Stas Melnikov, Head of Quantitative Research and Risk Data Solutions at SAS, tells RBI: "We have a number of structural issues that existed before and still exist. We had a decade of super low interest rates that pushed many banks into a significant asset liability mismatch from an interest rate risk perspective. Just functionally, there wasn't really any other way to make money for a smaller community or regional bank. That interest rate mismatch is still in the books. The interest rates are high. They alw ...

Core Viewpoint - Onity Group Inc. has appointed Aulene Wessel as Senior Vice President and Chief Accounting Officer, effective February 23, 2026, succeeding Francois Grunenwald [1][3]. Group 1: Leadership Changes - Aulene Wessel will oversee the controllership function, core accounting operations, internal controls, technical accounting, audits, and compliance with GAAP and other regulations [2]. - Sean O'Neil, the Chief Financial Officer, expressed confidence in Wessel's expertise in technical accounting and operational controllership, highlighting her collaborative leadership approach [3]. Group 2: Background of Aulene Wessel - Aulene Wessel previously served as Executive Vice President and Deputy Controller at Truist Bank and has held significant roles at SoFi Technologies and Silicon Valley Bank [4]. - Her career includes leadership positions at American Express and experience at Barclays in London and BDO in Cape Town [4]. - Wessel holds a Bachelor of Accounting degree from the University of Stellenbosch and a postgraduate degree in Accounting from the University of Natal, and she is a Chartered Global Management Accountant [4]. Group 3: Company Overview - Onity Group Inc. is a leading non-bank financial services company specializing in mortgage servicing and originations through its brands, PHH Mortgage and Liberty Reverse Mortgage [5]. - PHH Mortgage is one of the largest servicers in the U.S., while Liberty is a major reverse mortgage lender [5]. - The company is headquartered in West Palm Beach, Florida, and has been operational since 1988, with a presence in the U.S., U.S. Virgin Islands, India, and the Philippines [5].

Core Viewpoint - First Citizens BancShares is pursuing acquisitions to achieve the necessary scale to manage additional regulations that apply when a bank's assets reach $250 billion [1][2]. Group 1: Acquisition Strategy - The bank had $230 billion in assets at the end of December, indicating it is approaching the $250 billion threshold [2]. - First Citizens BancShares announced an agreement to acquire 138 branches in 11 states from BMO Bank in October [3]. - The bank has a history of acquiring failed banks, having purchased 14 in the past 20 years, and has partnered with the FDIC for more FDIC-assisted transactions than any other bank since 2009 [8]. Group 2: Financial Performance - Following the acquisition of Silicon Valley Bank (SVB) in March 2023, First Citizens Bank reported a significant increase in net income, rising to $9.5 billion from $243 million in the previous quarter [9]. - The acquisition of SVB involved purchasing $72 billion worth of assets for $16 billion, showcasing the bank's aggressive growth strategy [7]. Group 3: Historical Context - First Citizens merged with CIT Group in October 2020, creating the 19th largest U.S. bank with over $100 billion in assets, with stockholders of First Citizens owning 61% of the combined entity [10].

Group 1: Bank Failures Overview - Metropolitan Capital Bank & Trust, based in Chicago, closed on January 30, 2026, marking the first failure of an FDIC-insured bank in that year, with total assets of $261.1 million and total deposits of $212.1 million as of September 2025 [1] - The bank's deposits, excluding certain brokered deposits, were assumed by First Independence Bank from Detroit [1] - In 2023, there were five bank failures, including notable institutions like Silicon Valley Bank and Signature Bank, which ended a streak of over 800 days without a bank failure [5] Group 2: Causes and Frequency of Bank Failures - Bank failures occur when a financial institution becomes insolvent, unable to cover customer deposits and debts, often due to mismanagement, economic factors, or criminal activity [2] - It is common for at least a few banks to fail each year, with historical data showing that years without bank failures are rare [6] - Since March 2023, there have been a total of 10 bank failures, with 2023 experiencing the highest number of failures in recent history [6] Group 3: Importance of FDIC Insurance - Depositors are encouraged to keep their funds in FDIC-insured banks to protect their money, as no depositor has lost FDIC-insured funds since 1933 [4] - It is crucial for depositors to ensure their balances are within FDIC insurance limits and guidelines to safeguard their funds [3] - The FDIC has been operational for 92 years, providing confidence to depositors regarding the safety of their money in the event of a bank failure [4]

Latest: Silicon Valley Bank says crypto is shifting from speculation to core financial infrastructure, with surging institutional VC, bank-led custody and stablecoins becoming the “internet’s dollar.” https://t.co/tdYiuYV3Wz ...

Core Insights - Gateway Bank has announced the addition of two senior banking professionals, Romeo Luz and Ajeet Singh, to enhance its Walnut Creek operations [1][2] - The new hires will focus on deposit gathering and loan growth, contributing to the bank's expansion strategy in the region [1][2] Group 1: New Hires - Romeo Luz joins as Senior Vice President, Relationship Manager, bringing over 31 years of specialized banking experience, particularly in commercial lending, real estate, and construction financing [2][3] - Ajeet Singh joins as Vice President, Relationship Manager, with over 37 years of experience in banking and finance, previously managing a portfolio of 140 clients at Chase Business Bank [3] Group 2: Expertise and Contributions - Romeo Luz has managed loan portfolios up to $40 million and is recognized for his analytical rigor in underwriting complex transactions, as well as developing industry-recognized construction disbursement procedures [2] - Ajeet Singh has extensive experience in relationship and portfolio management, credit analysis, and risk management, with certifications in Financial Analysis and specialized training in business banking [3] Group 3: Company Overview - Gateway Bank is a federally-chartered savings bank headquartered in Oakland, California, operating since June 8, 1990, and providing banking services to individuals and businesses in the San Francisco Bay Area [4]

Core Insights - Citigroup's analyses highlight the resilience of global trade systems and the transformative role of technologies like artificial intelligence and blockchain in supply chain finance and the banking industry [1][9] Supply Chain Finance - Citi's 2026 outlook indicates steady adaptation in supply chain finance despite ongoing challenges, with global trade maintaining steady expansion over the past four years [2] - International commerce has been significantly restructured from 2019 to 2024 due to geopolitical tensions, leading to diversification in sourcing and new manufacturing hubs [3] - The United States has increased imports from alternative regions to mitigate risks, reflecting a shift in export patterns away from traditional powerhouses in North and East Asia [3] Technological Advancements - AI adoption in treasury management has surged, enhancing the management of financial flows and integrating with blockchain to streamline supply chain processes [4] - Citi collaborates with firms like PwC and Solana to explore the tokenization of trade instruments, aiming to improve liquidity and accessibility [5] - AI tools are automating credit assessments for small and medium-sized enterprises (SMEs), addressing gaps in trade finance for these businesses [5] Banking Sector Trends - The collapse of Silicon Valley Bank (SVB) has led to a migration of deposits and market share towards larger banks, prompting a reevaluation of industry dynamics [6][7] - Regulatory responses have intensified, focusing on bolstering capital reserves and liquidity standards to enhance resilience against shocks [7] - Banks are investing in high-quality data infrastructures to optimize operations, driven by the need for efficiency in a competitive landscape [7][8] Strategic Agility - Experts from Citi emphasize the importance of strategic agility for maintaining financial stability amid ongoing shifts in the industry [9] - The interconnected progress in supply chain finance and banking suggests that embracing AI, diversification, and robust governance will be crucial for thriving in a volatile ecosystem [9][10]

Group 1 - Erebor Bank has become the first bank to receive a national bank charter during the second term of the Trump administration, allowing it to operate nationwide [1] - The bank, backed by Palmer Luckey, received conditional approval from U.S. banking regulators in October, less than eight months after applying for the charter [2] - Erebor aims to serve technology businesses in sectors such as artificial intelligence, crypto, defense, and manufacturing, as well as individuals involved in these areas [2] Group 2 - The establishment of Erebor Bank is intended to fill the gap left by the collapse of Silicon Valley Bank in 2023, which was a crucial banking channel for early-stage technology firms and venture capitalists [3] - Many startups faced challenges in accessing capital and meeting immediate obligations, such as payrolls, following the collapse of Silicon Valley Bank [3] Group 3 - Erebor Bank is named after the "Lonely Mountain" from J.R.R. Tolkien's "The Lord of the Rings," symbolizing a fortress reclaiming treasures [4]

Group 1 - The collapse of Silicon Valley Bank in 2023 has led financial leaders to reconsider their banking strategies, focusing on diversifying their banking relationships to mitigate risks associated with potential bank failures [3][5] - A significant portion of companies with balances over $250,000 are diversifying their accounts or considering strategies to maximize FDIC insurance coverage, with mid-sized financial institutions being viewed as offering attractive rates [4][5] - Despite efforts to diversify, 86% of surveyed companies still hold balances exceeding the $250,000 FDIC insurance limit, highlighting a need for better understanding of cash safety and risk management [5][6] Group 2 - Long-term bank deposit safety remains a top concern for finance executives, with 74% ranking it among their top three priorities, surpassing concerns about inflation (70%) and cyber risk (65%) [6] - The survey indicates that many businesses could only operate for less than three months if their primary bank failed, revealing a disconnect between perceived cash safety and actual protection [6] - CFOs are urged to prioritize understanding protection limits and diversifying risk to enhance cash confidence, treating access to deposits as a core business priority [6]

Investment Philosophy - The investment approach of Van Geelen is inspired by George Soros's concept of reflexivity, emphasizing that narratives drive capital movements and can change reality [2] - Van Geelen's firm, Citrini Research, focuses on identifying stories that will influence capital flows before the market recognizes them [3][4] Performance and Strategy - Van Geelen's portfolio has increased by over 200% since May 2023, with successful trades including cheap Secured Overnight Financing Rate (SOFR) call options that yielded a 46x return [6] - He published a memo on Venezuelan sovereign bonds, predicting regime change, which materialized shortly after [7] Investment Opportunities 1. **Molina Healthcare** - Molina Healthcare operates with the lowest expense ratio in Medicaid, around 7%, and is positioned to benefit from potential margin recovery due to political gridlock [10][11] - The stock has declined by 40% over the past year, but Van Geelen projects significant earnings per share (EPS) growth based on expected margin improvements [12][14] 2. **WPP** - WPP is currently undervalued, trading at 0.2 times sales, as the market anticipates its extinction due to AI advancements [16] - The company has the potential to reduce its workforce significantly while maintaining revenue, indicating a turnaround opportunity [17] 3. **Choice Hotels** - With the upcoming 2026 World Cup in the U.S., Choice Hotels is expected to benefit from increased demand for budget accommodations [18][20] - The investment thesis is based on the certainty of millions of soccer fans needing hotel rooms, making it a straightforward opportunity [19] 4. **Tax-refund Beneficiaries** - Tax refunds for Americans in early 2026 are projected to be 30% to 50% larger than normal due to changes in the tax code, benefiting middle-income households [21][22] - Companies like Somnigroup International, Whirlpool, and Lithia Motors are positioned to capitalize on increased consumer spending from these refunds [23] Market Insights - Van Geelen emphasizes the importance of recognizing current realities rather than attempting to predict future events, highlighting that the World Cup and tax code changes are already established facts [24]