Category: Stock Market News (Page 1 of 65)

CFPB Warns People May Lose Their Cash in Money Apps

Market News Daily - CFPB Warns People May Lose Their Cash in Money Apps.
Market News Daily – CFPB Warns People May Lose Their Cash in Money Apps.

The Consumer Financial Protection Bureau (CFPB) warns that people may lose their cash in money apps such as Venmo, PayPal, CashApp, or Zelle if their cash holder fails.

The agency advises users to routinely move money out of the apps and into an account at an insured financial institution, such as a traditional bank.

But the fact is that traditional banks have been running dry on liquidity and facing big competition from online banking-only businesses.

Online banking-only companies have offered higher yield savings accounts attracting more and more people.

For example, Goldman Sachs (NYSE:GS) is currently making it difficult for Apple (NASDAQ:AAPL) customers to withdraw money from their savings account.

Apple’s savings account partnership with Goldman Sachs launched in April and now customers are reporting being unable to take their money out of the bank.

Nathan Thacker, who lives outside Atlanta, had been trying to transfer $1,700 from his Apple account to JPMorgan Chase since May 15.

Each time he called Goldman’s customer service department, he said he was told to give it a few more days, per WSJ.

The Apple savings account has attracted people searching for a high yield savings account.

It pays a 4.15% interest rate, but weary investors say banks are scouring for liquidity.

Are People’s Money Safe in Money Apps Such as PayPal and Venmo?

Market News Daily - CFPB Warns People May Lose Their Cash in Money Apps.
Market News Daily – CFPB Warns People May Lose Their Cash in Money Apps.

Money held in nonbank, peer-to-peer payment apps is not guaranteed for federal deposit insurance protection, which makes the funds more vulnerable, the Consumer Financial Protection Bureau warned Thursday.

First Republic Bank, one of the key leaders in regional banks, collapsed early last month, triggering a mini banking crisis, with two more regional banks following suit, says Valuetainment.

The CFBP director told CNBC, ““Popular digital payment apps are increasingly used as substitutes for a traditional bank or credit union account but lack the same protections to ensure that funds are safe.”

More than three-quarters of U.S. adults have used a payment app, according to the Pew Research Center.

Millennials made up the bulk of users in 2022 at 94%.

CFPB said Thursday it will continue coordinating with state and federal regulators to monitor progress on automated funds sweeping into insured banking accounts.

Until then, app users must be proactive in moving money into an insured financial facility until a method is adopted, the agency said.

PayPal and Cash App did not respond to requests for comment, however, the Financial Technology Association, which represents Block, PayPal and dozens of other fintech companies, said P2P accounts are “safe and transparent” and prioritize consumer protection.

“Tens of millions of American consumers and small businesses rely on payment apps to better spend, manage, and send their money,” a FTA spokesperson told CNBC.

“These accounts are safe and transparent, with users receiving FDIC Insurance on their accounts depending on the products they use.”

Market News Published Daily

Market News Today - CFPB Warns People May Lose Their Cash in Money Apps.
Market News Today – CFPB Warns People May Lose Their Cash in Money Apps.

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Goldman Sachs Makes it Difficult for Customers to Withdraw Money

Market News Daily - Goldman Sachs Makes it Difficult for Customers to Withdraw Money.
Market News Daily – Goldman Sachs Makes it Difficult for Customers to Withdraw Money.

Goldman Sachs (NYSE:GS) is making it difficult for Apple (NASDAQ:AAPL) customers to withdraw money from their savings account.

Apple’s savings account partnership with Goldman Sachs launched in April and now customers are reporting being unable to take their money out of the bank.

Nathan Thacker, who lives outside Atlanta, had been trying to transfer $1,700 from his Apple account to JPMorgan Chase since May 15.

Each time he called Goldman’s customer service department, he said, he was told to give it a few more days, per WSJ.

But JPMorgan is also under scrutiny for freezing customer bank accounts in May.

Others said they also had trouble transferring money from their new Apple accounts.

Customer service representatives at Goldman, which holds the deposits, sometimes gave differing responses about what to do, they said.

Sometimes, their money appeared to have simply vanished, not showing up in their Apple account or in the account they were trying to move it to.

“The customer response to the new savings account for Apple Card users has been excellent and beyond our expectations,” the bank said in a statement.

“While the vast majority of customers see no delays in transferring their funds, in a limited number of cases, a user may experience a delayed transfer due to processes in place designed to help protect their accounts.”

Read: Goldman Sachs Gets Ready to Fire Hundreds of People

Goldman Sachs Apple Savings Account Case Study

Goldman Sachs Apple Customers News - Apple Customers Say It’s Hard to Get Money Out of Goldman Sachs Savings Accounts
Apple Customers Say It’s Hard to Get Money Out of Goldman Sachs Savings Accounts.

Min-Jae Lee, a lawyer, was curious to try out the Apple account and intrigued by its high interest rate.

She deposited $100,000 in April, but soon decided she would rather have her money elsewhere.

On May 1, she tried to transfer it out; it took more than three weeks for her to get it.

Lee said Goldman told her to contact JPMorgan Chase, where she was trying to move the money.

Then, on Goldman’s advice, she tried sending the money to her Vanguard account.

The $100,000 moved there before going back to Apple the same day, she said.

Goldman then called her, she said, and told her that the money could be transferred only to the account from where she had sent it.

She initiated a transfer to Ally on May 16.

A few days later, Goldman told her that her account was under a security review.

Her Apple account showed a zero balance, but the money wasn’t in her Ally account either before finally showing up there on May 25.

It is reasonable that a bank would delay a transfer to do enhanced due diligence, but the length of the delay in these cases is surprising, said Dennis Lormel, who worked on financial crimes for the U.S. government for three decades and now is a bank consultant.

The Apple savings account has attracted people searching for a high yield savings account.

It pays a 4.15% interest rate, but weary investors say banks are scouring for liquidity.

Market News Published Daily

Market News Today - Goldman Sachs Makes it Difficult for Customers to Withdraw Money.
Market News Today – Goldman Sachs Makes it Difficult for Customers to Withdraw Money.

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New Study Shows Nearly 190 Banks on Verge of Collapsing

Market News Daily - New Study Shows Nearly 190 Banks on Verge of Collapsing.
Market News Daily – New Study Shows Nearly 190 Banks on Verge of Collapsing.

A new study shows that nearly 190 banks are on the verge of collapsing.

Several reports throughout the year have highlighted a crisis amongst the banking system.

After the collapse of Silicon Valley Bank and Signature Bank in March and First Republic Bank in April, a study on the fragility of the U.S. banking system found that 183 more banks are at risk of failure even if only half their uninsured depositors—those with deposits greater than $250,000—decide to withdraw their funds, USA Today reported

“The recent declines in bank asset values very significantly increased the fragility of the U.S. banking system to uninsured depositor runs,” economists wrote in a recent paper published on the Social Science Research Network.

“So, our calculations suggest these banks are certainly at a potential risk of a run, absent other government intervention or recapitalization.” 

Regional banks are failing because the Federal Reserve’s aggressive interest rate hikes to clamp down on inflation have eroded the value of bank assets such as government bonds and mortgage-backed securities, reported USA Today.

“If a ‘confidence crisis’ can happen to First Republic, it can happen to any bank in this country,” says Jake Dollarhide, Chief Executive Officer of Longbow Asset Management.

A run on these banks could pose a risk to even insured depositors—those with $250,000 or less in the bank—as the FDIC’s deposit insurance fund starts incurring losses, the economists wrote. 

Liquidity in Banks is Running Dry

The report circling the banking sector suggests that liquidity in banks is running dry.

Below will be a few statements from the official report.

“The U.S. banking system’s market value of assets is $2.2 trillion lower than suggested by their book value of assets accounting for loan portfolios held to maturity.

Marked-to-market bank assets have declined by an average of 10% across all the banks, with the bottom 5th percentile experiencing a decline of 20%.

We show that a bank’s survival depends on the market beliefs about the share of uninsured depositors who will withdraw money following a decline in the market value of bank assets.

A case study of the recently failed Silicon Valley Bank (SVB) is illustrative. 10 percent of banks have larger unrecognized losses than those at SVB.

Nor was SVB the worst capitalized bank, with 10 percent of banks having lower capitalization than SVB.

On the other hand, SVB had a disproportional share of uninsured funding: only 1 percent of banks had higher uninsured leverage.

Combined, losses and uninsured leverage provide incentives for an SVB uninsured depositor run.

We compute similar incentives for the sample of all U.S. banks.

Even if only half of uninsured depositors decide to withdraw, almost 190 banks with assets of $300 billion are at a potential risk of impairment, meaning that the mark-to-market value of their remaining assets after these withdrawals will be insufficient to repay all insured deposits.”

Which Banks Are at Most Risk Right Now?

Market News Daily - New Study Shows Nearly 190 Banks on Verge of Collapsing.
Market News Daily – New Study Shows Nearly 190 Banks on Verge of Collapsing.

Banks that have the most risk right now are:

  • First Republic Bank
  • Huntington Bancshares
  • KeyCorp
  • Comerica
  • Truist Financial
  • Cullen/Frost Bankers
  • Zions Bancorporation

The “Top 5” also have a big risk factor, though many have deemed these banks as “too big to fail”.

  • Bank of America
  • Citigroup
  • JPMorgan Chase
  • Morgan Stanely
  • Wells Fargo

Is your money safe in banks?

“It’s not a problem unless your depositors decide it’s a problem and ask you for their money back, which is sort of what happened with Silicon Valley Bank,” said David Sacco, a finance professor at the University of New Haven. 

This is why banks at the moment are offering higher CD rates as well as higher yield savings accounts.

As long as majority of the population continues to keep their money in banks and aren’t resorting to withdraw large amounts of cash, there’s a possibility that the current banking crisis begins to die down.

Other Banking News

The nation’s largest bank JPMorgan (NYSE:JPM) is facing a painful $1.5 billion fee that may also be felt by various other banks later this year.

The Federal Deposit Insurance Corporation’s board of directors approved a proposal to raise the fees banks pay to have depositors’ money insured.

This comes after the government insured depositors’ money that exceeded the $250,000 insurance cap at Silicon Valley Bank and Signature Bank to stem the panic that ensued from their failures.

In total, that depleted $15.8 billion from the FDIC’s Depositor Insurance Fund (DIF).

Banks that are FDIC-insured pay fees to the fund in exchange for coverage in the event that they fail.

To recover the $15.8 billion, the FDIC is proposing levying higher fees on banks that have more than $5 billion in uninsured deposits.

The FDIC is focusing on these banks since they benefited the most from the FDIC’s unprecedented actions in the wake of the collapse of SVB and Signature Bank, according to CNN.

The proposed rule would charge banks 0.125% annually for two years on all their uninsured deposits as of the end of last year after deducting $5 billion.

JPMorgan Chase would pay around $1.5 billion in additional fees given the bank had around $1.2 trillion in uninsured deposits at the end of 2022, according to FDIC records.

Dr. Stephen Leeb, one of the world’s top money managers, says that JPMorgan’s gold derivate short positions are so numerous and large that they likely exceed the entirety of the bank’s assets on hand – “which is a very dangerous position in which to be.”

“Should the price of gold ever shoot up from its current price by, say, another $1,000 in the coming weeks or months due to an unexpected “black swan” event, banking giant JPMorgan Chase would more than likely find itself underwater due to the massive gold derivative short positions it currently holds,” says Planet Today.

Market News Published Daily

Market News Today - Is Amazon buying AMC Entertainment?
Market News Today – New Study Shows Nearly 190 Banks on Verge of Collapsing.

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JPMorgan to Close 21 First Republic Branches Amidst Latest Layoffs

Market News Daily - JPMorgan to Close 21 First Republic Branches Amidst Latest Layoffs.
Market News Daily – JPMorgan to Close 21 First Republic Branches Amidst Latest Layoffs.

JPMorgan (NYSE:JPM) will close 21 First Republic Branches amidst the bank’s latest layoffs.

The bank cut 500 additional jobs this week following the new layoffs in First Republic Bank where more than 1,000 employees were notified of being let go.

Reuters reports JPMorgan will close these 21 branches by the end of the year.

The locations account for about a quarter of First Republic’s 84 branches across eight states.

The lender, which was the largest to collapse since the 2008 financial crisis, was seized by regulators in May and sold to JPMorgan.

“The cuts are a further blow to First Republic employees, who have already had a challenging two months.

Following the collapse of Silicon Valley Bank and Signature Bank in March, customers of First Republic withdrew tens of billions of dollars of deposits and the lender was ultimately shuttered by US regulators and sold over a weekend to JPMorgan,” said FT.

“These locations have relatively low transaction volumes and are generally within a short drive from another First Republic office,” the spokesperson said.

About 100 employees who are affected by the branch closures will be offered six-month transition assignments. After that, they will be eligible to apply for other roles at JPMorgan, which currently has 13,000 vacancies.

For those who are offered a job, they may be given either a permanent role or limited-term employment ranging from 3 to 12 months.

Since the takeover, First Republic employees have been left in the dark about their future with the company.

Other Bank Layoffs Happening Today

Market News Daily - JPMorgan to Close 21 First Republic Branches Amidst Latest Layoffs.
Market News Daily – JPMorgan to Close 21 First Republic Branches Amidst Latest Layoffs.

Morgan Stanely (NYSE:MS) recently cut around 70 dealmakers in Europe; the latest round of layoffs to hit the Wall Street bank this week.

Managing directors within its investment banking and global capital markets teams in Europe, the Middle East and Africa were informed of job cut decision earlier this week on Monday according to people familiar with the matter.

At the senior level, approximately 10 managing director dealmakers were cut in the region, the people added.

In January, Morgan Stanley’s rival Goldman Sachs laid off more than 3,000 employees and cut executive salaries.

Around 50 dealmakers were hit by the job losses in Emea, FN reported.

The ongoing deal triggered several big banks to trim their workforce this year.

Bank layoffs are expected to continue throughout the year.

The US bank’s latest job cuts will hit 3,000 roles globally across most of its key divisions, as it embarks on its second round of redundancies within the space of six months, says FinancialNews London.

Read: NYC is Freezing New Bank Deposits at Capital One

Bankers at Credit Suisse Quickly Throw in The Towel

Not only are big layoffs expected to occur with Credit Suisse, but hundreds of bankers have quickly begun to throw in the towel.

Swiss newspaper Blick reported earlier on Wednesday that each day around 150 people worldwide were resigning from Credit Suisse while one of the two people said they saw about 200 resignations a week.

Credit Suisse bankers, worried about their future are seeking safer employment at competitors, one person said.

People familiar with the matter declined to be named because they are not authorized to speak publicly, per Reuters.

UBS (NYSE:UBS) agreed on March 19 to take over its smaller Swiss rival as part of a rescue arranged by the Swiss authorities after a bout of market turmoil brought the struggling lender to the brink of collapse.

Credit Suisse said in April that the bank’s “employee attrition has been higher over the last year,” and that it had just over 48,000 full-time employees at the end of the first quarter and reported 50,480 full-time staff at the end of 2022.

UBS management has also said it would set a “very high bar” when deciding whether to retain any of Credit Suisse’s investment banking staff.

UBS has said it plans to wind down Credit Suisse’s investment bank, which employs about 17,000 staff, and the Swiss state has pledged 9 billion Swiss franc in guarantees to cover potential losses from the operation.

Read: Credit Suisse Stock is Now in Danger of Delisting

Market News Published Daily

Market News Today - JPMorgan to Close 21 First Republic Branches Amidst Latest Layoffs.
Market News Today – JPMorgan to Close 21 First Republic Branches Amidst Latest Layoffs.

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New MMTLP Disclosures Are Underway This Month

Market News Daily - New MMTLP Disclosures Are Underway This Month.
Market News Daily – New MMTLP Disclosures Are Underway This Month.

New MMTLP disclosures are underway by self-regulatory financial body FINRA in the latest court session to take place later this month.

The New York Supreme Court ordered FINRA to show cause with a court date for Tuesday, May 30th, but FINRA requested a two-week extension.

Investors who held shares of MMTLP stock on the record date of December 12 would receive a preferred dividend of Next Bridge Hydrocarbon on Wednesday, December the 14th.

However, MMTLP stock stopped trading on Thursday, December 8 after FINRA delisted the security without notice or warning.

The event has been recognized by retail investors as one of the biggest Wall Street frauds in recent history and now investors want answers.

In April, a motion was filed in the Supreme Court of New York by Mark Basile on behalf of an MMTLP investor requesting FINRA for MMTLP blue sheets.

Since the filing, the MMTLP community has stood behind Basile in efforts to hold FINRA accountable and to find a solution to investors ‘frozen’ money.

FINRA is scheduled to appear in the New York Supreme Court on Tuesday, June 13.

Sources familiar with the matter are expecting to hear a brief response on Friday, June 2nd.

Investors are calling out FINRA for the strong probability of fraud and market manipulation.

Transcripts surfaced in April between FINRA and the SEC discussing a fraud team investigating ticker symbol MMTLP prior to the U3 halt.

“Looks like this MMAT/MMTLP matter has now hit my Fraud team’s radar screen (and seemingly a lot of other radar screens as well). I know you have spoken to Patti Casimates and our General Council’s office — but was wondering if it made sense for my Fraud team to have a conversation directly with you and your folks working on the matter so we are not duplicating efforts.

We are looking at the two issuers from a fraud/manipulation angle and, in fact, bluesheeting both MMAT and MMTLP as we speak,” said Sam Draddy to the SEC on December 5th, 2022 — just days prior the U3 halt and delisting of MMTLP.

Statements from Mark Basile on MMTLP Court Case

Market News Daily - New MMTLP Disclosures Are Underway This Month.
Market News Daily – New MMTLP Disclosures Are Underway This Month.

Mark Basile who is leading the MMTLP court case stated the following:

“The Supreme Court has set oral argument for this matter on June 13, 2023 at 2:30pm.

The hearing will be done virtually through the courts video case management system.

I am not sure if this matter can be viewed or listened to by the general public but I will find out.

Please do not read into this as some sort of nefarious plot to exclude anyone or something sinister is happening behind the scenes.

I can assure you that we are talking to FINRA in hopes of resolving this before the hearing.

Courts offer this convenience to counsel as a matter of courtesy especially when counsel is out of state, such as this case.

No worries, nothing changes.”

More than 34K MMTLP letters have been sent to regulators by investors affected by the aftermath of the U3 halt and delisting of ticker symbol MMTLP.

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Market News Published Daily

Market News Today - New MMTLP Disclosures Are Underway This Month.
Market News Today – New MMTLP Disclosures Are Underway This Month.

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AMC Embarks in New Partnership with Vudu Streaming Platform

Market News Daily - AMC Embarks in New Partnership with Vudu Streaming Platform.
Market News Daily – AMC Embarks in New Partnership with Vudu Streaming Platform.

AMC Entertainment (NYSE:AMC) has embarked in a new partnership with the streaming platform Vudu.

Four years after AMC Theatres launched its on-demand streaming service, AMC Theatres On Demand, the company is now transferring its entire library of films over to Vudu, the Fandango-owned digital video on-demand service.

Vudu announced Thursday that it’s the official new streaming destination for AMC Theatres On Demand, giving users access to over 200,000 movies and TV shows, including the latest hit titles like “The Super Mario Bros. Movie,” “John Wick: Chapter 4,” “Dungeons & Dragons: Honor Among Thieves,” “Avatar: The Way of Water” and more.

AMC Theatres On Demand users will no longer be able to watch, purchase or rent titles on the AMC Theatres On Demand apps or website.

Instead, users will have to create a Vudu account to purchase new titles as well as move over their existing AMC content library.

According to the AMC website, users have until August 31 to transfer their existing movie collection over to Vudu.

AMC Theatres On Demand users that are already on Vudu will also be able to link their accounts.

New Vudu customers get 15% off every purchase during the first month of using the service.

“Today marks a noteworthy partnership for both companies.

AMC is the largest theater chain in the U.S., with 600 theaters and approximately 200 million customers.

Vudu is among the most popular digital video on-demand services, with 60 million registered users,” says TechCrunch.

Statements from AMC Entertainment on New Streaming Platform Partnership

Market News Daily - AMC Embarks in New Partnership with Vudu Streaming Platform.
Market News Daily – AMC Embarks in New Partnership with Vudu Streaming Platform.

“AMC Theatres On Demand is proud to announce our new partnership with Vudu.

We have selected Vudu as our partner to continue providing exceptional On Demand movie rentals and purchases to our guests, as AMC will no longer offer this service independently.

AMC guests can now gain access to an even more extensive movie library, featuring thousands of FREE titles, 4K UHD quality, Dolby Atmos, and more.”

Vudu offers more than 200,000 new releases and catalog movies and TV shows to rent or buy, including the most extensive collection of 4K UHD titles, plus thousands of titles to watch for FREE.

There is no subscription required, and you can watch from your favorite viewing devices.

Vudu also offers safer family viewing with Kids Mode, Common Sense Media ratings and reviews, parental controls, and more.

“Plus, if you’d like to rent or purchase additional movies, new Vudu customers get 15% off for the first month,” AMC says on its website.

The AMC and Vudu on-demand streaming platform partnership breaks barriers between traditional forms of consuming films versus today’s current modern take with online streaming.

The movie theatre industry has come a long way since the crippling events of the pandemic in 2020.

Latest AMC Entertainment News and Updates

AMC Entertainment News Today - Stock Market News Daily.
AMC Entertainment News Today – Stock Market News Daily.

AMC CEO Adam Aron announced that 1 million investors have now enrolled in AMC’s Investor Connect.

Launched in 2021, Investor Connect lets AMC shareholders self-identify through the company’s website to receive special offers and company updates.

“ONE MILLION PEOPLE have now enrolled as members. While I get a few hate messages, AMC is SO fortunate to have passionate retail investors with us. TY, TY, TY!” said Adam Aron on Twitter.

AMC Entertainment announced in early May the movie theatre chain beat Wall Street expectations for its first quarter results.

“Our results for the first quarter of 2023 represent AMC’s strongest first quarter in four full years.

We kicked off 2023 by continuing on our positive glide path to recovery, with more than a 21% growth in total revenues and a $69 million improvement in Adjusted EBITDA compared to the previous year.

The first quarter of 2023 and fourth quarter of 2022 mark the first two consecutive quarters of EBITDA since March of 2020.

This progress is a testament to the ongoing recovery in the industrywide box office, as well as AMC’s enduring commitment to the excellence and innovation as our guests enjoy a superb movie-going experience at our theatres,” said AMC CEO Adam Aron.

AMC Entertainment stock is up more than +17% this year-to-date.

Market News Published Daily

Market News Today - AMC Embarks in New Partnership with Vudu Streaming Platform.
Market News Today – AMC Embarks in New Partnership with Vudu Streaming Platform.

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Credit Suisse Stock is Now in Danger of Delisting

Market News Daily - Credit Suisse Stock is Now in Danger of Delisting.
Market News Daily – Credit Suisse Stock is Now in Danger of Delisting.

Credit Suisse (NYSE:CS) stock is now in danger of delisting from the New York Stock Exchange as it fails to meet the exchanges minimum price criteria.

“The New York Stock Exchange notified Credit Suisse on May 1… that it is no longer in compliance with the NYSE’s continued listing minimum price criteria,” Credit Suisse said in a statement end of the month.

Credit Suisse stock is currently down more than -73% this year-to-date, currently trading at $0.82 per share.

Under NYSE rules, shares must trade for at least $1.00 for 30 consecutive days to qualify for listing.

“Credit Suisse expects that the deficiency will be cured upon completion of the acquisition by UBS,” which will mean its own shares are exchanged for UBS stock and delisted in New York, the statement said.

“Upon consummation of the acquisition, UBS will be the surviving entity.

In connection with the acquisition, Credit Suisse’s ordinary shares underlying its American Depositary Shares will be exchanged for the right to receive a fraction of a UBS ordinary share and as a result delisted from the NYSE.”

In April, Credit Suisse Investors said they wanted the board of directors in jail after they blocked executive pay plans during the final ever annual meeting.

According to The Guardian, shareholders used most of the nearly five-hour annual general meeting in Zurich – the last in the 167-year-old bank’s history – to voice fury over poor management, hitting out at excessive pay for “incompetent and greedy” bankers who they said took too many risks and endangered Switzerland’s economic prosperity.

In November of 2022, the bank warned investors in a 6-K filing of potential losses due to naked short covering.

Credit Suisse took a massive hit of $4.09 billion in Q3 and hinted at occurring losses in an upturn in markets.

The bank hired 20 banks for a $4 billion injection in effort to pivot from Q3’s disaster and also postponed publication of its annual report earlier this year, per Reuters.

Credit Suisse Bankers Resign by the Hundreds

Market News Daily - Credit Suisse Stock is Now in Danger of Delisting.
Market News Daily – Credit Suisse Stock is Now in Danger of Delisting.

Bankers at Credit Suisse are quickly throwing in the towel as hundreds of resignations hit the distressed bank.

Swiss newspaper Blick reported earlier on Wednesday that each day around 150 people worldwide were resigning from Credit Suisse while one of the two people said they saw about 200 resignations a week.

Credit Suisse bankers, worried about their future are seeking safer employment at competitors, one person said.

People familiar with the matter declined to be named because they are not authorized to speak publicly, per Reuters.

UBS (NYSE:UBS) agreed on March 19 to take over its smaller Swiss rival as part of a rescue arranged by the Swiss authorities after a bout of market turmoil brought the struggling lender to the brink of collapse.

Credit Suisse said in April that the bank’s “employee attrition has been higher over the last year,” and that it had just over 48,000 full-time employees at the end of the first quarter and reported 50,480 full-time staff at the end of 2022.

UBS management has also said it would set a “very high bar” when deciding whether to retain any of Credit Suisse’s investment banking staff.

Similarly, about 1,000 First Republic (OTCMKTS:FRCB) employees have lost their job across all of First Republic’s businesses after the JPMorgan takeover.

UBS has said it plans to wind down Credit Suisse’s investment bank, which employs about 17,000 staff, and the Swiss state has pledged 9 billion Swiss franc in guarantees to cover potential losses from the operation.

No day passes without receiving a goodbye email from someone across the bank, one of the two people said.

At the investment bank, calls are often unanswered, he added.

Market News Published Daily

Market News Today - Credit Suisse Stock is Now in Danger of Delisting.
Market News Today – Credit Suisse Stock is Now in Danger of Delisting.

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DOJ Says More Companies Are Disclosing Illegal Activity

Market News Daily - DOJ Says More Companies Are Disclosing Illegal Activity
Market News Daily – DOJ Says More Companies Are Disclosing Illegal Activity

The Department of Justice (DOJ) says more companies are voluntarily disclosing illegal activity after the department upped rewards for doing so.

Assistant Attorney General Kenneth Polite Jr. said the criminal division has already seen an increase in the number of corporate disclosures since the announcement of an expanded policy.

Under the policy, companies that disclose wrongdoing to the Justice Department, fully cooperate and fix underlying problems are eligible for discounts on financial penalties or even a promise that prosecutors won’t bring a case altogether.

Polite said the criminal division is also looking into increasing visibility into its enforcement actions, including in how it selects monitors in settlements and how and when it charges individual executives. 

“At the end of the day, chief compliance officers have to be one of the voices that sign off on these resolutions,” he said.

“What you’re hoping to see is moving away from the CCO or compliance division being siloed.”

Deputy Attorney General Lisa Monaco last year said she was directing other components of the Justice Department to create their own self-disclosure policies, as part of an effort to increase investigations into corporate crime.

In an announcement earlier this year, Polite said the criminal division would formally expand the fraud section’s self-disclosure program to apply to other types of white-collar crime, per WSJ.

Today, retail investors are looking for solutions to the daily manipulation seen in the markets as stocks tank despite healthy buying pressure.

SEC Issues Record Breaking $279 Million Whistleblower Award

Market News Daily - DOJ Says More Companies Are Disclosing Illegal Activity
Market News Daily – DOJ Says More Companies Are Disclosing Illegal Activity

In May, the Securities and Exchange Commission said it awarded nearly $279 million to a whistleblower who helped the regulator and other agencies bring enforcement actions, the biggest award ever.

Under SEC rules, a whistleblower can receive an award of between 10% and 30% of the fines collected in SEC civil-enforcement actions and related actions from other enforcement agencies resulting from a tip, assuming the SEC collects more than $1 million.

The whistleblower voluntarily provided original information to the SEC that led to a successful enforcement action by the regulator as well as two related actions, according to the award order. 

Although the SEC said it already had opened a probe of the unnamed company and its staff were aware of potential misconduct there, the agency credited the whistleblower’s information with expanding its probe and for providing ongoing assistance through written submissions and interviews.

The SEC said it also determined that related actions by other agencies were based in part on the same information provided by the whistleblower, who also provided it to another unnamed agency.

The cooperation with other agencies and their subsequent enforcement actions increased the award amount.

“This award will have a massive chilling effect on Wall Street frauds,” said whistleblower attorney Stephen M. Kohn, who isn’t involved in the case.

While the DOJ says more companies are disclosing illegal activity, it looks like the same can be said about the SEC.

Retail investors call for high profile companies such Citadel for a deep investigation surrounding their long history of market manipulation.

Read: Citadel Draws Fresh Scrutiny from SEC in New Risky Bets

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Market News Today - DOJ Says More Companies Are Disclosing Illegal Activity
Market News Today – DOJ Says More Companies Are Disclosing Illegal Activity

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Mullen Short Interest Surges to New Highs This Week

Market News Daily - Mullen Short Interest Surges to New Highs This Week.
Market News Daily – Mullen Short Interest Surges to New Highs This Week.

Mullen Automotive’s (NASDAQ:MULN) short interest has surged to new highs starting this week.

Ortex is reporting a high short interest of 24.46%, now higher than that of AMC Entertainment’s or GameStop’s short interest data.

Market analyst and portfolio manager of the Omnia Portfolio, Tom Yeung predicted a MULN short squeeze last week.

“Mullen’s recent short-share order imbalance should have short sellers worried.

We’ve seen this story before in other meme stocks.

And the most dangerous thing to assume is that this time is any different,” says Yeung.

“Mullen has a hyperactive options ring that can contribute to a gamma squeeze.

Speculators buying call options generally cause market makers to buy an offsetting leveraged long position in the stock, which means every $1.00 invested in options is much like buying $10 of shares.

That means a short squeeze in Mullen could send shares up anywhere from the $2 range to the $5 range, depending on how many retail investors suddenly hop on board and assuming a squeeze happens in the first place.”

Mullen’s cost to borrow has topped at 250% this week as well, incentivizing short-covering as the cost to borrow the stock rises.

AMC stock rose more than 3,000% when shares rose to their all-time high of $72.

Short interest at the time had dropped from 22% to 14% as share prices soared.

Will MULN Stock Squeeze?

Market News Daily - Mullen Short Interest Surges to New Highs This Week.
Market News Daily – Mullen Short Interest Surges to New Highs This Week.

As we’ve seen with both AMC Entertainment (NYSE:AMC) and GameStop (NYSE:GME), it’s heavy buying pressure that created a chain reaction of short positions closing all at once.

This is what we’ll need to see from shareholders if we’re to ever see a MULN short squeeze.

The chief investment analyst in a small family office registered in Singapore says that Mullen Automotive should only be seen as a speculative trade for the probability of a ‘short squeeze‘.

“In my opinion, MULN stock can only be a speculative instrument for short-term trading – the only serious risk to my Sell rating is the percentage of shares outstanding sold short.

If MULN experiences even the slightest positive news or the company’s CEO goes public again with a loud statement like the one about solid-state batteries, the stock will most likely experience a strong short squeeze.”

But Mullen Automotive does seem to have something up its sleeves — at least that’s what Global EV Technology founder Lawrence Hardge is leading investors to believe.

Hardge took it to Facebook to confirm new and exclusive details on the Mullen-Saudi deal.

Hardge says his team has been in Saudi Arabia negotiating the final details of the $10B Saudi deal and that they have been finalizing territories.

He also stated that revenues from the Saudi deal would be 10x what Mullen is currently making from its vehicles and commercial program including the $279 million in orders from Randy Marion, and also confirmed they will be building a new battery manufacturing facility under MAEO in the US probably in Indiana or Michigan near to where Mullen already has established facilities. 

Latest MULN Stock News

Stock Market News Today - Mullen Automotive.
Stock Market News Today – Mullen Automotive.

Mullen Automotive announced last week that it has partnered with NRTC Automation for Class 3 assembly and production.

The Class 3 EV truck is scheduled to begin production sometime in July of this year at Mullen’s Manufacturing Center in Tunica, Mississippi.

Mullen’s manufacturing group has partnered with NRTC Automation (“NRTC”) out of Birmingham, Alabama, for Class 3 assembly line installation and integration, which includes all robotics and automation systems for vehicle production.

Recent capital expenditures in Tunica include addition of Automated Guided Vehicles to transport vehicles through assembly stations in the plant, installation of robotics, water test booth and end-of-line diagnostics.

NRTC will support Mullen’s Class 3 operation through launch and also provide ongoing support of the production as Mullen ramps up to meet the full market demand from its commercial customers.

The headcount at the Tunica facility has grown steadily in anticipation of vehicle production. Mullen recently announced the hiring of an additional 35 plant staff to support production start of the Class 3 vehicle program.

Mike Vagi, president of NRTC Automation, said, “Working with Mullen’s team from the beginning of this project, and to be a key team member responsible to bring the Mullen THREE to market is a role that we take very seriously.”

Read: Mullen Announces Successful 2023 Commercial Drive Event

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Market News Today - Mullen Short Interest Surges to New Highs This Week.
Market News Today – Mullen Short Interest Surges to New Highs This Week.

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Bankers at Credit Suisse Quickly Throw in The Towel

Market News Daily - Bankers at Credit Suisse Quickly Throw in The Towel.
Market News Daily – Bankers at Credit Suisse Quickly Throw in The Towel.

Bankers at Credit Suisse (NYSE:CS) are quickly throwing in the towel as hundreds of resignations hit the distressed bank.

Swiss newspaper Blick reported earlier on Wednesday that each day around 150 people worldwide were resigning from Credit Suisse while one of the two people said they saw about 200 resignations a week.

Credit Suisse bankers, worried about their future are seeking safer employment at competitors, one person said.

People familiar with the matter declined to be named because they are not authorized to speak publicly, per Reuters.

UBS (NYSE:UBS) agreed on March 19 to take over its smaller Swiss rival as part of a rescue arranged by the Swiss authorities after a bout of market turmoil brought the struggling lender to the brink of collapse.

Credit Suisse said in April that the bank’s “employee attrition has been higher over the last year,” and that it had just over 48,000 full-time employees at the end of the first quarter and reported 50,480 full-time staff at the end of 2022.

UBS management has also said it would set a “very high bar” when deciding whether to retain any of Credit Suisse’s investment banking staff.

Similarly, about 1,000 First Republic (OTCMKTS:FRCB) employees have lost their job across all of First Republic’s businesses after the JPMorgan takeover.

UBS has said it plans to wind down Credit Suisse’s investment bank, which employs about 17,000 staff, and the Swiss state has pledged 9 billion Swiss franc in guarantees to cover potential losses from the operation.

No day passes without receiving a goodbye email from someone across the bank, one of the two people said.

At the investment bank, calls are often unanswered, he added.

10,000 People Will Lose Their Banking Job

Market News Daily - Bankers at Credit Suisse Quickly Throw in The Towel.
Market News Daily – Bankers at Credit Suisse Quickly Throw in The Towel.

During the merge of UBS and Credit Suisse sources cautioned that “the talks to resolve the crisis of confidence in Credit Suisse are encountering significant obstacles, and 10,000 jobs may have to be cut” if the two banks combine.

The merged bank will employ 120,000 worldwide, although UBS has already said it will be cutting jobs to reduce costs, per Reuters.

Credit Suisse clients began withdrawing billions of dollars during the first quarter of the year.

In November of 2022, the bank had warned investors in a 6-K filing of potential losses due to naked short covering which has many retail investors speculating the nature of the markets.

Berkshire Hathaway’s Warren Buffett has held discussions with senior Biden administration officials about the banking crisis, a source told Reuters during the time of the merge.

All parties declined to comment on the banking situation.

This is the latest development in the UBS and Credit Suisse merge, but various banks today are laying off staff.

The banking crisis is happening globally with reports of banks such as JPMorgan and Captial One now freezing customer bank accounts.

Read: New Study Shows Nearly 190 Banks on Verge of Collapsing

US Banks Are Now Cutting 3,000 Roles Globally

Bank Layoff News and Updates 2023.
Bank Layoff News and Updates 2023.

US banks are now cutting more than 3,000 roles globally in the latest spree.

The US bank’s latest job cuts will hit 3,000 roles globally across most of its key divisions, as it embarks on its second round of redundancies within the space of six months, says FinancialNews London.

Morgan Stanely (NYSE:MS) recently cut around 70 dealmakers in Europe; the latest round of layoffs to hit the Wall Street bank this week.

Managing directors within its investment banking and global capital markets teams in Europe, the Middle East and Africa were informed of job cut decision earlier this week on Monday according to people familiar with the matter.

At the senior level, approximately 10 managing director dealmakers were cut in the region, the people added.

In January, Morgan Stanley’s rival Goldman Sachs laid off more than 3,000 employees and cut executive salaries.

Reuters reported on Friday that JPMorgan (NYSE:JPM) was cutting about 500 employees this week across its various departments, according to a person familiar with the situation who asked not to be identified discussing personnel matters.

The layoffs will affect employees across the bank’s main businesses — consumer, commercial banking, asset and wealth management — as well as technology and operations, the source said.

Market News Published Daily

Market News Today - Is Amazon buying AMC Entertainment?
Market News Today – Bankers at Credit Suisse Quickly Throw in The Towel.

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