Stock Markets

US banks push back as regulators prepare international capital hikes

Published

2 years ago

June 22, 2023

U.S. banks are pushing to soften a major regulatory proposal to hike bank capital requirements, worried it could prove too onerous, especially for lenders still reeling from the March banking crisis, according to six people briefed on the matter.

Bank regulators led by the U.S. Federal Reserve are finalizing the proposal which would implement international capital standards agreed by the Basel Committee on Banking Supervision in the aftermath of the 2007-2009 financial crisis.

Bankers are particularly concerned by an aspect of the draft proposal that would apply higher capital charges on non-interest revenue, such as the fees lenders charge on credit cards or investment banking services.

That capital charge is part of the package agreed by the Basel Committee in 2017, but the industry says it overstates the risk for banks that have a high proportion of non-interest income and had hoped U.S. regulators would mitigate its impact, the people said.

Bank groups are pushing for regulators to cap the proportion of assets on which such charges would apply, said three people, but it was unclear if the agencies would take that approach.

Non-interest services income has been a key focus of many lenders’ growth strategies in recent years, one industry official noted.

American Express, Morgan Stanley and the U.S. units of UBS, Deutsche Bank and Barclays are among banks with a high proportion of non-interest income, according to a 2022 blog by Washington group the Bank Policy Institute.

Barclays, Deutsche Bank, and Morgan Stanley declined to comment. UBS and American Express did not immediately provide comment.

On Wednesday, Fed Chair Jerome Powell told Congress it was critical banks have strong capital, but regulators must be mindful of the tradeoffs.

WALL STREET CRACKDOWN

While the Basel rules were agreed years ago, the U.S. regulations to comply with them are being drafted in the wake of this year’s banking crisis in which deposit runs caused Silicon Valley Bank and two other lenders to fail. The proposal is the first major rule led by Fed Vice Chair for Supervision Michael Barr, who has launched a sweeping review of capital rules and is expected to be tough on Wall Street.

“The baseline has shifted to an assumption that the scale and scope of the proposal is going to be far more punitive than anyone expected at the end of last year,” said Isaac Boltansky, director of policy research for brokerage BTIG.

Industry executives argue the bank failures were caused by mismanagement and liquidity issues, and that system-wide capital is already ample.

The proposal is also expected to apply stiffer capital rules to smaller lenders with over $100 billion in assets, which would include some that experienced liquidity problems this year, three sources said.

Given investor jitters over the health of the industry and the broader economy, bankers say, hiking capital now could backfire, putting pressure on banks and hurting lending.

Republican officials at the agencies have flagged similar concerns, two people said, while Republican lawmakers on Wednesday also raised worries over capital rules with Powell.

“It’s extremely important for the agencies to be mindful of the economic costs at a time of great uncertainty,” said Kevin Fromer, CEO of the Financial Services Forum whose members, the country’s largest eight banks, have roughly $900 billion in common equity capital.
“It’s not in the interest of the U.S. economy to raise capital requirements on institutions that are already well-capitalized.”

The Fed is drafting the Basel rules with the Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corp. (FDIC). Regulators had hoped to unveil the proposal this month but staff are still working on the draft and the timeline has slipped to later in July, five people said.

The FDIC and OCC declined to comment.

Speaking to reporters last week, acting Comptroller Michael Hsu said banks had “not been shy about sharing their concerns” which regulators were taking into account.

Stock Markets

Binah Capital Recognized Among Industry Leaders in the Financial Planning’s Top Deal Makers List Top IBD Moves and M&A Deals of 2024

Published

23 hours ago

January 3, 2025

Recognition Underscores Binah’s Transformative Impact on the Financial Services Industry

NEW YORK, Jan. 02, 2025 (GLOBE NEWSWIRE) — Binah Capital Group, (NASDAQ: BCG) (“Binah” or the “Company”), a financial services enterprise that owns and operates a network of industry-leading firms empowering independent financial advisors, is honored to be recognized for its significant role in four of the most impactful financial transactions of the year, as featured in the Financial Planning’s premier “Top IBD Moves and M&A Deals of 2024” list. Through its affiliate, Binah Capital has solidified its position as a leader in driving transformative growth within the financial advisory sector. The highlighted transactions, in which a Binah subsidiary was involved, include Americana Partners, Merit Financial Advisors, Wentworth Management Services, and Perigon Wealth Management. These transactions exemplify Binah’s expertise in facilitating partnerships, scaling operations, and expanding market presence for its affiliates.

Craig Gould, CEO of Binah Capital, commented: These landmark transactions demonstrate Binah Capital’s dedication to empowering independent advisory firms with the strategies and tools needed to thrive in an evolving marketplace. Being recognized in the Financial Planning’s list, particularly in a year with significant industry consolidation, is a testament to the strength of our team and consistent execution of our vision.

This recognition highlights Binah Capital’s role as a transformative force in the financial services industry. The company remains committed to driving innovation and delivering strategic success for its affiliates and partners nationwide.

About Binah Capital
Binah Capital Group (NASDAQ: BCG) is a financial services enterprise that owns and operates a network of industry-leading firms that empower independent financial advisors. As a national broker-dealer aggregator, Binah specializes in delivering value through its innovative model, making it an optimal platform for RIAs navigating today’s complex financial landscape. Binah’s portfolio companies are built to help advisors run, manage, and execute their business seamlessly while providing best-in-class resources to support their practice. Binah Capital Group stands alongside RIAs as a trusted ally, delivering the structure, flexibility, and cutting-edge solutions they need to succeed in an increasingly competitive marketplace.

Contacts
ir@binahcap.com
media@binahcap.com

Stock Markets

Nikkiso Clean Energy & Industrial Gases Group promotes Jeff Mumford to Executive Vice President of Operations and Manufacturing

Published

23 hours ago

January 3, 2025

TEMECULA, Calif., Jan. 02, 2025 (GLOBE NEWSWIRE) — Nikkiso Clean Energy & Industrial Gases Group, part of Nikkiso Co. Ltd.’s Industrial Business segment, has appointed Jeff Mumford be its new Executive Vice President of Operations and Manufacturing, effective January 2, 2025. In this role, his responsibilities will include the oversight of global operations and manufacturing as well as management of corporate departments including IT, Facilities, Safety Health Environmental and Quality (SHEQ), and Project Management.

Mumford joined Nikkiso in 2016 as a project manager and has since been promoted several times into leadership roles including Procurement Director, Project Management Director and General Manager at the Group’s Las Vegas operations. During his tenure at Nikkiso Jeff has created efficiencies while continuing to grow the business.

Mumford has a bachelor’s degree in Literature and Linguistics from the University of Nevada, Las Vegas, and is certified Project Management Professional (PMP).

Jeff is a proven leader with an admirable dedication to continuous improvement. He is recognized for his ability to drive transformational change while maintaining focus on growing the business.

Adrian Ridge
President and CEO, Nikkiso Clean Energy & Industrial Gases Group

About Nikkiso Clean Energy & Industrial Gases Group
Nikkiso’s Clean Energy & Industrial Gases Group is a leading provider of cryogenic equipment and solutions around the world. It facilitates the cryogenic and liquid side value chains of hydrogen, ammonia, CO2, LNG, and other industrial gases for the energy, transportation, marine, aerospace, and industrial gas markets while remaining independent of the molecule. The Group is headed by Cryogenic Industries, Inc. in Southern California, U.S. ” a wholly owned subsidiary of Nikkiso Co., Ltd. (TSE: 6376).

Media contact
pr@nikkisoceig.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/9ce420b1-d6ab-4dc1-af1f-4858d989f1d6

Jeff Mumford promotion announcement EVP Operations and Manufacturing

Effective Jan. 2, 2025, Jeff Mumford is Executive Vice President of Operations and Manufacturing for Nikkiso Clean Energy & Industrial Gases

Source: Cryogenic Industries

Stock Markets

Simon Property Group director Daniel Smith acquires $56,309 in stock

Published

23 hours ago

January 3, 2025

Daniel C. Smith, a director at Simon Property Group Inc. (NYSE:), a $64.8 billion market cap retail REIT with a GREAT financial health score according to InvestingPro, recently acquired additional shares of the company’s common stock. According to a Form 4 filing with the Securities and Exchange Commission, Smith purchased 334 shares on December 30, 2024, at a price of $168.59 per share. This acquisition, valued at approximately $56,309, was made through the reinvestment of dividends received on restricted stock, as part of the Simon Property Group, L.P. 2019 Stock Incentive Plan. The company currently offers a 4.88% dividend yield and has maintained dividend payments for 31 consecutive years. Following this transaction, Smith holds a total of 30,113 shares in the real estate investment trust. InvestingPro subscribers can access 8 additional key insights and a comprehensive analysis of Simon Property Group’s financial metrics.

In other recent news, Simon Property Group has seen noteworthy developments. The company’s third quarter performance showcased a solid financial and operational stance, with a real estate funds from operations (FFO) increase of 4.8% year-over-year to $3.05 per share, and a dividend hike to $2.10 per share, marking a 10.5% rise from the previous year. Despite a non-cash loss related to Klépierre exchangeable bonds, the company maintained strong occupancy rates and leasing momentum.

Analysts at Jefferies upgraded Simon Property Group’s stock from Hold to Buy, citing factors like the resilience of the consumer market and the company’s ability to convert temporary leases to permanent ones. Jefferies also projected a growth in the company’s occupancy rate to 96.7% by the fourth quarter of 2025, surpassing pre-pandemic levels.

However, Deutsche Bank (ETR:) initiated coverage on the company with a Hold rating, expressing concern over the impact of tariffs on trading multiples across the mall sector. This could potentially overshadow the company’s strong underlying business performance. These recent developments provide investors with a snapshot of Simon Property Group’s current position within the real estate market.

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