California bank regulators shutter the Silicon Valley Bank

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California banking regulators on Friday closed SVB Financial Group (SIVB.O), the largest bank failure since the financial crisis, moving quickly to protect depositors as a crisis at the startup-focused lender rippled through global markets and hit banking stocks. The regulator appointed the Federal Deposit Insurance Corporation (FDIC) as receiver, putting the tech-heavy lender into receivership and will dispose of its assets, according to a statement. Silicon Valley Bank is the first FDIC-insured institution to fail this year, the FDIC said. The last FDIC-insured institution to close was Almena State Bank, Almena, Kansas, on October 23, 2020. The main office and all branches of Silicon Valley Bank will reopen on March 13 and all insured depositors will have full access to their insured deposits no later than Monday morning, according to the FDIC statement.
reasury Secretary Janet Yellen told lawmakers on Capitol Hill Friday the department was aware of recent developments and was monitoring the situation, calling it "a matter of concern" when banks experience losses, according to CNBC. The FDIC said it would seek to sell SVB's assets and that future dividend payments may be made to uninsured depositors. The startup-focused lender scrambled this week to reassure its venture capital clients their money was safe after a capital raise led to its stock collapsing 60% and contributed to wiping out over $80 billion in value from bank shares. Shares of SVB were halted on Friday after tumbling as much as 66% in premarket trading. The rout in SVB's stock which began on Thursday spilled over into other U.S. and European banks, with the episode spreading concern about hidden risks in the sector and its vulnerability to the rising cost of money. But banking shares were well off their lows on Friday.
The problems at SVB underscore how a campaign by the U.S. Federal Reserve and other central banks to fight inflation by ending the era of cheap money is exposing vulnerabilities in the market. "Silicon Valley Bank is shedding light on vulnerabilities across the US banking sector, primarily in the bond holdings that many large institutions hold," said Karl Schamotta, Chief Market Strategist at Corpay. "Investors are fearing a repeat of 2008-style sort of dynamics, and this sell-off in the banking sector has raised fears of systemic risk." As higher interest rates caused the market for initial public offerings to shut down for many startups and made private fundraising more costly, some Silicon Valley Bank clients started pulling money out to meet their liquidity needs. This culminated in Silicon Valley Bank looking for ways this week to meet its customers' withdrawals. To fund the redemptions, SVB sold on Wednesday a $21 billion bond portfolio consisting mostly of U.S. Treasuries. SVB announced on Thursday it would sell $2.25 billion in common equity and preferred convertible stock to fill its funding hole.
Sources familiar with the situation said on Thursday that some startups had advised their founders to pull out their money from SVB as a precautionary measure. Short sellers in SVB have profited by $717 million since Wednesday's close, according to analytics firm Ortex. “This is the first run on the bank that was potentially caused by Twitter,” said Eric Crowley, partner at GP Bullhound.
https://www.reuters.com/business/financ ... 023-03-10/

From the CA regulator:
The California Department of Financial Protection and Innovation (DFPI) announced today that, pursuant to California Financial Code section 592, it has taken possession of Silicon Valley Bank, citing inadequate liquidity and insolvency. The DFPI appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of Silicon Valley Bank.

Silicon Valley Bank is a state-chartered commercial bank based in Santa Clara and is a member of the Federal Reserve System, with total assets of approximately $209 billion and total deposits of approximately $175.4 billion as of Dec. 31, 2022. Its deposits are federally insured by the FDIC subject to applicable limits.
https://dfpi.ca.gov/2023/03/10/californ ... lley-bank/
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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The wheels started to come off on Wednesday, when SVB announced it had sold a bunch of securities at a loss and that it would sell $2.25 billion in new shares to shore up its balance sheet. That triggered a panic among key venture capital firms, who reportedly advised companies to withdraw their money from the bank.

The company’s stock cratered on Thursday, dragging other banks down with it. By Friday morning, SVB’s shares were halted and it had abandoned efforts to quickly raise capital or find a buyer. Several other bank stocks were temporarily halted Friday, including First Republic, PacWest Bancorp, and Signature Bank.
https://www.cnn.com/2023/03/10/investin ... index.html

CA regulators stepped in because SVB was a state chartered bank, not federally chartered like B of A, Wells Fargo, Chase...
Silicon Valley Bank's 48-hour collapse led to the second-largest failure of a financial institution in US history. SVB was one of America's 20 largest commercial banks and is now under the control of the US Federal Deposit Insurance Corporation after it became unable to pay back customers who withdrew their deposits.
Founded in 1983, Silicon Valley Bank provided financing for almost half of US venture-backed technology and health care companies. They have been hurt by higher interest rates and dwindling venture capital.

While relatively unknown outside of Silicon Valley, SVB was among the top 20 American commercial banks, with $209 billion in total assets at the end of last year, according to the FDIC. Its stunning, and seemingly rapid, fall is the largest shutdown of a US bank since Washington Mutual in 2008.
https://www.cnn.com/2023/03/11/business ... 0deposits.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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TrueTexan wrote: Sat Mar 11, 2023 2:39 pm This is going to blow holes in the technology industry.
Yes, First Republic Bank on that list is also CA chartered, but it's seems a lot more stable than SVB.
The FTX cryptocurrency exchange scandal affected both Signature [Bank] and Silvergate [Bank], but Signature's overall exposure compared to its size wasn't nearly as high. Nevertheless, Signature stock has fallen roughly 70% from its highs in early 2022, giving back just about all of the gains from the big boom in digital assets in late 2020 and 2021.
https://www.fool.com/investing/2023/03/ ... ies-mount/

Silvergate Bank is voluntarily liquidating itself, it's also a CA chartered bank. IIRC Signature Bank is NY chartered. We'll see what happens Monday when the banks and stock markets open.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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From Wine Country To London, Bank's Failure Shakes Worldwide

NEW YORK (AP) — It was called Silicon Valley Bank, but its collapse is causing shockwaves around the world.

From winemakers in California to startups across the Atlantic Ocean, companies are scrambling to figure out how to manage their finances after their bank suddenly shut down Friday. The meltdown means distress not only for businesses but also for all their workers whose paychecks may get tied up in the chaos.

California Gov. Gavin Newsom said Saturday that he’s talking with the White House to help “stabilize the situation as quickly as possible, to protect jobs, people’s livelihoods, and the entire innovation ecosystem that has served as a tent pole for our economy.”

U.S. customers with less than $250,000 in the bank can count on insurance provided by the Federal Deposit Insurance Corp. Regulators are trying to find a buyer for the bank in hopes customers with more than that can be made whole.
Across the Atlantic, startup companies woke up Saturday to find SVB’s U.K. business will stop making payments or accepting deposits. The Bank of England said late Friday that it will put Silicon Valley Bank UK in its insolvency procedure, which will pay out eligible depositors up to 170,000 British pounds ($204,544) for joint accounts “as quickly as possible.”
Full story: https://www.huffpost.com/entry/silicon ... 5457b63f29

It is going to be very interesting when the financial markets open on Monday.
Facts do not cease to exist because they are ignored.-Huxley
"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." ~ Louis Brandeis,

Re: California bank regulators shutter the Silicon Valley Bank

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Trading in several bank stocks, including First Republic, Signature, Western Alliance Bancorp and PacWest Bancorp, was briefly halted Friday. Signature’s 23% loss on Friday was its worst day on record, and Signature and First Republic clocked their worst weeks on record, according to Dow Jones Market Data. Citizens Financial Group Inc., Comerica Inc., Fifth Third Bancorp, Zions Bancorp and Charles Schwab Corp. each shed more than 15% last week.

The Fed has been focused on controlling inflation, but the events of last week led officials to think about another of the central bank’s core mandates: financial stability. As of Thursday, weeks of hot economic data had suggested that the Fed might raise rates by 0.5 percentage point at its meeting later this month and continue to tighten policy until 2024. On Friday, traders revised wagers to bet on a lower peak for interest rates and a rate cut later this year. Some investors were surprised by how quickly SVB swung from seeking additional funding on Wednesday to out-and-out failure by Friday.

“This kind of shocked me,” said Buzzy Geduld, chief executive of the hedge fund Cougar Capital. “I would have guessed they would have been able to raise the money that they apparently needed, but obviously, when they looked under the hood, it was a lot worse than anyone anticipated.” Still, Mr. Geduld said the SVB fallout hasn’t considerably altered his view of the banking sector, because SVB’s difficulties sprang from its specific exposure to startups and venture capital. “We still like the regional banks,” he said.

One rattling aspect of SVB’s collapse was that many analysts didn’t see it coming. Of 22 analysts covering the company, the average price target was around $262 a share, according to FactSet. The stock closed Thursday at $106.04 before regulators took the reins Friday morning.
https://www.wsj.com/articles/wall-stree ... k-956b8f03
https://archive.fo/9x3h4

Western Alliance Bancorp is the holding company for Alliance Bank in AZ, Bank of Nevada in NV and Bridge Bank and Torrey Pines Bank in CA and AmeriHome mortgage company. PacWest Bancorp is the holding company for Pacific Western Bank. The other banks mentioned are in the Northeast, Midwest and South so it's not just Western banks.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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Trump-Era Deregulation Deemed a Key Culprit in the Failure of Silicon Valley Bank

In 2018, ignoring the vocal warnings of experts and advocacy groups, the then-Republican-controlled Congress passed legislation that weakened post-financial crisis regulations for banks with between $50 billion and $250 billion in assets, sparking fears of systemically risky failures and more taxpayer bailouts.

Silicon Valley Bank (SVB), the California-based firm that collapsed on Friday, controlled an estimated $212 billion, leading analysts and lawmakers to argue that the 2018 law made the institution's market-rattling failure and resulting federal takeover more likely
Prior to the enactment of the Crapo bill, which then-President Donald Trump signed into law on May 24, 2018, banks with more than $50 billion in assets were subject to enhanced liquidity mandates and more frequent stress tests aimed at ensuring they could weather economic turmoil.

The 2018 law raised the threshold for the more stringent regulations to $250 billion or higher, a gift to banks like SVB that had been working for years to gut post-crisis regulations implemented under the Dodd-Frank Act of 2010. The diminished oversight, some argued, is at least partly to blame for SVB's crisis.

"The collapse of Silicon Valley Bank was totally avoidable," Rep. Katie Porter (D-Calif.) wrote on Twitter. "In 2018, Wall Street pushed a deregulation bill that allowed banks like SVB to take reckless risks. It passed, even as I and many others warned of the risks. I am writing legislation to reverse that law."
Full article: https://www.commondreams.org/news/trump ... alley-bank

As usual we shut the barn door after the horses are loose.
Facts do not cease to exist because they are ignored.-Huxley
"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." ~ Louis Brandeis,

Re: California bank regulators shutter the Silicon Valley Bank

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featureless wrote: Sun Mar 12, 2023 11:59 am This may be very bad.
Yes, hopefully it doesn't cause a run on other banks starting tomorrow. FDIC insures deposits up to $250,000 and regulators are hoping that a buyer can be found for SVB and that the buyer will make depositors over that amount whole. I'm sure that the US House and Senate banking committees will schedule hearings and everything will be politicized, each party will blame the other one.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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Mason wrote: Sun Mar 12, 2023 12:17 pm My 401k was gradually crawling it’s way back toward what it was a year or so ago. No beans. I hate that my retirement savings is a gambling account but if I don’t play I leave money on the table in the form of my employer match. I predict this will tank it further….

Thanks Capitalism!
Yup. It's either play the game or absolutely never retire.

Re: California bank regulators shutter the Silicon Valley Bank

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Depositors up to $250K yes, directors, no.
WILMINGTON, Del. (AP) — Treasury Secretary Janet Yellen said Sunday that the federal government would not bail out Silicon Valley Bank, but is working to help depositors who are concerned about their money.

The Federal Deposit Insurance Corporation insures deposits up to $250,000, but many of the companies and wealthy people who used the bank — known for its relationships with technology startups and venture capital — had more than that amount in their account. There are fears that some workers across the country won’t receive their paychecks.

Yellen, in an interview with CBS’ “Face the Nation,” provided few details on the government’s next steps. But she emphasized that the situation was much different from the financial crisis almost 15 years ago, which led to bank bailouts to protect the industry.

“We’re not going to do that again,” she said. “But we are concerned about depositors, and we’re focused on trying to meet their needs.”
https://apnews.com/article/silicon-vall ... 91bbb9ec1e

Says no cascade of failures. No word on whether she also referred to the Republican party, the party of bank de reg and rail de reg and tax cuts for the rich and failed COVID policies.

CDFingers
Crazy cat peekin' through a lace bandana
like a one-eyed Cheshire, like a diamond-eyed Jack

Re: California bank regulators shutter the Silicon Valley Bank

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Silicon Valley Bank on Friday paid out annual bonuses to eligible U.S. employees, just hours before the bank was seized by the U.S. government, Axios has learned from multiple sources. The bonuses were for work done during 2022, and were previously scheduled to be disbursed on March 10. That date ultimately coincided with the bank's takeover by the Federal Deposit Insurance Corporation. Bonuses for employees in some other countries were scheduled for later in the month, so those haven't yet been paid.

An unknown number of SVB employees were emailed by the FDIC on Friday evening, offering them employment with the remnant organization for the next 45 days. The employees would be compensated 1.5x times their normal salaries, while hourly workers would receive 2x their normal wages for overtime. An FDIC spokesperson tells Axios: "Without commenting on salaries, it’s our standard practice to ask retain [sic] bank employees to assist with an orderly transition as part of our resolution process." The U.S. government on Friday assumed control of Silicon Valley Bank and its billions of dollars in customer deposits, temporarily shutting all branches and freezing withdrawals. This weekend is key to determining if the situation escalates from an inconvenience to a crisis for SVB clients, most of which are businesses that need to meet payroll.

FDIC insurance covers up to $250,000 of deposits, all of which will be made available by Monday morning. But most of SVB's customers are companies with much higher balances, and it's not yet clear how much money they'll be able to draw and when. In its statement, the FDIC said only that those in excess of $250,000 will receive "an advance dividend within the next week." One big reason this weekend matters so much is that the next pay period for many companies is next Wednesday, March 15. The best-case scenario is that another financial institution steps up and agrees to buy SVB, thus automatically strengthening its balance sheet. Such a purchase presumably would facilitate the reopening of client accounts, and also calm nervous investors who've been dumping shares of SVB rivals like First Republic and PacWest. It also could reopen venture lending, which is a key financing tool to many startups. The worst-case scenario is that the market opens Monday and SVB remains a ward of the state, with no white knight on the horizon.

All eyes then would turn to the FDIC, to see exactly what those "advance dividends" look like, and if they'll be sufficient to cover expenses. If payrolls are missed, the pain could spread from boardrooms to kitchen tables. Some companies may begin to seek out alternate financing, such as loans from other banks, to tide them over. No one currently knows if companies ultimately would be able to access all of their money. That includes the FDIC, which had not compiled that information at the time of its takeover. SVB has melted down. The question now is if the fallout will be contained.
https://www.axios.com/2023/03/10/silico ... omer-money

I expect state and federal banking officials have been working this weekend to try to arrange a sale. Newsom has been talking with the White House, it's more than financial it's also political.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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You can bet on Monday if the Markets drop even a nickel the Rightwing Faux News, along with the other right wing press, and the Idiot Right wing Congress Critters will be out in force blaming Biden for the bank failure and the downturn in the market. Even though under Trump the regulations were relaxed that allowed this bank failure to happen.
Facts do not cease to exist because they are ignored.-Huxley
"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." ~ Louis Brandeis,

Re: California bank regulators shutter the Silicon Valley Bank

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As featureless mentioned.
Signature Bank was closed by regulators on Sunday, the second massive bank failure in three days. The New York-based bank faced a crisis of confidence after midsize lender SVB Financial Corp. was seized by regulators on Friday. Signature was also reeling from a bet on crypto banking that foundered after the sector imploded and banking regulators cracked down on lenders’ exposure to digital assets. The failure is the third-largest in history. The bank raced to find a buyer or another solution to shore up its finances before Monday morning, but failed to get a sale done in time, according to people familiar with the matter.

On Sunday, the New York Department of Financial Services stepped in and placed the bank into receivership with the Federal Deposit Insurance Corp.
https://archive.fo/jA8ak#selection-281.0-299.184

Wonder if the SEC will intervene and stop trading tomorrow of vulnerable bank stocks. Even though Yellen said there wouldn't be a bail out, the feds might have to sweeten the pot to get existing institutions to buy Silicon Valley and Signature banks.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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highdesert wrote: Sun Mar 12, 2023 8:54 pm As featureless mentioned.
Signature Bank was closed by regulators on Sunday, the second massive bank failure in three days. The New York-based bank faced a crisis of confidence after midsize lender SVB Financial Corp. was seized by regulators on Friday. Signature was also reeling from a bet on crypto banking that foundered after the sector imploded and banking regulators cracked down on lenders’ exposure to digital assets. The failure is the third-largest in history. The bank raced to find a buyer or another solution to shore up its finances before Monday morning, but failed to get a sale done in time, according to people familiar with the matter.

On Sunday, the New York Department of Financial Services stepped in and placed the bank into receivership with the Federal Deposit Insurance Corp.
https://archive.fo/jA8ak#selection-281.0-299.184

Wonder if the SEC will intervene and stop trading tomorrow of vulnerable bank stocks. Even though Yellen said there wouldn't be a bail out, the feds might have to sweeten the pot to get existing institutions to buy Silicon Valley and Signature banks.
Yes: Signature is a big crypto bank.

https://www.cnbc.com/2023/03/12/regulat ... -risk.html

Statement on this issue from the US Treasury:

https://home.treasury.gov/news/press-releases/jy1337

CDFingers
Crazy cat peekin' through a lace bandana
like a one-eyed Cheshire, like a diamond-eyed Jack

Re: California bank regulators shutter the Silicon Valley Bank

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Press Release today from the FDIC.
The Federal Deposit Insurance Corporation (FDIC) today transferred all deposits—both insured and uninsured—and substantially all assets of the former Silicon Valley Bank of Santa Clara, California, to a newly created, full-service FDIC-operated ‘bridge bank’ in an action designed to protect all depositors of Silicon Valley Bank.

Depositors will have full access to their money beginning this morning, when Silicon Valley Bank, N.A., the bridge bank, opens and resumes normal banking hours and activities, including online banking. Depositors and borrowers will automatically become customers of Silicon Valley Bank, N.A. and will have customer service and access to their funds by ATM, debit cards, and writing checks in the same manner as before. Silicon Valley Bank’s official checks will continue to clear. Loan customers should continue making loan payments as usual.
A bridge bank is a chartered national bank that operates under a board appointed by the FDIC. It assumes the deposits and certain other liabilities and purchases certain assets of a failed bank. The bridge bank structure is designed to “bridge” the gap between the failure of a bank and the time when the FDIC can stabilize the institution and implement an orderly resolution.

The FDIC named Tim Mayopoulos as CEO of Silicon Valley Bank, N.A. Mr. Mayopoulos is former president and CEO of the Federal National Mortgage Association and most recently served as president of Blend Labs, Inc.
https://www.fdic.gov/news/press-release ... 23019.html

Interest from two early suitors for Silicon Valley Bank (SIVB.O) - PNC Financial Group Inc (PNC.N) and Royal Bank of Canada (RY.TO) - had cooled on Sunday, as U.S. regulators invited bids for the failed lender, according to sources familiar with the matter. The Federal Deposit Insurance Corporation (FDIC) had given a Sunday afternoon deadline for bids for the failed bank, one of the sources said. Reuters could not determine which banks had bid.

The FDIC has been trying to find a buyer for Silicon Valley Bank this weekend after taking control of it on Friday so that the bank's corporate clients that had their money frozen can meet their payroll obligations. But a deal on a tight timeline has proven to be hard. Bids were due for SVB at 2:00 pm ET (1800 GMT), two of the sources said. PNC, one of the 10 largest U.S. banks by assets, wanted to pursue a bid for the entirety of Silicon Valley Bank, one of the sources added, but then studied a bid for parts of Silicon Valley Bank. A separate source familiar with the matter said PNC had decided to withdraw from any further talks.

RBC also explored a takeover of Silicon Valley Bank but it was unlikely to pursue it, three sources said. One of the sources added that RBC has struggled to get comfortable with the risks involved and the complexities of justifying the deal to regulators in its home country of Canada. RBC bought City National Bank in 2015. It is the eighth largest bank by deposits in California, according to FDIC data.
https://www.reuters.com/business/financ ... 023-03-12/

First Republic Bank said it has shored up its finances with additional funding from the Federal Reserve and JPMorgan Chase & Co. The fresh funding gives the bank, which was under pressure following the collapse of SVB Financial Corp. last week, $70 billion in unused liquidity. That doesn’t include money First Republic is eligible to borrow through a new Fed lending facility designed to help banks meet withdrawals.

“First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks,” the bank’s executive chairman and its chief executive said in a joint statement. Investors grew concerned last week that First Republic had a similar profile to SVB, which was seized by the government after a bank run. Shares of First Republic had fallen about 30% since Wednesday, and some customers grew skittish about leaving their deposits at the bank. On Sunday, bank executives emailed customers to reassure them about its finances.
https://archive.fo/2rWVP#selection-271.0-331.221

UK tech firms are anxiously waiting to find out what government support they will get after the collapse of Silicon Valley Bank (SVB) in the US. Some have told the BBC they could go bust if help does not come soon enough. The Treasury says it is working to find a solution. An investment group has also offered to buy the bank's UK arm. It comes as US customers have already been told their deposits will be fully protected by the US government, putting pressure on the UK government to act. Speaking to reporters in San Diego on Sunday evening, Prime Minister Rishi Sunak said: "We will have something to say very shortly. "But we will continue to support our world-beating technology sector and all the high-skilled jobs that it supports and also you should be reassured that our overall financial system is sound and there's nothing to worry about there."

Earlier, Chancellor [chancellor of the exchequer=treasury secretary] Jeremy Hunt told the BBC there was no risk to the UK's financial system from the collapse of SVB, but "there is a serious risk to some of our most promising companies in technology and life sciences". He said he had been working with the prime minister and Bank of England governor "through the weekend to come up with a solution", and the government would bring forward a plan in the "next few days".
More than 200 bosses of UK tech companies signed a letter addressed to Mr Hunt on Saturday calling for the government to step in. The letter, from Fintech Founders, said many financial technology firms did all of their banking with SVB "and will therefore go into receivership imminently unless preventative action is taken".

One source in a tech firm told the BBC between 30% and 40% of UK start-ups employing up to 50,000 people could be affected by the collapse. On Sunday, a consortium of investors led by The Bank of London, a clearing bank, submitted a formal bid to buy SVB UK. Others including a Middle Eastern investment fund and the banks Barclays and Oaknorth are also said to be mulling offers.
https://www.bbc.com/news/business-64934351


Looks like FDIC failed to find a buyer for SVB, so a bridge bank was created with the Federal Reserve. This bolsters depositors and commercial customers until SVB can be sold. SVB was California charter, the bridge bank is federally chartered. Yellen and Powell had to issue a statement to calm the financial community and stock markets.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

Re: California bank regulators shutter the Silicon Valley Bank

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Maybe the Federal Reserve and the FDIC need to have regulation the limit banks from dabbling in the Crypto Currency with any money that might be insured by the FDIC or regulated by the Federal Reserve.

I follow the advice of Warren Buffett on the crypto currency when he was asked if he would invest in it. he said no because there is nothing of value or governments backing it.

To me it seem almost like a Ponzi Scheme mixed with a MLM Scheme.
Facts do not cease to exist because they are ignored.-Huxley
"We can have democracy in this country, or we can have great wealth concentrated in the hands of a few, but we can't have both." ~ Louis Brandeis,

Re: California bank regulators shutter the Silicon Valley Bank

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President Joe Biden said Sunday that at his direction US Treasury Secretary Janet Yellen and his top economic adviser Lael Brainard worked with financial regulators to ensure households and businesses affected by the Silicon Valley Bank and Signature Bank failures could access their deposits, and he promised to hold those responsible accountable. “I am pleased that they reached a prompt solution that protects American workers and small businesses, and keeps our financial system safe. The solution also ensures that taxpayer dollars are not put at risk,” Biden said in the statement.
Treasury officials briefed a bipartisan group of lawmakers from both chambers of Congress Sunday evening, and Biden plans to make remarks Monday on maintaining a “resilient banking system.” The administration decided to move forward with dramatic emergency actions Sunday to extend a federal backstop to all of Silicon Valley Bank’s deposits in order to ensure access to all of those funds on Monday, according to a senior Treasury official. The emergency action was paired with the announcement of a new Federal Reserve lending facility and put together over a weekend of furious behind-the-scenes efforts inside the US government to address the acute concern over the fate of the small businesses and individuals at risk of being unable to access their funds.
https://www.cnn.com/2023/03/12/politics ... index.html

First Republic Bank led a decline in bank shares Monday that came even after regulators’ extraordinary actions Sunday evening to backstop all depositors in failed Silicon Valley Bank and Signature Bank and offer additional funding to other troubled institutions.

San Francisco’s First Republic shares lost 75% on Monday after declining 33% last week. PacWest Bancorp dropped 42%, and Western Alliance Bancorp lost more than 70% as regional bank stocks fell sharply. Zions Bancorporation shed 24%, while KeyCorp fell 27%. Other financial firms were also under pressure, as Bank of America slipped 3%, while Charles Schwab
tumbled 14%.
First Republic said Sunday it had received additional liquidity from the Federal Reserve and JPMorgan Chase . The bank said the move raises its unused liquidity to $70 billion, before any funding it could get from the new Fed facility.
https://www.cnbc.com/2023/03/13/first-r ... cline.html

Biden had to face the cameras this morning and reassure Americans that US banks are stable. NYSE trading on First Republic Bank was halted.

I'm not a fan of crypto either TT.
"Everyone is entitled to their own opinion, but not their own facts." - Daniel Patrick Moynihan

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