• The Federal Reserve raised its benchmark interest rate by 25 basis points, bringing rates to a target range of 4.5%-4.75%, their highest levels since October 2007. (CNBC) Fed Chair Jerome Powell said during a press conference that it should not be assumed the central bank can protect the U.S. economy in the event of a debt default by the federal government, and that the only way forward for lawmakers is to raise the debt ceiling. (Yahoo Finance)
• After meeting with President Joe Biden to discuss raising the federal borrowing limit, House Speaker Kevin McCarthy (R-Calif.) said there were “no agreements, no promises,” but that the conversation would continue. The White House said that during the meeting, Biden reiterated the administration’s position that they would not negotiate on raising the debt limit, but would welcome a separate discussion with congressional lawmakers about reducing the deficit and controlling spending. (The New York Times)
• Ahead of White House plans to hold an event today celebrating the 30th anniversary of the Family and Medical Leave Act, Democrats are calling on Biden to include a paid leave proposal in his upcoming budget, and have prepared a package of bills that would create a national 12-week paid family leave system and expanded FMLA access. A family leave policy had been included in the administration’s Build Back Better plan in 2021, but the measures were stripped out of the final package, leaving the United States as just one of a small handful of countries without a national family leave policy. (The Wall Street Journal)
• Banks that lost billions in the collapse of Archegos Capital Management nearly two years ago, including Morgan Stanley and Credit Suisse Group AG, are expected to collect just 5% to 20% of their lost investments, according to sources familiar with the matter. Banks and restructuring advisers are nearing the end of negotiations regarding how assets that belong to the family office will be distributed to banks, with banks including Goldman Sachs Group Inc. funding the payouts with money remaining in their accounts. (Financial Times)

Job openings spiked in December to high not seen since summer

The Washington Post

Losses From Adani Stock Rout Top $100 Billion

Dave Sebastian and Weilun Soon, The Wall Street Journal

Shares of Indian conglomerate’s companies slid further after cancellation of blockbuster public offering.

Credit-card balances surge — as inflation and interest rates create ‘hardships’ for cash-strapped Americans, TransUnion says

Emma Ockerman, MarketWatch

Generation Zers experienced a particularly fast growth in credit-card balances at the end of last year.

Young, Murphy reintroduce bill to limit non-compete agreements

Jana Garrett, WEHT

U.S. Senators Todd Young and Chris Murphy reintroduced the Workforce Mobility Act on Wednesday, which is bipartisan legislation to limit the use of non-compete agreements that impact American workers.

FDIC details proposed regulation public comment extension

Douglas Clark, Financial Regulation News

The Federal Deposit Insurance Corporation (FDIC) has extended by 45 days the public comment period for proposed changes to regulations regarding the FDIC’s official sign and its official advertising statement.

The CEOs Taking Pay Cuts: Here’s the List

Alyssa Lukpat, The Wall Street Journal

The leaders of Apple, Intel, Morgan Stanley and Goldman Sachs are earning lower compensation than in prior years.

SEC proposes amendments to strengthen its ethics compliance program

Dave Kovaleski, Financial Regulation News

The Securities and Exchange Commission (SEC) proposed amendments this week designed to strengthen and modernize its ethics compliance program. The proposed amendments would add new ethics requirements and prohibitions to the program for all agency employees, their spouses, and minor children.

Smallest US Firms Are Shedding Workers Fast as Economy Cools

Alexandre Tanzi, Bloomberg

The smallest American businesses are cutting jobs and struggling to meet financial commitments like rent payments, a sign that they’re feeling the squeeze more than most as the economy cools down.

Meet the Women Trying to Avoid a Spending Train Wreck in Congress

Emily Cochrane, The New York Times

For the first time, the leaders of the House and Senate Appropriations Committees are all women, as is the top White House budget official. Can they avert a fiscal disaster? They’re determined to try.

The Trillion-Dollar Question: Could a Coin Save the Day?

Alan Rappeport, The New York Times

The latest standoff over raising the nation’s debt ceiling is giving new life to an old theory about how to avoid a default.

Do Republicans want to cut Social Security and Medicare? Sen. Thom Tillis says those questions are based on ‘a false premise.’

Victor Reklaitis, MarketWatch

Democrats have been criticizing Republicans on the issue of potential reductions to major entitlement programs.

Citigroup stops margin loans against India Adani’s securities – source

Reuters

Citigroup’s wealth unit has stopped extending margin loans to its clients against securities of India’s embattled Adani group, a source with direct knowledge of the matter said, as the conglomerate reels from a short-seller attack.

Grupo Mexico clears major Citi deal hurdle with $5 bln debt package -sources

David French and Andres Gonzalez, Reuters

Grupo Mexico, the conglomerate controlled by billionaire German Larrea, has secured a $5 billion debt package for its proposed acquisition of Citigroup Inc.’s retail operations in Mexico, according to people familiar with the matter.

Deutsche Bank Profit Rises on Booming Lending Business

Patricia Kowsmann, The Wall Street Journal

Lender posts its strongest year since 2007.

JPMorgan Calls Suit Over Epstein ‘Masterclass in Deflection’

Joe Schneider, Bloomberg

JPMorgan Chase & Co. asked a judge to throw out a US Virgin Islands lawsuit that claims the bank turned a blind eye to Jeffrey Epstein’s sex-trafficking, calling the allegation a “masterclass in deflection.”

Morgan Stanley Makes Historic ETF Comeback With Six New Funds

Katherine Greifeld, Bloomberg

Three decades after helping give birth to the ETF industry, Morgan Stanley is officially back in the game in what could be a milestone moment for the investing world.

Blackstone REIT blocks investor withdrawals in January

Chibuike Oguh, Reuters

Blackstone Inc said on Wednesday it had blocked withdrawals from its $69 billion real estate income trust (BREIT) in January, as the private equity firm faced a surge in redemption requests from investors looking to cash out.

Senate Democrats ask FHFA to review nonperforming loan programs

Claire Williams, American Banker

A group of Senate Banking Democratic lawmakers  asked the Federal Housing Finance Agency to review Fannie Mae and Freddie Mac’s nonperforming loan and reperforming loan sales programs.

Falling Mortgage Rates Bring Some Home Buyers Back to Market

Gregory Schmidt, The New York Times

Buyers are returning after being sidelined by a jump in borrowing costs, but experts say that the uncertain state of the economy is what will drive the market’s next moves.

New York property tycoon to give worn-out offices ‘back to the bank’

Joshua Chaffin, Financial Times

A new era of remote work and rising interest rates has changed the equation for some developers.

Fintech Upstart lays off 20% of staff

Rajashree Chakravarty, Banking Dive

The move affecting 365 employees marks the second round of cuts since November of last year and comes amid persistent struggles to get enough funding.

Judge Bans Sam Bankman-Fried From Contacting FTX Employees and Using Signal

Cheyenne Ligon, CoinDesk

The tentative order was granted by a New York court on Wednesday after prosecutors asked the former FTX CEO’s bail conditions to be amended last week.

Coinbase wins dismissal of lawsuit claiming it sold tokens illegally

Jonathan Stempel, Reuters

A U.S. judge on Wednesday dismissed a proposed class action lawsuit by Coinbase Global Inc. customers who accused the cryptocurrency exchange of selling unregistered securities and failing to register as a broker-dealer.

FTX, Voyager celeb endorsement class actions spark fight over law firm subpoenas

Alison Frankel, Reuters

A pair of Florida class actions attempting to pin liability on celebrities who endorsed the now-collapsed FTX and Voyager crypto exchanges has led to a showdown between FTX outside counsel at Sullivan & Cromwell and plaintiffs’ lawyers from Boies Schiller Flexner and The Moskowitz Law Firm.

Crypto hacks stole record $3.8 billion in 2022, led by North Korea groups – report

Josh Smith, Reuters

Last year was the worst on record for cryptocurrency heists, with hackers stealing as much as $3.8 billion, led by attackers linked to North Korea who netted more than ever before, a U.S.-based blockchain analytics firm said in a report on Wednesday.

US Blacklists Bitcoin, Ether Addresses Tied to Russian Sanctions-Evasion Efforts

Nikhilesh De, CoinDesk

The addresses are linked to Russia’s arms exports intermediary, according to OFAC.