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Bank of London bids to acquire Silicon Valley Bank’s UK arm
The Bank of London is leading a consortium of private equity firms seeking to purchase SVB's arm in the United Kingdom.
A) deep pocketed investment bank buys and honours depositsThe U.S. Federal Deposit Insurance Corporation (FIDC) reportedly started an auction process on March 11 night for Silicon Valley Bank. Bids are allegedly open for just a few hours, before the process closes later this Sunday.Bank of London bids to acquire Silicon Valley Bank’s UK arm
The Bank of London is leading a consortium of private equity firms seeking to purchase SVB's arm in the United Kingdom.cointelegraph.com
"The total of these unrealized losses, including securities that are available for sale or held to maturity, was about $620 billion at year end 2022. Unrealized losses on securities have meaningfully reduced the reported equity capital of the banking industry."
from what i read only 3% of SVB customers fell into the FDIC protected ' group , meaning either larger deposits or accounts that weren't defined as 'savings accounts '
US Says All SVB Deposits Safe, Creates New Backstop for Banks
- Actions will fully protect all SVB depositors’ money, US says
- Fed creates program to lend against collateral pledged at par
US financial regulators moved on Sunday to protect depositors’ funds following the collapse of Silicon Valley Bank and set up a new financial backstop, seeking to stem fears that households and businesses would flee smaller lenders.
Here is a better article, I will post it in full.from what i read only 3% of SVB customers fell into the FDIC protected ' group , meaning either larger deposits or accounts that weren't defined as 'savings accounts '
maybe greater clarity will come later ( or not )
since Signature has closed shop as well , i would expect a smattering of smaller banks ( probably too small to mention in mainstream media ) to followHere is a better article, I will post it in full.
The US federal government said all Silicon Valley Bank clients will be protected and have access to their funds, just days after the bank failed and sent its customers panicking. A second US bank, Signature, was also closed on Sunday.Second bank fails as US government moves to protect Silicon Valley Bank clients
The announcement came amid fears that the factors that caused the Santa Clara, California-based bank to fail could spread.www.smh.com.au
The Treasury Department, Federal Reserve and FDIC announced steps on Sunday (US time) designed to protect the bank’s customers and prevent more bank runs.
“This step will ensure that the US banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth,” the agencies said in a joint statement.
Regulators also closed New York-based Signature Bank on Sunday.
Silicon Valley Bank customers will have access to their deposits starting on Monday, US officials said on Sunday, as the federal government announced actions to shore up deposits and stem any broader financial fallout from the sudden collapse of the tech startup-focused lender.
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The boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, in consultation with President Joe Biden, approved the FDIC’s resolution of SVB, according to a joint statement from US Treasury Secretary Janet Yellen, Fed Chair Jerome Powell and FDIC Chairman Martin Gruenberg on Sunday evening.
The move will not lead to losses by American taxpayers and all deposits will be made whole, the statement said.
“Today we are taking decisive actions to protect the US economy by strengthening public confidence in our banking system,” the statement said. “This step will ensure that the US banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.”
The Federal Reserve also said Sunday it would make additional funding available through a new Bank Term Funding Program, which would offer loans up to one year to depository institutions, backed by Treasuries and other assets these institutions hold.
State regulators closed New York-based Signature Bank on Sunday.
The US Treasury Department and other bank regulators said in a joint statement on Sunday that all depositors of Signature Bank will be made whole, and “no losses will be borne by the taxpayer.” The Signature failure is the third-largest in US history.
New York banking regulators appointed the Federal Deposit Insurance Corporation as receiver for later disposition of the bank’s assets.
Signature Bank reported deposit balances totaling $US89.17 billion as of March 8. As of December 31, it had approximately $US110.36 billion in assets, according to New York state’s Department of Financial Services.
Earlier, Yellen had said she was working with banking regulators to respond after SVB became the largest bank to fail since the 2008 financial crisis.
She also ruled out a government bailout.
“We want to make sure that the troubles that exist at one bank don’t create contagion to others that are sound,” Yellen told the CBS News Sunday Morningshow.
“Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out...and the reforms that have been put in place means we are not going to do that again,” she said.
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In March 2020 when the coronavirus pandemic and lockdowns triggered financial panic, the Federal Reserve announced a series of measures to keep credit flowing by lowering borrowing costs and lengthening the terms of its direct loans.
By the end of that month, use of the Fed’s discount window facility shot up to more than $US50 billion ($75.5 billion).
Through the middle of last week, before SVB’s collapse, there had been no indications of usage picking up, with Fed data showing weekly outstanding balances of $US4 billion to $US5 billion since the start of the year.
Although the Federal Deposit Insurance Corporation (FDIC) protects deposits of up to $USUS250,000, there have been worries about SVB deposits above that level, one source said, adding that many smaller businesses were at risk of being unable to pay staff.
Reuters, Bloomberg
As @Dona Ferentes says it is speculation, but the article Dona posted sums it up well.Is the US kicking the can down the road again by bailing out failed banks, or is this different?
i am guessing it will be status quo ( bail-outs for the big cap. mates ) , but not betting all my bikkies that wayIs the US kicking the can down the road again by bailing out failed banks, or is this different?
Yep. Further reading here:As usual, need to go to foreign independent media to find why this happened. People should stop reading Newscorp.
Trump blamed over Silicon Valley Bank collapse for cutting down financial regulations
Fifty Republican and 17 Democratic senators voted to reduce regulations on the bankwww.google.com.au
Its containment. There needs to be trust in the system or people will bank run ducatis list of banks.Is the US kicking the can down the road again by bailing out failed banks, or is this different?
are Signature and SVB classed as 'colossal' banks neither are the largest US bank left to fail ( i believe Washington Mutual holds that trophy )Rather than speculation, it's worth a look at the actual bank, and a "colossal failure of bank regulation", by a state body.
good luck of that , some of those big banks have been fined multiple timesYep. Further reading here:
SVB Chief Pressed Lawmakers To Weaken Bank Risk Regs
Collapsed bank’s president told Congress “enhanced prudential standards” should be lifted “given the low risk profile of our activities.”www.levernews.com
Its containment. There needs to be trust in the system or people will bank run ducatis list of banks.
People are already pulling funds and swapping to the big banks.
I'm guessing you don't understand what a line of credit is.i notice reports on SVB deposits , but haven't seen ( so far ) about companies with ( undrawn ) lines of credit , that might have a ripple effect .
i do and i also understand many of the customers do not have the weight to keep them open in tense situations especially now the FDIC has formally taken control of SVBI'm guessing you don't understand what a line of credit is.
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