• First Republic Bank revealed that depositors pulled about $102 billion out of the bank in the first quarter of the year, and shares of the bank fell more than 20% in aftermarket trading following the release of the news. Chief Executive Michael Roffler said during the earnings call that the bank will reduce its uninsured deposits and focus on cost-cutting measures such as reductions in executive compensation, cutting its workforce by as much as 25% and lowering loan volumes and nonessential activities. (The Washington Post)
• Coinbase Global Inc. filed a petition to compel the Securities and Exchange Commission to respond to the crypto firm’s previous legal challenge, which sought to force the SEC to issue a rulemaking that would provide clarity on when digital assets are considered securities and create a new market structure framework compatible with cryptocurrencies. Paul Grewal, Coinbase’s chief legal officer, said in a blog post that the latest suit is driven by the SEC’s lack of public response to the earlier petition. (Reuters)
• House Speaker Kevin McCarthy (R-Calif.) plans to send his debt-ceiling and spending-cut legislation package to the Rules Committee today, and plans to introduce the bill to the floor for a vote later this week, according to people familiar with the matter. Floor procedures for the bill will include a rule that prevents any amendments to the bill, though McCarthy has acknowledged that there are a number of GOP members who are demanding changes. (Bloomberg)
• The Federal Reserve, along with other global central banks, announced a plan to scale back the frequency of auctions for U.S. dollar funding after the banks had increased access following uncertainty in the market amid the collapse of several U.S. banks. Starting May 1, central banks will offer the auctions on a weekly rather than daily basis, a decision that signals monetary policymakers’ view that the financial system is stabilizing. (Bloomberg)

Worth watching:

• Stephen Goss, chief actuary at the Social Security Administration, and Sen. Bill Cassidy (R-La.) join the Bipartisan Policy Center and the Funding Our Future coalition to discuss the legislative landscape around social security. 

Tracking Cryptocurrency Adoption and Perspectives

Morning Consult

Biden’s next student loan headache: A cash crunch at the Education Department

Michael Stratford, Politico

A funding shortfall is forcing Education Department officials to cut customer service to student loan borrowers just as the agency prepares to send millions of Americans their first bills in more than three years.

CFPB still has not notified consumers about data breach

Kate Berry, American Banker

The Consumer Financial Protection Bureau said it has not yet notified 256,000 consumers, nearly two months after data was potentially compromised by a bank examiner with access to supervisory information and large-scale data collections.

CFPB Says Ex-Employee In Data Breach Was Examiner

Jon Hill, Law360

The Consumer Financial Protection Bureau shared more details Friday about its recent data breach involving sensitive information on dozens of financial institutions and potentially more than 200,000 consumers, attributing the incident to one of its now-former examiners.

Susan Rice, President Biden’s top domestic policy adviser, is departing the administration, the White House said Monday.

Andrew Restuccia, The Wall Street Journal

Susan Rice, President Biden’s top domestic policy adviser, is departing the administration, the White House said Monday. Ms. Rice, a longtime foreign-policy expert, has led the White House Domestic Policy Council since the start of the administration, helping coordinate with federal agencies on a broad variety of issues, including economic mobility, healthcare, gun control and immigration.

Sliding Diesel Prices Signal Warning for U.S. Economy

David Uberti and Bob Henderson, The Wall Street Journal

A nationwide freight slowdown has helped cut U.S. diesel prices by half from last year’s record, raising concerns that parts of the world’s largest economy have begun to slow.

Inflation, slow demand still top concerns for retailers globally – survey

Reuters

Despite initial signs that price rises are slowing, retailers globally are still worried about inflation dampening consumer spending, according to a survey of retail decision-makers conducted by Boston Consulting Group.

Layoffs loom in the US manufacturing sector as backlogs shrink

Bryan Mena, CNN

US manufacturers have now mostly worked their way through their backlogged orders — and that means job cuts could be on the horizon as soon as this year.

Biden district Republicans hold their fire on debt ceiling bill

Lindsey McPherson et al., Roll Call

Swing district Republicans are thus far defending their party’s bill pairing hefty spending cuts with a $1.5 trillion debt limit increase that’s expected on the House floor later this week.

Pence: ‘Unconscionable’ for Biden not to meet with McCarthy for debt ceiling talks

Lauren Sforza, The Hill

Former Vice President Mike Pence blasted President Biden over the lapsed debt ceiling talks on Monday, saying it was “unconscionable” that the president will not meet with Speaker Kevin McCarthy (R-Calif.) to negotiate.

What’s behind the looming ‘x-date’ on the US debt limit?

Josh Boak, The Associated Press

In January, the U.S. government ran up against its legal borrowing limit of $31.381 trillion, and the Treasury Department began implementing “extraordinary measures” to avoid missing payments on its bills.

Should the IRS get into the business of preparing people’s tax returns? Just asking that question is stoking controversy. Here’s why.

Andrew Keshner, MarketWatch

Just before Tax Day, activists protested in front of an H&R Block office. Weeks earlier, organizations sent letters to lawmakers skewering the IRS and warning of overreach by an agency that’s flush with cash.

UBS net profit drops 52% in the first quarter due to hit from U.S. legal battle

Silvia Amaro, CNBC

UBS reported a 52% annual drop in net profit on Tuesday amid a legacy litigation matter, but maintained it is a “source of stability” for its clients during periods of high uncertainty.

UBS CEO Ermotti Says Share Buybacks ‘Paused, Not Canceled’

Manus Cranny and Marion Halftermeyer, Bloomberg

UBS Group AG Chief Executive Officer Sergio Ermotti said the lender’s share buyback plans are temporarily suspended and not canceled as it grapples with the huge integration of Credit Suisse Group AG.

Standard Chartered CEO warns of risks in the banking sector that haven’t ‘come home to roost’

Karen Gilchrist, CNBC

Standard Chartered’s chief executive warned Monday that the banking sector may face fresh issues, even as the immediate risks from last month’s market turmoil have subsided.

Top US banks face calls to wind down fossil-fuel financing

Ross Kerber, Reuters

Three large US banks face shareholder calls on Tuesday to wind down fossil fuel financing, a balancing act for them and their top investors who are also under political pressure from the other side to maintain support of the oil and gas industries.

Banks are paying savers again after many years of low rates

Ken Sweet, The Associated Press

Americans are finally reaping some benefit from keeping their money in the bank. Banks are paying up for savers’ deposits in a much bigger way than they have in more than a decade, based on recent earnings reports from the nation’s biggest banks.

How a Star Banker Supercharged a Struggling Financial Stock

Patricia Kowsmann, The Wall Street Journal

Italy’s UniCredit, revived under former UBS banker Andrea Orcel, is showering investors with payouts

Jes Staley says JPMorgan using him as ‘shield’ for Epstein failures

Jonathan Stempel, Reuters

A former JPMorgan Chase & Co executive who befriended Jeffrey Epstein urged a U.S. judge to throw out the bank’s lawsuit against him, accusing JPMorgan of deflecting blame for its own failures in working with the late sex offender.

Javice moved millions from JPMorgan to Signature months before collapse

Jef Feeley, Bloomberg

Frank founder Charlie Javice said she moved millions of dollars out of JPMorgan Chase accounts after the bank fired her and accused her of fraud but then wound up getting caught up in the collapse of Signature Bank.

Wall Street veteran Michael Klein is the latest casualty of the banking crisis

Carter Johnson and Kaja Whitehouse, Insider Premium

There’s a new casualty of the banking crisis: Wall Street deals veteran Michael Klein. Credit Suisse has terminated its deal to buy Klein’s boutique bank, officially ending plans to spin off its own investment bank into the US-based CS First Boston.

Where Goldman Sachs CEO David Solomon takes the corporate jet

Dakin Campbell, Insider Premium

As shareholders of Goldman Sachs were showing their disappointment over management’s presentations at February’s investor day just hours earlier — driving the stock down 3.8% on the day — the firm’s chief executive, David Solomon, was floating high above the Atlantic.

US savers snap up government debt in search for yield

Kate Duguid, Financial Times

Retail investors purchase record amounts of Treasury bills at auction while bank deposits drop to near two-year low.

Commercial Real-Estate Woes Run Deeper Than in Past Downturns

Konrad Putzier, The Wall Street Journal

Commercial real estate has experienced its share of busts in recent decades. This one is different.

Cities reviving downtowns by converting offices to housing

Mae Anderson et al., The Associated Press

On the 31st floor of what was once a towering office building in downtown Manhattan, construction workers lay down steel bracing for what will soon anchor a host of residential amenities: a catering station, lounge, fire pit and gas grills.

House Republicans Make Case on Stablecoin Bill After Democrats Called for Do-Over

Jesse Hamilton and Nikhilesh De, CoinDesk

Their latest draft legislation sets up shared federal and state oversight and says stablecoins aren’t securities, but it’s uncertain what bipartisan support the effort will find.

Coinbase to Face Established Rivals in International Push

Vicky Ge Huang and Paul Kiernan, The Wall Street Journal

To fend off a regulatory clash at home, Coinbase Global Inc. has been trying to expand into international markets. But some analysts are skeptical that the company can catch up to its deeply entrenched rivals overseas.