Number of Americans Filing for Jobless Claims Is Elevated for Second Straight Week​​​

The number of Americans applying for unemployment benefits remained elevated last week, a possible sign that the Federal Reserve’s interest rate hikes over the past year may be taking hold in what’s proved to be a resilient job market, the Associated Press reported. U.S. applications for jobless claims were 262,000 for the week ending June 10, the Labor Department reported Thursday, more than analysts had been expecting. This week’s number mirrors last week’s, which was revised up by 1,000. The claims numbers for the past two weeks are the highest since October 2021. The four-week moving average of claims, which flattens some of the week-to-week fluctuations, rose by more than 9,000 to 246,750. That’s the highest level since November 2021. Overall, 1.78 million people were collecting unemployment benefits the week that ended June 3, about 20,000 more/fewer than the previous week.​​​​​​ ​​​Read more.

Next Virtual Public Hearing of ABI's Subchapter V Task Force to Take Place Next Friday, Will Examine Eligibility Issues

The next virtual public hearing of ABI's Subchapter V Task Force will take place next Friday, June 23, at 3 p.m. EDT, with witnesses providing testimony on subchapter V eligibility issues. For the registration link and full public hearing schedule, please click here.

Did you miss the kick-off hearing featuring witnesses discussing their general experiences with subchapter V? Click here to watch a replay of the hearing.

Analysis: Pandemic Revenge Spending Helped Push Prices Higher. The Trend Is Turning​​​

After two years of spending heavily on vacations and other experiences that they were deprived of during pandemic lockdowns, Americans may be on the brink of pulling back — a cool-down that could help slow inflation, the New York Times reported. The nation witnessed two years of red-hot “revenge spending,” the name economists and corporate executives gave to a spike in recreational spending and vacation splurging that followed coronavirus lockdowns. As demand rose, so did prices for airfares, hotels and other sought-after services. But many of those price categories are now cooling. Hotel prices have recently climbed much more slowly on a year-over-year basis, and airfares fell in May, a report on Tuesday showed. If that trend continues this summer, it could contribute to a continuing slowdown in overall services inflation, something the Fed has been watching and waiting for. Consumers are not only getting back to more normal living patterns, they may also be increasingly cautious as they face high costs after several years of rapid inflation — and as they worry that the Fed’s interest rate increases might soon push the economy into a recession.​​​​​​ ​​​Read more.

Fed, SEC Probing Goldman Sachs’s Role in SVB’s Final Days​​​

The Federal Reserve and the Securities and Exchange Commission are investigating Goldman Sachs’s role in buying Silicon Valley Bank’s securities portfolio while it was working on its doomed capital-raise before the bank’s failure, the Wall Street Journal reported. The Justice Department has also subpoenaed Goldman as part of its investigation into SVB, some of the people said. The Wall Street Journal previously reported that the SEC and Justice Department are investigating the bank’s collapse. The Goldman inquiries are reportedly part of the broader probes. The Fed and the SEC are seeking documents related to Goldman’s role as both buyer of the securities portfolio and adviser on the capital-raise for SVB, the people said. They are reportedly looking to see whether Goldman’s investment banking side and its trading division were improperly communicating about the portfolio sale. Goldman disclosed in a securities filing last month that “various governmental bodies” were looking into the bank’s involvement with SVB. (Subscription required.)​​​​​​ ​​​Read more.

*The views expressed in this commentary are from the author/publication cited, are meant for informative purposes only, and are not an official position of ABI.​​​​​​

Commentary: Regional Banks Face Years of Trouble*​​​

There are two ways to look at America’s regional banks, according to a Wall Street Journal commentary. The first is that they are the hardy survivors that made it through the runs that took down two of their brethren this year (and a smaller bank), and they are ready to handle anything thrown at them. As a bonus, they are a bargain, since their shares were hammered. The second is that they are going to spend years in the shadow of the experience, facing demands by regulators, creditors and depositors that can only be satisfied at the expense of shareholders — and the past month’s rally is way overdone. There is a bit of truth in both, which confuses the story, according to the commentary. For sure, these are the survivors, and for sure they are stronger than Silicon Valley Bank (which had assets worth less at market prices than its liabilities, one definition of insolvency) and Signature Bank (which focused on cryptocurrencies). None of those left are so obviously weak as to prompt a debilitating run by customers, and creditors and shareholders have calmed down. Unfortunately, it is also true that these banks are spooked. They will be focused on strengthening their balance sheets and trying to keep depositors and regulators happy for a long time to come, even as the continued threat of broader banking system troubles hangs over them. (Subscription required.)​​​​​​ ​​​Read more.

*The views expressed in this commentary are from the author/publication cited, are meant for informative purposes only, and are not an official position of ABI.​​​​​​

Vanguard: Average Balance in 401(k) Plans Down Almost $30K Since 2021​​​

A new report released by Vanguard shows that the average account balance in retirement contribution plans dropped by 20 percent from 2021 to 2022, The Hill reported. Vanguard’s report found that the average account balance for its defined contribution plans was $112,572 in 2022, down nearly $30,000 from the average in 2021. The report noted that 1 in 3 account holders had a balance of less than $10,000, about 25 percent had a balance of more than $100,000, and 12 percent had a balance of $250,000 or more. The report attributed the drop in average balances to “market performance and an evolving participant base.” The median account balance dropped by 8 percent among those who had an account in December 2021 and December 2022.​​​​​​ ​​​Read more.

USTP Looking for a Chapter 11 Trial Attorney​​​

The U.S. Trustee Program has a job opening for a chapter 11 trial attorney within the Executive Office for the U.S. Trustee. For the full job description, application guidelines and other information, please click here.​​​​​​ ​​​All applications must be received by July 13.

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