters into repealing the state’s adult-use cannabis law — one which passed in 2016 with 53.6% support. The so-called Coalition for a Healthy Massachusetts has been accused of presenting the petition as a measure to “protect youth” and “prevent fentanyl exposure,” when in reality it would end the state’s $1.6-billion legal cannabis market.

    Industry advocates and civil-rights leaders argue this fear-based language mirrors the federal fentanyl narrative — a coordinated effort to weaponize overdose panic against legitimate regulation and equity programs have taken years to build.

    At the center of the federal gridlock is House Speaker Mike Johnson, a staunch opponent of cannabis reform who has consistently voted against legalization and banking protections. Johnson has blocked the SAFE Banking Act — a bipartisan bill allowing legal cannabis businesses access banking services — from reaching a floor vote, despite majority support in both chambers. He’s also refused to advance measures like the MORE Act and the Medical Marijuana and Cannabidiol Research Expansion Act, effectively freezing all momentum toward federal reform.

    Johnson’s leadership ensures even modest, widely supported reforms remain in limbo. His record earns him an “F” rating from cannabis policy groups and makes him one of the most significant obstacles to aligning federal law with public opinion.

    RELATED: Marijuana Use And Guy’s Member

    When the federal government claims “drug overdoses are due to fentanyl-laced marijuana,” and state actors use similar rhetoric to roll back legalization, it’s more than misinformation — it’s policy manipulation. The consequences are profound:

    • Public confusion: Americans are told cannabis is linked to deadly fentanyl overdoses, though data show otherwise.
    • Policy paralysis: Federal leaders block reform while invoking the specter of addiction and moral decline.
    • Economic harm: Legal markets — and the jobs, tax revenue, and social-equity progress they bring — are jeopardized by political gamesmanship.

    With almost nine in ten Americans favoring legalization — and over half living in states where cannabis is legal — continued federal obstruction is untenable. The real crisis isn’t cannabis; it’s an outdated federal narrative refusing to evolve with science or society.

    Until Washington stops peddling fear and starts listening to its citizens, the gulf between federal prohibition and public reality will only grow wider. It’s time to replace misinformation with evidence, prohibition with regulation, and political posturing with policy actually serving the American people.

    Terry Hacienda

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  • Live radar: Track incoming nor’easter

    A nor’easter churned its way up the East Coast on Sunday, with New Jersey declaring a state of emergency and some airports posting delays and cancellations in advance of anticipated coastal flooding, and strong winds, as another storm system struck farther south with heavy rain and flooding.

    Parts of the state are forecast to experience moderate to major coastal flooding, inland flash flooding, winds up to 60 mph, up to 5 inches of rain and high surf, potentially causing beach erosion. Some volunteers were putting sandbags at beaches.

    Track the system using our live radar above and get the latest forecast details from Storm Team 4 right here.

    NBC New York Staff and The Associated Press

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  • Jonathan Clements, Longtime WSJ Columnist, Dies at 62

    Last fall, Jonathan Clements, author of The Wall Street Journal’s long-running personal-finance column, “Getting Going,” wrote a gut-wrenching article for the Journal about his terminal cancer diagnosis.

    Jesting at his own impending death, he proposed to the article’s editors that the headline should be “Getting Gone.”

    Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

    Jason Zweig

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  • Michelin Will Announce Chicago, D.C., and New York Stars in December

    Michelin Will Announce Chicago, D.C., and New York Stars in December

    Chicago restaurants must wait until December to learn if they’ve earned a Michelin star. Like last year, the tire guide will bundle announcements for Chicago, New York, and Washington, D.C. at a private party held in New York.

    Michelin will announce on Monday, December 9 at a ceremony held at the Glasshouse in New York. Last year’s announcement came in November, and the big news was Smyth joined Alinea as the only two restaurants in Chicago will a full three Michelin stars. Daisies also received a Green Star which recognizes a commitment to environmental sustainability. There is some irony as the tire company created the guide to encourage car travel.

    Twenty-one Chicago restaurants have Michelin stars, one of the highest restaurant honors. But in recent years, local tourism boards have been attracting the Michelin Guide to their cities to help boost travel. Some have questioned whether this waters down the honor. The bib gourmands, a designation that recognizes value for the money, will also be announced.

    The guide has been rating restaurants in Chicago since 2011. The guide arrived in New York in 2005 and in D.C. in 2017. The guide is in eight American markets: California, Florida (Miami/Orlando/Tampa), Colorado, Atlanta, and Texas. It’s also in Toronto, Vancouver, Mexico, and Quebec.

    A fundraiser for Northern Thailand

    Northern Thailand has been in crisis with floods and typhoons. The government ordered evacuations, shelters were set up, and hundreds of animals needed rescue. Waters have since receded, but aid is still required. NaKorn, an upscale restaurant that opened in 2016 in suburban Evanston, is holding a fundraiser dinner to help the community. Proceeds from the Sunday, October 20 event will benefit underprivileged children and families in Thailand. There are two seatings and reservations are available via OpenTable.

    Goose Island’s Rare Day

    Goose Island Beer Co. won’t hold its annual Propreitor’s Day, an event that celebrates the Chicago-area-only release of a Bourbon County Brand Stout variant. It’s the one packaged in a blue box and the flavors change every year. Instead, Goose has unveiled a replacement centering around another variant: Rare Day. The event will take place on Saturday, November 16 at the Goose Island Barrel House. There were two sessions, but the early session has already sold out. Tickets for the $160 event are on sale via Oznr.

    Ashok Selvam

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  • What About Omega-3s and Vegetarians’ Stroke Risk?  | NutritionFacts.org

    What About Omega-3s and Vegetarians’ Stroke Risk?  | NutritionFacts.org

    Does eating fish or taking fish oil supplements reduce stroke risk? 

    In my last video, we started to explore what might explain the higher stroke risk in vegetarians found in the EPIC-Oxford study. As you can see below and at 0:25 in my video Vegetarians and Stroke Risk Factors: Omega-3s?, vegetarians have a lower risk of heart disease and cardiovascular disease overall, but a higher risk of stroke. We looked into vitamin D levels as a potential mechanism, but that didn’t seem to be the reason. What about long-chain omega-3s, the fish fats like EPA and DHA? 

    Not surprisingly, their levels are found to be “markedly lower in vegetarians and particularly in vegans than in meat-eaters.” They’re about 30 percent lower in vegetarians and more than half as low in vegans, as you can see below and at 0:45 in my video

    According to “the most extensive systematic assessment of effects of omega-3 fats on cardiovascular health to date,” combining 28 randomized controlled trials, stroke has no benefit. There is evidence that taking fish oil “does not reduce heart disease, stroke or death,” or overall mortality, either. This may be because, on the one hand, the omega-3s may be helping, but the mercury in fish may be making things worse. “Balancing the benefits with the contaminant risks of fish consumption has represented a challenge for regulatory agencies and public health professionals.”  

    For example, dietary exposure to polychlorinated biphenyls (PCBs) may be associated with an increased risk of stroke. In one study, for instance, “neither fish nor intake of PCBs was related to stroke risk. However, with adjustment for fish intake,” that is, at the same fish intake, “dietary PCBs were associated with an increased risk of total stroke,” so the PCB pollutants may be masking the fish benefit. If we had a time machine and could go back before the Industrial Revolution and find fish in an unpolluted state, we might find that it is protective against stroke. Still, looking at the EPIC-Oxford study data, if fish were protective, then we might expect that the pescatarians (those who eat fish but no other meat) would have lower numbers of strokes since they would have the fish benefit without the risk from other meat. But, no. That isn’t the reality. So, it doesn’t seem to be the omega-3s either.

    Let’s take a closer look at what the vegetarians are eating.

    When it comes to plant-based diets for cardiovascular disease prevention, all plant foods are not created equal. There are two types of vegetarians—those who do it for their health, and those who do it for ethical reasons, like global warming or animals—and the latter tend to eat different diets. Health vegans tend to eat more fruits and fewer sweets, for instance, and you don’t tend to see them chomping down on vegan donuts, as shown below and at 2:41 in my video

    “Concerns about health and costs were primary motivations for [meat] reduction” in the United States. A middle-class American family is four times more likely to reduce meat for health reasons compared to environmental or animal welfare concerns, as you can see in the graph below and at 2:55 in my video

    But in the United Kingdom, where the EPIC-Oxford stroke study was done, ethics was the number one reason given for becoming vegetarian or vegan, as you can see in below and at 3:05 in my video.

    We know that “plant-based diets, diets that emphasize higher intakes of plant foods and lower intakes of animal foods, are associated with a lower risk of incident cardiovascular disease, cardiovascular disease mortality, and all-cause mortality”—a lower risk of dying from all causes put together—“in a general US adult population.” But, that’s only for healthy plant foods. Eating a lot of Wonder Bread, soda, and apple pie isn’t going to do you any favors. “For all types of plant-based diets, however, it is crucial that the choice of plant foods is given careful consideration.” We should choose whole fruits and whole grains over refined grains and avoid trans fats and added sugars. Could it be that the veggie Brits were just eating more chips? We’ll find out next. 

    Another strikeout trying to explain the increased risk. Could it be that the vegetarians were eating particularly unhealthy diets? Labels like vegetarian or vegan just tell me what is not being eaten. You can be vegetarian and consume a lot of unhealthy fare, like french fries, potato chips, and soda. That’s why, as a physician, I prefer the term whole food, plant-based nutrition. That tells me what you do eat. You eat vegetables and follow a diet centered around the healthiest foods out there.

    If you missed the first four videos in this series, see:

     Surprised about the fishy oil findings? Learn more: Is Fish Oil Just Snake Oil? and Omega-3s and the Eskimo Fish Tale

    Michael Greger M.D. FACLM

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  • Aaron Sorkin, Live From D.C.

    Aaron Sorkin, Live From D.C.

    In a special live episode, Matt and Puck colleague Peter Hamby are joined by screenwriter, playwright, and film director Aaron Sorkin to discuss the current state of Hollywood, the impact of AI on writers, politics, why he fired his agents, and much more.

    For a 20 percent discount on Matt’s Hollywood insider newsletter, What I’m Hearing …, click here.

    Email us your thoughts!

    Host: Matt Belloni
    Guests: Aaron Sorkin and Peter Hamby
    Producers: Craig Horlbeck and Jessie Lopez
    Theme Song: Devon Renaldo

    Subscribe: Spotify

    Matthew Belloni

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  • ‘Forrest Gump’ Live From D.C. With Bill Simmons, Chris Ryan, Sean Fennessey, and Mallory Rubin

    ‘Forrest Gump’ Live From D.C. With Bill Simmons, Chris Ryan, Sean Fennessey, and Mallory Rubin


    Paramount

    Bill Simmons, Chris Ryan, Sean Fennessey, and Mallory Rubin rewatch the 1994 classic ‘Forrest Gump,’ starring Tom Hanks, Robin Wright, and Gary Sinise

    Live from a park bench, The Ringer’s Bill Simmons, Chris Ryan, Sean Fennessey, and Mallory Rubin rewatch the 1994 classic Forrest Gump, starring Tom Hanks, Robin Wright, and Gary Sinise.

    Producer: Craig Horlbeck

    Subscribe: Spotify / Apple Podcasts / Stitcher / RSS



    Bill Simmons

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  • Citigroup Inc. (NYSE:C) Shares Sold by Flputnam Investment Management Co.

    Citigroup Inc. (NYSE:C) Shares Sold by Flputnam Investment Management Co.


    Flputnam Investment Management Co. decreased its holdings in Citigroup Inc. (NYSE:CFree Report) by 12.9% in the third quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 7,939 shares of the company’s stock after selling 1,175 shares during the period. Flputnam Investment Management Co.’s holdings in Citigroup were worth $327,000 at the end of the most recent quarter.

    Other hedge funds also recently bought and sold shares of the company. Snider Financial Group increased its holdings in shares of Citigroup by 96,645.9% during the 1st quarter. Snider Financial Group now owns 84,494,926 shares of the company’s stock worth $4,512,000 after buying an additional 84,407,589 shares during the last quarter. State Street Corp increased its holdings in shares of Citigroup by 1.7% during the 2nd quarter. State Street Corp now owns 83,964,367 shares of the company’s stock worth $3,865,719,000 after buying an additional 1,442,952 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Citigroup by 2.4% during the 2nd quarter. Geode Capital Management LLC now owns 36,038,176 shares of the company’s stock worth $1,655,333,000 after buying an additional 859,170 shares during the last quarter. Fisher Asset Management LLC increased its holdings in shares of Citigroup by 23.7% during the 2nd quarter. Fisher Asset Management LLC now owns 27,068,272 shares of the company’s stock worth $1,246,223,000 after buying an additional 5,180,027 shares during the last quarter. Finally, Morgan Stanley increased its holdings in shares of Citigroup by 2.6% during the 4th quarter. Morgan Stanley now owns 25,852,678 shares of the company’s stock worth $1,169,317,000 after buying an additional 666,560 shares during the last quarter. Institutional investors and hedge funds own 69.26% of the company’s stock.

    Citigroup Price Performance

    Citigroup stock opened at $54.11 on Tuesday. The stock has a market cap of $103.56 billion, a P/E ratio of 13.56, a price-to-earnings-growth ratio of 1.46 and a beta of 1.57. The company has a fifty day simple moving average of $50.28 and a 200-day simple moving average of $45.28. Citigroup Inc. has a 12-month low of $38.17 and a 12-month high of $54.75. The company has a current ratio of 0.95, a quick ratio of 0.94 and a debt-to-equity ratio of 1.52.

    Citigroup (NYSE:CGet Free Report) last released its quarterly earnings data on Friday, January 12th. The company reported ($1.16) earnings per share (EPS) for the quarter, missing the consensus estimate of $0.73 by ($1.89). The firm had revenue of $17.44 billion for the quarter, compared to analysts’ expectations of $18.71 billion. Citigroup had a return on equity of 6.49% and a net margin of 5.88%. Citigroup’s revenue for the quarter was down 3.1% on a year-over-year basis. During the same period last year, the firm posted $1.10 earnings per share. Equities analysts expect that Citigroup Inc. will post 5.97 EPS for the current fiscal year.

    Citigroup Announces Dividend

    The business also recently declared a quarterly dividend, which will be paid on Friday, February 23rd. Investors of record on Monday, February 5th will be paid a dividend of $0.53 per share. The ex-dividend date of this dividend is Friday, February 2nd. This represents a $2.12 annualized dividend and a yield of 3.92%. Citigroup’s dividend payout ratio is currently 53.13%.

    Wall Street Analysts Forecast Growth

    Several research firms recently weighed in on C. HSBC upgraded shares of Citigroup from a “hold” rating to a “buy” rating and lifted their target price for the company from $42.00 to $61.00 in a report on Tuesday, January 9th. The Goldman Sachs Group lifted their target price on shares of Citigroup from $47.00 to $52.00 and gave the company a “neutral” rating in a report on Tuesday, December 19th. Bank of America dropped their target price on shares of Citigroup from $60.00 to $50.00 in a report on Tuesday, October 10th. Societe Generale downgraded shares of Citigroup from a “hold” rating to a “sell” rating in a report on Monday, January 8th. Finally, Morgan Stanley dropped their target price on shares of Citigroup from $45.00 to $43.00 and set an “underweight” rating for the company in a report on Tuesday, October 3rd. Two equities research analysts have rated the stock with a sell rating, seven have assigned a hold rating and eight have assigned a buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Hold” and a consensus target price of $55.21.

    View Our Latest Stock Report on C

    Citigroup Profile

    (Free Report)

    Citigroup Inc, a diversified financial services holding company, provides various financial products and services to consumers, corporations, governments, and institutions in North America, Latin America, Asia, Europe, the Middle East, and Africa. It operates through three segments: Institutional Clients Group (ICG), Personal Banking and Wealth Management (PBWM), and Legacy Franchises.

    Recommended Stories

    Want to see what other hedge funds are holding C? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Citigroup Inc. (NYSE:CFree Report).

    Institutional Ownership by Quarter for Citigroup (NYSE:C)

    Receive News & Ratings for Citigroup Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Citigroup and related companies with MarketBeat.com’s FREE daily email newsletter.



    ABMN Staff

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  • Spirit Airlines Stock Gets a Downgrade. It’s the Least of the Carrier’s Problems.

    Spirit Airlines Stock Gets a Downgrade. It’s the Least of the Carrier’s Problems.

    Spirit Airlines stock was falling again Thursday as the ultra-low-cost carrier’s predicament worsened.

    Continue reading this article with a Barron’s subscription.

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  • “The Best Chrismukkah Ever” From ‘The O.C.’ With Alan Sepinwall | Guilty Pleasures

    “The Best Chrismukkah Ever” From ‘The O.C.’ With Alan Sepinwall | Guilty Pleasures

    Jo is joined by Rolling Stone TV critic and coauthor of Welcome to the O.C.: The Oral History Alan Sepinwall to talk about one of the greatest television holiday specials ever, “The Best Chrismukkah Ever,” from the first season of the legendary series The O.C.

    Host: Joanna Robinson
    Guest: Alan Sepinwall
    Producer: Sasha Ashall

    Subscribe: Spotify / Apple Podcasts / Stitcher

    Joanna Robinson

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  • Investors Hope Earnings Season Will Revive Stocks

    Investors Hope Earnings Season Will Revive Stocks

    Investors Hope Earnings Season Will Revive Stocks

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  • Tesla Stock Is Falling. China Is the Reason.

    Tesla Stock Is Falling. China Is the Reason.


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    Tesla


    stock is limping over the finish line this week. China is the m…

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  • U.S. banks and regional lenders slide across the board as S&P is latest to downgrade ratings

    U.S. banks and regional lenders slide across the board as S&P is latest to downgrade ratings

    U.S. banks and regional banks fell across the board on Tuesday, after S&P Global Ratings downgraded five smaller players after a review of risk related to funding, liquidity and asset quality with a focus on office commercial real estate.

    Adding to the gloom, Republic First Bancorp. Inc.’s stock
    FRBK,
    -41.90%

    tanked by 39%, after Nasdaq told the company that its stock would be delisted on Wednesday, after it failed to file its annual report in time.

    S&P’s move comes just days after Fitch Ratings analyst Christopher Wolfe reduced his operating environment score for U.S. banks to aa- from aa due to the unknown path of interest rate hikes and regulatory changes facing the sector.

    And Moody’s Investors Service just two weeks ago upset investors when it downgraded some lenders and said it was reviewing ratings on bigger banks, including Bank of New York Mellon
    BK,
    -1.71%
    ,
    State Street
    STT,
    -1.59%

    and Northern Trust
    NTRS,
    -1.73%
    .

    For more, see: Bank asset quality, weaker profits spark Moody’s reviews and downgrades as it weighs potential 2024 recession

    The S&P 500 Financials Sector has fallen for seven consecutive days, and is on pace for its longest losing streak since April 7, 2022, when it also fell for seven straight trading days.

    Individual bank names are also performing poorly, with Goldman Sachs Group Inc.
    GS,
    -0.94%

    and Citigroup Inc.
    C,
    -1.68%

    down for 10 of the past 11 days and Charles Schwab Corp.
    SCHW,
    -4.84%

    down 11 straight days.

    Goldman alone has fallen for seven straight days for a total loss of 6.3%. It’s the longest losing streak since Feb. 28, 2020, when it also fell for seven straight days as the pandemic was taking hold.

    The KBW Nasdaq Regional Banking Index
    KBWR
    is down for 11 straight days. and the KBW Nasdaq Bank Index
    BKX
    is down for seven straight days.

    S&P downgraded Associated Banc. Corp. 
    ASB,
    -4.20%
    ,
     Comerica Inc.
    CMA,
    -3.82%
    ,
     KeyCorp
    KEY,
    -3.58%
    ,
     UMB Financial Corp. 
    UMBF,
    -2.42%

    % and Valley National Bancorp. 
    VLY,
    -4.19%

    by one notch and said the outlook on all five is stable.

    Read also: More challenges await U.S. banks but analysts think the worst may be over for the year

    The rating agency affirmed ratings on Zions Bancorp
    ZION,
    -4.17%

     and maintained a negative outlook, meaning it could downgrade them again in the near-term. And it affirmed ratings and a stable outlook on Synovus Financial Corp. 
    SNV,
    -3.37%

     and Truist Financial Corp. 
    TFC,
    -1.36%

     “We reviewed these 10 banks because we identified them as having potential risks in multiple areas that could make them less resilient than similarly rated peers ,” S&P said in a statement.

    “For instance, some that have seen greater deterioration in funding—-as indicated by sharply higher costs or substantial dependence on wholesale funding and brokered deposits—-may also have below-peer profitability, high unrealized losses on their assets, or meaningful exposure to CRE.”

    The steep rise in interest rates orchestrated by the Federal Reserve over the past year has raised deposit costs as banks are now competing for savers seeking higher returns and that’s forced some to pay up on deposits and discourage their clients from heading to other institutions and instruments.

    The sector has been skittish this year following the collapse of Silicon Valley Bank and other lenders that led to a run on deposits at a number of regional lenders.

    However, S&P said about 90% of the banks it rates have stable outlooks and just 10% have negative ones. None have positive outlooks.

    The widespread stable outlooks shows that stability in the U.S. banking sector has improved significantly in recent months.

    S&P is expecting FDIC-backed banks in aggregate to earn a relatively healthy ROE of about 11% in 2023.

    KeyCorp. and Comerica both fell more than 3% on the news. Of the two, KeyCorp. has more outstanding debt and its 10-year bonds widened by about 5 to 10 basis points, according to data solutions provider BondCliq Media Services.

    As the following chart shows, the bonds have seen better selling on Wednesday with buyers emerging around midmorning.


    KeyBank net customer flow (intraday). Source: BondCliQ Media Services

    The next chart shows customer flow over the last 10 days.


    Most active KeyBank issues with net customer flow (last 10 days). Source: BondCliQ Media Services

    The next chart shows the outstanding debt of the downgraded banks, with KeyCorp. clearly the leader with almost $16 billion of bonds.


    Outstanding S&P downgraded banks debt USD by maturity bucket. Source: BondCliQ Media Services

    Don’t miss: Capital One confirms roughly $900 million sale of office loans as property sector wobbles

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  • AT&T, Verizon Investors Have More Than Lead Cables to Worry About

    AT&T, Verizon Investors Have More Than Lead Cables to Worry About

    AT&T, Verizon Investors Have More Than Lead Cables to Worry About

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  • S&P 500 ends above 4,500 level for first time in 15 months as stocks gain ahead of bank earnings

    S&P 500 ends above 4,500 level for first time in 15 months as stocks gain ahead of bank earnings

    Stocks rose for a fourth day in a row on Thursday, a day ahead of second-quarter earnings from America’s biggest lenders. The Dow Jones Industrial Average
    DJIA,
    +0.14%

    rose about 46 points, or 0.1%, ending near 34,394, according to preliminary data from FactSet. But the S&P 500 index
    SPX,
    +0.85%

    gained 0.9% to end at 4,509, clearing the 4,500 mark for the first time since April 5, 2022 when it ended at 4,545.86, according to Dow Jones Market Data. The Nasdaq Composite Index
    COMP,
    +1.58%

    scored another blockbuster day, up 1.6%. Investors have been optimistic as inflation pressures ease and as perhaps the best-telegraphed U.S. economic recession in recent history has yet to materialize. The S&P 500 and Nasdaq have been charging higher on buzz about AI technology, with much of this year’s stock-market gains fueled by a small group of stocks. The risk-on tone ahead of earnings from JPMorgan Chase and Co.,
    JPM,
    +0.49%

    Wells Fargo
    WFC,
    +1.04%

    and Citigroup
    C,
    +0.63%
    ,
    had the U.S. dollar
    DXY,
    -0.74%

    earlier on pace to end at its lowest level since early April 2022. Treasury yields also continued to fall, with the 10-year
    TMUBMUSD10Y,
    3.768%

    rate back down to 3.759%, after topping 4% in recent weeks. The six biggest banks are expected to issue a deluge of fresh debt after earnings, despite the Federal Reserve having sharply increased rates and borrowing costs for businesses and households to tame inflation.

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  • JPMorgan, Goldman, Citi and Morgan Stanley boost dividends after Fed stress tests

    JPMorgan, Goldman, Citi and Morgan Stanley boost dividends after Fed stress tests

    Major U.S. banks including Morgan Stanley and JPMorgan Chase & Co. announced dividend increases late Friday, in the wake of the results of the Federal Reserve’s latest bank stress tests earlier this week.

    JPMorgan
    JPM,
    +1.40%

    said it plans to raise the bank’s dividend to $1.05 a share, up from $1 a share, for the third quarter, subject to board approval.

    The stress tests “show that banks are resilient — even while withstanding severe shocks — and continue to serve as a pillar of strength to the financial system and broader economy,” JPMorgan Chief Executive Jamie Dimon said in a statement.

    “We continue to maintain a fortress balance sheet with strong capital levels and robust liquidity,” Dimon added.

    Morgan Stanley
    MS,
    +0.19%

    said it will increase its quarterly dividend to 85 cents a share from the current 77.5 cents a share, beginning with its third-quarter dividend. The bank also said that its board reauthorized a multiyear share buyback totaling as much as $20 billion, without an expiration date, beginning in the third quarter.

    Don’t miss: Fed stress tests see large banks able to handle recession and slide in commercial-real-estate prices

    See also: Wall Street upbeat on banks after ‘mostly positive’ Fed stress tests results

    “The results of the Federal Reserve’s stress test demonstrate the durability of our transformed business model. We remain committed to returning capital to our shareholders and are raising our dividend by 7.5 cents,” Chief Executive James P. Gorman said in a statement.

    Wells Fargo
    WFC,
    +0.54%
    ,
    for its part, said it will increase its dividend to 35 cents a share, up from 30 cents a share, subject to board approval. It said it has the capacity to undertake a share buyback, “which will be routinely assessed as part of the company’s internal capital adequacy framework that considers current market conditions, potential changes to regulatory capital requirements, and other risk factors,” without elaborating further.

    Goldman Sachs Group Inc.
    GS,
    -0.17%

    said it would raise its dividend, to $2.75 a share from $2.50 a share, starting July 1.

    Market Pulse: Goldman Sachs reportedly looking to exit Apple partnership

    Citigroup Inc. C said its board had approved an increase in its quarterly dividend to 53 cents a share, from 51 cents, also for the third quarter.

    Citi Chief Executive Jane Fraser said that, while the bank “would have clearly preferred not to see an increase in our stress capital buffer, these results still demonstrate Citi’s financial resilience through all economic environments, including the severely adverse scenario envisioned in the Federal Reserve’s stress test.”

    Citi’s “robust capital and liquidity position, as well as the diversification of our funding and our business model, allow Citi to continue to be a source of strength for our clients and navigate challenging macro environments securely,” Fraser said.

    The bank bought back $1 billon in shares in the second quarter and will continue to evaluate its capital actions, the chief executive said. “We are completely committed to simplifying Citi, improving returns and delivering value to our shareholders.”

    Shares of Morgan Stanley and Wells Fargo rose 1.5% and 0.1%, respectively, in the after-hours session after ending the regular trading day up a respective 0.2% and 0.5%. JPMorgan shares edged up 0.2% in the extended session after closing 1.4% higher on Friday. Citigroup shares were up 0.2%, while Goldman’s were largely unchanged.

    Bill Peters contributed.

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  • Banks Boost Dividends After Passing Stress Test. Their Stocks Are on the Rise.

    Banks Boost Dividends After Passing Stress Test. Their Stocks Are on the Rise.

    Banks Boost Dividends After Passing Stress Test. Their Stocks Are on the Rise.

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  • Fed stress tests see large banks able to handle recession and slide in commercial real estate prices

    Fed stress tests see large banks able to handle recession and slide in commercial real estate prices

    The U.S. Federal Reserve said Wednesday that all 23 banks in this year’s stress tests withstood a hypothetical “severe” global recession and losses of up to $541 billion as well as a 40% decline in commercial real estate prices.

    The banks in the 2023 stress tests hold about 20% of the office and downtown commercial real estate loans held by banks and should be able to handle office space weakness that has loomed amid slack demand for space in the wake of the COVID-19 pandemic.

    “The projected decline in commercial real estate prices, combined with
    the substantial increase in office vacancies, contributes to projected loss rates on office properties that are roughly triple the levels reached during the 2008 financial crisis,” the Fed said in a prepared statement.

    Also read: FDIC studying plan to include smaller U.S. banks in Basel III capital requirements after failures in early 2023

    Fed vice chair of supervision Michael S. Barr said the exams confirm that the U.S. banking system remains resilient, even in the wake of the failure of Silicon Valley Bank, Signature Bank and First Republic Bank earlier this year.

    Barr also alluded to comments he made last week when he said the Fed should consider a wider range of risks that could derail banks in a process he described as reverse stress tests.

    “We should remain humble about how risks can arise and continue our
    work to ensure that banks are resilient to a range of economic scenarios, market shocks, and other stresses,” Barr said in a prepared statement.

    The bank stress tests are closely watched because they help determine what capital banks have left over for stock buybacks and dividends. However, expectations are not particularly high at the current time for any huge payouts to investors given talk by regulators about high capital requirements tied to Basel III international banking laws, as well as a challenging economic environment with interest rates on the rise in an attempt to cool economic activity and tame inflation.

    Senior Fed officials said banks will be clear to provide updates on their stock buybacks and dividends after the market close on Friday.

    For the first time, the Fed conducted an “exploratory market shock” on the trading books of the U.S.’s eight largest banks including greater inflationary pressures and rising interest rates.

    The results showed that the largest banks’ trading books were resilient to the rising rate environment tested. That group included Bank of America Corp., the Bank of New York Mellon, Citigroup Inc., the Goldman Sachs Group Inc., JPMorgan Chase & Co. , Morgan Stanley , State Street Corp, and Wells Fargo & Co.

    Senior federal officials said they’re studying a wider application of the exploratory market shock to other banks.

    In last year’s tests, the Fed did not place an emphasis on a rapid rise in interest rates partly because expectations were high for a recession with lower interest rates in 2023. Instead, interest rates rose. That market dynamic was a factor in the collapse of Silicon Valley Bank, which sold securities with lower interest rates at a loss to cover an increase in withdrawals, only to spark a run on the bank.

    All told, the Fed said the 23 banks in the stress test managed to maintain their capital requirements even with a projected $541 billion in losses. (See breakdown below).


    U.S. Federal Reserve chart

    Under the most severe stress, the aggregate common equity risk-based capital ratio would decline by 2.3% to a minimum of 10.1%.

    Other facets of the hypothetical recession included a “substantial” increase in office vacancies, a 38% reduction in house prices and a 6.4% increase in U.S. unemployment to a high of 10%. The drop in house prices in this year’s stress tests is worse than the decline in the Global Financial Crisis in 2008.

    “The results looked pretty good,” said Maclyn Clouse, a professor of finance at the University of Denver’s Daniels College of Business. “The banks were in pretty good shape from a capital standpoint and they’d be able to withstand some shock. It’s good news.”

    Barr’s remark on Fed officials being “humble” reflects the fact that regulators largely missed the Global Financial Crisis as well as the sudden demise of Silicon Valley Bank in March.

    “They need to be humble,” Clouse said. “We need to be a little more humble about the results and a little more alert about new challenges that normally haven’t been looked at with stress tests.”

    This year, the banks that took part in the stress tests including Bank of America Corp.
    BAC,
    -0.60%
    ,
    Bank of New York Mellon Corp.
    BK,
    -0.64%
    ,
    Capitol One Financial Corp.
    COF,
    +0.52%
    ,
    Charles Schwab Corp.
    SCHW,
    +1.01%
    ,
    Citigroup
    C,
    -0.37%
    ,
    Citizens Financial Group Inc.
    CFG,
    -1.61%

    and Goldman Sachs Group Inc.
    GS,
    +0.07%
    .

    Other exams took place at J.P. Morgan Chase & Co.
    JPM,
    -0.44%
    ,
    M&T Bank Corp.
    MTB,
    -0.18%
    ,
    Morgan Stanley
    MS,
    -0.52%
    ,
    Northern Trust Corp.
    NTRS,
    -0.46%
    ,
    PNC Financial Services Group Inc.
    PNC,
    -0.36%
    ,
    State Street Corp.
    STT,
    -0.62%
    ,
    Truist Financial Corp.
    TFC,
    -0.07%
    ,
    U.S. Bancorp
    USB,
    -0.71%

    and Wells Fargo & Co.
    WFC,
    -0.71%
    .

    In 2022, the Fed said banks could withstand 10% unemployment and a 55% drop in stock prices as part of the year-ago stress test.

    KBW analyst David Konrad said in a June 22 research note he expected no “huge surprises” in addition to capital uncertainty around dividends and buybacks already expected by Wall Street.

    Providing guidance on how the Fed will study bank strength, Fed chair of supervision Michael Barr said last week that the Fed needs to consider “reverse stress tests” to look at “different ways an institution can die” instead of simply submitting banks to a specific list of hypothetical hardships.

    “We have to work harder at looking at patterns we haven’t seen before,” Barr said at an appearance on June 20.

    Also Read: Fed official eyes ‘reverse stress tests’ for banks as results awaited after 2023 bank failures

    Also read: FDIC studying plan to include smaller U.S. banks in Basel III capital requirements after failures in early 2023

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