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☆ Bitcoin could rally 40% by the end of the year, according to a top blockchain founder
▼ + stars: | 2023-05-06 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

A pile of Bitcoin slugs sit in a box ready to be minted on April 26, 2013 in Sandy, Utah. And bitcoin is front-running this scenario, pointing to a future that is effectively a return to relatively low rates. A big reason why bitcoin has performed so well was that it was just really oversold during the collapse of FTX. In such a scenario, all assets would have a correlation of one with each other, including bitcoin and even gold. Big gold buyers like HSBC and JPMorgan have shunned business with Moscow — leaving billions of dollars worth of gold in need of new landing spots.

☆ U.S. SEC adopts new rules around private fund disclosures, share buybacks
▼ + stars: | 2023-05-03 | by ( John Mccrank | ) www.reuters.com time to read: +2 min

NEW YORK, May 3 (Reuters) - The U.S. Securities and Exchange Commission on Wednesday adopted new disclosure rules for hedge fund and private equity fund advisors aimed at increasing transparency, competition, and efficiency in the $25-trillion marketplace. The regulator also adopted a final rule to enhance the disclosures companies make around share buybacks that requires quantitative disclosure of daily repurchases on a quarterly or semi-annual basis, depending on the type of issuer. The aim of the rule is to provide investors with more information to assess the purposes and effects of share repurchases, which last year amounted to nearly $950 billion, the SEC said. "Through these disclosures, investors will be able to better assess issuer buyback programs," Gensler said. "The disclosures will also help lessen some of the information asymmetries inherent between issuers and investors in buybacks.

☆ NY Fed limits types of firms that can access its reverse repo facility
▼ + stars: | 2023-04-25 | by ( Michael S. Derby | ) www.reuters.com time to read: +3 min

Accessing the reverse repo facility “should be a natural extension of an existing business model, and the counterparty should not be organized for the purpose of accessing [reverse repo] operations,” the bank said. The New York Fed did not say in its statement what prompted it to clarify the terms of access for reverse repo counterparties. The last time the Fed issued a statement on the reverse repo tool was two years ago, when it clarified some of the conditions a firm must meet to use the reverse repo tool. The reverse repo facility, now at 4.8%, sets the low end of the range. Fed officials have long argued that as they raise rates and normalize monetary policy, they expect money to drain out of the reverse repo facility.

☆ Credit Suisse mess leaves scattered Swiss debris
▼ + stars: | 2023-04-24 | by ( Lisa Jucca | ) www.reuters.com time to read: +7 min

ZURICH, April 24 (Reuters Breakingviews) - Swiss government intervention to save Credit Suisse (CSGN.S) from collapse last month may have avoided a financial market storm. SWISS “TRINITY” QUESTIONThe rescue of Credit Suisse has other consequences. The Swiss Bankers Association has called for an independent inquiry, and lawmakers gave a symbolic thumbs-down to the rescue of Credit Suisse on April 12. A Senate Finance Committee report found last month Credit Suisse had violated a 2014 deferred prosecution agreement with U.S. authorities by continuing to help rich Americans dodge taxes. Switzerland’s parliament on April 12 rejected a Credit Suisse rescue package that included 109 billion Swiss francs in financial guarantees.

☆ Upfront's Mark Suster has become the star of LA's booming startup scene. Not everyone is a fan.
▼ + stars: | 2023-04-18 | by ( Ben Bergman | ) www.businessinsider.com time to read: +29 min

"I have worked with more than 50 VCs and nobody comes close to what it is like to work with Mark Suster," said a founder backed by Suster. "Mark and the Upfront Summit helped put LA tech and investing on the map," said Jeffrey Katzenberg, the cofounder of DreamWorks and WndrCo. Several years ago, a founder whose startup Suster invested in was in a conference room rehearsing their presentation for the Upfront Summit. If you're going to put him on your board, you're letting the fox guard the henhouse. "If you're going to put him on your board, you're letting the fox guard the henhouse."

☆ Protesters shout down Macron on visit to the Netherlands
▼ + stars: | 2023-04-11 | by ( Christian Levaux | ) www.reuters.com time to read: +2 min

THE HAGUE, April 11 (Reuters) - Anger against an unpopular pension reform in France followed President Emmanuel Macron to the Netherlands where protesters interrupted a speech he was giving on Tuesday at the start of a two-day state visit. Other protesters in the audience targeted the pension law and climate change, while one displayed a banner that read: "President of violence and hypocrisy". During his speech, he defended the pension law, which will delay retirement age by two years to 64. "I will pass (retirement age) from 62 to 64," he said, speaking in English. "When I compare, they (French protesters) should be less angry with me, because in your country it's much higher, and in a lot of countries in Europe, it's much higher than 64."

☆ Jamie Dimon is riding to the rescue again. This time, he's poised to come out on top.
▼ + stars: | 2023-03-31 | by ( Carter Johnson | ) www.businessinsider.com time to read: +15 min

Why, then, has Dimon been so willing to swing back into action in the wake of Silicon Valley Bank's collapse? But it's starting to look like JPMorgan — and Dimon — will end up winners no matter how things turn out. In backstopping First Republic, JPMorgan helps a client and a bank that experts say would fit nicely into its business. By saving First Republic, JPMorgan also stands to gain goodwill from Silicon Valley startups, which are customers of the smaller bank. The paper also reported that regulators asked Dimon, Bank of America, and other banks to buy Silicon Valley Bank and pay out depositors over the insured limit.

Bankman-Fried is expected to be arraigned on the new indictment on Thursday before U.S. District Judge Lewis Kaplan in Manhattan federal court. The new indictment said Bankman-Fried ordered the $40 million cryptocurrency payment to a private wallet from Alameda's main trading account, to persuade Chinese government authorities to unfreeze Alameda accounts with more than $1 billion of cryptocurrency. Prosecutors said the Alameda accounts had been frozen as part of an investigation into an unnamed Alameda counterparty, and Bankman-Fried's prior efforts to lobby Chinese officials to lift the freeze were unsuccessful. They also said Bankman-Fried around November 2021 authorized a transfer of tens of millions of dollars of additional cryptocurrency to "complete" the bribe. Concerns that Bankman-Fried might tamper with witnesses prompted Kaplan to threaten jailing him unless tighter restrictions could be worked out.

NEW YORK, March 28 (Reuters) - U.S. prosecutors on Tuesday unveiled a new indictment against Sam Bankman-Fried, accusing the founder of now-bankrupt FTX cryptocurrency exchange of conspiring to pay a $40 million bribe to Chinese government officials. The indictment said Bankman-Fried ordered the $40 million cryptocurrency payment to a private wallet from Alameda's main trading account, to persuade Chinese authorities to unfreeze Alameda accounts with more than $1 billion of cryptocurrency. Prosecutors said the Alameda accounts had been frozen as part of an investigation into an unnamed Alameda counterparty. They also said Bankman-Fried later authorized a transfer of tens of millions of dollars of cryptocurrency to "complete" the bribe. Under the new conditions, Bankman-Fried would be barred from using electronics except for a phone with no internet capability and a basic laptop with limited functions.

☆ Explainer: What are credit default swaps and why are they causing trouble for Europe's banks?
▼ + stars: | 2023-03-28 | by ( Amanda Cooper | ) www.reuters.com time to read: +6 min

LONDON, March 28 (Reuters) - Turbulence in Europe's banks following the implosion of 167-year-old Credit Suisse (CSGN.S) and runs on regional banks in the U.S. has focused attention on the role played by credit default swaps in all the turmoil. The moves followed a surge in the cost of insuring Deutsche Bank's debt against default via credit default swaps (CDS) to a more than four-year high last week. Credit default swaps are derivatives that offer insurance against the risk of a bond issuer - such as a company, a bank or a sovereign government - not paying their creditors. The CDS market is worth around $3.8 trillion, according to the International Swaps and Derivatives Association. The CDS market is small relative to equities, foreign exchange or the global bond markets, where there are more than $120 trillion bonds outstanding.

☆ Analysis: Banking woes, Fed keep U.S. market investors on edge
▼ + stars: | 2023-03-25 | by ( David Randall | ) www.reuters.com time to read: +5 min

But investors are guarded, wary that another bank run could erupt if people believe U.S. or European regulators won't protect depositors. Uncertainty over the Fed's intentions is amplifying investors’ hesitation in stocks and sparking huge swings in U.S. government bond prices. The Fed raised rates by 25 basis points on Wednesday but indicated it was on the verge of pausing further increases. Risk assets have been somewhat resilient despite the concerns in the banking sector, said Jason England, global bonds portfolio manager at Janus Henderson Investors. England expects longer-duration bond yields to start to rise from current levels, making short-term bonds and money market funds more attractive.

☆ Explaining the relative calm of the stock market as the Fed hikes rates into a mini-financial panic
▼ + stars: | 2023-03-25 | by ( Michael Santoli | ) www.cnbc.com time to read: +7 min

.SPX 1Y mountain S & P 500, 1-year So, are equities under-reacting to a badly contorted bond market, a potentially trapped Fed and faltering economy? This has allowed the S & P 500 excluding financials and real estate to outperform the headline index by a couple percentage points year to date. Microsoft alone has added some $240 billion in market value since that date, more than the entire market cap of the S & P 500 regional-banks sub sector. Only about 60% of the S & P 500 members are positive over the past six months even as the index is up 7.5%, a loss of internal energy. The flash S & P Global U.S. Composite PMI for March, reported Friday, was up to 53.3 from 50.1 the prior month and above the 49.5 forecast, a reading S & P says is consistent with around a 2% real GDP pace.

☆ JPMorgan defends Deutsche Bank stock, says market getting it wrong
▼ + stars: | 2023-03-24 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +2 min

JPMorgan isn't concerned about Deutsche Bank , and investors should focus on the European bank's "solid" fundamentals, analysts from the firm said Friday. Shares of the German lender slid more than 11% on Friday following a spike in the company's credit default swaps Thursday night. Credit default swaps act as a insurance for bondholders in the event of the company defaults. To be sure, there was no clear catalyst for the spike in Deutsche's credit default swaps. DB 1D mountain DB falls JPMorgan, however, is maintaining its overweight rating on Deutsche Bank.

☆ This Sequoia-backed startup bringing a form of buy now, pay later to B2B payments just raised $19.3 million. Check out the 10-slide pitch deck Two used to land the funds.
▼ + stars: | 2023-03-21 | by ( Callum Burroughs | ) www.businessinsider.com time to read: +3 min

Sequoia-backed payments startup Two just raised $19.3 million in a Series A round. The Oslo-based company plans to bring a version of buy now, pay later to B2B transactions. Check out the 10-slide pitch deck Two used to land the fresh cash below. A Sequoia-backed startup that wants to bring a version of the buy now, pay later model to B2B transactions just raised $19.3 million in fresh funds. Two's solution is to effectively offer a form of buy now, pay later for B2B payments to both small and medium-sized businesses and multinational corporations.

☆ Goldman Sachs cuts outlook for European bank debt over Credit Suisse crisis
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +1 min

LONDON, March 18 (Reuters) - Goldman Sachs has cut its recommendation on exposure to European bank debt to neutral from overweight, saying a lack of clarity on Credit Suisse's (CSGN.S) future path would put pressure on the broader sector in the region. Credit Suisse was thrown a $54 billion lifeline by the Swiss central bank on Thursday to shore up liquidity after a slump in its shares and bonds intensified fears about a global banking crisis. "The Swiss National Bank's decision to provide Credit Suisse with significant and inexpensive liquidity fell short of stabilising sentiment in both the equity and credit markets," Goldman Sachs analyst Lotfi Karoui wrote in a note to clients dated March 17. Goldman Sachs initiated its overweight recommendation on European bank debt in mid-January. Credit Suisse Group AG entered a make-or-break weekend after some rivals grew cautious in their dealings with the bank and regulators urged it to pursue a deal with Swiss rival UBS AG (UBSG.S).

☆ Exclusive: Some Credit Suisse counterparties curb dealings as bank heads into scenario meetings -sources
▼ + stars: | 2023-03-17 | by ( Shankar Ramakrishnan Stefania Spezzati Sumeet Chatterjee | Shankar Ramakrishnan | Stefania Spezzati | ) www.reuters.com time to read: +5 min

Credit Suisse declined to comment. Credit Suisse intends to borrow up to 50 billion Swiss francs ($54 billion) from the Swiss National Bank in what it called "decisive action" to boost its liquidity on Thursday. The five people with direct knowledge of the bank's trading counterparties requested anonymity because of the sensitivity of the situation. Credit Suisse has said that it is a strong, global bank. Among possible scenarios, analysts, bankers and investors speculate that Credit Suisse could sell or wind down some of its existing businesses with a break-up potentially on the cards.

☆ Exclusive: Some Credit Suisse counterparties put curbs on new dealings involving lender -sources
▼ + stars: | 2023-03-17 | by ( Shankar Ramakrishnan Stefania Spezzati Sumeet Chatterjee | Shankar Ramakrishnan | Stefania Spezzati | ) www.reuters.com time to read: +4 min

[1/3] The logo of Societe Generale bank is pictured on an office building in Nantes, France, March 16, 2023. Credit Suisse declined to comment. These five people with direct knowledge of the matter requested anonymity because of the sensitivity of the situation. Societe Generale has maintained existing counterparty positions with Credit Suisse, which it had cut back in recent weeks, but it is not increasing them, according to two sources with direct knowledge of the situation. Another global bank has reduced its unsecured exposure to Credit Suisse, which includes all lending with no collateral, according to a person with knowledge of the matter.

☆ Premarket stocks: The banking meltdown put the Fed in a bind
▼ + stars: | 2023-03-17 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

In prior years, the Fed was able to respond “unswervingly” to financial risks by loosening policy without worrying about price stability, he said. The reputation play: The question isn’t about what the Fed should do, it’s about what the Fed will do, said Daco. The central bank has the tools if needed to respond to a liquidity crisis “but this is not what we are seeing,” she told reporters on Thursday. Prior to the current stress in the banking sector, Fed officials were hinting that they would hike rates by half a point. “Every central bank tightening cycle in history has induced some sort of financial strains,” she wrote Thursday.

☆ Credit Suisse: Why it’s struggling and why that’s a big deal
▼ + stars: | 2023-03-16 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +5 min

Credit Suisse is one of the biggest financial institutions in the world. “Credit Suisse is much more globally interconnected … not just a Swiss problem but a global one.”Why is Credit Suisse struggling now? That engulfed other banks facing big problems, including Credit Suisse, which has been a slow-moving car wreck for decades. In 2014, Credit Suisse pleaded guilty to federal charges that it illegally allowed some U.S. clients to evade their taxes. Credit Suisse acted as an underwriter when the company went public on the Nasdaq in 2019.

☆ On the precipice: How Credit Suisse's day of drama unfolded
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +5 min

Fifteen years later, Credit Suisse Group AG found itself on a similar precipice. By the time traders in New York were switching on screens on Wednesday, Credit Suisse had lost more than a fifth of its value. Credit Suisse did not comment for this story but noted recent interviews given by its CEO saying the bank was strong. STILL SMOLDERINGMarkets seemed to calm, but the fresh drama around Credit Suisse jogged memories that the financial system was not out of the woods yet. "We welcome the statement of support," Credit Suisse said.

Credit Suisse shares were indicated at 2.3 Swiss francs ($2.48), up 35% from Wednesday's close. The Swiss bank's announcement overnight helped stem heavy selling in financial markets in Asian trade on Thursday and European markets were heading for a bullish start to the day. Analysts at JPMorgan said in a note that a takeover was the most likely scenario for Credit Suisse, especially by rival UBS . "Credit Suisse is the first major bank, deemed too big to fail, to take up the offer of an emergency lifeline," Susannah Streeter, head of money and markets at Hargreaves Lansdown, said. "The $54 billion rescue wad is staunching worries about a bigger run on Credit Suisse and the repercussions for other institutions around the world exposed to its operations," she added.

As part of the overhaul announced in October, it is seeking to spin off merger advice and leveraged finance into a new entity named Credit Suisse First Boston (CSFB), for which it has been seeking buyers. Credit Suisse is most valuable in separate parts, and there are high-level M&A talks taking place, said a senior banker who advises banks on deals. TAKEOVERSelling off parts of Credit Suisse could require time, which markets may not give. The two have complementary investment banking businesses -Credit Suisse is stronger in credit and UBS in equities. However, some have faith that Credit Suisse can still make it safely to the end of the tight rope.

☆ BlackRock's Larry Fink says the US banking system may face 'more seizures and shutdowns' after Silicon Valley Bank's collapse
▼ + stars: | 2023-03-15 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

BlackRock CEO Larry Fink raised the prospect of more bank "seizures and shutdowns" taking place. Markets remain on edge even after regulators took decisive action on Silicon Valley Bank, he said. Fink, in his annual letter to shareholders released Wednesday, addressed last week's seizure of SVB following its asset-liability mismatch. A jump in interest rates since March 2022 spurred billions in losses in Silicon Valley Bank's bond holdings, sparking last week's run on deposits. Fink said the fall of SVB recalled other periods of "spectacular financial flameouts" following prior tightening cycles.

Credit Suisse said in a statement that it welcomed the news. Credit Suisse shares plunged by as much as 30.8% earlier on Wednesday, leading a 7% drop in the European banking index (.SX7P). The U.S. Treasury said it is monitoring the situation at Credit Suisse and is in touch with global counterparts about it. “People are all examining their books, what open positions we have with Credit Suisse,” the source said. The European Central Bank (ECB) had contacted banks on its watch to quiz them about their exposures to Credit Suisse, two supervisory sources told Reuters.

Members of the FIA include the major banks on Wall Street. As a clearing house, the OCC settles and guarantee options contracts, working as a central counterparty for credit risk. Apart from the group meeting with the FIA, the OCC has also discussed this issue individually with some market participants, one of the sources said. The OCC told this person it did not see a major risk, but it wanted to assess its members' views and explore different risk scenarios. Many 0DTE options have a low probability of rising in value as they approach expiration.

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