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☆ Tech pressure, Yellen everywhere: How Washington scrambled as SVB collapsed
▼ + stars: | 2023-03-15 | by ( Andrea Shalal | ) www.reuters.com time to read: +7 min

Yellen heads to the White House, Brainard meets with her staff and holds Zoom calls in her wood-paneled office in the West Wing. Treasury staff hustle to get Yellen on CBS News' "Face the Nation" program on Sunday, in an attempt to reassure markets. White House officials draft news releases with various scenarios, uncertain until shortly before 6 p.m. if an acquisition can still happen. As he leaves Delaware to return to the White House, Biden tells reporters he will make a statement on Monday. Treasury and White House officials reach out to members of Congress and their staffs throughout the evening to explain the plan, with discussions continuing into Monday.

Worries about potential contagion had also slammed bank shares in Asia and Europe as investors re-examined their risks, despite assurances from U.S. President Joe Biden and other global policymakers that the financial system is safe. In Europe, where some see lenders as less vulnerable, the banking index (.SX7P) first fell then recovered to rise 2.7%. Asian banking stocks had extended their declines overnight, with Japanese banks hard-hit despite reassurances from the Bank of Japan said about their capital buffers. Regulator FDIC had moved swiftly to close New York's Signature Bank SBNY.O as well as taking control of SVB. Citing people familiar with the matter, the WSJ said the investigators are also examining stock sales that SVB Financial Group's executives made days before SVB failed, adding that the Justice Department's probe involves the department's fraud prosecutors in Washington and San Francisco.

Banking giants Citi (C.N), Wells Fargo (WFC.N) and JP Morgan (JPM.N) were also 1%-3% higher in the pre-market. Japanese financial institutions have sufficient capital buffers to absorb losses caused by external factors, including risks caused by SVB's collapse, the Bank of Japan said. Traders currently see a 50% chance of no rate hike at that meeting, with rate cuts priced in for the second half of the year. The prospect of higher rates had been "the reason investors have been really excited about Japan bank stocks", Ikeda added. We just ask for a little bit of time because of the volume," FDIC employee Luis Mayorga told waiting customers.

[1/2] Customers wait in line outside a branch of the Silicon Valley Bank in Wellesley, Massachusetts, U.S., March 13, 2023. REUTERS/Brian SnyderMarch 14 (Reuters) - Silicon Valley Bank's collapse continued to pound global bank stocks on Tuesday as investors fretted over the financial health of some lenders, despite assurances from U.S. President Joe Biden and other policymakers. The European banks index (.SX7P) fell 0.6% after posting its biggest percentage loss in more than a year on Monday. "Bank runs have started (and) interbank markets have become stressed," said Damien Boey, chief equity strategist at Sydney-based investment bank Barrenjoey. The prospect of higher interest rates had been "the reason investors have been really excited about Japan bank stocks", Ikeda added.

"Bank runs have started (and) interbank markets have become stressed," said Damien Boey, chief equity strategist at Sydney-based investment bank Barrenjoey. A furious race to reprice interest rate expectations also buffeted markets as investors bet the Federal Reserve will be reluctant to hike next week. Traders currently see a 50% chance of no rate hike at that meeting, with rate cuts priced in for the second half of the year. The prospect of higher interest rates had been "the reason investors have been really excited about Japan bank stocks." After marathon weekend talks, HSBC HSBA.L said it was buying the British arm of SVB for one pound ($1.21).

Traders currently see a 50% chance of no rate hike at that meeting, with rate cuts priced in for the second half of the year. Shares of First Republic Bank (FRC.N) tumbled more than 60% as news of fresh financing failed to reassure investors, and so did Western Alliance Bancorp (WAL.N) and PacWest Bancorp (PACW.O). U.S. bank regulators sought to reassure nervous customers on Monday who lined up outside SVB's Santa Clara, California, headquarters, offering coffee and donuts. Regulators also moved swiftly to close New York's Signature Bank SBNY.O, which had come under pressure in recent days. In China, where SVB was the main go-to foreign bank for the majority of start-ups, entrepreneurs and venture funds were also scrambling for alternative funding.

WASHINGTON, March 14 (Reuters) - President Joe Biden was briefed on Tuesday about an incident over the Black Sea in which a Russian Su-27 fighter jet struck the propeller of a U.S. military "Reaper" surveillance drone, White House spokesman John Kirby said. While there have been other such intercepts, Kirby said, this one was noteworthy because it was "unsafe and unprofessional" and caused the downing of a U.S. aircraft. "So it's unique in that regard," Kirby said. "The State Department will be speaking directly with their Russian counterparts, and expressing our concerns over this unsafe and unprofessional intercept," he said. Reporting by Trevor Hunnicutt and Doina Chiacu; Editing by Franklin Paul; Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

SVB's meltdown sparked a partisan battle in Washington on Monday, with Democrats arguing that a Trump-era change to bank oversight rules undermined the stability of regional banks. In the money markets, indicators of credit risk in the U.S. and euro zone banking systems edged up. [1/3] U.S. President Joe Biden delivers remarks on the banking crisis after the collapse of Silicon Valley Bank (SVB) and Signature Bank, in the Roosevelt Room at the White House in Washington, D.C., U.S. March 13, 2023. On Monday morning, U.S. bank regulators sought to reassure nervous customers who lined up outside SVB's Santa Clara, California, headquarters, offering coffee and donuts. A furious race to reprice interest rate expectations also sent waves through markets as investors bet the Fed will be reluctant to hike next week.

Silicon Valley Bank had $209 billion in assets at the end of last year, while Signature Bank had some $110 billion. The failure of Silicon Valley Bank is a direct result of an absurd 2018 bank deregulation bill signed by (Republican former President) Donald Trump that I strongly opposed," Senator Bernie Sanders said in a statement. he added, saying awareness of the bank's recent growth and business model should have led Fed officials to anticipate trouble. In an op-ed for the New York Times, Democratic Senator Elizabeth Warren placed some of the blame at the feet of bank regulators, whom she accused of "letting financial institutions load up on risk." "There won't be legislation getting through Congress, and so regulators will be making the big decisions," he said.

Biden said his administration's actions over the weekend meant "Americans can have confidence that the banking system is safe", while also promising stiffer regulation after the biggest U.S. bank failure since the 2008 financial crisis. Shares in U.S. banking giants JP Morgan Chase (JPM.N), Morgan Stanley (MS.N) and Bank of America (BAC.N) nevertheless weakened. But your second thought is, how big was that crisis, how big were the risks that this step had to be taken?" U.S. regulators stepped in on Sunday after the collapse of SVB, which had seen a run after a big bond portfolio hit. [1/3] U.S. President Joe Biden delivers remarks on the banking crisis after the collapse of Silicon Valley Bank (SVB) and Signature Bank, in the Roosevelt Room at the White House in Washington, D.C., U.S. March 13, 2023.

Germany's Commerzbank (CBKG.DE) fell as much as 12.7%, while Credit Suisse (CSGN.S) hit a new record low after falling 15%. Biden said his administration's rapid actions at the weekend should reassure Americans that the U.S. banking system is safe, and promised stiffer bank regulation after the country's biggest bank failure since the 2008 financial crisis. "Americans can have confidence that the banking system is safe. But big U.S. banks including JP Morgan Chase (JPM.N), Morgan Stanley (MS.N) and Bank of America (BAC.N) also weakened. In the money markets, a closely watched indicator of credit risk in the U.S. banking system edged up, as did other indicators of credit risk in the euro zone.

☆ Biden vows new bank rules after SVB collapse, cites Trump rollback
▼ + stars: | 2023-03-13 | by ( Trevor Hunnicutt | ) www.reuters.com time to read: +4 min

"Americans can have confidence that the banking system is safe. The managers of the banks will be fired, Biden noted, and investors will lose money. Biden also promised new regulation after the biggest U.S. bank failure since the 2008 financial crisis. The U.S. Federal Deposit Insurance Corporation on Monday said it had transferred all Silicon Valley Bank (SIVB.O) deposits to a newly created bridge bank and that all depositors would have access to their money beginning Monday morning. Silicon Valley bank had $209 billion in assets at the end of last year.

[1/3] U.S. President Joe Biden delivers remarks on the banking crisis after the collapse of Silicon Valley Bank (SVB) and Signature Bank, in the Roosevelt Room at the White House in Washington, D.C., U.S. March 13, 2023. Germany's Commerzbank (CBKG.DE) fell as much as 12.7%, while Credit Suisse (CSGN.S) hit a new record low after falling more than 15%. Dowding said he did not think that a lot of the issues affecting U.S. banks would be present in European lenders. It said Silicon Valley Bank UK had loans of around 5.5 billion pounds and deposits of around 6.7 billion pounds as of March 10. U.S. banks lost more than $100 billion in stock market value late last week following SVB's failure, while European banks have now lost a similar amount, a Reuters calculation showed.

☆ Biden says will address banking crisis on Monday morning
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: 1 min

NEW CASTLE, Delaware, March 12 (Reuters) - U.S. President Joe Biden said on Sunday he would address the banking crisis Monday morning, as the federal government announced actions to shore up deposits and stem any broader financial fallout from the sudden collapse of Silicon Valley Bank (SIVB.O). Asked by reporters when he would address the banking crisis, Biden said "tomorrow morning." Reporting by Moira Warburton and Trevor Hunnicutt; Writing by Daphne Psaledakis; Editing by Kim CoghillOur Standards: The Thomson Reuters Trust Principles.

WASHINGTON, March 11 (Reuters) - Former U.S. Vice President Mike Pence offered his most forceful rebuke to date of his one-time boss Donald Trump on Saturday, saying that history will hold him accountable for his role in the Jan. 6, 2021, attack on the U.S. Capitol. As the vice president has the constitutional role of Senate president, Pence was presiding over what had always been the ceremonial task of approving the votes of the Electoral College to select the president and vice president. Throughout the siege, Trump sent several tweets, one calling on Republicans to "fight" and others making false claims of voter fraud. He also criticized Pence for certifying the results. "President Trump was wrong," Pence told assembled journalists and their guests at the Gridiron dinner, an annual white-tie event in Washington, D.C."I had no right to overturn the election, and his reckless words endangered my family and everyone at the Capitol that day, and I know that history will hold Donald Trump accountable."

REUTERS/Leah Millis/File PhotoWASHINGTON, March 11 (Reuters) - Former U.S. Vice President Mike Pence offered his most forceful rebuke to date of his one-time boss Donald Trump on Saturday, saying that history will hold him accountable for his role in the Jan. 6, 2021, attack on the U.S. Capitol. Pence was in the Capitol when thousands of Trump supporters breached the building in an attempt to stop Congress from certifying the results of the 2020 presidential election, which Trump lost to Joe Biden. As the vice president has the constitutional role of Senate president, Pence was presiding over what had always been the ceremonial task of approving the votes of the Electoral College to select the president and vice president. Pence, who is considering a run for the Republican nomination for the 2024 presidential election, was whisked to safety by law enforcement during the attack. For as long as I live, I will never, ever diminish the injuries sustained, the lives lost, or the heroism of law enforcement on that tragic day."

Overall, the budget would increase federal spending in the twelve months starting in October to $6.8 trillion from the $6.2 trillion expected to be spent in the current fiscal year. Biden's budget proposal faces stiff opposition from Republican lawmakers emboldened by winning control of the House of Representatives in November's midterm elections. Biden, asked for areas of possible compromise with Republicans, told reporters at the White House: "We'll see what their budget is." Maya MacGuineas, president of the Committee for a Responsible Federal Budget advocacy group, said the budget did not go nearly far enough to rein in dangerous debt levels. The Committee for a Responsible Federal Budget, a non-partisan Washington think tank, said Biden deserved credit for for putting forward $3 trillion in deficit reduction.

☆ Biden challenges Republicans with budget that raises taxes, sets up 2024 run
▼ + stars: | 2023-03-09 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

Biden's proposal, which resurrects many items stripped from last year's budget plan, faces even stiffer opposition in Congress this year, after Republicans won control of the House of Representatives in November's midterm elections. A White House official, who was not authorized to speak publicly, contrasted Biden's vision with that of Republicans, saying the budget would reduce the U.S. deficit while lowering costs for families. It also proposes raising taxes on the wealthy and large corporations, the official said, and "tackles wasteful special interest giveaways." Biden's budget plan proposes funding higher outlays and closing the deficit by imposing a 25% minimum tax on billionaires and doubling the capital gains tax from 20%, the White House official said. Biden has also said the budget will propose quadrupling a 1% stock buyback tax, while going after corporations and rich individuals who skip paying taxes.

☆ Reaction to Biden's 2024 budget proposal
▼ + stars: | 2023-03-09 | by ( Katharine Jackson | ) www.reuters.com time to read: +3 min

REUTERS/Leah MillisWASHINGTON, March 9 (Reuters) - U.S. President Joe Biden on Thursday delivered a budget proposal that includes a robust spending agenda, higher taxes on the wealthy and plans to reduce the deficit, a document that forms the blueprint for his expected 2024 re-election bid. Here is reaction to Biden's budget proposal to Congress for the 2024 fiscal year:HOUSE BUDGET COMMITTEE CHAIR JODEY ARRINGTON, A REPUBLICAN FROM TEXAS:"His policies have led to 40-year record inflation, soaring interest rates, and the prospect of a sustained economic recession. Unfortunately, Biden’s latest budget is more of the same bloated bureaucracy at the expense of working families, while sticking our grandchildren with the bill." HOUSE DEMOCRATIC LEADER HAKEEM JEFFRIES, ON TWITTER:"The Biden budget plan protects Social Security, strengthens Medicare and invests in our children. SENATOR CHUCK GRASSLEY:"Even with near-record revenues, President Biden wants to raise taxes on every segment of America.

☆ Factbox: What's in Biden's budget: taxes on buybacks, rail safety, childcare
▼ + stars: | 2023-03-08 | by ( ) www.reuters.com time to read: +2 min

Buybacks Biden plans to propose quadrupling the 1% tax on stock buybacks that took effect in January, to encourage companies to invest in their growth instead of boosting shareholders. The White House has said taxing buybacks levels a distortion in the tax system. Rail safetyThe budget is expected to include millions in new funding for railroad safety measures after a series of high-profile accidents and derailments. Billionaire minimum income taxBiden is expected to reiterate his call for a 20% minimum tax on households worth more than $100 million. The White House refers to it as the "billionaire minimum income tax."

☆ Biden budget would cut deficit by nearly $3 trillion, White House says
▼ + stars: | 2023-03-08 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, March 8 (Reuters) - President Joe Biden's budget proposal will aim to cut U.S. budget deficits by nearly $3 trillion over 10 years, the White House said on Wednesday, far more than the $2 trillion Biden had said he would aim for earlier. "That’s nearly a $6 trillion difference between the president’s budget and Congressional Republicans' agenda,” White House Press Secretary Karine Jean-Pierre said, saying the opposition’s plans would add $3 trillion to the debt. Biden, who intends to unveil his budget plan on Thursday, had floated the $2 trillion deficit reduction figure during his State of the Union address in February. "We see this as a value statement" about the future of the country, Karine Jean-Pierre said. Ultimately, it will be up to Congress, where Republicans control the House of Representatives, to write related budget legislation.

WASHINGTON, March 8 (Reuters) - The White House said on Wednesday that Fox News anchor Tucker Carlson "is not credible," after the right-wing commentator showed footage from the Jan. 6, 2021, attacks on the U.S. Capitol that portrayed rioters as peaceful. "We also agree with what Fox News's own attorneys and executives have now repeatedly stressed in multiple courts of law: that Tucker Carlson is not credible," Bates added. The Biden White House has tread carefully in its criticism of Fox's coverage of the 2020 election and its aftermath in the past, sometimes citing the Hatch Act that prevents administration officials from speaking about campaign-related matters. Carlson has defended his decision to run the footage, saying it was needed for transparency. Supporters of former President Donald Trump stormed the Capitol on Jan. 6, 2021, as Congress was certifying the outcome of the 2020 elections.

☆ Analysis: Biden's focus on deficit in budget is targeted at Republicans
▼ + stars: | 2023-03-08 | by ( Trevor Hunnicutt | ) www.reuters.com time to read: +5 min

Biden's increasing emphasis on the deficit now doesn't mean the White House sees an imminent crisis looming from the nation's $32 trillion debt. Instead, the White House hopes to draw a sharp contrast with Republican threats to refuse to raise the debt limit without sharp spending cuts. Including this fiscal plan in Biden's agenda can help shore up his economic credibility before his expected 2024 re-election campaign, the White House believes. That doesn't mean that what the White House is proposing is going to happen, of course. Reuters GraphicsNearly six in ten people told Pew Research Center in January that reducing the deficit should be a top Biden administration priority.

☆ Biden plans Philadelphia swing-state union backdrop for budget proposal
▼ + stars: | 2023-03-06 | by ( Trevor Hunnicutt | ) www.reuters.com time to read: +3 min

Biden plans to roll out the tax-and-spending plans at a Philadelphia union hall, a venue in a competitive battleground state that will highlight the president's worker-centric political pitch in the weeks running up to his expected announcement of a 2024 re-election bid. Biden is also planning to revive his plans to raise taxes on billionaires and to fund initiatives like a child tax credit. A proposal to raise payroll taxes on very high-income people is also on the table. Biden aides regard union backing as well as success in Pennsylvania as critical to any re-election bid by Biden. Presidential budget roll-outs in other years are done at the White House and with no special events drawing attention to them.

☆ Exclusive: As 2024 election approaches, White House jumps into states' abortion battles
▼ + stars: | 2023-03-06 | by ( Nandita Bose | ) www.reuters.com time to read: +7 min

The previously unreported, behind-the-scenes effort has caught the attention of state lawmakers for the level of support offered by the administration. In some cases, the White House is leaning on key lawmakers in states with important abortion-related legislative fights this session. North Carolina is a special focus where the White House thinks it has the opportunity to fend off restrictions, one of the White House officials said. Republicans have largely shrugged off White House efforts at beating back efforts to limit abortion rights. The White House sees three different approaches to defend abortions rights and has broken down states into what they call either "battleground," "extremist" or "proactive" states, White House officials and advisors say.

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