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Larger peers Bank of America (BAC.N), Goldman Sachs (GS.N) and JPMorgan Chase & Co (JPM.N) rose between 0.7% and 1.6% in premarket trade. "Markets are calmer as the tension of the banking situation is lessening. A key inflation reading expected at the end of the week will provide more clues on the Fed's monetary tightening plans. ET, Dow e-minis were up 244 points, or 0.75%, S&P 500 e-minis were up 35.25 points, or 0.88%, and Nasdaq 100 e-minis were up 109.25 points, or 0.86%. Reporting by Amruta Khandekar; Editing by Dhanya Ann Thoppil and Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

☆ Premarket stocks: How big of a problem is greedflation?
▼ + stars: | 2023-03-29 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +9 min

“Executives at SVB and Signature [Bank] took wild risks and must be held accountable for exploding their banks,” Warren said. Republican Senators say the Fed’s focus on climate change led to banking turmoilRepublican Senators repeatedly insinuated on Tuesday that the recent US banking turmoil came as a result of the Federal Reserve’s focus on climate change. In his opening statement, Republican Sen. Tim Scott of South Carolina, the ranking member of the banking committee, called the Fed’s focus on climate change a waste of time. It’s what our supervisors do all the time.”In an interview with Montana Public Radio in 2014, Daines said that “the jury’s still out” on whether climate change is real. The public reasonably expects supervisors to require that banks understand, and appropriately manage, their material risks, including the financial risks of climate change.”

☆ Morning Bid: Bank calm, rates firm, Alibaba steals show
▼ + stars: | 2023-03-29 | by ( ) www.reuters.com time to read: +4 min

A semblance of calm has returned to world markets in the final week of the first quarter as the banking storm abates and the spotlight switched to a share-boosting six-way revamp of Chinese e-commerce giant Alibaba. Investors cheered the surprise move from Alibaba (9988.HK) as a sign Beijing's corporate crackdown may be nearing an end, sending shares of the Jack Ma-founded firm and peers soaring. The surprise move seeks to take advantage of Ermotti's experience rebuilding the bank after the global financial crisis 15 years ago. Broader stock markets were higher across the board, with Wall St futures up almost 1% ahead of the open. Futures markets now show a 50-50 chance of one more Fed rate hike in this cycle in May and half a point of easing by yearend.

☆ SVB saw $142 billion fly out the door in just 2 days in a tech-driven bank run - and that spells trouble, says Mohamed El-Erian
▼ + stars: | 2023-03-29 | by ( Zinya Salfiti | ) www.businessinsider.com time to read: +2 min

SVB saw $142 billion pulled from deposits in just two days before it collapsed. The bank run was sped up by social media spreading news faster and tech tools making it easier to withdraw funds. Mohamed El-Erian said potential high-speed bank runs raise challenges for banks. These new details of SVB's downfall has top economist El-Erian flagging warning signs of the impact of tech tools on banks. "I anticipate the need to strengthen capital and liquidity standards for firms over $100 billion," Barr said.

"I think that any time you have a bank failure like this, bank management clearly failed, supervisors failed and our regulatory system failed," Michael Barr, Fed Vice Chair for Supervision, told Congress. REPORTS DUE MAY 1Both the Fed and FDIC are is expected to produce reports on the failure of Silicon Valley Bank by May 1. Barr told the House Financial Services Committee that he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable. Gruenberg of the FDIC told lawmakers he also became aware of SVB's stress that Thursday evening. "(Fed) staff were working with Silicon Valley Bank basically all afternoon and evening and through the morning the next day to pledge as much collateral as humanly possible to the discount (window) on Friday," Barr said.

Wall Street posted solid gains on Wednesday as volatility slumped to its lowest since the U.S. banking tremors were first felt three weeks ago. While bond yields inched up, bond market volatility also fell and fixed income markets were pretty calm. The rate-sensitive Nasdaq jumped 1.8% for its best day in two weeks, boosted by positive tech company outlooks. The MSCI World financials index is now up three days in a row and the U.S. regional banking index has risen for four straight days, neither of which have been recorded since January. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Dollar on the defensive as banking fears ebb; yen drops
▼ + stars: | 2023-03-29 | by ( ) www.cnbc.com time to read: +2 min

In this photo illustration, US 100 dollar bills seen on an American flag. The dollar index , which tracks the currency against six major peers, was flat in early Asian trading, following drops of about 0.3% in each of the past two sessions. The yen remained volatile in the run-up to the end of the Japanese fiscal year on Friday. The dollar jumped 0.51% to 131.59 yen , erasing all of the previous day's 0.5% decline, when it uncharacteristically moved in the opposite direction with long-term U.S. Treasury yields. The token had dipped as low as $26,541 on Monday, after its retreat from a nine-month high of $29,380 last week.

☆ CNBC Daily Open: After SVB collapse, stricter rules coming for banks?
▼ + stars: | 2023-03-29 | by ( Yeo Boon Ping | ) www.cnbc.com time to read: +2 min

This report is from today's CNBC Daily Open, our new, international markets newsletter. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. The rise in yields suggests traders are growing confident the banking turmoil is subsiding, and they're turning their attention back to inflation. In a bizarre way, even if that's bad news for inflation, that's probably good news for everyone who's been consumed by banking fears in recent days. Subscribe here to get this report sent directly to your inbox each morning before markets open.

☆ The bank crisis threatens to spark a credit crunch as Main Street banks pull back
▼ + stars: | 2023-03-29 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

A possible consequence of the banking crisis is that households and businesses may soon find it harder to get a loan from their bank. Around $1 trillion in deposits have been pulled from smaller and mid-sized banks since the Fed began hiking rates last year, with half that fleeing banks since SVB collapsed. "The uncertainty generated by deposit movements could cause banks to become more cautious on lending," JPMorgan strategists wrote in a note. "This risk is heightened by the fact that mid- and small-size banks play a disproportionately large role in US bank lending." This likely could impact the trajectory of the economy, as regional and community banks are a massive source of credit to Main Street borrowers.

☆ The 30-year fixed mortgage rate drops to a 6-week low as banking turmoil sent bond yields tumbling in March
▼ + stars: | 2023-03-29 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

The 30-year fixed mortgage rate fell to its lowest in six weeks, tracking falling bond yields. The rate fell to 6.45%, helping fuel another week of increases in mortgage applications. The 30-year fixed mortgage rate fell to 6.45% from 6.48% in the week ended March 24 for loans meeting government-agency limits of $726,200 or less, according to figures released by the Mortgage Bankers Association on Wednesday. The 30-year rate fell as investors rushed into US government debt, looking for shelter from the turmoil over deposits at regional banks. Powell later said policy makers had considered pausing rate hikes because of the banking turmoil but decided to deliver a steady rate hike of 25 basis points, to 4.75%-5%.

House lawmakers tore into top U.S. bank regulators Wednesday, questioning their competency and saying examiners were asleep at the wheel, at a second day of congressional hearings this week about how Silicon Valley Bank and Signature Bank collapsed practically overnight on March 10 and March 12. "We need competent financial supervisors, but Congress can't legislate competence," House Financial Services chairman Rep. Patrick McHenry, R-N.C., told top officials at the Federal Reserve, Treasury and FDIC at the beginning the hearing. "The light touch cautions from the Fed to SVB management are clearly not what Congress intended for bank supervision," said Waters. Republican Rep. Bill Huizenga, Mich., demanded raw, confidential supervisory information about the banks, available to regulators ahead of the collapses. Members of the Republican majority House challenged many of the decisions made by regulators in the hours and days after SVB collapsed and Signature Bank followed 48 hours later.

A pedestrian walks past the Federal Reserve Headquarters on March 21 in Washington, DC. Daines also accused the Federal Reserve Bank of San Francisco of prioritizing addressing climate change over the risks presented by higher interest rates. In an interview with Montana Public Radio in 2014, Daines said that "the jury’s still out" on whether climate change is real. These responsibilities are tightly linked to our responsibilities for bank supervision. The public reasonably expects supervisors to require that banks understand, and appropriately manage, their material risks, including the financial risks of climate change.”

Senators rebuked the Federal Reserve for failing to prevent the collapse of Silicon Valley Bank despite identifying risks beforehand, while the central bank’s top regulator blamed the firm’s executives for not fixing its problems. In an appearance Tuesday before the Senate Banking Committee, Michael Barr , the Fed’s vice chairman for banking supervision, defended the actions of the Fed’s supervisors and said the central bank had privately raised concerns with SVB before its March 10 collapse and had given the lender poor ratings for managing its risks.

SummarySummary Companies Futures down: Dow 0.10%, S&P 0.17%, Nasdaq 0.22%March 28 (Reuters) - U.S. stock index futures slipped on Tuesday as Treasury yields rose amid easing worries about a banking crisis following First Citizens BancShares' U.S. regulator-backed deal for failed Silicon Valley Bank. Shares of First Citizens BancShares Inc (FCNCA.O) fell 1% in premarket trading after surging more than 50% on Monday following its deal to acquire the deposits and loans of failed Silicon Valley Bank. Regional banks also rose, led by First Republic Bank's (FRC.N) 2.2% gain after a 12% rally on Monday. Later in the day, Fed Vice Chair for Supervision Michael Barr will testify before the Senate Committee on Banking, Housing and Urban Affairs on "bank oversight" in the first of several hearings on the collapse of Silicon Valley Bank and Signature Bank. ET, Dow e-minis were down 31 points, or 0.1%, S&P 500 e-minis were down 6.75 points, or 0.17%, and Nasdaq 100 e-minis were down 27.75 points, or 0.22%.

☆ Fed's Michael Barr: Silicon Valley Bank was 'not well managed'
▼ + stars: | 2023-03-28 | 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 EmailFed's Michael Barr: Silicon Valley Bank was 'not well managed'Fed Governor Michael Barr, the central bank's vice chair for supervision, breaks down the SVB and Signature bank failures.

☆ Treasury yields rise as investors consider economic outlook
▼ + stars: | 2023-03-28 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +1 min

ET, the yield on the 10-year Treasury was trading at 3.5507% after rising over two basis points. The yield on the 2-year Treasury was more than five basis points higher at 4.0186%. U.S Treasury yields climbed on Tuesday as investors assessed what could be on the horizon for the U.S. economy and Federal reserve policy decisions. Investors considered the outlook for the economy as fears about a widespread banking crisis eased. Many investors have been concerned about whether the pace of rate hikes and keeping rates higher for longer could drag the U.S. economy into a recession.

☆ What to expect from the Senate hearings on recent bank failures
▼ + stars: | 2023-03-28 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +4 min

New York CNN —Silicon Valley Bank’s liquidity crisis and subsequent downfall sent waves of panic through the financial system in early March, setting off a chain reaction of chaos with which regional banks are still grappling. On Wednesday, the House Financial Services Committee will continue with their own line of questioning. Sen. Brown has called for the executives of Silicon Valley Bank to be held accountable for the bank’s failure. “Our banking system is sound and resilient, with strong capital and liquidity,” Barr said. The failures of SVB and Signature Bank, he wrote, “demonstrate the implications that banks with assets over $100 billion can have for financial stability.

The nation's top bank regulators will face tough questions for the first time Tuesday about how Silicon Valley Bank and Signature Bank collapsed practically overnight earlier this month. This allowed the FDIC to guarantee hundreds of billions of dollars in uninsured deposits at the banks, money that might otherwise have been wiped out. Both Republicans and Democrats on the 29-member panel questioned whether these deposit guarantees amounted to a government bailout for rich account holders. "One clear takeaway from recent events is that heavy reliance on uninsured deposits creates liquidity risks that are extremely difficult to manage," the FDIC's Gruenberg said in his written testimony. "Particularly in today's environment where money can flow out of institutions with incredible speed in response to news amplified through social media channels."

☆ US stocks fall as rising bond yields pressure tech amid easing banking sector fears
▼ + stars: | 2023-03-28 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

US stocks fall Tuesday, leaving the S&P 500 lower after three days of gains. The 2-year Treasury yield pushed back above 4%, pressuring tech stocks. Sign up for our newsletter to get the inside scoop on what traders are talking about — delivered daily to your inbox. Tech stocks were stung by a rise in the 2-year Treasury yield, pushing above 4% for the first time in nearly a week. Higher yields slice into the value of future profit for tech and other growth companies.

☆ SVB customers tried to withdraw nearly all the bank’s deposits over two days, Fed's Barr testifies
▼ + stars: | 2023-03-28 | by ( Hugh Son | ) www.cnbc.com time to read: +2 min

The run on Silicon Valley Bank's deposits this month went far deeper than was initially known. Regulators shuttered SVB on March 10 in the biggest bank failure since the 2008 financial crisis. The combined withdrawal figure of $142 billion represents a staggering 81% of SVB's $175 billion in deposits as of the end of last year. Lawmakers summoned top U.S. banking regulators to Washington to explain why Silicon Valley Bank and Signature Bank collapsed earlier this month. In fact, Fed supervisors began warning SVB management about the risk that higher interest rates posed to the bank's balance sheet in November 2021, Barr testified.

☆ SVB sale puts too-big-to-fail risk in a new bottle
▼ + stars: | 2023-03-28 | by ( John Foley | ) www.reuters.com time to read: +4 min

The sale of SVB to rival First Citizens Bancshares (FCNCA.O) addresses the first part, and doubles down on the second. First Citizens snapped up $110 billion of SVB’s assets over the weekend, at a generous $16.5 billion discount to book value. And for the Federal Deposit Insurance Corp, which is handling SVB’s sale, First Citizens chief Frank Holding is a known quantity. In SVB’s case, the FDIC has agreed to absorb some potential losses in the failed bank’s loan book. The FDIC expects its fund for managing failed banks will take a $20 billion hit.

☆ Morning Bid: Swinging between bank fears and rate risks
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +5 min

A look at the day ahead in U.S. and global markets from Mike DolanMarkets seem caught between the devil and the deep blue sea. Easing concerns about bank stability this week have merely re-introduced interest rate risk, reining in any suggestion of a runaway relief rally as the first quarter closes on Friday. While nerves persist over March bank failures and contagion fears, central banks are still faced with punchy growth and inflation and will likely switch attention back to cooling that down once they're assured banks can take the strain. But interest rate markets are already correcting as signs of stability in the banking arena emerge. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ Premarket stocks: Banking chaos could break the strong job market
▼ + stars: | 2023-03-28 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —The job market has remained strong even as the Federal Reserve has spent a full year attempting to cool off the economy by raising interest rates. But economists think that the recent banking turmoil may be what finally raises unemployment. Even with those big job cuts, the labor market in the United States remains white hot. Since the pandemic, regional banks “have provided a vast majority of lending to small firms, underwriting local small business formation,” said Philip Wool, an analyst with asset manager Rayliant. AI will likely lead to job loss, they wrote, but technological innovation that initially displaces workers has historically created employment growth over long haul.

☆ Fed's Barr says first learned of risks at SVB weeks before it failed
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +1 min

March 28 (Reuters) - The U.S. Federal Reserve's head of banking supervision said Tuesday he was first made aware of the interest rate risk-related issues at Silicon Valley Bank in mid-February, just weeks before its failure. "The staff highlighted the interest-rate risk that was present at Silicon Valley Bank and indicated that they were in the middle of a further review," Barr said. "I believe that is the first time that I was told about interest-rate risk at Silicon Valley Bank." In mid-2022, Fed staff deemed the bank's management to be deficient and barred the bank from growing through mergers or acquisitions, Barr said. "To the best of my knowledge I first learned about the issues at Silicon Valley Bank with respect to interest rate risk in mid-February of 2023," Barr said.

☆ 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.

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