Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<div type="image" title="The RBI has cracked the regulatory whip on NBFCs and banks, who&amp;#39;ve been pushing microfinance and unsecured loans aggressively to grow their loan books." agency="ANI" msid="114778648" hostid="261" caption="&amp;lt;p&amp;gt;The RBI has cracked the regulatory whip on NBFCs and banks, who&amp;#39;ve been pushing microfinance and unsecured loans aggressively to grow their loan books.&amp;lt;/p&amp;gt;"></div> Imagine this. You have a younger sibling you’re mighty envious of. And why not? Unlike you, they seem to enjoy all the freedom and money in the world. They party like there’s no tomorrow, and here you are, stuck in a boring, ultra-disciplined but responsible routine that feels completely devoid of any independence, and mostly, funds. But of late, things are changing. This sibling is in massive trouble and just cannot escape the parent’s wrath anymore. Long story short, the party is over, and it is time to go back home. The rising defaults on this sibling’s part have now begun pulling the entire house down, thereby attracting the regulator’s ire. <h2>The Wild West of <keyword id="113684" type="General" weightage="20" keywordseo="microfinance" source="Orion">microfinance</keyword> and unsecured loans</h2>It's hard to ignore the issues with microfinance and unsecured loans in India. Many saw them as a small gamble and ignored the rising defaults much like the younger siblings’ tantrums, and now they find themselves in hot waters. The skyrocketing instances of non-payments aren't a micro-issue anymore and are threatening the stability of the entire banking system. In the quarter ended September 30, 2024, 5 of India’s 8 largest private sector <keyword id="19934118" type="General" weightage="20" keywordseo="banks" source="keywords">banks</keyword> reported a steep rise in their bad loan book, mostly thanks to microfinance loans. Some banks, in a bid to strengthen their fortress against these <keyword id="142154" type="General" weightage="100" keywordseo="bad-loans" source="Orion">bad loans</keyword>, have significantly upped their provisions. For instance, IndusInd Bank set aside Rs 525 crore during July and September 2024 to battle the menace of defaults on microfinance loans, which make up about 9% of its total loan book. See, banks rely heavily on their interest income, which they earn from advancing loans. Any loan where the borrower has not paid interest to the bank or defaulted for 90 days or more becomes bad, i.e. an NPA, or non-performing asset for the bank. And who likes things going bad? Simply put, there has been a steep rise in three areas, much to the dislike of banks and MFIs (micro-finance institutions). But hey, it's mostly their doing! <ol><li>GNPA ratio (gross net performing assets): The quantum of non-performing assets a bank has in proportion to its total assets.</li><li>Provision: The amount banks set aside to take care of such NPAs.</li><li>Slippage ratio: The rate at which good girls go bad, or the speed at which good loans turn into NPAs</li></ol>But how are these plaguing the Indian banking sector? And what does the road ahead look like? We decode it for you. <h2> Microfinance: A not-so-micro-menace</h2>Microfinance loans were initially brought forth for low-income households and individuals i.e. for those who might not generally have access to traditional ways of credit, like bank loans and more. They don’t require collateral or an asset to be pledged in lieu of the loan, making it a tad bit easier for borrowers. As of June 2024, the amount of outstanding loans in the microfinance industry stood at a staggering Rs 4,20,256 crore. Of this, NBFC-MFIs accounted for 40% and banks made for 33% of these. In 2022, RBI, in a bid to inspire some competition in this space, did something radical-they did away with the ceiling on how much interest MFIs could charge their customers. Previously, MFIs could add up to 12% to their cost of acquiring funds to determine the final interest rate chargeable to the consumer. So, assuming that Bank A incurs a 5% cost to acquire funds for further loaning, A could charge up to 17% interest from the end consumer. So, interest rates were in the hands of MFIs, and boy, did they have a gala time with it. Instead of spurring some healthy competition, as RBI expected, MFIs and banks went rogue and all guns blazing, competing for the title of “Who will charge the highest interest?” Recently, RBI banned 4 microfinance institutions (MFIs), namely Asirvad Micro Finance Limited, Arohan Financial Services Limited, DMI Finance Private Limited, and <keyword id="20117932" type="General" weightage="20" keywordseo="navi-finserv" source="keywords">Navi Finserv</keyword> from disbursing loans effective October 21, 2024. Why? Because they were charging 14% extra interest over their original cost of funds. To maintain their loan books (and pockets), banks and NBFCs resorted to shady practices like netting off loans, which RBI has now advised MFIs against. Here, lenders allow borrowers to settle a previous outstanding loan by issuing them a new loan! As crazy as it sounds, it helped banks to report less of their total assets as NPAs, since the new credit would cover pending instalments of the borrower’s previous loan. Then there was the issue of borrowers overleveraging, i.e. taking multiple loans using different IDs from various lenders and then failing to honour any of them. The consequence? Banks and NBFCs end up with massive NPAs. Data from credit bureaus suggests that over the last quarter, there was a 17.2% rise in the number of borrowers who had 5 or more active loans at the same time. <h2>Growth &gt; Caution</h2>It's an age-old tale unfolding yet again in India’s banking sector- Icarus flew too close to the sun and eventually, fell to its death. Between April and June 2024, NBFCs microfinance portfolio jumped by 2.7%. If you see this in terms of loan sources, microfinance loans issued by banks grew by 11.2% in Q1FY25. But the same portfolio in NBFCs swelled by almost double-23.9%. While most of these loans had an average ticket size between Rs 30,000-50,000, there was a sharp spike in the number of loans that had a ticket size of Rs 80,000 or more. Data suggests that as of March 2024, more than 12% of all microfinance borrowers had over 4 or more active loans. In dating parlance, this is a classic case of borrowers going polyamorous, minus the honesty and transparency. Not the best of situations, you'd agree! <h2>Will banks and NBFCs stand up to this stress?</h2>If their results for Q2FY25 are to be believed, NBFCs are not handling the pressure all that well. Or even slightly well. Only a few banks like Bank of Baroda (BoB), ICICI, and Indian Bank were up for the battle, even witnessing a decline in their loan delinquencies. Some others, like IndusInd Bank, saw their stock dip by a massive 16.2% over the last 5 days. Its slippages in the previous quarter burgeoned from Rs 15.3 billion in Q1FY25 to Rs 17.9 billion in Q2. As a result, the bank pushed a staggeringly high amount of money to create an NPA cushion for itself. While its management has highlighted its preference for secured lending, that was hardly reflected in its actions during the quarter, where growth in unsecured personal loans remained exceptionally high at over 7% on a QoQ basis. Turns out, only 44% of customers in IndusInd Banks’ microfinance loan portfolio were exclusive to it. The rest 47% were, you guessed it right-polyamorous! 27% had borrowed from another lender as well, apart from IndusInd Bank, while 20% were those who had outstanding loans with two other lenders, apart from IndusInd Bank. IndusInd Bank’s credit card segment did not miss the NPA bus and accounted for 7-8% of its GNPAs. Canara Bank’s total slippages during the previous quarter jumped to Rs 11.1 billion, up by 24.7% QoQ, and making up for 3.6% of its total loans. As for Bandhan Bank, its gross NPA for Q2FY25 inched up on a QoQ basis, up from 4.23% in Q1, to 4.68% in the second quarter. IDFC Bank’s heavy provisioning for its NPAs marred its profits significantly, causing its PAT (profit after tax) to dip by 73% on a YoY basis. Data from ICRA Analytics suggest that the AUM (asset under management) growth in microfinance loans and unsecured (personal and business) loans by the NBFCs will moderate to 10-12% and 19-21%, respectively, in FY2025 compared to 30% and 38%, in FY2024. Says A M Karthik, Senior Vice President &amp; Co-Group Head, Financial Sector Ratings, ICRA, “As bank funds constitute a larger share in the overall funding of NBFCs, a slower credit flow from banks to the NBFCs will compress their AUM growth. The NBFCs in unsecured and digital lending businesses shall face a higher squeeze in funding compared to others, and the unsecured lending space will continue to be a source of stress in the near term.” There has been uninhibited growth in <keyword id="6051027" type="General" weightage="20" keywordseo="Unsecured-loan" source="Orion">unsecured loan</keyword>s, apart from just the microfinance segment. For instance, Axis Bank’s gross slippages jumped by Rs 4,443 crore, largely thanks to its unsecured business. The same is the case with Yes Bank, which saw 35–40% of its retail slippages emerging from the unsecured loan portfolio. <keyword id="6376194" type="General" weightage="20" keywordseo="kotak-mahindra" source="Orion">Kotak Mahindra</keyword> Bank was also quick to follow Yes Bank’s suit, with around 35%-40% of its slippages coming from credit cards. <h2>How is the road ahead?</h2>While RBI has just cracked its whip and served a warning at the moment, experts at Morgan Stanley believe that more changes (read regulatory lashes) are underway. Moreover, with both festive and wedding seasons underway in our country, unsecured lending might pick up momentum, much to the disdain of the calibrated approach banks have been taking towards it so far. But if the situation doesn't improve, RBI will not waste any time in becoming the typical tyrannical <keyword id="19897820" type="General" weightage="20" keywordseo="bollywood" source="keywords">Bollywood</keyword> headmaster who runs his dominion with an iron fist. However, that's a story for another day. Do you have a topic in mind you'd want a simpler explanation for, or insights or personal experience to share on personal finance and more? Contact us at businessinsider@timesinternet.in.

Simply Put: Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

<div type="image" title="Are Indians depositing less money in banks, or more in mutual funds? Turns out, it&amp;#39;s neither of those." msid="113663806" hostid="261" sizebytes="1121785"></div> Over the past few months, there’s been a lot of brouhaha about the lagging pace of <keyword id="20202062" type="General" weightage="20" keywordseo="bank-deposits" source="keywords">bank deposits</keyword> in India. Simply put, the rate at which Indians are depositing their hard-earned money in banks has been falling constantly, and some blame the increasing financialisation of <keyword id="20751315" type="General" weightage="20" keywordseo="household-savings" source="keywords">household savings</keyword> in the country or the rising preference of Indians towards <keyword id="19929240" type="General" weightage="20" keywordseo="mutual-funds" source="keywords">mutual funds</keyword> and shares. So, the hypothesis is that people are choosing to invest more in mutual funds and the Indian <keyword id="19949641" type="General" weightage="20" keywordseo="equity-markets" source="keywords">equity markets</keyword> through direct investments, IPOs, or NFOs, the money flowing into Indian banks in the form of deposits is slowing down. But is that really the case? <h2>A crisis or a phase?</h2><keyword id="19899808" type="General" weightage="20" keywordseo="RBI" source="keywords" meta.keywordsubtype="org" meta.entityname="RBI" meta.hostid="261" meta.entityid="RBI">RBI</keyword> data suggested that for the quarter ended June 2024, bank deposits grew at 11.7%. On the other hand, credit growth has outpaced this at 15%. This means that the outflow from banks as loans is far greater than the inflow into them in the form of deposits in Q1 of FY 2024-25. The situation largely saw cut-copy-paste in the first week of September as well, with loans registering a 13.3% YoY growth during the period, while deposits rose only 11.1%. This gap has only been widening for the last 3 years. Since deposits are how banks gather assets to further lend and earn interest income as a consequence, even a slight dip could set the alarm bells ringing for banks, and rightfully so. And truth be told, mutual funds are indeed taking on bank deposits in a big way. Per a report by Franklin Templeton, in August 2024, the AUM (assets under management) of Indian mutual funds, or the total funds managed by them, stood at 31.3% of total bank deposits in the country, up from 24.20% during the year-ago period. As of August 2024, the AUM of mutual funds stood at Rs 66.17 lakh crore, an all-time high. But all said and done, is this really the reason why the rate of bank deposits is falling behind? SBI has dismissed this to be a “statistical myth”, and experts point out that since equity and fund houses also keep the cash in their respective bank accounts, there’s no cause for concern. So, is financialization really to be blamed for the trailing tempo of deposits? Or is something else happening behind the scenes? We take a closer look: <h2>First, are household deposits really slowing down? And is that a cause of concern?</h2>Data from Motilal Oswal suggests the contrary. Deposits grew by around 10.4% between March 2020 and August 2024. Data from RBI also highlights that as of August 9, 2024, bank deposits witnessed a YoY growth of 10.8%. The loan-to-deposit ratio for the retail segment, which indicates what percentage of its total deposits the banks lend out as loans, has stayed at 77.5%, above the 77% mark for the tenth straight month. <div type="image" title="Yes, household deposits (as % of total deposits) have dipped, but the drop is far from significant" msid="113663882" hostid="261" sizebytes="306706"></div> Also, we can’t forego the fact that the share of Indian households in bank deposits has indeed slowed down. However, data from Axis AMC shows that the dip is marginal—from 63% in 2022 to 62% in 2023 and 61% in 2024. What has slowed down even more considerably is the share of government deposits in the aggregate bank deposits, which has dipped from 14% in 2018 to 9% in 2024. So, it's not just household deposits, you see. Moreover, as of March 2024, the collective CASA ratio (current and <keyword id="114757" type="General" weightage="20" keywordseo="savings-account" source="Orion">savings account</keyword> deposits) of all commercial banks in India stood at 41.00%, down from 43.1% in March 2023 and 45.2% in March 2022, marking a nearly 5% point decline over the past year, while still staying over the 10-year average of 39.2%. This implies that Indian banks are relying more on higher-cost funds (savings accounts), which can limit their profitability. <h2>What is this financialisation of savings we are talking about?</h2>Then again, there is no doubt about the growing affinity of Indians towards mutual funds and stock markets. Recent data from CBDT (Central Board of Direct Taxes) highlights that India’s net direct tax collection surged by around 22%, driven exclusively by the significant uptick in the collection of Securities Transaction Tax (STT), which doubled to Rs 26,154 crore, from Rs 13,352 crore in the year-ago period. Why does this matter? STT is levied when you buy or sell equity shares on stock exchanges, sell <keyword id="6361918" type="General" weightage="20" keywordseo="equity-mutual-funds" source="Orion">equity mutual funds</keyword>, and trade in futures and options in the equity segment. Such taxes, including the multiple other taxes in equity market investments, are considered as leakages as the money moves out of the economy into government coffers. Data from a ValueQuest report explains that over the last 20 years, the markets have handsomely rewarded the investors, generating over $900 billion in incremental value for them. This is the major driver behind the dramatic rise in investment flowing towards the equity markets. There’s further proof of this budding romance, if you check the demat pudding. The number of demat accounts, which are a primary requisite for participating in the stock markets, also burgeoned by 42.3 lakh in August 2024, taking India’s total tally of demat accounts beyond 17 crore. To put this in perspective, this is almost equivalent to the population of just 8 nations in the world, including China, the US, Brazil and more. Vivek Iyer, Partner, Grant Thornton Bharat thinks it's rather important, as well. “Financialisation of household savings in India is an indication of deepening capital markets in the market, especially from a retail investor standpoint. Bank deposits with a modest rate of return are no longer the only option for savings for investors. Investors today have more avenues for wealth creation in the form of public capital markets, which have democratized wealth creation and provided equality of opportunity to retail investors”, he says. Yes, Indians are investing more and more in the markets, and in mutual funds. But is it a sin to look out for inflation-beating returns, which the stock markets offer, and vanilla bank deposits don't? After all, the allure of 12-13% annual returns offered by <keyword id="45369" type="General" weightage="20" keywordseo="equities" source="Orion">equities</keyword> can certainly pale the stability offered by good old deposits, which generally do not go beyond 9% when it comes to annual returns. But all of this is not what is behind the slowdown. India is still a toddler in the school of savings financialization, with less than 10% of the population holding a demat account, and less than 5% of us saving in equities. That's a drop in the ocean of deposits, far inadequate to trigger a tsunami. <h2>Tell me why lagging deposits have nothing to do with Indians investing more in mutual funds!</h2>Says Shweta Rajani, Head - Mutual Funds, Anand Rathi Wealth Limited, “Households' equity holdings composition grew from 11.1% in FY 23 to 14.7% in FY 24. This trend reflects a growing awareness of investment options, empowering individuals to take control of their financial futures. Despite this transition towards equities, banks still hold a significant share of household financial savings—33.5% in FY24 compared to 34.9% in FY23”. Also, household savings and their subsequent financialization do not have much to do with deposit creation, which is entirely made by banks. What actually drives increased deposits is credit growth or increased lending. When interest rates are eased, people tend to borrow more and spend more, which circulates more money in the economy. For the past 4 years, RBI has been tightening the screws on interest rates, which raises the cost of borrowings, and makes it more expensive to take loans, putting a dampener on credit growth, but effectively curbing inflationary pressures. The last time RBI cut the repo rate by 40 basis points was back in May 2020, 4 years ago. The lag in <keyword id="19998084" type="General" weightage="100" keywordseo="deposit-growth" source="keywords">deposit growth</keyword> we’re witnessing is almost 3 years old. Coincidence much, or just good old economics at work? But with the Fed recently setting a rate cut precedent by slashing 50 bps off its interest rate, RBI is expected to follow suit in the next MPC (Monetary Policy Committee) meeting, scheduled for November 2024. A rate cut would ease the aforementioned high cost of borrowing, and increase loan-taking for corporates and institutional investors, thereby stoking consumption in the economy. And then, deposit creation in banks is likely to return to its former glory. If not, then that would be a curious case to unravel! But that worry is for another day. Do you have insights or personal experience to share on your personal finances or money? Contact us at <a target="_blank" class="c-link" href="mailto:businessinsider@timesinternet.in">businessinsider@timesinternet.in</a>.

Simply Put: A Deposit Dilemma — What's the fuss about a crisis in Indian bank deposits? Are mutual fund investments to blame?

<ul class="summary-list"><li>I had always been scared to accept financial help from my parents.</li><li>I always wanted to be independent and had told myself I'd never accept money from them.</li></ul>In April 2024, I quit my full-time job to <a target="_blank" href="https://www.businessinsider.com/freelance-writer-failed-went-back-full-time-job-2023-5">pursue freelance work</a>. Since then, my dad has asked the same question repeatedly."Do you need money? If you do, just let me know," he'd ask.Without thinking — or sometimes even looking at him — I'd respond, "I'm good, don't worry." But was I actually good? Nope.My bank account was draining, and I was cost-cutting on everything. I was anxious about making a sustainable income, which made my sleeping and eating schedules unhealthy. Still, I'd decided years prior that I would never <a target="_blank" href="https://www.businessinsider.com/millennial-mom-financial-assistance-2024-8">ask my parents for financial support</a>.But a few months later, when my dad — a retired businessman who knew sustaining a business was tough — asked again, "Are you making enough money? If you need more, tell me; it's no problem," I looked at him, smiled, and said, "You know what, I'm good for now. But if I need more, I'll tell you." I meant every word.So, how did I go from hating the idea of <a target="_blank" href="https://www.businessinsider.com/only-child-benefits-financial-support-parents-2024-7">asking my parents for money</a> to being open to it? Well, with a lot of self-work — after all, I certainly didn't have the money for therapy.<h2 id="f6d1eea4-d838-4a92-85cc-875b991d14f7">I always wanted to be seen as independent</h2>My parents have always had money, so my resistance to taking their help wasn't coming from a <a target="_blank" href="https://www.businessinsider.com/hoarding-cash-financial-trauma-2024-11">traumatic financial past</a> or feelings of scarcity. Still, I wanted to be successful, independent, and responsible on my own. And it was just as important to me to be perceived that way by parents, relatives, and friends.After <a target="_blank" href="https://www.businessinsider.com/masters-degree-rely-parents-financial-support-nyc-2024-7">getting my master's</a> in organizational psychology in 2020, I didn't see myself working in career paths that traditionally follow. I took up odd jobs, like teaching English online, testing apps, writing resumes — anything that paid. At 24, I started freelancing as a copywriter, but I was always on the verge of being broke. As much as possible, I focused on saving and avoiding going into debt rather than doing things that might further my learning or career.I tried to live up to the image of the self-made, perfect daughter who could take care of herself for two years. I was caught in a loop of making decisions that guarded my ego instead of taking risks that might boost my career and set me up for the future. Then, at 26, after being exhausted from freelancing, I got a full-time job that offered a stable income and moved out of my parents' home. But it didn't feel satisfying to me.A year later, in April 2024, I wanted to freelance again, but this time, things had to be different and less stressful.<h2 id="11f9d3ab-3438-464e-828f-48cc6f09fa2a">I realized that refusing my parents' help was holding me back</h2>Some of my friends had dabbled in different careers and relied on their parents for money until their late 20s, figuring out what they wanted to do and building up a solid set of skills. Not only did they seem happier than I was, but they were also <a target="_blank" href="https://www.businessinsider.com/strategies-earn-more-money-negotiate-raise-start-side-hustle-budgetnista-2023-5">making more money</a>.Two months ago, I met with one of these friends — a psychologist who is also a sound healer. I asked her how she had been OK with asking her parents for money for years after completing her education. Didn't she want to be independent and make her own income?She told me that exploration was important and that money was never the goal — though it was the eventual outcome. "If I had focused on showing people I have money instead of developing my skills, I wouldn't have discovered my current <a target="_blank" href="https://www.businessinsider.com/how-to-earn-passive-income-strategies-build-wealth-earning-money-2023-9">income streams</a>. My family had money, so I was free to take more chances and try new things, and finally, I found professions that I love, and money followed," she said.Knowing she had a financial safety net made her fearless. Whenever she wanted, she took a leap of faith and found what made her happy (and yes, eventually able to support herself). On the other hand, I was making life difficult for myself by blocking out financial support when I needed it the most. Freelancing was a new skill, and instead of choosing to accept help while I sharpened it, I let my ego get in the way. And that was taking me nowhere.<h2 id="810e5f1a-5bd4-439c-848e-05f5076e8334">Just knowing I had a financial safety net has helped me achieve my goals</h2>The moment I realized that I had financial backup and that no matter how my career went, I was going to be fine, my relationship with money changed.I decided not to make fear- or scarcity-based decisions with my money and instead to play the long-term game. I started by listing my personal and professional goals for the next six months and <a target="_blank" href="https://www.businessinsider.com/mistake-investing-money-instead-of-saving-it-2024-04">invested my savings</a> into these goals. I joined writing communities, which have given me access to mentorship, and I also allowed myself to take up projects that don't pay well but are learning opportunities.Now, I also allow myself to rest when I need it. Whereas taking a break would have made me anxious before, I know now that if I need money, I can always ask for help from my parents or move back in with them if that would be a workable solution. It hasn't come to that, however; I'm consistently onboarding new clients, and whether in large quantities or small, money has been showing up through freelancing.If I'm waiting on my payments from freelance projects, I let my parents pay for groceries or my monthly stack of books. I feel happier and lighter while spending, investing, and making money. I'm proud of the growth I've seen in my career — and my bank account. My newfound freedom with money is beautiful. And all I had to do was let go of my ego and image and say yes to help.

The idea of depending on my parents for money scared me. After accepting I had a financial safety net, my career flourished.

<ul class="summary-list"><li>With bonus season coming, BI asked industry insiders what Wall Street's current status symbols are.</li><li>These 10 trends reflect a move away from loud displays of wealth to experiences and personalization.</li></ul>With bonus season just a quarter away — big banks like Goldman and JPMorgan typically communicate the numbers in <a target="_blank" href="https://www.businessinsider.com/when-goldman-jpmorgan-morgan-stanley-other-banks-will-announce-bonuses-2024-1">early January</a> — Wall Street rainmakers may soon be thinking about what they want to spend this year's extra check on. And though investment bankers may not be quite as ostentatious as in the heyday of the '80s and '90s, there are still plenty of ways they choose to express their wealth and power.BI spoke to four industry insiders who have eyes on what's trending at all levels of Wall Street, including a junior banker turned private-equity employee and a personal stylist who dresses managing directors and partners. To be sure, status symbols vary by seniority: what's impressive to <a target="_blank" class="" href="https://www.businessinsider.com/jpmorgan-ryland-mcclendon-oversee-junior-bankers-wellness-80-hour-weeks-2024-9">junior bankers</a> may be cringe to senior MDs, for example.That said, everyone seemed to agree that the days of logo-forward purchases and other conspicuous signs of wealth are over — even on Wall Street. The industry's movers and shakers are still into name brands but are leaning into those that exude <a target="_blank" class="" href="https://www.businessinsider.com/status-symbol-item-sales-show-quiet-luxury-changing-americana-corporate-2024-9">"quiet luxury."</a> They are also spending money on personalization as well as experiences — think big trips, luxurious secondary homes, and posh sporting events.Here are 10 of the top status symbols on Wall Street in 2024.<h2 id="5642aec8-1b24-4045-876f-3fadc91a63ac">Posh sporting events</h2>Attendance at exclusive sporting events like the Paris Olympics, the US Open, and Formula 1 races has become a surefire sign of status on Wall Street, insiders told BI.Indeed, Bloomberg declared the 2024 Paris Olympics "<a target="_blank" href="https://www.bloomberg.com/news/articles/2024-08-02/wall-street-descends-on-paris-olympics-jpmorgan-citadel-executives-attend?embedded-checkout=true">Summer Davos</a>" for Wall Street in a story that reported sightings of CEOs Ken Griffin of Citadel, David Solomon of Goldman Sachs, and <a target="_blank" class="" href="https://www.businessinsider.com/how-to-succeed-at-blackstone-schwarzman-gray-career-advice-2024-8">Stephen Schwartzman of Blackstone</a>, to name just a few.Last month, the US Open in Queens took the spotlight online as <a target="_blank" href="https://www.businessinsider.com/us-open-popular-as-tennis-interest-surges-2024-9">the hottest place</a> for New York socialites to see and be seen. And where there are celebrities and influencers, there tend to be Wall Street dealmakers."All my clients went to the US Open," said Jessica Cadmus, a <a target="_blank" class="" href="https://www.businessinsider.com/wall-streeet-styles-investment-banker-wardrobe-for-women-and-men">personal stylist</a> whose clients are almost exclusively managing directors and partners at finance firms in New York.Even junior-level employees said the famous tennis tournament was the place to be to mark the end of summer."I know at least three people in the finance community who were at the Open last night," a young private-equity employee told BI in August after attending the tournament with friends.Of course, the most elevated version of this status symbol is <a target="_blank" href="https://www.businessinsider.com/richest-sports-billionaire-owners-nfl-nba-premier-league-cricket-wealthy-2024-5#10-steve-cohen-1">owning your own sports team</a> — or getting access to private box seats.<div type="image" title="Crowd watching the 2024 US Open Tennis Championships in New York City." height="5341" width="8011" msid="113882292" hostid="261" sizebytes="5175806"></div><h2 id="f1c8e1a4-389c-4fae-aa3f-80984327170d">Home organizers</h2>Wall Street executives have no shortage of personal assistants and staff, said Cadmus, because every moment of their time is worth thousands of dollars."Everybody that I work with has at least one person, if not multiple people, in their home all day long attending to X, Y, or Z," Cadmus told BI. "There are assemblies of nannies, home cleaners, and chefs."Lately, there has been a new trendy addition to the usual in-home lineup — that of the "home organizer."Think Marie Kondo — someone who comes into your home, takes a good look around, and crafts a custom organization plan to make your space user-friendly and effortlessly neat."I would say over the last five years, I've seen people leaning into that sort of service more, and I'd never really seen a ton of that," Cadmus said.This person might, for example, put custom inserts for your kitchen cabinets so your Le Creuset pots fit seamlessly. But an organizer tackles just about any space you could conjure up, from a pantry to the coat closet or your kid's playroom."People do want to feel more connected to the items in their home, and they do want to feel a sense that things need to have a purpose and they need to be organized," Cadmus said.<h2 id="843bc59e-8506-437f-91ef-333d3d8e2db4">Zegna sneakers</h2>A PR expert who works in the industry said they have seen a trend in one particular shoe recently among very high-ranking execs in the office: Zegna's "triple stitch" sneakers. The leather version (pictured below) costs about $1,300 per pair and come in a ton of colors. An espadrille version of the shoe was also a hot summer pick, this person said, and costs about $1,100.Cadmus likes Zegna for men's off-the-rack suits, but for office-friendly sneakers she recommends the Tom Ford nylon and suede sneakers in black and white, which she described as "heavy lifters" for her clients.<div type="image" title="Man wearing Zegna triple stitch sneaker." height="1058" width="1410" msid="113882291" hostid="261" sizebytes="135370"></div><h2 id="e65e11f4-c4c8-4313-bfe9-b5642fa8f456">Big trips and experiences</h2>Cadmus has seen a notable uptick in senior bankers going on extravagant and foreign getaways. "I feel like the shift, especially with the younger, up-and-coming rising stars is not stuff — it's experiences, it's travel," said Cadmus.This is leading to more safari adventures in Africa and, this past summer in particular, family vacations to Costa Rica. To be clear, we're not talking about an all-inclusive Sandals resort situation here. They're highly bespoke, private, and personal trips."Whether it be a Four Seasons or whether it be a super fancy boutique hotel, every bit of the travel is going to be a first-class situation."For example, you might have a personal tour guide to take you on adventure experiences away from the throngs of tourists, a chef to cook your family private dinners each night, as well as a personal driver. And when one person at a firm loves a place or experience, it tends to spread like wildfire in popularity."The culture is so strong and the word of mouth is so strong that if one thing or experience is vetted by someone and recommended, that recommendation is golden because everybody has the same sort of expectations," said Cadmus. "Things really get passed from person to person. It's a pretty tight community that way, especially in the bigger banks."<h2 id="59f49c7e-9e86-4708-8a6a-820c40beabb8">Van Cleef necklaces and Cartier bracelets</h2>Van Cleef is a high-end jewelry brand, and one type of necklace in particular has taken over the necks of Wall Street women (and the wives of male rainmakers): the Alhambra. It has an unmistakable nickel-sized pendant in the shape of a four-leaf clover, comes in various colors, and, depending on the model, costs about $3,000."I distinctly remember that my first day of banking training there were three or four girls with them on their necks, and I was like, what is that necklace?" said the private-equity junior.This person, along with the other insiders who spoke to BI for this story, laughed at the mention of the brand because it has become so ubiquitous. But cliché or not, they agreed the brand has an undeniable presence in investment banking."I think they're sort of perpetual," added Cadmus. "And beyond Wall Street too. It's just kind of a favored wealthy person brand."Another popular piece for Wall Street women is the Cartier "love" bracelet — a bangle with the brand's iconic circular screws that sells for $7,350.Cadmus loves Cartier as a choice for fine jewelry staples, but for her clients, she often opts for the slightly less popular "Juste un Clou" line."The Love bracelet has been 'the one' for a while now," she said.<div type="image" title="cartier love bracelet" height="765" width="1020" msid="113882296" hostid="261" sizebytes="31484"></div><div type="image" title="Woman on street wearing a green and gold Van Cleef &amp; Arpels Alhambra necklace." height="1854" width="2472" msid="113882295" hostid="261" sizebytes="157932"></div><h2 id="54b85fbd-3321-4add-85f4-248311f7bc54">Personal Jewelers</h2>There's another option for those who want more unique pieces: handcrafted jewelry. Cadmus said she has seen an uptick in clients who prefer to have their jewelry customized."A lot of my clients have a jeweler with who we discuss what will be made for them," said Cadmus. "We'll see something, and a lot of times we will riff on that and be like, 'oh, that's cool, but it'd be better with this stone' or, 'I like that necklace, but I would prefer it as a bracelet.' Then we talk to the jeweler, and we have it made."Depending on the materials you choose, she said, you can often have items made for 30% to 40% less than designer prices.<h2 id="e6b25c55-c06f-44c3-978b-ab654531873f">Quiet luxury clothing brands</h2>"<a target="_blank" href="https://www.businessinsider.com/wall-streeet-styles-investment-banker-wardrobe-for-women-and-men">Quiet luxury</a>" is the new protocol for looking chic on Wall Street versus the ostentatious brand flexing of the past. The term refers to wearing pieces that are very high-quality and expensive but don't sport conspicuous logos and aren't necessarily made by household luxury names."The bonuses aren't as outsized as they used to be, and when they are, that's not something your institution really wants you to advertise in any way," Cadmus said. "So there is this quiet rule, and especially with the big MDs, which is just don't be ostentatious about your wealth. It's very frowned upon."The private-equity junior agreed. "No guy walks around with a Hermes or Gucci belt," this person said.Pop culture phenomena, like the popular HBO TV series "Succession," have put the quiet luxury trend in the spotlight. Leading actor Jeremy Strong wore a coat from the brand Loro Piana (pictured below) in an episode of the show."Loro Piana is probably the preeminent quiet luxury brand," Cadmus said of the label, which she has used for years.Other quiet luxury brands Cadmus reaches for when styling clients include Armani and Tom Ford for men and Akris and Max Mara for women. For quiet luxury bags and accessories, Cadmus recommends brands like Hermes, Celine, Bottega Veneta, and Khaite.<div type="image" title="Jeremy Strong Succession" height="1152" width="1535" msid="113882299" hostid="261" sizebytes="83210"></div><h2 id="f1c37838-120b-49dc-82ab-a82d9efc4d7c">Overhauling the homestead</h2>Cadmus has also observed an uptick in clients going all out to make their homes truly their own."Most of my clients have apartments that were originally two or three separate apartments that they had renovated to become one," said Cadmus.The same goes for their other properties. It's not surprising that high-earners on Wall Street would have second homes (or, in many cases, multiple). But it's not just buying a great place that's a status symbol — it's having a whole team behind every facet of its construction and design, said Cadmus. That means, for example, hiring a renowned architect for the project and a best-in-class interior designer to outfit the home with luxurious furnishings."It's a major production. It's not like, 'Okay, we're just going to snatch this thing up and live in it as is.' It is a major overhaul."<h2 id="93455364-2851-41bd-9d67-0fb75739c2e6">The Hamptons</h2>The beach towns of the Hamptons have long been a Wall Street favorite thanks to their proximity to Manhattan. They remain a popular spot for summer trips and second homes, Cadmus said.Even juniors tend to rent out homes in Montauk and split the cost to get in on the fun, said a former banking analyst who recently quit. Indeed, in the summer, the train from Manhattan to Montauk is "full of finance people on their phone arguing about a deal and legal docs and clacking on their laptops," added the private-equity junior.Nantucket and Cape Cod, according to Cadmus, are also popular but less cliche choices for second-home locations.<div type="image" title="Atmosphere at Midsummer Night Drinks Hosted By Lisa &amp; James Cohen at Private Residence on July 20, 2024 in East Hampton, NY." height="2400" width="3600" msid="113882289" hostid="261" sizebytes="915674"></div><h2 id="cb085dd3-e9bc-42d7-aecf-8c8c3569f7b2">Equinox memberships and personal trainers</h2>For young Wall Streeters, having an Equinox membership is par for the course, said the two ex-investment banking analysts.Equinox is a "luxury" gym that has "innovative group fitness classes, luxurious spas, and exclusive boutiques," as described on its website. A membership costs hundreds of dollars a month, varying by perks package and location access. The top-tier membership is $500 a month plus a $750 initiation fee.There are about 30 Equinox gyms in Manhattan, but "having access to the Equinox Hudson Yards location is a status symbol," said the former analyst who recently quit.As BI reported in 2019, the <a target="_blank" href="https://www.businessinsider.com/equinox-membership-prices-reviews-nyc-guide-2019-5#equinox-hudson-yards-expands-equinox-into-the-lifestyle-brand-its-been-trying-to-break-into-48">Hudson Yards location</a> has — among other amenities — views of the Hudson River in nearly every part of the gym, both indoor and outdoor pools, and is complete with its own cafe and bar.To be sure, this is a status symbol unique to younger people. Senior bankers don't want to be part of a gym scene, Cadmus said. Among their aforementioned lineup of domestic staff is usually a personal trainer who comes to their in-home gym."Yes, a younger person is going to enjoy that — there are social perks to that. But senior people do not want to be looked at when they're working out," she said. "They want somebody tracking it for them — their progression and all that kind of stuff. It's just totally different."<div type="image" title="Equinox Hudson Yards." height="3024" width="4032" msid="113882300" hostid="261" sizebytes="833048"></div>

What screams 'status' on Wall Street? Here's how the movers and shakers of finance are spending their money.

<ul class="summary-list"><li>John Wetmore worked at chain restaurants and warehouses in his teens and 20s.</li><li>He later founded an insurance agency, Family First Life Agent Force.</li></ul>This as-told-to essay is based on a conversation with <a target="_blank" href="https://www.instagram.com/johnwetmore/">John Wetmore</a>, founder of <a target="_blank" href="https://johnwetmore.com/">Family First Life Agent Force</a>. It has been edited for length and clarity.I was <a target="_blank" class="" href="https://www.businessinsider.com/where-are-they-now-16-and-pregnant-2018-9">16 and pregnant before the show existed</a>. I wasn't the pregnant one, but that was my life. My high school girlfriend and I were both born to teen moms, and our baby was born at the beginning of my senior year.I worked at <a target="_blank" class="" href="https://www.businessinsider.com/whats-the-best-delivery-pizza-chef-reviews-photos-2022-5">Little Caesars Pizza</a>, and managed to graduate still. I lived in government housing and didn't think twice about it. I'd been raised to shop with food stamps and never realized that wasn't the norm.My girlfriend and I got married and had three more kids by the time I was 30. I worked warehouse jobs while <a target="_blank" class="" href="https://www.businessinsider.com/mother-five-children-went-college-parenting-sacrifices-2024-4">going to college at night</a>. I didn't want to be bouncing checks and living paycheck to paycheck, but I didn't know a way out.Now, I'm a millionaire, and I have to take money into consideration when <a target="_blank" class="" href="https://www.businessinsider.com/millionaire-parent-teaches-kids-budgeting-entitlement-stability-2024-4">parenting my kids</a>.<h2 id="b465ab69-cc7f-4c3b-83e7-1b12c7534556">I started making money but then had to file for bankruptcy</h2>I got a college degree working at night, but working as an accountant didn't give me the financial stability I'd dreamed about. My uncle sold mortgages. In 2006, he got me into that industry. I was blown away that I could make $2,000 selling a mortgage. My annual salary at the time was only $28,000, so I quit my job to focus on sales.I felt rich. I had a nice car and a nice home. But when the market crashed in 2008, it all fell apart. My <a target="_blank" class="" href="https://www.businessinsider.com/john-oliver-explains-auto-lending-2016-8">car was repossessed</a>, and I had two foreclosures. I filed for bankruptcy.That's when I learned an important lesson: if you have a loan, you don't actually own anything. These days, I <a target="_blank" class="" href="https://www.businessinsider.com/how-to-pay-off-of-medical-debt-2015-4">pay cash for everything</a>.<h2 id="61a12640-34ad-4450-be7f-1ba1046d6820">My kids have had very different experiences growing up</h2>I went back to working as an accountant but eventually got into the insurance industry. Around 2015, I made $100,000 for the first time. It felt like a huge goal, but I realized it wasn't that much money once I made it.My colleagues were making $500,000 a year or more, and I set my sights on that. By 2017, I was making $1 million a year, and since about 2019, I've had $1 million in the bank. Now, my net worth is in the eight figures.The change from food stamps to multimillionaire has impacted my kids a lot. My oldest two are 30 and 25, and they only remember broke dad. The middle two are 17 and 18, and they've lived both ways — scraping to get by and having plenty of money. My youngest is 13, and he's only ever known affluence.<h2 id="caf04c2f-c9d2-41f1-865e-262f3b4fc779">I buy my kids cars but save the flashy vehicles for me</h2>I want all my kids to earn the things they have. My oldest went to Ohio State University on a full scholarship because there was no way I could not afford her college back then. I talk to them all the time about owning or selling something — that's the real way to build wealth.Now that I have more money, I pay for a car, a place to live, and college if my kids want to go. My two teenagers both drive Chevy Trailblazers, which are reliable cars. I drive much flashier cars: I own a custom GMC pickup, a Cadillac, a Mercedes, and a Bentley. I'm not going to buy luxury cars for my kids because they haven't earned them.<h2 id="97ee4941-51b1-4f83-9eb6-635bd6ef0f0d">My youngest has grown up rich, and that's challenging</h2>Teaching my youngest son the value of money is a challenge. I make a point to say no to him, even though I could afford to say yes. Recently, he asked me to take him to the World Series. He priced out the trip and told me it was "just $22,000." I told him that I love him, but there's no way I'm spending $22,000 on a baseball game.Another time, he told me he wanted a golf cart to check the mail. Admittedly, we have a long driveway, but there's no way I'm buying him a golf cart. I'm stubborn, and he's walking up and down the driveway.I love that he lives without having to worry about money, but I hate that he doesn't understand the value of it. This can be frustrating because I don't know how to teach it — this position is new to me, too.I want my kids to know the value of hard work. I've set up my will so that if I died tomorrow, they would get a bit of money over their lifetime, but they'd still need to work. I want them to do the hard jobs I did and maybe even experience being broke. It feels really, really good to earn something. I don't think it would feel quite as good if someone just handed it to you.

I was a teen dad on food stamps. Now that I'm a multimillionaire, teaching my kids to appreciate money is really difficult.

<ul class="summary-list"><li>Al Pacino went from a $50 million fortune to almost nothing in the bank, he revealed in a new book.</li><li>The "Scarface" actor spent too much, ignored his finances, and had an accountant who ultimately went to prison.</li></ul>Al Pacino went from $50 million to broke by spending too much, ignoring his finances, and using an accountant who ultimately went to jail for fraud. He joins a long list of celebrities who've made and lost vast fortunes during their careers.The "Scarface" actor, 84, detailed his money problems in his new autobiography, "Sonny Boy." One of his first cash crunches occurred after he <a target="_blank" class="" href="https://www.businessinsider.com/al-pacino-the-godfather-worst-picture-ever-made-coppola-2024-10">finished making</a> "The Godfather," and MGM Studios sued him for taking that role when they'd already cast him in a mafia comedy."It was like I was some sort of gambler and the bookies were going to get me," Pacino wrote. "I had to hire lawyers to help get me out of that contract. Soon I was $15,000 in debt to the lawyers too."In a scene somewhat reminiscent of a mob movie, Pacino set up a meeting with the studio's boss and asked him to back down. "You're killing me. I don't have any money, and I have to keep paying for lawyers because you keep suing me," he wrote.The studio head agreed to back off in return for Pacino letting MGM have the first look at any book or script he wanted to make — an offer Pacino couldn't refuse.The born-and-bred New Yorker went on to make a fortune starring in movies such as "Heat" and "Donnie Brasco." He said he virtually ignored his finances for most of his career, trusting his accountant to manage his cash. Eventually, he looked over his books in 2011, when he'd just returned from an extravagant family getaway in Europe, and was surprised to see he was wealthier than before he'd left.Several other red flags eventually led him to an accountant who told him he believed his current bookkeeper was an "arrogant crook.""I was broke," Pacino writes. "I had $50 million, and then I had nothing. I had property, but I didn't have any money."He adds later: "There's almost nothing worse for a famous person – there's being dead, and then there's being broke."Pacino said he'd been <a target="_blank" class="" href="https://www.businessinsider.com/shark-tank-kevin-oleary-family-business-loans-relatives-debt-personalfinance-2024-9">far too loose with the pursestrings</a>. "The kind of money I was spending and where it was going was just a crazy montage of loss. The door was wide open, and people who I didn't know were living off me. It was 'Come one, come all! Al's got it and he doesn't care!'""Even though I only had two cars, I was somehow paying for 16, along with 23 cell phones I didn't know about," he writes. "The landscaper was getting $400,000 a year and, mind you, that was for landscaping at a house I didn't even live in.""It was all about: let's keep this dumb actor happy, just keep him working, and we will reap."Pacino said he <a target="_blank" class="" href="https://www.businessinsider.com/al-pacino-star-wars-han-solo-harrison-ford-career-2023-4">turned a blind eye</a> to his finances because he thought they'd be too hard to understand and felt he was too old and lacked the time to understand them.The movie star had to scramble to stay afloat. He sold one of his two homes, hawked coffee after previously refusing to do commercials, took part in seminars that helped him cover his monthly bills, and acted in a movie called "Jack and Jill" with Adam Sandler because "they paid me a lot for it."Around the same time, he wrote, he learned his former accountant had been arrested, charged with running a Ponzi scheme and sentenced to seven and a half years in prison.Many athletes, actors, musicians, and other celebrities have <a target="_blank" class="" href="https://www.businessinsider.com/rich-famous-celebrities-who-lost-all-their-money-2018-5">made and lost huge amounts of money</a>. The list includes singer Michael Jackson, boxer Mike Tyson, rapper 50 Cent, soccer star Diego Maradona, and basketball icon Dennis Rodman.People who receive huge windfalls when they're relatively young and unaccustomed to being wealthy tend to be at <a target="_blank" class="" href="https://www.businessinsider.com/rich-people-who-lost-their-money-2015-1">higher risk of having financial problems</a>."I don't mind a little ice, but too much ice," basketball legend Charles Barkley said in a May episode of the "Club Shay Shay" podcast about young athletes donning Louis Vuitton shirts and Dior shoes."They do know that money ain't gonna last forever, right?"

Al Pacino says he went from $50 million to broke, joining a long list of stars who've experienced money troubles

Top of the morning, team. Phil Rosen here. I have a quick favor to ask — we're looking to highlight the best up-and-comers in the world of <a href="https://www.businessinsider.com/rising-stars-equity-research-nominations-2023">sell-side equity research</a>. Is there anyone you'd like to nominate for Insider's rising stars list for 2023? <a href="https://www.businessinsider.com/rising-stars-equity-research-nominations-2023">You can submit names here</a>.Here's our roster from last year of <a href="https://www.businessinsider.com/rising-stars-equity-research-2022">the most talented analysts under the age of 35</a>. Now let's <a href="https://markets.businessinsider.com/news/stocks/housing-market-crash-home-prices-economy-fed-rate-hike-mortgage-2023-3">get to the news</a>.If this was forwarded to you, <a href="https://www.businessinsider.com/subscription/newsletter/10-things-opening-bell">sign up here</a>. Download Insider's app <a href="https://www.insider.com/app">here.</a><a href="https://markets.businessinsider.com/news/stocks/svb-banking-crisis-deposits-loans-credit-crunch-consumers-commercial-economy-2023-3"></a>1. A possible consequence of the banking crisis is that households and businesses may soon find it <a href="https://markets.businessinsider.com/news/stocks/svb-banking-crisis-deposits-loans-credit-crunch-consumers-commercial-economy-2023-3">harder to get a loan from their bank</a>. Around $1 trillion in deposits have been pulled from smaller and mid-sized banks since the Fed began hiking rates last year, with half that fleeing banks since SVB collapsed. <a href="https://markets.businessinsider.com/news/stocks/svb-banking-crisis-deposits-loans-credit-crunch-consumers-commercial-economy-2023-3">Those shrinking money pools</a> could lead to a higher bar to clear for borrowers to access credit."The uncertainty generated by deposit movements could cause banks to become more cautious on lending," JPMorgan strategists wrote in a note. "This risk is heightened by the fact that mid- and small-size banks play a disproportionately large role in US bank lending."Alexander Yokum, an analyst at CFRA Research, told my colleague Carla Mozée that he <a href="https://markets.businessinsider.com/news/stocks/svb-banking-crisis-deposits-loans-credit-crunch-consumers-commercial-economy-2023-3">expects firms to become stricter with loans</a>.After SVB's collapse, he added, regional banks could see a <a href="https://markets.businessinsider.com/news/stocks/svb-banking-crisis-deposits-loans-credit-crunch-consumers-commercial-economy-2023-3">sizable drop</a> in deposits, and tightening lending standards will impact all kinds of borrowing. This likely could impact the trajectory of the economy, as regional and community banks are a massive source of credit to Main Street borrowers.Banks with under $250 billion in assets account for 45% of all consumer lending, according to Goldman Sachs, while 43% of the $5 trillion worth of commercial loans sit with mid-sized banks. Housing, too, is in a state of flux as mortgage rates hover near multi-decade highs and home prices stay elevated. Though <a href="https://markets.businessinsider.com/news/stocks/housing-rebound-silicon-valley-bank-economist-homebuyers-markets-homebuying-economy-2023-3">there's been some debate</a> as to how the SVB collapse will impact prospective buyers, the market is undeniably slowing. At present, home prices now are in their <a href="https://markets.businessinsider.com/news/stocks/housing-market-crash-home-prices-economy-fed-rate-hike-mortgage-2023-3">longest slump in over a decade</a>, according to Case-Shiller data released Tuesday. "Just how much prices will rise from winter lows will depend on whether mortgage rates stabilize and creep downward or stay high and volatile," Zillow senior economist Jeff Tucker wrote in a note yesterday.But strangely, the housing market appears to be both <a href="https://markets.businessinsider.com/news/commodities/us-housing-market-crashing-soaring-at-same-time-mortgage-rates-2023-3">crashing and rebounding at the same time</a>. It just depends where you live. Data from Black Knight illustrate that <a href="https://markets.businessinsider.com/news/commodities/us-housing-market-crashing-soaring-at-same-time-mortgage-rates-2023-3">home prices on the West Coast are plunging</a>, while those on the East Coast are ticking higher. For example, while annual home prices fell 10.3% in San Francisco for the month of January, they <a href="https://markets.businessinsider.com/news/commodities/us-housing-market-crashing-soaring-at-same-time-mortgage-rates-2023-3">surged 12% in Miami in the same stretch</a>.A New York Fed survey found that Americans expect home prices to grow 2.6% in the next 12 months — down from 7% a year ago.<a href="https://markets.businessinsider.com/news/stocks/housing-crash-home-price-outlook-lowest-rent-mortgage-ny-fed-2023-3">That's the lowest reading since the data began in 2014</a>. What other implications on lending do you anticipate from the recent bank turmoil? Tweet me (<a href="https://twitter.com/philrosenn" target="_blank" rel="noopener">@philrosenn</a>) or email me (<a href="mailto:prosen@insider.com" target="_blank" rel="noopener">prosen@insider.com</a>) to let me know. In other news:<a href="https://markets.businessinsider.com/news/stocks/us-bank-financial-crisis-recession-svb-collapse-stock-market-outlook-2023-3"></a><div type="image" title="SVB" height="3000" width="6000" msid="99089350" hostid="261"></div>2. US stock futures rise early Wednesday as worries about a banking crisis continue to ease. Meanwhile, a second hearing on the collapse of SVB will be held today before the House Financial Services Committee. <a href="https://markets.businessinsider.com/premarket?nr_email_referer=1&amp;utm_source=Sailthru&amp;utm_medium=email&amp;utm_content=Opening_bell&amp;utm_campaign=Post%20Blast%20%20:%20The%20stock%20market%20is%20going%20to%20be%20trading%20flat%20as%20long%20as%20risk-free%20assets%20offer%20much%20more%20yield&amp;utm_term=10%20THINGS%20BEFORE%20THE%20OPENING%20BELL%20SEND%20LIST">Here are the latest market moves</a>.3. On the docket: Spotify, Next PLC, and more, all <a href="https://markets.businessinsider.com/earnings-calendar">reporting</a>.4. Morgan Stanley recommended this batch of stocks to prepare for an unexpected earnings drop. Investors should brace for a downturn and more market volatility, chief investment officer Mike Wilson explained. <a href="https://www.businessinsider.com/stocks-to-buy-earnings-recession-investing-outlook-economy-morgan-stanley-2023-3">These are the 32 names on his list</a>.5. Fallen crypto king Sam Bankman-Fried is facing new charges. Prosecutors said he spent $40 million or more in crypto to <a href="https://www.businessinsider.com/sam-bankman-fried-bribe-chinese-officials-40-million-doj-ftx-2023-3">"influence" Chinese officials</a>, according to an indictment unsealed Tuesday. On top of that, <a href="https://markets.businessinsider.com/news/currencies/sam-bankman-fried-sbf-ftx-fraud-charges-bail-conditions-alameda-2023-3">new bail terms dictate that he uses a phone without internet, and a laptop that only has access to approved websites</a>.6. Fundstrat's Tom Lee said the banking turmoil may not blow up into a financial crisis. The famed Wall Street bull doesn't expect broader contagion— <a href="https://markets.businessinsider.com/news/stocks/us-bank-financial-crisis-recession-svb-collapse-stock-market-outlook-2023-3">and he actually thinks it could pave the way for a new bull market in stocks</a>.7. Silicon Valley Bank was a "textbook case of mismanagement," the Federal Reserve's Michael Barr said. In a statement at his Tuesday Congressional hearing, the central banker warned that SVB's failure could lead to a tightening of banking rules to prevent similar incidents. <a href="https://markets.businessinsider.com/news/stocks/svb-silicon-valley-bank-textbook-case-of-mismanagement-fed-official-2023-3">Get the full details</a>.8. Airbnb hosts who are booking up spaces shared the top strategies for success on the platform. One host said they're willing to spend more money to deliver a "wow" factor in their experience. <a href="https://www.businessinsider.com/how-to-build-successful-airbnb-rental-according-to-hosts-2023-3">Here's how the top owners are thriving even as competition heats up and the era of "Airbnbust" continues. </a>9. The world's largest wealth manager is warning investors to avoid stocks for the rest of the year. UBS downgraded equities, and said buyers shouldn't let a big opportunity in the bond market go to waste before rates come back down. <a href="https://www.businessinsider.com/best-investing-stocks-bonds-currencies-recession-inflation-market-outlook-ubs-2023-3">Read the firm's full advice across asset classes</a>.<a href="https://markets.businessinsider.com/news/commodities/russia-crude-oil-western-sanctions-eu-ban-price-cap-war-2023-3"> </a><div type="image" title="Brent crude price on March 29, 2023" height="930" width="1132" msid="99089353" hostid="261"></div>10. A Russian official said the country has successfully rerouted all the oil it would have sold to the West to "friendly" nations. Nikolai Shulginov, Russia's energy minister, implied that Moscow has offset the impact of sanctions aimed at curtailing export revenue. <a href="https://markets.businessinsider.com/news/commodities/russia-crude-oil-western-sanctions-eu-ban-price-cap-war-2023-3">He maintained that Russia will continue to focus on sending commodities to allies</a>.Curated by Phil Rosen in New York. Feedback or tips? Tweet <a href="https://twitter.com/philrosenn" target="_blank" rel="noopener">@philrosenn</a> or email <a href="mailto:prosen@insider.com" target="_blank" rel="noopener">prosen@insider.com</a>.Edited by Max Adams (<a href="https://twitter.com/maxradams?lang=en" target="_blank" rel="noopener">@maxradams</a>) in New York and Hallam Bullock (<a href="https://twitter.com/hallam_bullock" target="_blank" rel="noopener">@hallam_bullock</a>) in London.

The bank crisis threatens to spark a credit crunch as Main Street banks pull back

<ul class="summary-list"><li>Trump's civil fraud trial, which could run him and Trump Org out of NY, is in its second week.</li><li>On Wednesday, state officials called Nicholas Haigh, a former Deutsche Bank banker, to the stand.</li></ul>They called it the Trump "haircut."Really, that was what <a href="https://www.businessinsider.com/trumps-secret-ugly-breakup-with-deutsche-bank-revealed-2022-10">Deutsche Bank – Donald Trump's most generous lender</a> – called the routine cuts they applied to whatever the former president told them he was worth.The "haircut" reference was made Wednesday <a href="https://www.businessinsider.com/trumps-ny-fraud-trial-opens-today-heres-why-still-matters-2023-9">at Trump's New York civil fraud trial,</a> now mid-way through its second week. The word jumped out during an esoteric finance discussion."First of all, what is a haircut?" Kevin Wallace, an attorney for the AG's office, asked while questioning one of the former president's chief barbers, so to speak, Nicholas Haigh.Haigh is a banker who helped sign off on the more than $400 million that Deutsche Bank loaned the former president over the past decade."A haircut is a way by which the bank reduces the stated value of the asset in order to form some kind of assessment of what it might be worth," should there be a default, Haigh testified in a crisp British accent.Trump's pre- and post-haircut net worth varied wildly, the banker showed.In 2011, Trump told the bank he was worth $4.26 billion. But after the bank's haircut, meaning in a hypothetical default, he'd be worth as little as $2.365 billion, according to the fourth page of <a href="https://www.documentcloud.org/documents/24026639-nyag-v-trump-2011-deutsche-bank-trump-credit-report" target="_blank" rel="noopener">Deutche Bank's 2011 Trump "credit report,"</a> an internal banking document entered into evidence in the morning.<h2>So what, in simpler terms, was a Trump haircut? </h2>The Trump haircut, then, was Deutsche Bank's way of taking Trump's very sunny assessments of his worth and using them to calculate what he'd be worth in a very worst-case scenario. If he defaulted on a loan, for example, then the bank might sell his properties in a down market, say, for golf courses.The term first surfaced nearly two years ago in a court filing by the attorney general's office that described how the bank took Trump's self-described net worth and used it to calculate their own separate, lower, "stress scenario" worth.In the lender's own internal paperwork, there was what Trump said he was worth in his annual Statements of Financial Condition. To the right, in a separate column, there was his "DB adjusted," which is Deutsche Bank's fire-sale price, calculated via a percentage "haircut."<div type="image" title="A table listing financial categories, what the client reported them as being worth, and what were worth after being &quot;DB adjusted.&quot; they" height="650" width="1208" msid="104352743" hostid="261"></div>Trump's post-haircut worth was critical, over the years, in evaluating "whether to extend or maintain credit," the AG's filing said. The calculation influenced the bank's decision to lend money to Trump and then continue to let him keep that money during the life of the loan. The loans helped build the Trump empire — and reputation — that, in turn, propelled him, as a billionaire businessman, to the White House.Deutsche Bank financed the Trump National Doral Miami golf resort (he borrowed $125 million), the Trump International Hotel &amp; Tower in Chicago (he borrowed $107 million), and the renovation of the Old Post Office in Washington, DC (he borrowed $170 million).<div type="image" title="A view of a Trump hotel from the street." height="4133" width="5511" msid="104352744" hostid="261"></div><h2>Crew cut? Trim?</h2>That depends.A different haircut would be applied by Deutsche Bank depending on the kind of asset. For instance, the haircut on cash was very small since cash doesn't really depreciate, Haigh testified Wednesday.But the haircut on Trump's golf resorts? That was 50%, he testified.And in 2011, Deutsche Bank gave Trump a 75% haircut on what he said his Seven Springs estate in upstate New York was worth — because that valuation included the development of nine yet-unbuilt luxury "mansions." "Asset properties that are not yet developed have a larger range of possible impacts on their value" in the future, Haigh explained. <div type="image" title="An excerpt from Deutsche Bank's internal, 2011 Trump credit report, mentioning a 75 percent haircut." height="248" width="2500" msid="104352745" hostid="261"></div>That turned out to be a good call by Deutsche Bank. The nine mansions were essentially imaginary, the AG has argued, since zoning laws and other local regulations had already banned their construction, despite Eric Trump's efforts at the time."A haircut in banking is usually when they take a small percentage off the top," said Tammara Buckey, a Huntsville, Alabama-based CPA and career consultant who has been following the trial with an eye toward its potential for comedy – she won last year's South's Funniest Accountant competition."Usually it's just a trim," she said. "But for Trump it more resembled Britney Spears in 2007 – singing, "Ooops, I frauded again."<h2>And why do we care?</h2>It's a point of dispute in the trial. Trump's side says that the former president never defaulted and that Deutsche Bank made many millions off of his interest on the loans. They lent to him regardless of their most severe haircut calculations and were in no way victimized, his lawyers have argued.The attorney general counters that in lending to Trump, Deutsche Bank relied on both Trump's adjusted, worst-case, "haircut" worth and his self-reported worth. The state's expert witnesses are expected to testify that it's unlikely that the bank would have loaned to Trump at all if they knew those numbers were fraudulent.James has accused the defendants in her lawsuit — Trump, his two eldest sons, and two former long-standing executives — of conspiring to lie about his worth by as much as $3.6 billion a year in a decade's worth of the annual statements of financial condition he used to get and keep his loans.She's seeking to permanently ban him from running a business in New York, among other penalties, and has already won a pre-trial ruling that <a href="https://www.businessinsider.com/trump-fraud-ruling-corporate-death-penalty-for-his-empire-experts-2023-9">may shift control of the Trump Organization to a receiver</a> who'd be tasked with selling assets.Haigh's testimony was taken during a break in longer testimony by Allen Weisselberg, Trump's former CFO, who on Tuesday testified that Trump's <a href="https://www.businessinsider.com/allen-weisselberg-testifies-tripling-square-footage-financial-reports-minor-mistake-2023-10">tripling of the square footage of his penthouse in five years of financial statements was a "minor" miscalculation</a>.

The Trump 'haircut': Yes, Deutsche Bank really used this term in reducing what Trump said he was worth

<ul class="summary-list"><li>The US economy is going to crash-land into a recession in the second half of 2023, according to Allianz.</li><li>The German insurance-to-asset management giant predicted US output will shrink 1% between mid-2023 and year-end.</li></ul>Brace for the US economy to flounder in the second half of this year because the turmoil in the regional banking sector is going to trigger a credit crunch, Allianz has warned.The German insurance-to-asset management giant said in a report this week that the US is "headed towards a crash landing," referring to an outcome where the Federal Reserve's monetary tightening and banks' increased wariness toward lending squeeze credit flows and set the stage for a recession."We expect the economic momentum to deteriorate during the second half of the year on the back of rapidly tightening credit conditions, exacerbated by the banking crisis," a team led by Allianz' chief economist Ludovic Subran said in the note.The strategists added that they are "penciling in a recession" that would see the US economy contract 1% between the middle and the end of this year.Allianz is expecting the turmoil that's rocked the US's regional banks in recent weeks to fuel a credit crunch.Silicon Valley Bank collapsed earlier this month after it disclosed massive losses on its bond holdings, leading to customers like Peter Thiel's Founders Fund pulling their deposits. Two other US lenders - Signature Bank and Silvergate Capital - also imploded this month.That's spread shockwaves across the financial system and dragged on the share price of other regional lenders like <a href="https://markets.businessinsider.com/stocks/frc-stock">First Republic</a> and <a href="https://markets.businessinsider.com/stocks/wal-stock">Western Alliance</a>.The turmoil could leave banks more risk-averse and result in a pullback in lending, according to Allianz. When financial institutions are less willing to lend, Americans find it harder to access credit – and that leads to a fall in spending and investment that would weigh on the nation's overall economic health.Subran's team noted that a sharp drop in deposits had wiped $472 billion off the US's total money supply over the past year – which they said "spells doom" for financing conditions."Banks have been curtailing the supply of credit to the private sector, and low confidence in the financial sector will likely make them even more conservative," the strategists said."In post-World War II history, this is a unique event," they added. "While credit growth has still held up, a significant decline in bank lending seems inevitable amid the collapse of monetary aggregates."Read more: <a href="https://markets.businessinsider.com/news/stocks/ftx-svb-stock-market-crash-bond-selloff-federal-reserve-hiking-2023-3">Victims of the Fed: How a year of rate hikes cratered stocks - and fueled the demise of FTX and Silicon Valley Bank</a>

Brace for the US economy to crash-land as the banking turmoil creates a credit crunch, Allianz says

<ul class="summary-list"><li>A credit slowdown resulting from the banking turmoil will help the Fed's inflation fight but it will weigh on the economy and earnings, according to eToro's Ben Laidler.</li><li>"I think the banks are gonna be doing the Fed's work for it," Laidler told Yahoo Finance.</li></ul>A credit slowdown resulting from the recent banking turmoil will help the Federal Reserve in its fight against inflation, but it will also slow the economy and earnings, according to eToro's global market strategist Ben Laidler. Banks will be lending less as they turn more risk-averse following last month's collapse of Silicon Valley Bank and Signature Bank - that, in combination with the Fed's ongoing monetary-tightening campaign, will lead to an economic slowdown, he said."Financial conditions are tightening. I think the banks are gonna be doing the Fed's work for it. We're not saying there's a banking crisis, but we have lived through a scare," Laidler <a href="https://www.youtube.com/watch?v=Qe9nFR_mWPM" target="_blank" rel="noopener">told</a> Yahoo Finance on Monday. "We've already got the lag, the Fed's 5% interest rates, and now on top of that, we've got banks which are going to be lending less, and that combination is going to slow the economy and slow earnings, which we really haven't seen yet," he added.The latest data has shown the steepest drop on record in bank lending over the last two weeks, and that suggests the credit crunch has already started, according to Morgan Stanley. Furthermore, the most recent <a href="https://www.businessinsider.com/credit-crunch-economy-markets-fed-new-york-americans-sentiment-stocks-2023-4?utm_medium=ingest&amp;utm_source=markets">small business lending survey</a> showed that credit availability has seen its largest drop in 20 years, coming alongside the highest interest rates seen in 15 years. Banks are tightening lending standards amid fears of regulatory crackdowns following the recent lender collapses, and also as they see large outflows of deposits into other avenues such as <a href="https://markets.businessinsider.com/news/funds/money-market-funds-bank-turmoil-svb-interest-rates-2023-4">money-market funds</a>, according to Laidler. Smaller banks have seen the worst of the deposit outflows — and he expects they will see the worst of regulatory crackdowns as well."But regardless, everybody is going to be lending less going forward than they might otherwise have done and lending standards are already tightening," according to him. "The system as a whole will be lending less than it would otherwise have done. That's going to feed through into the real economy, that's going to particularly hurt some segments – commercial real estate, small caps – but it is gonna have a broader macro impact. And I think the way to think about it is, this is the replacement for an extra 50-75 basis points of Fed hikes, which we now won't see," Laidler said.

The credit crunch caused by the banking turmoil may help the Fed's inflation fight, but it will hurt the economy and earnings, eToro strategist says

Our experts answer readers' banking questions and write unbiased product reviews (<a href="https://www.businessinsider.com/personal-finance/personal-finance-editorial-standards#rating-banking-products" class="not-content-link" target="_blank">here's how we assess banking products</a>). In some cases, we receive a commission from <a href="https://www.businessinsider.com/personal-finance/our-partners" class="not-content-link" target="_blank">our partners</a>; however, our opinions are our own. Terms apply to offers listed on this page.The bottom line: Credit Karma Money is a good option for receiving early direct deposits and tracking all of your finances in one app. The high-yield savings account is also a strong choice if you'd like to avoid monthly service fees. The <a href="https://www.businessinsider.com/personal-finance/best-high-yield-savings-accounts-rates-right-now">best high-yield savings accounts</a> pay up to Betterment Cash Reserve - APY APY right now — see how Credit Karma Money compares.<h3>Compare today's checking accounts</h3><h2>Credit Karma Money Review: Overall Rating</h2><table style="border-collapse: collapse; width: 100%;" border="1"><tbody><tr><td style="width: 50%;">Feature</td><td style="width: 50%;">Insider rating (out of 5)</td></tr><tr><td style="width: 50%;">Checking</td><td style="width: 50%; text-align: center;">4.5</td></tr><tr><td style="width: 50%;">Savings</td><td style="width: 50%; text-align: center;">4.25</td></tr><tr><td style="width: 50%;">Trustworthiness</td><td style="width: 50%; text-align: center;">4.5</td></tr><tr><td style="width: 50%;">Total</td><td style="width: 50%; text-align: center;">4.5</td></tr></tbody></table><h3>Credit Karma Money Pros and Cons</h3><table style="border-collapse: collapse; width: 100%;" border="1"><tbody><tr><td style="width: 50%;">Pros</td><td style="width: 50%;">Cons</td></tr><tr><td style="width: 50%;"><ul><li>High interest rate on savings account</li><li>Large free ATM network</li><li>Receive paychecks up to 2 days early and government benefits up to 5 days early using a Credit Karma Money Spend Account</li><li>No minimum deposits or monthly service fees</li></ul></td><td style="width: 50%;"><ul><li>No physical branches</li><li>No joint accounts</li><li>Interest compounded monthly, not daily</li></ul></td></tr></tbody></table><h3>About Credit Karma Money</h3>Credit Karma is a finance company primarily known for showing you credit scores and reports for free. Credit Karma Money Spend Account is the company's money movement platform, and it has a checking and savings account.<a href="https://www.businessinsider.com/personal-finance/credit-karma-money-new-feature-early-access-to-government-benefits-2023-12">Credit Karma Money recently launched up to five-day early access to government benefits</a> and no-fee overdraft coverage. You'll need to have a Credit Karma Spend Account to have access to these features. To qualify for early access to government benefits, sign up for direct deposits through your federal government provider so any payments go directly into your Credit Karma Money account. Meanwhile, to receive no-fee overdraft coverage you must set up monthly direct deposits of $750 or more to a Credit Karma Money Spend Account. With Credit Karma, you have free access to 55,000 ATMs around the US in the Allpoint network.The Credit Karma mobile app has 4.8 out of 5 stars in the <a href="https://apps.apple.com/us/app/credit-karma/id519817714" target="_blank" rel="noopener">Apple store</a>, and 4.7 out of 5 stars in the <a href="https://play.google.com/store/apps/details?id=com.creditkarma.mobile&amp;hl=en_US&amp;gl=US" target="_blank" rel="noopener">Google Play store</a>. You can link your Credit Karma Spend Account to your TransUnion credit report. Then you can see your credit score, upcoming bills, payment due dates, minimum payments due, and outstanding balances in your Credit Karma app.Your deposits are <a href="https://www.businessinsider.com/personal-finance/fdic">FDIC</a>-insured for up to $5 million through Credit Karma's partner banks.<h3>Is Credit Karma Money Trustworthy?</h3>The Better Business Bureau gives companies scored based on responses to customer complaints, honesty in advertising, and transparency about business practices. The BBB gives Credit Karma an <a href="https://www.bbb.org/us/ca/san-francisco/profile/credit-services/credit-karma-inc-1116-295805" target="_blank" rel="noopener">F rating</a> because the company has received a high volume of customer complaints on the BBB website, it hasn't responded to several customer complaints on the BBB website, and lastly, because government action was taken against the company.The Federal Trade Commission required Credit Karma <a href="https://www.ftc.gov/news-events/news/press-releases/2023/01/ftc-finalizes-order-requiring-credit-karma-pay-3-million-halt-deceptive-pre-approved-claims" target="_blank" rel="noopener">to pay $3 million in a settlement</a> that claimed the company misled consumers with pre-approved offers that they at times did not qualify for.<h2>Credit Karma Money FAQs</h2><h3 class="faq-question">How do you get money out of Credit Karma Money?</h3>To get your money out of Credit Karma Money, you can withdraw funds at ATMs in the Allpoint network or transfer your money to an external bank account.<h3 class="faq-question">Can I receive money on Credit Karma Money?</h3>Yes, you can receive money on Credit Karma by setting up direct deposit or transferring money from another bank account. You can also visit participating Walmart locations and load cash using your debit card — but keep in mind Walmart may charge a fee for each deposit.<h3 class="faq-question">Does Credit Karma Money have overdraft protection?</h3>Yes, Credit Karma Money recently launched no-fee overdraft coverage. To get coverage, you'll need to set up monthly direct deposits of $750 or more each month.<h3 class="faq-question">Can I transfer money from Credit Karma Money to my bank account?</h3>Yes, you can transfer money from Credit Karma Money to an external bank account. There's a daily transaction limit of $10,000 and a monthly transaction limit of $50,000.<h3 class="faq-question">Is Credit Karma Money legit? </h3>Credit Karma Money has legitimate banking services. Your money is deposited into an account at MVB Bank and other banks in its deposit network. The money in your Credit Karma Money Spend and Save Accounts may be insured for a combined amount of up to $5 million. <h2>Credit Karma Money Accounts Review</h2><h3>Credit Karma Money Spend Account</h3>Credit Karma Money Spend Account is a good free checking account, with Credit Karma Money Spend Account - Fees Display or overdraft fees.This account also offers a unique perk that lets you receive access to government benefits up to five days early. Generally, financial institutions take a few days to process paychecks. However, Credit Karma Money's new feature allows you to receive funds as soon as Credit Karma Money gets a notice from the federal government, which may be up to five days earlier than the payday.<h3>Credit Money Save Account</h3>Credit Karma Money Save Account has no minimum opening deposit or monthly fees. This account pays higher than the national average, but you can still find other high-yield savings accounts with even higher rates right now. <h3>How Credit Karma Money Compares</h3>Credit Karma Money vs. ChimeBoth banking platforms have checking and savings accounts with no monthly fees. You'll earn a higher interest rate with Credit Karma than Chime, though.Credit Karma Money also has recently launched a new feature that allows Credit Karma Money Spend Account users to receive up to five-day early access to federal government benefits like Social Security, VA benefits, or Supplemental Security Income through direct deposits. At Chime, you'll get up to two-day early access to government benefits when you set up direct deposits and receive qualifying payments, which is still a good benefit, although not as distinct.Chime may be a better choice if you frequently deposit cash. You can visit Walgreens locations and deposit cash without fees. With Credit Karma Money, select retailers like Walmart can load cash to your debit card, but the retailer will charge a fee for each deposit.<a href="https://www.businessinsider.com/personal-finance/chime-bank-review" target="_blank" rel="noopener">Chime Review</a> Credit Karma Money vs. Capital OneCapital One will likely be a more appealing option if you want to bank directly with a financial institution. Capital One offers CDs, which Credit Karma Money doesn't offer. It also has some of the <a href="https://www.businessinsider.com/personal-finance/best-credit-cards">best credit cards</a> overall.You might still consider Credit Karma Money if you're interested in the platform's new feature that allows qualifying members to have five-day early access to federal government benefits Social Security, VA benefits, or Supplemental Security Income. To get access to the future, you must have a Credit Karma Money Spend Account and you'll have to set up direct deposits through your government provider. Capital One 360 offers two-day early direct deposits for government benefits if you have Capital One 360 Checking - Product Name Only, which still is better than some financial institutions but not as impressive. <a href="https://www.businessinsider.com/personal-finance/capital-one-bank-review" target="_blank" rel="noopener">Capital One 360 Bank Review</a><h3>Why You Should Trust Us: How We Reviewed Credit Karma Money </h3>At Personal Finance Insider, we rate banking products using a scale of 0 to 5 stars. To assess Credit Karma Money we used our <a href="https://www.businessinsider.com/personal-finance/how-we-rate-checking-savings-money-market-accounts" rel="">banking methodology,</a> which analyses features of various products to help determine if the account may be right for you.We applied our checking account methodology to the Credit Karma Money Spend Account and looked at the accounts the minimum opening deposit requirements, monthly service fees, overdraft fees/protection programs, and ATM network/fees. For the Credit Karma Money Save Account, we implemented our savings account methodology and reviewed the account's minimum opening deposit requirements, monthly service fees, and interest rate. We also generally look at customer support availability, mobile app ratings, and overall ethics of the company for all bank products.

You Searched For "yes bank money crunch" and got 11 results

Simply Put: Is the lending party over? The dangerous tango of Indian banks with microfinance and unsecured loans

Ira Alok Puranik

Simply Put: A Deposit Dilemma — What's the fuss about a crisis in Indian bank deposits? Are mutual fund investments to blame?

Ira Alok Puranik

The idea of depending on my parents for money scared me. After accepting I had a financial safety net, my career flourished.

Kanishka Nangare

What screams 'status' on Wall Street? Here's how the movers and shakers of finance are spending their money.

Emmalyse Brownstein

I was a teen dad on food stamps. Now that I'm a multimillionaire, teaching my kids to appreciate money is really difficult.

Kelly Burch

Al Pacino says he went from $50 million to broke, joining a long list of stars who've experienced money troubles

Theron Mohamed

The bank crisis threatens to spark a credit crunch as Main Street banks pull back

Phil Rosen

The Trump 'haircut': Yes, Deutsche Bank really used this term in reducing what Trump said he was worth

Laura Italiano

Brace for the US economy to crash-land as the banking turmoil creates a credit crunch, Allianz says

George Glover

The credit crunch caused by the banking turmoil may help the Fed's inflation fight, but it will hurt the economy and earnings, eToro strategist says

Zinya Salfiti

Credit Karma Money Review 2023

Laura Grace Tarpley, CEPF,Sop…

Popular Keywords

Buying Guides