The failure of Silicon Valley Bank (SVB) was driven by a “textbook case of mismanagement,” Federal Reserve vice chair of supervision Michael Barr told a Senate hearing. Appearing before the Senate Banking, Housing, and Urban Affairs on Tuesday, Barr diagnosed the driving force behind the financial institution’s collapse. “SVB’s failure is a textbook case of […]
Crypto platform Binance is being sued by U.S. regulators. They accuse the company of secretly coaching Americans how to get around U.S. rules. Bank stocks recover some ground after the failed Silicon Valley Bank got itself a buyer. But are we out of the woods yet? We ask an economist. Parts of Twitter’s source code […]
A subsidiary of New York Community Bank will purchase a significant portion of failed Signature Bank under a $2.7 billion deal with U.S. regulators, the Federal Deposit Insurance Corporation (FDIC) announced on March 19. The FDIC, an independent agency created by Congress to maintain a stable financial system, said that Sunday’s deal will see the 40 former branches of New […]
Nearly 200 more banks could be vulnerable to the same type of risk collapsed Silicon Valley Bank earlier this month, according to a recently published study. Researchers with the Social Science Research Network found there are 186 banks across the United States that could collapse if half their respective uninsured depositors withdraw their funds. The Federal […]
The parent company of the collapsed Silicon Valley Bank (SVB) has filed for bankruptcy. SVB Financial Group, which is no longer affiliated with SVB after the failed bank was taken over by the Federal Deposit Insurance Corporation (FDIC), said in a press release Friday that it has filed a petition for a court-supervised reorganization under Chapter 11. […]
As part of the U.S. government’s extraordinary measures to shield insured and uninsured depositors at Silicon Valley Bank from losses, foreign clients will also be protected, confirmed Treasury Secretary Janet Yellen. The rescue package will be partly funded through special assessments levied on U.S. banks to recoup these losses and make customers whole. Since the […]
First Republic Bank will receive $30 billion from some of the top U.S. banks in a bid to stabilize the troubled firm. It’s the third bank to be rescued in less than a week. First Republic, like Silicon Valley Bank and Signature Bank, reportedly had a large number of uninsured deposits, triggering fears that customers […]
In the fallout of Silicon Valley Bank’s collapse, debate surrounds whether the government is bailing out the bank. Lance Roberts, chief investment strategist at RIA advisors, argues that ultimately, all the money used to support or to guarantee depositors or to support banks will come from taxpayers. He also says that we should let the […]
For the first time since the financial crisis of 2008–09, confidence in the U.S. banking system has eroded as three major banks shuttered in one week: Silvergate, Silicon Valley Bank (SVB), and Signature Bank. As experts brace for the next domino to fall in the unfolding turmoil, the federal government and the Federal Reserve are […]
In the wake of the rapid collapse of Silicon Valley Bank, many questions remain unanswered, who else is responsible, and what it will mean for the future of interest rate. Matthew Faulkner, professor of accounting and finance at San Jose State University, gives his analysis.
