Latest news with #FinancialCrisis
Yahoo
14-07-2025
- Business
- Yahoo
3 Cheap Bank Stocks for Your Short List
(0:30) - Is Now The Time For Value Investors To Add Banks To Their Portfolios? (7:00) - Finding Strong Stock Picks To Keep On Your Watch List Right Now (29:45) - Episode Roundup: JPM, C, PNC, KEY, OZK, BUSE, WSBC Podcast@ 3 Key Takeaways Investors have hated bank stocks since the financial crisis 17 years ago. Regional banks are dirt cheap. OZK, BUSE and WSBC have P/B ratios under 1.3. Get income. These 3 banks pay dividends yielding between 3% and 5%. Investors have hated bank stocks since the financial crisis 17 years ago. Regional banks are dirt cheap. OZK, BUSE and WSBC have P/B ratios under 1.3. Get income. These 3 banks pay dividends yielding between 3% and 5%. Description: Welcome to Episode #411 of the Value Investor Podcast. Every week, Tracey Ryniec, the editor of Zacks Value Investor portfolio, shares some of her top value investing tips and stock picks. Are the value bank stocks back in vogue? For 17 years, since the Great Recession began in 2008, the bank stocks have been blacklisted for investors. Every time it seemed like the worst was over, an event like the 2023 Bank Crisis occured to say otherwise. Yet, in 2025, the banks are cheap, with strong balance sheets and attractive dividend yields. But is this just another fake out? The large banks, like JPMorgan Chase and Bank of America, have already staged big rallies. JPMorgan Chase has been breaking out to new all-time highs. But the truly cheap stocks aren't among the large cap banks. JPMorgan Chase now trades with a P/B ratio over 2.0, which means its fully valued. The smaller regional banks, however, are still hated, and are even cheaper. Tracey shares three of her favorite regional banks as the second quarter earnings reports are about to roll out. 1. WesBanco, Inc. (WSBC) WesBanco is a 150-year-old Wheeling, West Virginia regional bank. It recently acquired Premier Financial to expand its business in the Mid-Atlantic and Ohio Valley. WesBanco has a market cap of $3.2 billion. Shares of WesBanco are up just 1.9% year-to-date but have gained 12.1% over the last year. It's cheap on a price-to-book (P/E) level. Bank analysts say to buy banks with a P/B ratio of 1.0 and sell at 2.0. WesBanco's P/B ratio is currently 0.88. It's dirt cheap. Earnings are expected to jump 32.5% this year. WesBanco also pays an attractive dividend, yielding 4.4%. Should WesBanco be on value investors' short lists? 2. Bank OZK (OZK) Bank OZK is headquartered in Little Rock, Arkansas and is known as a real estate bank due to its big real estate development loan portfolio. Bank OZK has a market cap of $5.9 billion and offices in 9 states. Shares of Bank OZK are up 16.5% year-to-date. Yet it's still cheap. Bank OZK trades with a P/B ratio of just 1.07. Bank OZK also pays a dividend, currently yielding 3.3%. Should a real estate bank, like Bank OZK, be on your short list? 3. First Busey Corp. (BUSE) First Busey Corp. is the holding company for First Busey Bank, headquartered in Champaign Illinois. However, the company recently acquired CrossFirst out of Leawood, Kansas, to create a bank with 77 locations across 10 states. First Busey Corp. will be headquartered in Leawood. It has a market cap of $2.2 billion. Shares of First Busey are up 2.2% year-to-date but are still in the red for the last year, down 5.1%. But it's dirt cheap. First Busey trades with a P/B ratio of just 0.6. Earnings are expected to jump 19.7% in 2025. First Busey also has an attractive dividend of 4.1%. Insiders think there's value. They have been buying shares of First Busey in the last few months. Is this a buying opportunity in First Busey? What Else Should You Know About Cheap Bank Stocks? Tune into this week's podcast to find out. [In full disclosure, Tracey owns WSBC in the Value Investor and her own personal portfolio. Zacks Insider Trader also owns BUSE.] Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WesBanco, Inc. (WSBC) : Free Stock Analysis Report First Busey Corporation (BUSE) : Free Stock Analysis Report Bank OZK (OZK) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
12-07-2025
- Business
- Forbes
6 Best Bank Stocks To Watch As 2008 Financial Crisis Rules Are Eased
If regulators ease capital requirements as proposed, financial institutions will have more balance ... More sheet freedom to make loans or fund other growth opportunities. Deregulation is a theme of the Trump administration, and bank stocks may soon benefit. In June 2025, regulators proposed a change to a 2014 rule enacted after the 2008 Financial Crisis. If approved, the update could free up capital for banks and financial companies to pursue growth. Let's review which banking rules are changing, and meet six bank stocks most likely to benefit. What Are The 2008 Financial Crisis Rules? The 2008 Financial Crisis rules are U.S. regulatory changes enacted after several major U.S. financial companies failed in 2008. The failures contributed to a historic U.S. recession and a European debt crisis. The legislative reforms aimed to prevent similar economic crises from happening again. The rules that may be eased in 2025 involve capital requirements. Capital includes cash and easily sold assets that can absorb losses and fund debt repayments. Regulators specify how much capital financial institutions must have relative to their debts. These requirements help to ensure financial stability and solvency through economic downturns. Up for modification is the enhanced Supplementary Leverage Ratio (eSLR). Under current rules, the largest U.S. banks must have an eSLR of 5%. Proposed changes would lower that requirement to 3.5% to 4.25% at the big banks, depending on their risk profile. Other rules governing long-term debt and total loss-absorbing capacity would be updated to align with the new eSLR threshold. Proponents say the changes will increase banks' participation in Treasury markets, promote lending and boost the economy. Detractors argue that easing the eSLR and related requirements will increase the chances of bank failures. 6 Best Bank Stocks To Watch The table below highlights six large, globally important bank stocks that may soon see a reduction in their eSLR requirement. You may want to add these to your own list of best stocks for 2025. A review of each financial company follows. Metrics are sourced from company reports and unless noted otherwise. 1. Citigroup (C) Citigroup by the numbers: Citigroup operates through five businesses: services, markets, banking and international, wealth and U.S. personal banking. The first three cater to corporate and institutional clients and the last two serve consumers. Citigroup has a strong institutional client roster plus 70 million personal banking clients. The bank has physical locations in 94 countries and operates in nearly 180 countries. Last year, Citigroup was wrapping up a broad restructuring effort that trimmed its workforce by about 10%. Staff reductions and other cost-cutting efforts helped the company deliver 2024 net income of $12.7 billion, up 37% from the year before. In the first quarter of 2025, Citigroup reported a 5% quarter-over-quarter decline in operating expenses—showing continued cost discipline. The bank also reported revenue growth in all five of its businesses. Citigroup's financial position remains strong. At the end of the first quarter, the bank's Common Equity Tier 1 (CET1) was 13.4%. The CET1 ratio is the bank's core capital—primarily ordinary shares and retained earnings—as a percentage of risk-weighted assets. The ratio measures financial resilience. Higher is better. The minimum CET1 ratio regulators require varies by institution. Citigroup's minimum is 12.1%. 2. The Bank of New York Mellon (BK) The Bank of New York Mellon by the numbers: BK is the holding company for Bank of New York Mellon or BNY. BNY is America's oldest bank and a specialist in custodial services. Custodian banks safeguard securities for their customers. BNY customers include Fortune 100 companies, governments and pension plans. BK launched an enterprise-wide AI effort in 2023. The strategy led to the creation of an in-house AI platform that BK employees use for risk management, operational efficiency and predictive trade analytics. The bank's digital transformation has been good for business. In 2023 and 2024, BK increased net income by 29% and 37%, respectively. In the same years, EPS grew 35% and 49% with help from BK's generous share repurchase activity. Share repurchases totaled $2.6 billion in 2023 and $3.1 billion in 2024. First quarter highlights included revenue growth of 6% and diluted EPS growth of 26% from the prior-year quarter. The bank's CET1 ratio was 11.5%. Also notable is BK's dividend program. The financial company has raised its dividend annually by at least 9% over the last three years. The current annual payout is $1.88, for a yield of 2%. 3. State Street Corporation (STT) State Street Corporation by the numbers: State Street is a large custodian bank that provides investment servicing solutions for institutional investors. The company's AI-enabled Alpha platform helps investors manage their assets and make data-driven decisions. State Street also offers ETFs and mutual funds through its State Street Investment Management business, formerly known as SSGA. State Street's stock price is up nearly 12.5% for the year, after being down 25% in early April. Several analysts expect the gains to continue. Mike Mayo of Wells Fargo, Alexander Blostein from Goldman Sachs and Betsy Graseck from Morgan Stanley, among others, raised their STT price targets in July. Acquisitions and partnerships have contributed to the optimism. International transactions, including the purchase of Mizuho Financial Group's global custody business, provide access to new growth markets for STT. Partnerships like the strategic relationship with Ray Dalio's hedge fund Bridgewater Associates support new offerings for existing customers. State Street's first quarter earnings show progress on revenue and expenses. Total revenue was up 5% and fee revenue gained 6%. Expenses declined 3%. EPS rose 49% to $2.04. At quarter-end, State Street's CET1 ratio was 11%, down slightly from the prior-year quarter. 4. Bank of America (BAC) Bank of America by the numbers: Bank of America provides banking and other financial services to consumers and businesses in the U.S. and more than 35 countries. The bank is the largest small business lender domestically and has been ranked in the top three for global investment banking fees and global research. At least six analysts have raised their price targets on BAC since early June. The consensus second quarter EPS outlook is $0.87, which represents 4.8% growth from last year. For the first quarter, BAC reported 6% revenue growth, 3% net interest income growth, 3% growth in average deposit balances and 4% higher average loans and leases. Notably, it was the seventh consecutive quarter the bank increased average deposits. Diluted EPS was $0.90, up from $0.76 in the prior-year quarter. At quarter-end, the bank's CET1 ratio was 11.8%. Bank of America pays a quarterly dividend of $0.26, for a yield of 2.2%. The bank also approved a $25 billion share repurchase program last year. Share repurchases in the first quarter totaled $4.5 billion. 5. Goldman Sachs (GS) Goldman Sachs by the numbers: Goldman Sachs is organized into three businesses: Global Banking & Markets, Asset & Wealth Management and Platform Solutions. Global Banking & Markets, the largest segment, provides investment banking services. Asset & Wealth Management manages money for institutions, advisors, foundations and high-net-worth individuals. Platform Solutions offers embedded financial products and a transaction banking platform. Goldman Sachs has been making moves to leverage its expertise and reputation in investment banking and trading operations. Last year, the financial company sold a credit card business, home-improvement lending operation and personal financial management unit. First quarter 2025 results indicate the refocus is driving results. The company earned $15 billion in net revenue, its third-highest quarterly sales result. The Global Banking & Markets business contributed $10.7 billion to that tally, partly due to record net revenues in Equities. GS also earned the top global ranking for announced and completed mergers and acquisitions and equity offerings. Diluted EPS in the first quarter was $14.12, 22% higher than the prior-year quarter. GS also spent $4.6 billion on common share repurchases and authorized a new $40 billion repurchase program. The financial company's CET1 ratio is currently 14.83%, 1.23 percentage points higher than its required level. 6. Morgan Stanley (MS) Morgan Stanley by the numbers: Morgan Stanley is a wealth manager serving institutions, governments and consumers. The company offers investment banking services to businesses and governments, sales and trading support to hedge funds and active investment management services to people and institutions. Morgan Stanley also publishes investment research. Morgan Stanley has two primary longer-term goals: to increase client assets to $10 trillion from $7.7 trillion currently, and to realize a 30% pre-tax margin in its Wealth Management business. The Wealth Management growth strategy involves acquiring new customers from ETrade, workplace channels and financial advisors. The three-pronged approach has been effective. Since 2018, Morgan Stanley has increased the number of households served by 20 million, from 2.5 million to 22.5 million. The momentum is one reason why analysts expect the financial company to report EPS of $2.01 for the second quarter, up from $1.82 in last year's June quarter. First quarter 2025 highlights for Morgan Stanley included quarter-over-quarter net revenue growth of 17% and diluted EPS growth of 29%. The Wealth Management pretax margin was 26.6% and the CET1 ratio at quarter-end was 15.3%. Morgan Stanley also spent $1 billion on stock repurchases in the quarter and declared a $0.925 quarterly dividend. Bottom Line If regulators ease capital requirements as proposed, financial institutions will have more balance sheet freedom to make loans or fund other growth opportunities. The freedom does bring higher risk, so lean into banks with disciplined leadership teams and conservative lending practices.
Yahoo
02-07-2025
- Business
- Yahoo
Best CD rates today, July 2, 2025 (Lock in up to 5.5% APY)
The Federal Reserve lowered the federal funds three times in 2024. As a result, deposit account rates are on the decline. The good news: You can lock in a competitive return on a certificate of deposit (CD) today and preserve your earning power. In fact, the best CDs still pay rates above 4%. Read on for a snapshot of CD rates today and where to find the best offers. CDs today typically offer rates significantly higher than traditional savings accounts. As of June, the best short-term CDs (six to 12 months) generally offer rates around 4.00% to 4.50% APY. As of June 25, 2025, the highest CD rate is 5.5% APY, offered by Gainbridge® on its 5-year CD. There is a $1000 minimum opening deposit required. The following is a look at some of the best CD rates available today from our verified partners. The 2000s were marked by the dot-com bubble and later, the global financial crisis of 2008. Though the early 2000s saw relatively higher CD rates, they began to fall as the economy slowed and the Federal Reserve cut its target rate to stimulate growth. By 2009, in the aftermath of the financial crisis, the average one-year CD paid around 1% APY, with five-year CDs at less than 2% APY. The trend of falling CD rates continued into the 2010s, especially after the Great Recession of 2007-2009. The Fed's policies to stimulate the economy (in particular, its decision to keep its benchmark interest rate near zero) led banks to offer very low rates on CDs. By 2013, average rates on 6-month CDs fell to about 0.1% APY, while 5-year CDs returned an average of 0.8% APY. However, things changed between 2015 and 2018, when the Fed started gradually increasing rates again. At this point, there was a slight improvement in CD rates as the economy expanded, marking the end of nearly a decade of ultra-low rates. However, the onset of the COVID-19 pandemic in early 2020 led to emergency rate cuts by the Fed, causing CD rates to fall to new record lows. The situation reversed following the pandemic as inflation began to spiral out of control. This prompted the Fed to hike rates 11 times between March 2022 and July 2023. In turn, this led to higher rates on loans and higher APYs on savings products, including CDs. Fast forward to September 2024 — the Fed finally decided to start cutting the federal funds rate after it determined that inflation was essentially under control. Today, we're beginning to see CD rates come down from their peak. Even so, CD rates remain high by historical standards. Take a look at how CD rates have changed since 2009: Traditionally, longer-term CDs have offered higher interest rates compared to shorter-term CDs. This is because locking in money for a longer period typically carries more risk (namely, missing out on higher rates in the future), which banks compensate for with higher rates. However, this pattern doesn't necessarily hold today; the highest average CD rate is for a 12-month term. This indicates a flattening or inversion of the yield curve, which can happen in uncertain economic times or when investors expect future interest rates to decline. Read more: Short- or long-term CD: Which is best for you? When opening a CD, choosing one with a high APY is just one piece of the puzzle. There are other factors that can impact whether a particular CD is best for your needs and your overall return. Consider the following when choosing a CD: Your goals: Decide how long you're willing to lock away your funds. CDs come with fixed terms, and withdrawing your money before the term ends can result in penalties. Common terms range from a few months up to several years. The right term for you depends on when you anticipate needing access to your money. Type of financial institution: Rates can vary significantly among financial institutions. Don't just check with your current bank; research CD rates from online banks, local banks, and credit unions. Online banks, in particular, often offer higher interest rates than traditional brick-and-mortar banks because they have lower overhead costs. However, make sure any online bank you consider is FDIC-insured (or NCUA-insured for credit unions). Account terms: Beyond the interest rate, understand the terms of the CD, including the maturity date and withdrawal penalties. Also, check if there's a minimum deposit requirement and if so, that fits your budget. Inflation: While CDs can offer safe, fixed returns, they might not always keep pace with inflation, especially for longer terms. Consider this when deciding on the term and amount to invest.
Yahoo
25-06-2025
- Business
- Yahoo
Best CD rates today, June 25, 2025 (Lock in up to 5.5% APY)
The Federal Reserve lowered the federal funds three times in 2024. As a result, deposit account rates are on the decline. The good news: You can lock in a competitive return on a certificate of deposit (CD) today and preserve your earning power. In fact, the best CDs still pay rates above 4%. Read on for a snapshot of CD rates today and where to find the best offers. CDs today typically offer rates significantly higher than traditional savings accounts. As of June, the best short-term CDs (six to 12 months) generally offer rates around 4.00% to 4.50% APY. As of June 25, 2025, the highest CD rate is 5.5% APY, offered by Gainbridge® on its 5-year CD. There is a $1000 minimum opening deposit required. The following is a look at some of the best CD rates available today from our verified partners. The 2000s were marked by the dot-com bubble and later, the global financial crisis of 2008. Though the early 2000s saw relatively higher CD rates, they began to fall as the economy slowed and the Federal Reserve cut its target rate to stimulate growth. By 2009, in the aftermath of the financial crisis, the average one-year CD paid around 1% APY, with five-year CDs at less than 2% APY. The trend of falling CD rates continued into the 2010s, especially after the Great Recession of 2007-2009. The Fed's policies to stimulate the economy (in particular, its decision to keep its benchmark interest rate near zero) led banks to offer very low rates on CDs. By 2013, average rates on 6-month CDs fell to about 0.1% APY, while 5-year CDs returned an average of 0.8% APY. However, things changed between 2015 and 2018, when the Fed started gradually increasing rates again. At this point, there was a slight improvement in CD rates as the economy expanded, marking the end of nearly a decade of ultra-low rates. However, the onset of the COVID-19 pandemic in early 2020 led to emergency rate cuts by the Fed, causing CD rates to fall to new record lows. The situation reversed following the pandemic as inflation began to spiral out of control. This prompted the Fed to hike rates 11 times between March 2022 and July 2023. In turn, this led to higher rates on loans and higher APYs on savings products, including CDs. Fast forward to September 2024 — the Fed finally decided to start cutting the federal funds rate after it determined that inflation was essentially under control. Today, we're beginning to see CD rates come down from their peak. Even so, CD rates remain high by historical standards. Take a look at how CD rates have changed since 2009: Traditionally, longer-term CDs have offered higher interest rates compared to shorter-term CDs. This is because locking in money for a longer period typically carries more risk (namely, missing out on higher rates in the future), which banks compensate for with higher rates. However, this pattern doesn't necessarily hold today; the highest average CD rate is for a 12-month term. This indicates a flattening or inversion of the yield curve, which can happen in uncertain economic times or when investors expect future interest rates to decline. Read more: Short- or long-term CD: Which is best for you? When opening a CD, choosing one with a high APY is just one piece of the puzzle. There are other factors that can impact whether a particular CD is best for your needs and your overall return. Consider the following when choosing a CD: Your goals: Decide how long you're willing to lock away your funds. CDs come with fixed terms, and withdrawing your money before the term ends can result in penalties. Common terms range from a few months up to several years. The right term for you depends on when you anticipate needing access to your money. Type of financial institution: Rates can vary significantly among financial institutions. Don't just check with your current bank; research CD rates from online banks, local banks, and credit unions. Online banks, in particular, often offer higher interest rates than traditional brick-and-mortar banks because they have lower overhead costs. However, make sure any online bank you consider is FDIC-insured (or NCUA-insured for credit unions). Account terms: Beyond the interest rate, understand the terms of the CD, including the maturity date and withdrawal penalties. Also, check if there's a minimum deposit requirement and if so, that fits your budget. Inflation: While CDs can offer safe, fixed returns, they might not always keep pace with inflation, especially for longer terms. Consider this when deciding on the term and amount to invest.
Miami Herald
17-06-2025
- Business
- Miami Herald
Billionaire Bill Ackman doubles down on bold housing market bet
During the 2008 Financial Crisis, approximately 15 million Americans lost their jobs and the subprime mortgage crisis forced 4 million homes went into foreclosure. In response to the Great Recession, sweeping regulatory reforms led the federal government to place Fannie Mae and Freddie Mac under financial conservatorship in an effort to stabilize the housing market and improve the financial standing of both organizations. Historically, Fannie Mae and Freddie Mac have operated as government-sponsored enterprises (GSEs), working to enhance housing affordability by purchasing mortgage loans from lenders. However, the Trump administration has recently renewed efforts to take both entities public. Don't miss the move: SIGN UP for TheStreet's FREE daily newsletter Bill Ackman, founder of Pershing Square Capital Management, is adamant that of the federal control of these organizations is no longer necessary. He views privatization as a way to remove these liabilities from the government's balance sheet. However, privatizing Fannie Mae and Freddie Mac could have far-reaching consequences for an already unpredictable housing market with elevated mortgage rates. With discussions targeting a public offering underway, Ackman and the Trump administration are hoping to quell fears of rising mortgage rates and reaffirm commitments to shareholder value. Image source: Siskin/McMullan via Getty Images After a failed attempt to privatize Fannie Mae and Freddie Mac during his first presidential term, Trump began making another play to take both GSEs off of the federal government's balance sheet. Successful privatization could shrink the federal deficit anywhere between $250 billion and $300 billion, per estimates from the Wall Street Journal and Ackman's own analysis. Ackman-whose firm holds a significant financial stake in Fannie Mae and Freddie Mac-stands to gain over $1 billion if a privatization deal is achieved, and has continued to express support for the deal. More on homebuying: The White House will take surprising approach to curb mortgage ratesHousing expert reveals surprising ways to reduce your mortgage rateDave Ramsey predicts major mortgage rate changes are coming soonWarren Buffett's Berkshire Hathaway sounds the alarm on the 2025 housing market In a recent post on X - formerly known as Twitter -he defended his vocal support of ending the financial conservatorship of Fannie Mae and Freddie Mac, and insisted that majority of the funds from an IPO would benefit small shareholders. "While the media often depicts Pershing Square as having wealthy investors, our funds are held by thousands of small shareholders as well as pension funds and other fiduciaries that invest on behalf of retirees and other small investors," Ackman wrote in a post earlier this month. "While the press and some politicians attempt to portray the F2 [Fannie Mae and Freddie Mac] release from conservatorship as a windfall for the rich, the vast majority of the value created here will go to small investors," he continued. Treasury Secretary Scott Bessent is set to meet with Securities and Exchange Commission (SEC) and the Federal Housing Finance Agency (FHFA) on June 17th to discuss the fate of Fannie and Freddie. The Trump administration has assured investors and the general public that the federal government will maintain its oversight of both organizations and will honor implicit mortgage guarantees in the event of a public offering. Related: Fannie Mae predicts major mortgage rate changes are coming soon Some experts believe Trump may seek to take Fannie and Freddie without ending the financial conservatorship, to soften any blows to the housing market and already rising mortgage rates. Tim Pagliara, author and shareholder, highlight that this approach provides some degree of a safety net. "Allowing these entities to operate in conservatorship is a strategy that they probably talked about with the investment bankers on their primary concern, which is mortgage rates going up," he told Politico. "It's like putting training wheels on a bike." Ackman echoes this sentiment, reiterating that he expects the administration to act in the best interest of shareholders, should the organizations become privatized. "The notion that the Trump administration would act in a manner to wipe out F2 [Fannie Mae and Freddie Mac] investors for an uncertain and likely suboptimal outcome is extremely unlikely in our view," he noted. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
