Impact of prolonged higher interest rates on banks

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With the Federal Reserve holding interest rates steady, leaving the door open for a rate hike down the line in 2023's final months, struggling banks will continue to feel the impact. Yahoo Finance Senior Reporter David Hollerith joins the show to break down how banks are reacting to these developments. Hollerith explains how with banks missing a 'key source of funding' in deposits and loans due to rates, banks have had to tap into the brokered deposits market. He explains the risk associated with this strategy, stating 'with one or two bad loans, they could quickly run into a situation where regulators would ask to stop using them,' causing a serious funding issue. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

If you find yourself constantly looking for ways to save every single penny, you might be overlooking the bigger picture. Frugality, while an admirable trait, can lead you to make choices that might...Stock market today: Stocks drop in an ugly day as allure grows to buy a Treasury bill and chill

NEW YORK — Wall Street fell sharply Thursday in an ugly day for stocks worldwide on expectations that U.S. interest rates will stay high well into next year. The S&P 500 lost 1.6% for its worst day since March. That followed a drop of 0.9% from Wednesday after the Federal Reserve indicated it may cut interest rates next year by just half of what it had earlier predicted.

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