FDIC Chair Martin Gruenberg said Thursday that the US banking industry "continues to face significant downside risks" from inflation and high interest rates, which could cause profitability and credit quality to weaken. The top regulator issued his warning as the FDIC released a comprehensive look at how thousands of institutions fared during the second quarter, one of the most tumultuous periods for banking since the 2008 financial crisis. The quarter included the seizure of San Francisco...

Goldman Sachs (GS) may sell one of its wealth-management businesses as the Wall Street giant looks to steer through a rocky period and scale back its ambitions to serve more mass-market customers. The firm told Yahoo Finance Monday in a statement that it was "evaluating alternatives" for a registered investment adviser business called Personal Financial Management (PFM) "as we determine where to invest our resources and where we see the greatest opportunity." PFM managed $29 billion as of the...

Michael Burry, who famously shorted subprime mortgages ahead of the 2008 financial crisis, closed out the majority of his regional bank trade in the second quarter, filings with SEC revealed Monday. Burry's hedge fund Scion Asset Management zeroed out stakes in Western Alliance (WAL), Huntington Bank (HBAN), PacWest (PACW), and First Republic (FRCB) during the second quarter. First Republic was seized by the Federal Deposit Insurance Corporation and sold to JPMorgan & Chase at the beginning...

Coinbase Global (COIN) asked a US judge to dismiss a lawsuit from the Securities and Exchange Commission, arguing that the cryptocurrencies sold through its exchange are more like baseball cards than investment securities. "Our core argument is simple — we do not offer 'investment contracts' as that term has been construed by decades of Supreme Court and other binding precedent," Coinbase chief legal officer Paul Grewal said in a post on X, formerly Twitter. Today, @coinbase filed our brief...

Coinbase's crypto trading revenue dropped in the second quarter as regulators turned up the legal pressure on the largest US cryptocurrency exchange, leading to a net loss that widened from the first quarter. The slowdown in a key moneymaker for Coinbase (COIN) came as the exchange squared off with the Securities and Exchange Commission, which sued the exchange in June. A key client, giant money manager BlackRock, is also awaiting approval from the same agency to list a spot bitcoin ETF. Fees...