Former SVB Execs Migrate to MUFG and HSBC

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Banking News

12K Employees Join CitiBank’s “Transformation”

Citi's workforce has grown significantly in the past year, with more than 12,000 employees now dedicated to the bank's technology-driven overhaul, according to the company's Q1 2023 earnings results presentation.

Technology-related expenses for the period ending March 31st grew 12% YoY. CFO Mark Mason said the bank drives the strategy by investing in client experience and innovative new products. CFO Mark Mason said:

Potential Banking Unionization

Wells Fargo employees in 29 US states are seeking to unionize, making it the first of the country's largest banks to have a unionized workforce.

The Committee for Better Banks and Wells Fargo Workers United members want shareholders to allow workers to form a union. To do so, shareholders must pass a "Freedom of Association" policy. Despite the bank's concerns, two of the country's largest proxy advisers – Glass Lewis and Institutional Shareholder Services – have recommended shareholders vote in favor of the policy.

Credit Union News

Ohio Senators Champion CU Funding Access

Senators Sherrod Brown (D-OH) and J.D. Vance (R-OH) have requested the Federal Reserve ensure that Ohio's state-chartered credit unions can access its Bank Term Funding Program (BTFP). The program offers liquidity to depository institutions but does not currently include privately insured credit unions.

A letter from the Credit Union National Association (CUNA), the American Association of Credit Union Leagues, and leagues and associations from 45 states made the same request.

Female CU Employees Receive Support

Eleni Giakoumopoulos, Director of the Global Women's Leadership Network (GWLN), has encouraged women employed at credit unions to join the international program to develop their skills and expand their growth opportunities. GWLN has nearly 5,000 members and 160 Sister Societies on six continents.

During the Super Summit Sicredi event, women working in Sicredi credit unions from Brazil joined Giakoumopoulos for panel discussions to share their career growth experiences and stories of overcoming challenges to achieve their goals.

Financial Services & Blockchain

Open Banking Poses Higher Risks

The US Office of the Comptroller of the Currency has said that the transition to open banking could heighten risks associated with liquidity, operations, third-party management, and compliance. Seamless account portability, a key feature of open banking, could increase liquidity risks for banks.

Acting Chief Michael Hsu acknowledged that banks might try to retain customers to address the potential risks. Meanwhile, competition could increase as consumers shift to banks providing better services.

Ex-SVB Execs Move to MUFG

Mitsubishi UFJ Financial Group's (MUFG's) US subsidiary has hired former executives from Silicon Valley Bank to strengthen its technology, media, and telecoms (TMT) unit. Bob Blee, formerly SVB's Bay Area head of corporate banking, will become managing director and head of growth and middle-market technology banking for the Americas.

MUFG will be adding 20 bankers in all. The move comes after rival HSBC hired over 40 investment bankers from SVB to set up a practice for tech, healthcare, and venture capital clients.

Kevin Cronin, MUFG Americas CEO, said

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Market Movements (4.17 - 4.21)