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☆ A small business owner with all of her money in SVB says the company was 'jerked around' by the 'failures of the American banking system'
▼ + stars: | 2023-03-18 | by ( Britney Nguyen | ) www.businessinsider.com time to read: +5 min

Silicon Valley Bank's collapse had startup founders and venture capitalists in a panic last weekend. Vanessa Pham said the bank's collapse threatened small businesses, in addition to rich VC firms. The news threw Pham into a spiral: All of Omsom's money was in SVB, a bank widely used by startups and venture capitalists. On Friday morning, Pham tried to wire the company's money out of SVB, but it was unsuccessful. In a follow-up Instagram post, the Pham sisters wrote that the weekend caused them to reflect on how "the failures of the American banking system jerked all of us around, both small business + consumers alike."

☆ How First Republic became such a hot mess
▼ + stars: | 2023-03-17 | by ( Allison Morrow | ) edition.cnn.com time to read: +2 min

“It’s the biggest example of a bank that could go down and shouldn’t go down — a first-class bank,” said a source close to the 48-hour deal to infuse First Republic with $30 billion in cash. San Francisco-based First Republic, the 14th-largest bank in the country, received the cash infusion from 11 rivals, including America’s largest lenders. When JPMorgan Chase CEO Jamie Dimon on Thursday reached out to Treasury Secretary Janet Yellen and Federal Reserve Board Chair Jerome Powell, “Very quickly the conversation turned to First Republic,” the source told CNN. Its rescuers are also struggling, with JPMorgan Chase (JPM) down 3% and Bank of America (BAC) falling 4%. Investors saw similarities between First Republic and the failed Silicon Valley Bank — another midsize Bay Area-based lender with a deep-pocketed client base.

☆ When Silicon Valley Bank imploded it took a $70 billion loan portfolio with it. Competitors are already stepping in to fill the gap.
▼ + stars: | 2023-03-14 | by ( Darius Rafieyan | ) www.businessinsider.com time to read: +7 min

Silicon Valley Bank had more than $70 billion in credit lines on its books when it failed. He's one of many who now stand to benefit from the sudden disappearance of one of Silicon Valley's most reliable lenders. Venture debt, like a typical venture-capital investment, involves betting big on fledgling startups that may be far off from profitability. Another person in SVB's venture debt business said that employees are working hard to maintain "business as usual" so as to make SVB's loan portfolio more attractive to a potential buyer. An opportunity for the competitionNone of this has stopped other lenders from stepping up to try to win some of SVB's debt business.

☆ Dick Bove discusses Silicon Valley Bank's collapse
▼ + stars: | 2023-03-13 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailSVB crisis: You can't understate the danger the American banking system is in, strategist saysDick Bove of Odeon Capital Group says the collapse of Silicon Valley Bank is a "massive crisis."

☆ 'No doubt' that more banks will fail after Silicon Valley Bank's implosion, says the FDIC chair who oversaw part of the 1980s banking crisis
▼ + stars: | 2023-03-13 | by ( Matthew Loh | ) www.businessinsider.com time to read: +3 min

A former FDIC chair says there's "no doubt" more banks will fail after Silicon Valley Bank's collapse. During Isaac's tenure, he had to manage the fallout of the 1980s banking crisis. Around 3,000 banks and thrifts failed during the 1980s banking crisis, per the Securities and Exchange Commission. But other banking industry observers say Silicon Valley Bank's implosion doesn't mean other banks are at risk too. Goldman Sachs analysts also advised investors to buy dipping banking shares amid Silicon Valley Bank's collapse, saying that the risk of Silicon Valley Bank's failure spreading to larger banks is "remote."

☆ No fears on Friday the 13th
▼ + stars: | 2023-01-13 | by ( ) www.reuters.com time to read: +2 min

A look at the day ahead in European and global markets from Anshuman DagaIs there anything spooky about Friday the 13th? Well, certainly not for global equity investors as they cheered U.S. inflation data that showed the Fed's aggressive rate increases are having the desired effect. European equities, perched at nine-month highs, are poised to open on a strong footing on Friday. Fed policymakers expressed relief that inflation continued easing in December and signalled that a rate-hike slowdown was coming. Four American banking giants are forecast to report lower quarterly profits as lenders stockpile rainy-day funds to prepare for an economic slowdown that is battering investment banking.

"With most U.S. economists forecasting either a recession or significant slowdown this year, banks will likely incorporate a more severe economic outlook," said Morgan Stanley analysts led by Betsy Graseck in a note. Rising prices and higher borrowing costs have prompted consumers and businesses to curb their spending, and since banks serve as economic middlemen, their profits decline when activity slows. Reuters GraphicsStill, lenders stand to gain from rising rates that allow them to earn more from the interest they charge borrowers. Morgan Stanley and Citigroup, among others, have also cut jobs after a plunge in investment-banking activity. Analysts will also watch if banks such as Morgan Stanley and Bank of America book any writedowns on the $13-billion loan to fund Elon Musk's purchase of Twitter.

☆ Morning bid: Obstacle course ahead
▼ + stars: | 2023-01-10 | by ( ) www.reuters.com time to read: +6 min

San Francisco Fed President Mary Daly and Atlanta Fed chief Raphael Bostic said they expect Fed rates - now at 4.25% to 4.5% - will need to rise to a 5% to 5.25% range to sap inflation. The other big market obstacle of the week is the onset of the U.S. corporate earnings season. Four American banking giants - JPMorgan (JPM.N), Bank of America (BAC.N), Citigroup (C.N) and Wells Fargo (WFC.N) - report earnings on Friday. Diaried events and data releases that may provide direction to U.S. and world markets later on Tuesday:* U.S. Dec NFIB small business survey. * U.S. Federal Reserve Chair Jerome Powell, Bank of Japan governor Haruhiko Kuroda, Bank of England Governor Andrew Bailey, Bank of Canada governor Tiff Macklem and European Central Bank board member Isabel Schnabel all speak at Swedish central bank event.

☆ Neobanks battle to lure UK savers with juicy yields as interest rates rocket to a 14-year high
▼ + stars: | 2022-12-16 | by ( Ryan Browne | ) www.cnbc.com time to read: +2 min

"We've re-entered the era where banks use better savings rates to acquire customers," Simon Taylor, head of strategy at fintech startup Sardine.ai, told CNBC. The Bank of England on Thursday hiked its main interest rate by 50 basis points, to 3.5%, its highest level in 14 years. They mean savers can get higher rates of returns on their deposits. However, those with mortgages, credit cards and personal loans to pay are charged higher interest. It is not the first time an internet-based bank in the U.K. has bumped up rates on savings to higher levels.

☆ Watch CNBC's full interview with JPMorgan Chase CEO Jamie Dimon
▼ + stars: | 2022-12-06 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWatch CNBC's full interview with JPMorgan Chase CEO Jamie DimonJPMorgan Chase CEO Jamie Dimon joins CNBC's 'Squawk Box' to provide an outlook on the U.S. economy amid the Federal Reserve's moves to combat inflation and high inflation. Dimon also weighs in on the collapse of the crypto exchange FTX and the health of the American banking system.

☆ Jamie Dimon says inflation eroding consumer wealth may cause recession next year
▼ + stars: | 2022-12-06 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

JPMorgan Chase CEO Jamie Dimon said that inflation could tip the U.S. economy into recession next year. While consumers and companies are currently in good shape, that may not last much longer, Dimon said Tuesday on CNBC's "Squawk Box." Consumers have $1.5 trillion in excess savings from pandemic stimulus programs and are spending 10% more than in 2021, he said. "Inflation is eroding everything I just said, and that trillion and a half dollars will run out sometime mid-year next year," Dimon said. "When you're looking out forward, those things may very well derail the economy and cause a mild or hard recession that people worry about."

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