-
The banking crisis has unfolded
US’ Silicon Valley Bank and First Republic Bank have been seized and taken over by regulators, marking the largest US bank failure since the 2008 financial crisis. A group of 11 US banks, including JPMorgan Chase, agreed to give First Republic $30 billion. Silicon Valley Bank said it needed to shore up its finances due…
-
The Fed will release a postmortem report about Silicon Valley Bank
The Federal Reserve will release a report on Friday on its oversight of Silicon Valley Bank, the bank that failed last month. The report is expected to address whether Mid-sized banks should be subject to more frequent “stress tests” to ensure they can weather financial challenges. The Fed will conduct a review of how it…
-
The Fed is about to release its look into Silicon Valley Bank
US Federal Reserve has ordered an internal audit of why Silicon Valley Bank and Signature Bank failed last month. The bank’s failures forced the government to take emergency steps to prevent a nationwide bank run. The audit needs to be conducted with “humility and careful and thorough review”, said the Fed. The bank had a…
-
The First Republic Bank shares plummeted
The First Republic Bank has said that it has experienced “unprecedented” deposits outflows since last year’s failure of Silicon Valley Bank and Signature Bank. This resulted in an outflow of $119 billion from other small banks. On Tuesday, First Republic said that deposits have stabilized, but investors remained concerned about the bank’s viability.
-
Stronger links between science and finance are needed
Silicon Valley Bank’s failure was influenced by frenetic social media activity, according to a study published in the Social Science Research Network. The bank’s collapse was also influenced by stricter rules implemented in the aftermath of the 2008 financial crisis, the study said. The data used to create an index reflected the risks of the…
-
There are hearings on bank failures in the Senate
Senator Sherrod Brown, the Chairman of the US Senate Banking Committee, has called for a probe into the failure of Silicon Valley Bank and Signature Bank. “It’s critical…to get to the bottom of how…both banks collapsed so we can maintain a strong banking system, protect Americans’ hard-earned money, and hold those responsible accountable, including the…
-
We learned a number of things from the Senate hearing
A Senate committee on Tuesday heard testimony from US regulators about the collapse of Silicon Valley Bank (SVB). Michael Barr, Vice Chairman of Supervision at the Federal Reserve, said the recent events show how regulators must improve rules for banks and study them in order to keep up with changes in technology and customer behaviour.
-
Will the global banking crisis lead to a recession?
The liquidity crisis at Silicon Valley Bank led to the bankruptcy of the bank in March last year, leading to the closure of the California-based institution. The bank’s failure sent waves of panic through the financial system in early March. The US Federal Reserve is responsible for about $140 billion in guarantees for all Silicon…
-
If there is a requirement to protect depositors, the U.S. is ready to do so
US Treasury Secretary Janet Yellen has said depositors at small banks might be eligible for the same kind of emergency government aid extended to customers at two regional banks that failed this month. Her statement comes nine days after government announced measures to guarantee all deposits at Silicon Valley Bank and Signature Bank. Deposit insurance…
-
The weekend Silicon Valley came to a crashing halt
Silicon Valley Bank (SVB) and Signature Bank were closed by the US government last month after they lost billions of dollars in deposits. SVB’s insured deposits with the Federal Deposit Insurance Corp (FDIC) stood at about $60 billion while Signature’s insured deposits amounted to $85 billion. The FDIC said SVB’s depositors could get back their…
-
The Silicon Valley had a storm over the weekend
US-based Silicon Valley Bank, the second-largest US bank to fail since 2008, shut its doors on Friday with regulators seizing control of its assets and converting them to New York Community Bank for $38.4 billion. The bank has been shut down by the Federal Deposit Insurance Corporation (FDIC) in the highest-ever failure of an American…