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☆ SVB CEO, CFO resign, company appoints turnaround expert as interim finance head
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +1 min

April 21 (Reuters) - SVB Financial Group's CEO and chief financial officer resigned this week while the collapsed lender's restructuring committee appointed a turnaround expert as interim CFO, according to a regulatory filing on Friday. CEO Gregory Becker resigned on April 19, while finance chief Daniel Beck left the company on April 18, SVB said. The two top executives were sued in March by shareholders who accused them of concealing how rising interest rates would leave its Silicon Valley Bank unit "particularly susceptible" to a bank run. The restructuring committee appointed Nicholas Grossi of A&M as the company's interim chief financial officer on April 20, according to the filing. The regulators then agreed to backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire Silicon Valley Bank.

☆ SVB says CEO, CFO resigned this week
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +1 min

April 21 (Reuters) - SVB Financial Group CEO Gregory Becker and financial chief Daniel Beck resigned this week, the collapsed lender said in a regulatory filing on Friday. Becker resigned on April 19, while Beck left the company on April 18, SVB said. The two top executives were sued in March by shareholders who accused them of concealing how rising interest rates would leave its Silicon Valley Bank unit "particularly susceptible" to a bank run. The restructuring committee appointed Nicholas Grossi of A&M as the company's interim chief financial officer on April 20, according to the filing. The regulators then agreed to backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire Silicon Valley Bank.

☆ SVB Financial Group: CEO Greg Becker and CFO Daniel Beck have resigned
▼ + stars: | 2023-04-21 | by ( David Goldman | ) edition.cnn.com time to read: 1 min

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☆ Global corporate defaults highest since the pandemic in 2020
▼ + stars: | 2023-04-18 | by ( Anna Cooban | ) edition.cnn.com time to read: +3 min

In a report Tuesday, credit rating agency Moody’s said 33 of the corporations it rates defaulted on their debts in the first quarter, the highest level since the last quarter of 2020 when 47 companies defaulted. Almost half, or 15 companies, defaulted last month — the highest monthly count since December 2020. In a sign of a tougher global environment for corporate borrowers, investors went sour on corporate bonds last year. Moody’s expects that a combination of higher borrowing costs and slowing global growth will push up defaults on speculative-grade corporate debt to 4.6% by the end of this year, up from 2.9% in March. By the end of the first quarter next year, the global default rate on this type of debt will likely rise to 4.9%, Moody’s said.

☆ Big bank investors owe thanks to Team America
▼ + stars: | 2023-04-14 | by ( John Foley | ) www.reuters.com time to read: +4 min

Wells Fargo has managed to keep even more for itself, passing on just 26%. Finance chief Jeremy Barnum reckons $50 billion of deposits flowed into his bank and stayed put, more than offsetting other outflows. Elsewhere in Dimon’s letter, he describes himself as a “red-blooded, patriotic, free-enterprise and free-market capitalist.” Investors may lap that up, but his bank’s earnings show other forces at work too. Wells Fargo reported $4.7 billion of earnings, 34% higher than the previous first quarter, and took a $1.2 billion quarterly provision for credit losses. Citigroup reported $4.3 billion of earnings, a 7% annual increase, while smaller rival PNC made $1.6 billion, an 18% increase.

☆ For some US banks, it’s still a wonderful life
▼ + stars: | 2023-04-13 | by ( John Foley | ) www.reuters.com time to read: +7 min

Bank customers are still sitting on a pile of savings manufactured by pandemic-era government stimulus and curtailed consumption. Among all banks, deposit balances have fallen 5% year-on-year; to get back to their pre-Covid trend, they’d need to fall 20%. What of small banks that can’t match either advantage? Better placed within communities to soothe the nerves of mostly local customers, small banks can instill trust and loyalty while allaying fears. This edge for small banks should also insulate them from the worst effects of a deposit price war.

☆ Exclusive: Massachusetts regulator probes First Republic insiders' stock sales
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +4 min

He is seeking details about the firm's insider trading policies and how officers handled their stock sales from January 1. A spokesperson for First Republic declined to confirm the firm received a subpoena or comment on the stock sales. Silicon Valley Bank and Signature Bank were seized by regulators days later amid liquidity crises, actions that sapped investor confidence in the sector. SHARE SALESSeveral First Republic executives have sold shares this year, including founder and Executive Chairman James Herbert. Herbert and Roffler did not respond to requests for comment on their stock sales or the subpoena.

☆ Short sellers generated paper profit of $14 billion betting against bank stocks in March amid SVB chaos
▼ + stars: | 2023-03-30 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

Short sellers betting against bank stocks logged $14.3 billion in paper profit in March, said S3 Partners. Chaos around SVB, Signature Bank and Credit Suisse spurred a 11.4% rise in new short selling in global bank stocks. But short sellers are also facing a squeeze as prices in bank stocks come off lower levels hit this month. Stripping out SVB Financial Group and Signature Bank, those selling bank stocks short were down 4.5% since March 23, handing back $587 million of their profit made this month. "If this upward price trend continues in the rest of the regional banks, we should see short covering as short sellers rush to realize some of their mark-to-market profits," said Dusaniwsky.

☆ Streaming device maker Roku to cut 200 jobs in second round of layoffs
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +1 min

March 30 (Reuters) - Roku Inc (ROKU.O) will lay off 6% of its workforce, or 200 employees, in its second round of job cuts, the U.S. streaming device maker said, sending its shares up nearly 3% before the bell on Thursday. In a bid to lower expenses, the company also decided to exit and sub-lease office facilities that it did not currently occupy. Majority of the restructuring charges will be incurred in the first quarter of fiscal 2023, while the job cuts will be completed by the end of the second quarter, the company said. Earlier this month, Roku said it had about $487 million, or 26% of its cash and cash equivalents, in deposits with SVB Financial Group (SIVB.O), which was closed down by California banking regulators. Reporting by Tiyashi Datta in Bengaluru; Editing by Arun Koyyur and Shweta AgarwalOur Standards: The Thomson Reuters Trust Principles.

☆ Bets Against Signature Bank Stock Paid Off—on Paper, at Least
▼ + stars: | 2023-03-28 | by ( Gunjan Banerji | ) www.wsj.com time to read: 1 min

Resumed Signature Bank trading might allow some to exit positions after more than a week of uncertainty. For options traders, betting that shares of Signature Bank and SVB Financial Group would plummet was the easy part. Trying to cash out has been harder—and, for many, unexpectedly costly. The banks failed two weeks ago and were taken over by regulators, which essentially wiped out the value of their shares. That is an outcome that should be good news for investors owning puts, options that confer the right to sell shares at a stated price by a certain date.

☆ Tech Stocks Slide as Investors Shift Attention Back to Rates
▼ + stars: | 2023-03-28 | by ( Matt Grossman | ) www.wsj.com time to read: 1 min

Technology stocks slid Tuesday, dinged by rising bond yields, as an ebbing of the recent turmoil in the banking sector shifted investors’ attention back to the threat of further interest-rate increases by the Federal Reserve. Many investors speculated earlier this month that the high-profile failures of SVB Financial and Signature Bank would test the Fed’s resolve in its efforts to fight inflation. Now, easing anxiety about global banks is leading them to renew bets that interest rates could rise further and stay elevated.

☆ First Citizens shares hit record high in wake of SVB purchase
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +2 min

March 28 (Reuters) - Shares of First Citizens BancShares Inc (FCNCA.O) climbed to a record high on Tuesday, extending gains for a second day after scooping up the assets of failed peer Silicon Valley Bank. First Citizens BancShares rebounds to record highFirst Citizens rallied as much as 7.2%, briefly hitting an all-time peak of $959.99 before paring gains. Investors sent a record net $236 million into the iShares Regional Bank ETF (IAT.P) over the last two weeks, evidence that some investors are betting on a rebound in fundamentally strong regional lenders following the recent sell-off. Policymakers, regulators and central banks have emphasized that the turmoil is not a precursor to another global financial crisis. Shares of SVB Financial Group , which operated Silicon Valley Bank, traded on Tuesday as an over-the-counter stock and were last at 28 cents per shares, down from about $268 before the bank's collapse, an all but complete loss for its shareholders.

☆ 'Sell into rallies': Morgan Stanley names the stocks to navigate current European banking jitters
▼ + stars: | 2023-03-27 | by ( Ganesh Rao | ) www.cnbc.com time to read: +3 min

In the wake of recent market volatility and steep share price falls, Morgan Stanley cautioned that the European banking sector is "not as attractive as it was." Morgan Stanley strategists cautioned that although the banking sector is now cheaper, news flow surrounding earnings upgrades and cash return expectations may fade or reverse. On a top-down basis, Morgan Stanley recommended the following overweight-rated (a buy equivalent rating) stocks to navigate this environment with a defensive exposure. Stocks in traditionally defensive sectors, such as health care and utilities, are being recommended by Morgan Stanley. However, Morgan Stanley said the banking sector's problems have shifted this perspective, as the outperformance of European banks has been closely tied to the broader European market.

WASHINGTON, March 27 (Reuters) - A U.S. banking regulator is investigating potential misconduct on the part of executives and others involved in the failures of Silicon Valley Bank and Signature Bank. Gruenberg did not offer further details into who or what may be the subject of probes, which could be one of several under way by the U.S. government. It is common for the government to open probes into such events, and such investigations do not necessarily result in charges of misconduct. But its sudden collapse has also raised questions about what executives knew about the bank's struggles and what they disclosed with investors, the sources said. Reporting by Pete Schroeder and Chris PrenticeOur Standards: The Thomson Reuters Trust Principles.

☆ The banking crisis has college students on edge about Wall Street jobs and internships. 'I just want to know what the plan is.'
▼ + stars: | 2023-03-27 | by ( Emmalyse Brownstein | ) www.businessinsider.com time to read: +6 min

That's the concern plaguing aspiring investment bankers across the country as they watch the banking crisis unfold. "I think there's definitely a sense of unease in finance," said Asif Rahman, co-founder of Wall Street career coaching company Office Hours. Over at SVB's investment banking arm, incoming first-year analysts have been told that their jobs are secure. "We've reached out to all of our incoming analysts and interns. "The incoming summer interns are worried about low return offer rates," the professor said.

☆ Wall St ends higher as Yellen vows actions to safeguard deposits
▼ + stars: | 2023-03-23 | by ( Stephen Culp | ) www.reuters.com time to read: +3 min

"The market as a whole is telling you is there are a lot of different ways to interpret all the things people are saying." Interest rate hikes by central banks around the world have stressed the banking sector, which became manifest with the recent failures of SVB Financial Group (SIVB.O) and Signature Bank (SBNY.O). Comments from the Bank of England that inflation will probably quickly fade also helped fuel hopes of light at the end of the central bank tightening tunnel. "Every central bank that was on path to raise rates raised them," GLOBALT's Martin added. Shares of First Republic Bank (FRC.N) dropped in volatile trading in the wake of Yellen's testimony.

☆ Wall Street rallies on hopes of Fed policy pause
▼ + stars: | 2023-03-23 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

"Today the market is bouncing back on what was a dovish Fed hike yesterday," said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky. "Powell did a good job sticking to the party line on inflation and continued to jawbone hawkish even though the hike leaned dovish." Comments from the Bank of England that inflation will probably quickly fade also helped fuel hopes of light at the end of the central bank tightening tunnel. Among the 11 sectors of the S&P 500, communication services (.SPLRCL) and tech (.SPLRCT) led the percentage gainers. The S&P 500 posted four new 52-week highs and 14 new lows; the Nasdaq Composite recorded 45 new highs and 197 new lows.

Citizens, one of the largest U.S. regional banks, is preparing to submit an offer in the auction of the business, which is called SVB Private, the sources said. The FDIC, which now controls the Silicon Valley Bank assets, and Citizens Financial declined to comment. It has since asked for separate offers for SVB Private and Silicon Valley Bank by March 24. SVB Financial Group (SIVB.O), the former parent of Silicon Valley Bank which filed for bankruptcy protection last week, is not part of the process. A big part of it comprises Boston Private, a wealth manager acquired by Silicon Valley Bank in 2021.

☆ Elon Musk jokes ChatGPT 'couldn't do worse' than Jerome Powell as he slams the Fed's latest rate hike
▼ + stars: | 2023-03-23 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Elon Musk has slammed the Federal Reserve again after it decided to keep hiking interest rates. Musk warned the Fed's latest decision could make the US regional banking crisis worse. "A major driver of depositor flight is people moving money from low interest savings accounts to high interest money market (Treasury Bill) accounts," Musk said. Bond yields tend to rise when the Fed lifts interest rates, making money market accounts more attractive. He's noted that higher interest rates bump up monthly car-loan payments, effectively making it more expensice to buy vehicles.

☆ Wall St ends sharply lower as Powell warns inflation fight continues
▼ + stars: | 2023-03-22 | by ( Stephen Culp | ) www.reuters.com time to read: +5 min

The three major U.S. stock indexes, which were mostly directionless prior to the Fed announcement, jumped higher then deflated as investors digested the accompanying statement and Chair Jerome Powell's subsequent Q&A session. Worries persist that the Fed's aggressive battle against inflation could tip the economy into recession, and recent turmoil in the banking sector, sparked by failures of SVB Financial Group (SIVB.O) and Signature Bank (SBNY.O), have exacerbated those fears. All 11 major sectors of the S&P 500 ended the session deep in negative territory, with real estate (.SPLRCR) suffering the steepest percentage drop, its largest one-day plunge since Sept. 13. The S&P 500 posted six new 52-week highs and 13 new lows; the Nasdaq Composite recorded 44 new highs and 179 new lows. Volume on U.S. exchanges was 11.84 billion shares, compared with the 12.70 billion average over the last 20 trading days.

☆ SVB Financial accuses FDIC of 'improper actions' to block the firm from accessing $2 billion of its cash
▼ + stars: | 2023-03-22 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +2 min

SVB Financial filed for bankruptcy on Friday. Lawyers for SVB Financial said in the group's first bankruptcy hearing in Manhattan on Tuesday that the FDIC took "improper actions" to block it from accessing its cash, according to a Reuters report. "Not only has the bank been taken, all the cash has been taken," the financial group's lawyer James Bromley said at the hearing. The lawyers also said that the FDIC has stopped communicating with the financial group and has instructed the successor of SVB to claw back transfers that SVB Financial had made to other accounts, the WSJ first reported. SVB Financial lost access to its deposits one day before it filed for bankruptcy protection, the lawyers added.

☆ Silicon Valley Bank’s Former Parent Says FDIC Seized About $2 Billion of Its Cash
▼ + stars: | 2023-03-21 | by ( Alexander Saeedy | ) www.wsj.com time to read: 1 min

Silicon Valley Bank’s former parent company can’t access about $2 billion that it had deposited at the failed bank, after regulators froze the company’s accounts and are exploring whether it should help shoulder costs associated with the bank’s failure. Lawyers for SVB Financial Group, the holding company that used to control the now-defunct bank, claimed during the company’s first hearing in bankruptcy court on Tuesday that the Federal Deposit Insurance Corp. has improperly blocked access to cash stored in accounts it holds at the successor to Silicon Valley Bank.

California banking regulators on March 10 closed Silicon Valley Bank in the largest U.S. bank failure since the 2008 financial crisis. Kurt Gwynne, an attorney for the FDIC as receiver for Silicon Valley Bank, disputed at Tuesday's hearing that regulators had done anything improper. Destroyed SVB (Silicon Valley Bank) logo is seen in this illustration taken March 13, 2023. Glenn said he was prepared to allow SVB Financial to use up to $100 million for investment activity. Silicon Valley Bank was SVB Financial's largest asset, accounting for more than $15.5 billion of SVB Financial's $19.7 billion in total assets.

☆ Silicon Valley Bank collapse was 'Lehman moment for technology,' top Goldman Sachs deal-maker says
▼ + stars: | 2023-03-21 | by ( Ryan Browne | ) www.cnbc.com time to read: +1 min

The collapse of Silicon Valley Bank was a "Lehman moment" for the technology industry, according to a top Goldman Sachs deal-maker. "That first weekend was a little bit like the Lehman moment for technology and it was really more operational for those companies," Marriott told CNBC's Arjun Kharpal in an interview at a Goldman Sachs tech symposium that aired Tuesday on "Squawk Box Europe." Founded in 1983, SVB was considered a reliable source of funding for tech startups and venture capital firms. A subsidiary of SVB Financial Group , the California-based commercial lender was, at one point, the 16th-biggest bank in the U.S. and the largest in Silicon Valley by deposits. SVB was taken over by the U.S. government after its clientele of venture capitalists and tech startups withdrew billions from their accounts.

March 20 (Reuters) - SVB Financial Group (SIVB.O) on Monday filed a number of "First Day Motions" to seek authorization from a bankruptcy court to support the operations of the company's SVB Capital and SVB Securities businesses. Reporting by Manya Saini in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

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