Billionaire investor Bill Ackman said Friday that Bank of America BAC will buy Signature Bank SBNY on Monday, as bigger systemic banks continue in their efforts to rescue distressed smaller banks.
The CEO of Pershing Square Capital Management has recently campaignedfor an unlimited systemwide guarantee on deposits, in contrast to Treasury Secretary Janet Yellen, who reaffirmed the $250,000 insurance cap this week.
Until a full deposit insurance isachieved, the cost of capital for smaller banks will rise, forcing them to merge or be bought by bigger institutions, in Ackman's view.
I am hearing that Bank of America is going to buy Signature Bank on Monday. Unless and until we can protect uninsured deposits, the cost of capital is going to rise for smaller banks pushing them to merge or be acquired by the SIBs. I dont think this is good for America,Ackman wrote on Twitter.
Benzinga has contacted Bank of America for comment on Ackman's remarks.
Read next:Elon Musk Reacts As Bill Ackman Flags First Republic's Risk Spreading To Largest Banks: '…Astounding'
Goldman SachsAnalyst Remains Optimistic: The hedge fund manager also said Twitter that First Republic Bank FRC 's "default risk is now being spread to our largest banks and added that spreading the risk of financial contagion to achieve a false sense of confidence in FRB is bad policy.
Bank of America participatedin the consortium of large banks injecting a total of $30 billion into First Republic Bank this week.
Ackman downplayed the efficacy of the $30-billion capital infusion into FRB and stated that "half measures don't work when there is a crisis of confidence."
According to Goldman Sachs equity analyst Ryan Nash, the plan to inject capital into FRBwill allow the firm to manage short-term deposit withdrawals in an orderly fashion, although earnings will likely be negatively impacted.
Bank of America BAC , Citigroup C , JP Morgan Chase & Co. JPM , and Wells Fargo WFC were the main contributors to the FRC deposit injection, each providing $5 billion.
Goldman Sachs GS and Morgan Stanley MS each contributed $2.5 billion, while Bank of New York Mellon Corp BK , State Street Corp STT , PNC Financial Services Group Inc PNC ,
Truist Financial Corp TFC , and UBS Group AG UBS each chipped $1 billion.Each bank provided 3% of its tangible common equity (TCE), Nash said in the note.
BankingStocks Continue Selloff:Friday was another bloodbath for banking stocks. FRC plunged 32%, WFC fell 4%, BAC was down 3.8%, JPM fell 3.7%, MS lost3.4%, GS tumbled3.3%, and C retreated by 3%.
S&P 500 financial companies: price performance on March 17, 2023. Chart: TradingView
The Financial Select Sector SPDR FundXLF lost 3% on Friday, underperforming versus all other sectors, and hitting the lowest level since mid-October 2022.
The SPDR S&P Regional Banking ETF (NYSE:KRE) fell 6% on Friday and has now shed 30% of its value in the last two weeks. KRE is trading at levels not seen since the COVID-19 vaccine was discovered in November 2020.
KRE weekly price chart and RSI. Chart: TradingView
YouTuber-turned-boxer Jake Paul has defeated one of the greatest-ever fighters, former heavyweight world champion Mike Tyson, who’s more than twice his age.
The bout was won on a unanimous points decision at the AT&T Stadium in Arlington, Texas – home of the Dallas Cowboys and the biggest NFL stadium in the US.
The fight was already controversial but then arguably failed to live up to the hype. Boos were heard from the crowd in the final two rounds, after a perceived lack of action.
Boxing careers compared
This was not Paul’s first professional fight. The 27-year-old American YouTube star made his debut in 2020 with his most high-profile clash against Tyson Fury’s brother Tommy Fury last year, which he lost by a split decision.
The so-called “Problem Child” has since defeated former UFC contender Nate Diaz, professional boxer Andre August, former Gold Gloves champion Ryan Bourland and most recently MMA fighter Mike Perry.
In contrast, “Iron Mike” Tyson, 58, was ranked among the best heavyweight boxers of all time.
More on Jake Paul
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During his career, he knocked out 44 opponents – retiring from professional boxing in 2005 after defeat against Kevin McBride.
He returned to the ring in 2020 for a bout against fellow boxing icon Roy Jones, which ended in an unofficial draw.
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‘Someone’s getting put to sleep’
Earlier this week, Paul said he believed the bout would not go the distance. “No, someone’s getting put to sleep,” he said. “It’s going to be a war, and we’re both heavy hitters. It’s not going the full 16 minutes.”
Tyson was more reflective: “I’ve been through so many ups and downs since my last fight with Kevin McBride,” he said.
“I’ve been in rehab. I’ve been in prison, been locked up. Never in a million years did I believe I’d be doing this.”
Several states would not allow the bout to go ahead, and the Texas Athletic Commission only agreed to the fight if there were changes, due to Tyson’s age.
It limited the contest to eight rounds lasting a maximum of two minutes instead of three. Both boxers were also required to wear heavier gloves, designed to lessen the force of punches.
The fight was initially scheduled for 20 July, but was postponed when Tyson suffered an ulcer flareup.
Taylor defends title
Meanwhile, among the undercard fights, Irish boxer Katie Taylor successfully defended her super lightweight world title against Puerto Rico’s Amanda Serrano.
But it was tight. Taylor claimed the rematch 95-94 for all three judges in an epic battle.
The bout came two and a half years after the pair fought at Madison Square Garden, which Taylor won on a split decision.
Bout suffered from buffering
Earlier in the evening thousands of Netflix users in the US reported problems seeing the coverage, with some posting on social media about buffering.
At one point, more than 98,000 people had reported issues according to Downdetector, which tracks outages.
This breaking news story is being updated and more details will be published shortly.
Please refresh the page for the fullest version.
You can receive Breaking News alerts on a smartphone or tablet via theSky News App. You can also follow@SkyNews on X or subscribe to ourYouTube channel to keep up with the latest news.
YouTuber-turned-boxer Jake Paul has defeated one of the greatest-ever fighters, former heavyweight world champion Mike Tyson, who’s more than twice his age.
The bout was won on a unanimous points decision at the AT&T Stadium in Arlington, Texas – home of the Dallas Cowboys and the biggest NFL stadium in the US.
The fight was already controversial but then arguably failed to live up to the hype. Boos were heard from the crowd in the final two rounds, after a perceived lack of action.
Boxing careers compared
This was not Paul’s first professional fight. The 27-year-old American YouTube star made his debut in 2020 with his most high-profile clash against Tyson Fury’s brother Tommy Fury last year, which he lost by a split decision.
The so-called “Problem Child” has since defeated former UFC contender Nate Diaz, professional boxer Andre August, former Gold Gloves champion Ryan Bourland and most recently MMA fighter Mike Perry.
In contrast, “Iron Mike” Tyson, 58, was ranked among the best heavyweight boxers of all time.
More on Jake Paul
Related Topics:
During his career, he knocked out 44 opponents – retiring from professional boxing in 2005 after defeat against Kevin McBride.
He returned to the ring in 2020 for a bout against fellow boxing icon Roy Jones, which ended in an unofficial draw.
Advertisement
‘Someone’s getting put to sleep’
Earlier this week, Paul said he believed the bout would not go the distance. “No, someone’s getting put to sleep,” he said. “It’s going to be a war, and we’re both heavy hitters. It’s not going the full 16 minutes.”
Tyson was more reflective: “I’ve been through so many ups and downs since my last fight with Kevin McBride,” he said.
“I’ve been in rehab. I’ve been in prison, been locked up. Never in a million years did I believe I’d be doing this.”
Several states would not allow the bout to go ahead, and the Texas Athletic Commission only agreed to the fight if there were changes, due to Tyson’s age.
It limited the contest to eight rounds lasting a maximum of two minutes instead of three. Both boxers were also required to wear heavier gloves, designed to lessen the force of punches.
The fight was initially scheduled for 20 July, but was postponed when Tyson suffered an ulcer flareup.
Taylor defends title
Meanwhile, among the undercard fights, Irish boxer Katie Taylor successfully defended her super lightweight world title against Puerto Rico’s Amanda Serrano.
But it was tight. Taylor claimed the rematch 95-94 for all three judges in an epic battle.
The bout came two and a half years after the pair fought at Madison Square Garden, which Taylor won on a split decision.
Bout suffered from buffering
Earlier in the evening thousands of Netflix users in the US reported problems seeing the coverage, with some posting on social media about buffering.
At one point, more than 98,000 people had reported issues according to Downdetector, which tracks outages.
This breaking news story is being updated and more details will be published shortly.
Please refresh the page for the fullest version.
You can receive Breaking News alerts on a smartphone or tablet via theSky News App. You can also follow@SkyNews on X or subscribe to ourYouTube channel to keep up with the latest news.
According to a court filing, Elon Musk said that the proposed initial coin offering (ICO) “would simply result in a massive loss of credibility for OpenAI.”