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☆ Stock futures rise slightly after Nasdaq falls for a second day: Live updates
▼ + stars: | 2023-03-28 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

U.S. stock futures ticked higher Tuesday night after the major averages declined on the back of higher bond yields. Dow Jones Industrial Average futures rose by 41 points, or 0.13%. S&P 500 and Nasdaq 100 futures climbed 0.14% and 0.09%, respectively. The Nasdaq Composite closed down 0.45% during the regular session on Tuesday, falling for a second straight day as rising yields weighed on tech stocks. Economists polled by Dow Jones forecast a decline of 3% in February, down from a rise of 8.1% the previous month.

☆ Morning Bid: Calm returns: Investors switch to bank fundamentals
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +3 min

A look at the day ahead in European and global markets from Anshuman DagaTurbulence in global markets is gradually giving way to stability. A day after regional U.S. lender First Citizens BancShares moved to scoop up the assets of failed Silicon Valley Bank, brave investors can probably begin to ask, "Is the worst over?" A strong show of confidence is coming from U.S. authorities as bank regulators say the system is sound but rules need review. A recover in U.S. markets, especially in beaten-down bank shares, lifted Asian stocks on Monday while the safe-haven dollar declined. While the analysts expect a continuation of declining credit growth which is consistent with monetary tightening, they don't expect any credit crunch.

WASHINGTON, March 28 (Reuters) - Lawmakers are expected to put top U.S. bank regulators on the defensive over the unexpected failures of regional lenders Silicon Valley Bank and Signature Bank when they testify before Congress on Tuesday. Regulators have vowed to review their rules and procedures after the twin failures while insisting the overall system remains sound. Tuesday's hearing at the Senate Banking Committee will give lawmakers the chance to press watchdogs on what went wrong on their watch, and push preferred policy prescriptions. They just didn't," said Sen. Tim Scott of South Carolina, the top Republican on the Senate Banking Committee, at a banking industry conference last week. Some Democrats, including major bank critic Senator Elizabeth Warren of Massachusetts, have also argued a 2018 bank deregulation law is to blame.

March 29 (Reuters) - A look at the day ahead in Asian markets from Jamie McGeever. An interest rate decision in Thailand and Australian inflation top a light Asian calendar on Wednesday, with broader risk appetite likely to be tempered by a further rebound in U.S. bond yields. But this relief is running up what looks like a renewed spike higher in bond yields and borrowing costs, which is dampening risk appetite. One curiosity is the dollar, weakening again on Tuesday despite the rise in U.S. bond yields. Indeed it mostly struggled to catch a safe-haven bid when the banking stresses were most acute and is now struggling even when U.S. yields are rising.

☆ Fed Official Calls Silicon Valley Bank Failure a ‘Textbook Case of Mismanagement’
▼ + stars: | 2023-03-27 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

Michael Barr, the Fed’s top banking regulator, says the central bank is reviewing its supervision of Silicon Valley Bank. WASHINGTON— The failure of Silicon Valley Bank demonstrates a “textbook case of mismanagement,” the Federal Reserve’s top banking regulator is expected to tell Senate lawmakers on Tuesday, while acknowledging there may have been shortcomings in the central bank’s oversight. “SVB failed because the bank’s management did not effectively manage its interest rate and liquidity risk, and the bank then suffered a devastating and unexpected run by its uninsured depositors,” said Michael Barr , the Fed’s vice chairman for supervision, in written testimony released by the central bank.

☆ Asia wary, US stock futures up on SVB reports
▼ + stars: | 2023-03-27 | by ( Wayne Cole | ) www.reuters.com time to read: +3 min

Helping nerves were reports First Citizens BancShares Inc (FCNCA.O) was in advanced talks to acquire Silicon Valley Bank (SIVB.O) from the Federal Deposit Insurance Corp.S&P 500 futures firmed 0.5% in early trade while Nasdaq futures added 0.4%. "The current level of credit default swaps for European banks is just a little lower than it was during the height of the European financial crisis in 2013," noted Naeem Aslam Chief Investment Officer at Zaye Capital Markets. "If these CDS do not normalise, it is highly likely stock market may continue to suffer for many days." Over in the United States, depositors have been fleeing smaller banks for their larger cousins or to money market funds. Flows to money market funds have risen by more than $300 billion in the past month to a record atop $5.1 trillion.

☆ Fed's Barr calls Silicon Valley Bank failure a 'textbook case of mismanagement'
▼ + stars: | 2023-03-27 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

The Federal Reserve's top banking regulator said Monday that the failure of Silicon Valley Bank was due largely to mismanagement, though he noted that regulation and oversight also need to step up. "To begin, SVB's failure is a textbook case of mismanagement," he said. Along with the examination into what happened specifically with the bank, Barr also noted that the probe will examine whether the Fed's testing of risk was adequate. He pointed out that the supervisors identified problems with SVB's liquidity risk management as far back as late-2021. Part of the review also will look at whether more stringent standards would have pushed SVB to have a better handle on its liquidity risk.

☆ Fed's Barr says regulators committed to ensuring 'all deposits' are safe
▼ + stars: | 2023-03-27 | by ( Pete Schroeder | ) www.reuters.com time to read: +2 min

In prepared testimony, Fed Vice Chair for Supervision Michael Barr added that the banking system is "strong and resilient." Barr said SVB's collapse was a "textbook case of mismanagement," citing the firm's concentrated business model, exceedingly fast growth, failure to manage its interest rate risk, and reliance on uninsured deposits. Supervisors told bank senior management in October 2022 of its concern with the bank's interest rate risk profile, Barr said. He added Fed leaders in Washington were briefed on the impact of rising interest rate on some banks' financials, and SVB was highlighted. The Fed is undertaking an internal review of its supervision of the bank, and Barr said he welcomes external reviews as well.

☆ SVB failure is a ‘textbook case of mismanagement,’ top Fed regulator tells Congress
▼ + stars: | 2023-03-27 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

“SVB’s failure is a textbook case of mismanagement,” Barr says in testimony to be delivered before the Senate Banking Committee. “Our banking system is sound and resilient, with strong capital and liquidity,” Barr said. In his testimony, Barr discloses that near the end of 2021, bank supervisors found “deficiencies” in the bank’s liquidity risk management. That resulted in six supervisory findings linked to SVB’s liquidity stress testing, contingency funding and liquidity risk management. Barr said the Fed will weigh whether the applying those tougher rules to SVB would have helped the bank manage the risks that led to its failure.

☆ Stock futures are flat on Monday evening: Live updates
▼ + stars: | 2023-03-27 | by ( Samantha Subin | ) www.cnbc.com time to read: +2 min

Stock futures inched higher in overnight trading after the S&P 500 posted its third positive session in a row and banking sector concerns continued to ease. Meanwhile, S&P 500 and Nasdaq 100 futures added 0.11% each. Investors fought to extend last week's gains, but tech shares came under pressure. The Dow Jones Industrial Average added 194.55 points, or 0.6%, while the S&P 500 gained 0.16%. Beaten-up regional banking stocks, including First Republic , climbed along with the SPDR S&P Regional Banking ETF (KRE ).

Asian markets could rebound on Tuesday from their sluggish start to the week, after a deal to buy the assets of stricken U.S. bank Silicon Valley Bank (SVB) prompted a relief rally in financials and allayed fears of deeper systemic stress. Treasury's sale of $43 billion five-year notes on Tuesday and $35 billion of seven-year notes on Wednesday will be worth monitoring. There are no central bank policy decisions on Tuesday, but investors can expect a slew of headlines from central bank officials around the world to hit their screens. In Asia, Bank of Japan governor Haruhiko Kuroda gives a speech, and finance ministers and central bank governors of the ASEAN nations attend a three-day summit in Bali. European Central Bank and Bank of England chiefs Christine Lagarde and Andrew Bailey head a raft of European policymaker events.

☆ First came bank failures. Now comes the House hearing
▼ + stars: | 2023-03-26 | by ( Krystal Hur | ) edition.cnn.com time to read: +6 min

New York CNN —Federal regulators are being called to testify before the House Financial Services Committee on Tuesday about the collapse of Silicon Valley Bank and Signature Bank. What lawmakers are saying: Elected officials want a review of what happened at Silicon Valley Bank and Signature Bank earlier this month, as well as stricter regulations to prevent it from happening again. Regulators on March 12, just days after SVB collapsed, announced a guarantee of all deposits at the bank and Signature Bank. What to expect: It’s unclear what will come of the hearings on SVB and Signature Bank. Wednesday: The House Financial Services Committee’s hearing on the banking crisis continues for a second day.

[1/2] An employee holds the door open at the Silicon Valley Bank branch office in downtown San Francisco, California, U.S., March 13, 2023. Supervision of large banks like SVB, which was the 16th biggest U.S. bank at the time of its failure, is a shared responsibility of bank examiners employed by the regional Fed bank and Fed Board staff in Washington. Fed Chair Jerome Powell said this week he wants to identify "what went wrong here". Bank examiners at San Francisco Fed had flagged escalating problems at the Santa Clara-based bank suggesting issues with its ability to meet short-term cash needs like depositor withdrawals. As San Francisco Fed chair, Mehran headed the search committee that hired Daly for the top job at the bank in 2018.

☆ Dominion’s Weak Case Against Fox
▼ + stars: | 2023-03-24 | by ( William P. Barr | ) www.wsj.com time to read: +1 min

Blinded by resentment at Fox’s success as an alternative media voice, many media organizations offered a distorted narrative—largely parroting Dominion’s spin—that the disclosures doom Fox’s legal defense. Commentators from the New York Times , Washington Post, CNN, MSNBC and other outlets, gleeful at the prospect of a Fox setback, cheer on as the defamation case heads toward a trial date. But the real significance of the disclosures is exactly the opposite of what these media outlets claim. Two things are clear: First, if the applicable law is faithfully applied, the facts completely upend Dominion’s defamation claim against Fox. The case should be decided in Fox’s favor, if not at the trial stage, then on appeal.

☆ How a Fictional Band Made It to No. 1 on the Charts
▼ + stars: | 2023-03-24 | by ( Natalia Barr | ) www.wsj.com time to read: +1 min

On ‘Daisy Jones & the Six,’ musicians worked to establish a sound in keeping with the show’s 1970s setting that still felt fresh enough for today’s listeners. In the series “Daisy Jones & the Six” on Amazon’s Prime Video, a Los Angeles rock band writes and records their seminal 1976 album. The group, their rise to stardom and their mysterious breakup are all a work of fiction—but the 11-track “Aurora” is real. Since the album’s release in early March, its songs have been streamed more than 30 million times. “Aurora,” released by Atlantic Records, serves as a companion piece to the show, which is inspired in part by the lore around Fleetwood Mac.

☆ Bank fears will likely lead to even more market volatility in the week ahead
▼ + stars: | 2023-03-24 | by ( Patti Domm | In | ) www.cnbc.com time to read: +8 min

Market turbulence could reign supreme once again in the week ahead, as investors worry about the potential for more trouble rippling through the banking system. The broader market was initially under pressure Friday as investors became jittery about Deutsche Bank . "The market is saying: 'You, the Fed, do not appreciate the slowdown that is going to hit us,'" Chandler said. "The market is going to do a lot better and it held onto its gains despite all the things that rocked the market. He added that market concern about banks has risen, and there is concern credit tightening will hurt the economy.

☆ Key lawmakers say upcoming hearings on bank failures aim to boost U.S. confidence in banking sector
▼ + stars: | 2023-03-24 | by ( Chelsey Cox | ) www.cnbc.com time to read: +4 min

WASHINGTON — A bipartisan group of lawmakers overseeing the recent turmoil in the banking sector said Wednesday that they aim to increase Americans' confidence in the banking industry after Silicon Valley Bank and Signature Bank collapsed over the last two weeks. Regulators and lawmakers are also trying to contain further damage to the economy and reinforce confidence in the banking system. Sen. Tim Scott, a South Carolina Republican and ranking member of the Senate Banking Committee, also said writing new laws should take a back seat at the hearings to investigating what happened. We can't legislate that either in the financial sector or among financial institutions management, nor with the regulators." Sen. Sherrod Brown, an Ohio Democrat and chairman of Senate Banking Committee, compared the SVB collapse to the devastating train crash in East Palestine, Ohio.

☆ U.S. regulators say banking system 'sound and resilient'
▼ + stars: | 2023-03-24 | by ( David Lawder | ) www.reuters.com time to read: +3 min

WASHINGTON, March 24 (Reuters) - The multi-regulator U.S. Financial Stability Oversight Council agreed on Friday that the U.S. banking system remains "sound and resilient" despite stress on some institutions, the U.S. Treasury said in its latest statement to calm jittery markets and bank depositors. "The Council discussed current conditions in the banking sector and noted that while some institutions have come under stress, the U.S. banking system remains sound and resilient," the Treasury said in a statement. They added that the basis of the Treasury, Fed and FDIC determinations in the SVB and Signature cases "are of particular importance." Those actions to invoke "systemic risk exceptions" were taken by Yellen, President Joe Biden, the FDIC, and the Fed, which supervised Silicon Valley and Signature. Reporting by David Lawder; additional reporting by Pete Schroeder; Editing by Diane Craft and Marguerita ChoyOur Standards: The Thomson Reuters Trust Principles.

☆ Senators call on former Silicon Valley Bank, Signature Bank CEOs to testify
▼ + stars: | 2023-03-23 | by ( Chelsey Cox | ) www.cnbc.com time to read: +1 min

WASHINGTON — Bipartisan leaders of a Senate committee investigating the failures of Silicon Valley Bank and Signature Bank called Thursday for both institutions' former CEOs to testify about the collapses that have sparked fears about broader economic damage. Ex-SVB CEO Gregory Becker and former Signature CEO Joseph DePaolo "must answer for" their banks' "downfall," wrote Sens. Sherrod Brown, D-Ohio, and Tim Scott, R-S.C., in letters to the former executives. Brown and Scott are the chairman and ranking member, respectively, of the Senate Banking, Housing and Urban Affairs Committee. Brown and Scott urged the two former executives to answer the panel's questions "at a future date."

March 22 (Reuters) - The management of Silicon Valley Bank "failed badly," Federal Reserve Chair Jerome Powell said on Wednesday, but its collapse also underscores the need for better controls despite what had been escalating oversight by the Fed's own examiners. "It does kind of suggest there's a need for ...regulatory and supervisory changes, just because supervision and regulation need to keep up with what's happening," Powell said. RED FLAGSFederal Reserve bank examiners had called out problems at Silicon Valley Bank <SIVB.O> as early as 2019. In all the bank received six citations, Powell said, including both matters "requiring attention" and their escalated cousin, matters "requiring immediate attention." A key part of the bank examiner's toolkit, MRAs and MRIAs are often included in reports following regular examinations of a bank's health, or in a separate supervisory letter.

The Fed's policy-setting committee raised interest rates by another quarter of a percentage point in a unanimous decision on Wednesday, lifting its benchmark overnight interest rate to the 4.75%-5.00% range. Fed officials still feel that "some additional policy firming" may be needed, and they penciled in one more quarter-of-a-percentage-point rate increase by the end of the year. The yield on the 2-year Treasury note , which is highly sensitive to Fed rate expectations, was down more than 21 basis points in the session. Financial markets went a step further, betting that the Fed won't raise rates any further from here and will be reducing them by this summer. "The Fed has been spooked by Silicon Valley Bank and other banking turmoil.

☆ Elizabeth Warren demands Fed crackdown on large regional banks
▼ + stars: | 2023-03-22 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

New York CNN —Senator Elizabeth Warren is cranking up the pressure on the Federal Reserve following the collapse of Silicon Valley Bank. Both Silicon Valley Bank and Signature Bank fit into that asset threshold when they failed earlier this month. The bipartisan 2018 rollback of Dodd-Frank freed large regional banks in that range of assets from the toughest oversight. Notably, the letter was signed by Senator Angus King, the Maine independent who voted in favor of the 2018 rollback. Days after the bank failures, the Federal Reserve launched a review of the regulation and oversight of Silicon Valley Bank.

☆ Fed’s self-scrutiny starts off on the wrong foot
▼ + stars: | 2023-03-22 | by ( John Foley | ) www.reuters.com time to read: +7 min

Banks with assets worth $100 billion or more face elaborate reviews, which involve a body called the Large and Foreign Banking Organization Management Group. Supervisors had previously noted, and reflected to the Fed group, which vets bank ratings, that SVB had made progress in tackling some of its weaknesses. The central bank doesn’t even acknowledge the existence of the LFBO Management Group on its public-facing website. Rather than just investigate itself, the Fed board could learn from the companies it regulates. SVB was part of the Fed’s “Large and Foreign Banking Organization” supervisory regime, which covers firms with more than $100 billion of assets.

☆ Financial conditions are tightening after SVB's collapse and could slow the economy, Powell says
▼ + stars: | 2023-03-22 | by ( Jesse Pound | ) www.cnbc.com time to read: +3 min

Federal Reserve Chair Jerome Powell said Wednesday that the U.S. banking sector is strong but that the recent failure of some regional banks could cause ripple effects that slow down the economy. The central bank chief said that tighter financial conditions caused by more stringent lending decisions from banks could have a similar impact as further hikes from the Fed. Powell's comments come after regional banks have come under significant pressure this month. SVB's management "failed badly" in managing its interest rate risks, while other banks have managed to handle the hikes, Powell said. The collapse of Silicon Valley Bank has led to more scrutiny on the Federal Reserve's supervisory role over banks, especially from Sen. Elizabeth Warren (D-MA).

☆ US Senate Banking Committee to hold hearings on Silicon Valley Bank collapse
▼ + stars: | 2023-03-21 | by ( Moira Warburton | ) www.reuters.com time to read: +2 min

WASHINGTON, March 21 (Reuters) - The U.S. Senate Banking Committee will hold the first of several hearings on the collapse of Silicon Valley Bank and Signature Bank on March 28, Democratic Chairman Sherrod Brown said on Tuesday. "It is critical that we get to the bottom of how Silicon Valley Bank and Signature Bank collapsed so that we can maintain a strong banking system, protect Americans' hard-earned money, and hold those responsible accountable, including the CEOs," Brown said. Silicon Valley Bank was taken over by federal regulators on March 10, with Signature Bank following suit a few days later. Multiple federal agencies - including the U.S. Department of Justice and the Securities and Exchange Commission - are probing SVB. Last week, Brown told reporters that new bank industry legislation is unlikely to emerge from Congress.

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