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☆ First Citizens Acquires Much of Failed Silicon Valley Bank
▼ + stars: | 2023-03-27 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

The collapse of Silicon Valley Bank roiled markets. First Citizens Bancshares Inc., one of the nation’s largest regional banks, is buying big pieces of Silicon Valley Bank more than two weeks after the lender’s collapse sent tremors through the banking system. The Federal Deposit Insurance Corp. said First Citizens is acquiring all of Silicon Valley Bank’s deposits, loans and branches, which will open Monday morning under the new ownership.

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☆ SVB Collapse Shows Smaller Banks Can Pose Risk in Numbers
▼ + stars: | 2023-03-20 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

WASHINGTON—For 15 years, regulators and legislators have assumed the biggest risks to the financial system came from a handful of “too big to fail” banks. This month’s failure of Silicon Valley Bank and Signature Bank—and last week’s bank-led rescue of a third lender, First Republic Bank —suggests that focus on size may have blinded officials to the threat posed by smaller lenders, observers and former regulators say.

☆ Fed Raised Concerns About SVB’s Risk Management in 2019
▼ + stars: | 2023-03-20 | by ( Andrew Ackerman | Dave Michaels | ) www.wsj.com time to read: 1 min

Photo: Preston Gannaway for The Wall Street JournalSVB got numerous warnings from the central bank over time. WASHINGTON—The Federal Reserve raised concerns about risk management at Silicon Valley Bank starting at least four years before its failure earlier this month, documents show. In January 2019, the Fed issued a warning to SVB over its risk-management systems , according to a presentation circulated last year to employees of SVB’s venture-capital arm, which was viewed by The Wall Street Journal.

☆ First Republic Bank Looms Large for U.S. Regulators After Credit Suisse Sale
▼ + stars: | 2023-03-19 | by ( David Benoit | Andrew Ackerman | ) www.wsj.com time to read: 1 min

U.S. policy makers warily watched the rushed rescue of Credit Suisse Group AG over the weekend, hoping that its purchase by UBS Group AG would stem a slide in financial stocks triggered by the recent collapse of two regional banks. Late Sunday, the Fed and five major central banks announced a coordinated effort to improve liquidity by moving U.S. dollars among themselves each day, starting Monday, instead of once a week. The central banks then lend those dollars out to financial institutions, in an effort to backstop other countries’ funding needs should strains emerge in global markets.

☆ Biden Asks Congress for More Authority to Punish Bank Executives
▼ + stars: | 2023-03-17 | by ( Andrew Restuccia | Andrew Ackerman | ) www.wsj.com time to read: 1 min

WASHINGTON—President Biden called on Congress to pass legislation to impose tougher penalties on bank executives who are deemed responsible for the collapse of financial institutions. The administration is seeking to shore up confidence in the banking system, after the collapse of two medium-size firms and a bank-led rescue for a third.

For more than a decade after the collapse of Lehman Brothers in 2008, Washington’s regulatory watchdogs sought to ensure that they would never again face fraught weekend deliberations about propping up the financial system from a bank failure. Last weekend, they did.

☆ Fed to Consider Tougher Rules for Midsize Banks After SVB, Signature Failures
▼ + stars: | 2023-03-15 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

The U.S. Treasury building in Washington, D.C.WASHINGTON—The Federal Reserve is rethinking a number of its own rules related to midsize banks following the collapse of two lenders, potentially extending restrictions that currently only apply to the biggest Wall Street firms. A raft of tougher capital and liquidity requirements are under review, as well as steps to beef up annual “stress tests” that assess banks’ ability to weather a hypothetical recession, according to a person familiar with the latest thinking among U.S. regulators. The rules could target firms with between $100 billion to $250 billion in assets, which at present escape some of the toughest requirements.

☆ Biden Says Banking System Is Safe After Silicon Valley Bank Collapse
▼ + stars: | 2023-03-13 | by ( Sabrina Siddiqui | Andrew Ackerman | ) www.wsj.com time to read: 1 min

WASHINGTON—President Biden on Monday said the banking system is safe, as he stressed steps taken to limit the fallout from the collapse of Silicon Valley Bank and shore up confidence in the financial system. “Thanks to the quick action of my administration over the past few days, Americans can have confidence that the banking system is safe,” Mr. Biden said in televised remarks.

☆ FDIC Planning Another Silicon Valley Bank Auction
▼ + stars: | 2023-03-13 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

The FDIC seized SVB after a run on deposits doomed its efforts to raise fresh capital and shore up its finances. WASHINGTON—Regulators are planning to take another crack at auctioning failed Silicon Valley Bank , according to people familiar with the matter, after they were unable to find a buyer for the firm over the weekend. Officials from the Federal Deposit Insurance Corp. told Senate Republicans on Monday that they had additional flexibility to sell the firm now that regulators had declared its failure a threat to the financial system, according to people familiar with the briefing and notes on the discussion reviewed by The Wall Street Journal.

☆ Barney Frank pushed to ease financial regulations after taking seat on bank board: WSJ
▼ + 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 EmailBarney Frank pushed to ease financial regulations after taking seat on bank board: WSJAndrew Ackerman of the Wall Street Journal joins CNBC's Brian Sullivan and 'Last Call' to discuss Barney Frank's efforts to ease financial regulations after he joined the. board of Signature Bank.

Regulators said that depositors at Silicon Valley Bank will have access to all of their money on Monday. U.S. regulators took control of a second bank Sunday and raced to roll out emergency measures to stem potential spillovers from Friday’s swift collapse of Silicon Valley Bank, backstopping both firms’ uninsured depositors and making more funding available to the banking system. Regulators announced Signature Bank, one of the main banks for cryptocurrency companies, was closed Sunday. The New York bank’s depositors will be made whole, officials said.

☆ Regulators Hold Auction for Silicon Valley Bank
▼ + stars: | 2023-03-12 | by ( Andrew Ackerman | Andrew Duehren | ) www.wsj.com time to read: 1 min

Photo: Preston Gannaway for The Wall Street JournalThe Federal Deposit Insurance Corp. seized Silicon Valley Bank on Friday. Regulators are auctioning Silicon Valley Bank as part of a broader effort to contain the fallout from its failure on Friday. Treasury officials confirmed the auction to lawmakers and staff on a call Sunday afternoon, according to people familiar with the matter, saying bids were expected by 2 p.m. Eastern Time.

☆ Where Were the Regulators as SVB Crashed?
▼ + stars: | 2023-03-11 | by ( Ben Eisen | Andrew Ackerman | ) www.wsj.com time to read: 1 min

Silicon Valley Bank’s failure boils down to a simple misstep: It grew too fast using borrowed short-term money from depositors who could ask to be repaid at any time, and invested it in long-term assets that it was unable, or unwilling, to sell. When interest rates rose quickly, it was saddled with losses that ultimately forced it to try to raise fresh capital, spooking depositors who yanked their funds in two days. The question following the bank’s takeover Friday: How could regulators have allowed it to grow so quickly and take on so much interest-rate risk?

☆ Senate Plan Aims to Revitalize Beaten-Down Communities
▼ + stars: | 2023-03-07 | by ( Andrew Ackerman | ) www.wsj.com time to read: 1 min

WASHINGTON—A bipartisan group of U.S. lawmakers is reviving efforts to spur the renovation of single-family homes in blighted neighborhoods, the latest effort to dent a long-term national housing shortage. Legislation introduced in the Senate aims to create a new tax credit to cover a developer’s costs when the renovation of a crumbling building exceeds a home’s potential selling price, so the project becomes feasible.

☆ What Will Be Harder for the Fed? Taming Inflation or Its Office Renovation Expenses?
▼ + stars: | 2023-03-05 | by ( Andrew Ackerman | Nick Timiraos | ) www.wsj.com time to read: 1 min

WASHINGTON—Anyone with a recent home renovation project that suffered from rising costs, shortages and delays now has distinguished company: The Federal Reserve, the U.S. institution charged with controlling inflation, is also struggling to hold down expenses on its palatial digs. The central bank is in the middle of a long-running project to overhaul three adjacent office buildings overlooking the National Mall into a state-of-the-art campus. The price tag for the endeavor has swelled to nearly $2.5 billion, up from an estimate of $1.9 billion in 2019—an increase of about 34%.

☆ Effort to Ban Stock Trading Among Executive Branch Officials Renewed
▼ + stars: | 2023-03-05 | by ( Andrew Ackerman | Rebecca Ballhaus | ) www.wsj.com time to read: 1 min

Sen. Josh Hawley of Missouri introduced a bill that would ban lawmakers and their spouses from owning or trading individual stocks last year but it didn’t move forward. WASHINGTON—Sen. Josh Hawley (R., Mo.) is expected to introduce legislation Monday that would ban senior executive branch officials from owning or trading individual stocks, a push to toughen restrictions on conflicts of interest in the federal government. Mr. Hawley’s bill is the latest fallout from a Wall Street Journal series that identified a sweeping pattern of financial conflicts across the executive branch, including finding that more than 2,600 officials invested in companies overseen by their agencies.

☆ Senate Votes 50-46 to Reverse ESG Rule for Retirement Funds
▼ + stars: | 2023-03-01 | by ( Andrew Ackerman | Lindsay Wise | ) www.wsj.com time to read: 1 min

Republican Sen. Mike Braun of Indiana introduced the measure in the Senate, where it is expected to pass. WASHINGTON—The Senate voted Wednesday to overturn a new Biden administration regulation that would allow retirement-plan managers to consider climate change and other factors when they make investment decisions, setting up what could be President Biden’s first veto. The Senate action, with 50 in favor and 46 against, comes a day after the House voted to toss the regulation on environmental, social and corporate governance guidelines, or ESG, by a vote of 216-204.

☆ House Republicans Plan Wider Media Access to Jan. 6 Video
▼ + stars: | 2023-02-28 | by ( Andrew Ackerman | Siobhan Hughes | ) www.wsj.com time to read: 1 min

Pro-Trump supporters attempted to stop the certification of President Biden’s electoral-college win by storming into the Capitol on Jan. 6, 2021. WASHINGTON—House Republican lawmakers said they plan to allow a broad group of media outlets to view security-camera footage from the Jan. 6, 2021, riot at the U.S. Capitol, about a week after Fox News host Tucker Carlson said his show was granted access to the tapes. House Majority Leader Steve Scalise (R., La.) said Tuesday that lawmakers would distribute the footage to a wide group of outlets. The comments came after Democrats and some Republicans voiced concerns about Fox having exclusive access to the video.

☆ Supreme Court to Consider Consumer Financial Protection Bureau’s Funding
▼ + stars: | 2023-02-27 | by ( Jess Bravin | Andrew Ackerman | ) www.wsj.com time to read: 1 min

The CFPB was created as part of the 2010 Dodd-Frank financial overhaul. WASHINGTON—The Supreme Court said Monday it would review an appeals court decision striking down the independent funding system Congress designed for the Consumer Financial Protection Bureau, a ruling that conflicted with other lower-court rulings and placed a cloud over the regulator’s activities. The CFPB was created as part of the 2010 Dodd-Frank financial overhaul, and was intended to safeguard consumer welfare following the financial crisis. Conservatives have challenged the agency’s legitimacy on various grounds, and in 2020 the Supreme Court struck down a provision preventing the president from removing the CFPB director without cause.

☆ Supreme Court to Hear Challenge to Consumer Bureau’s Funding
▼ + stars: | 2023-02-27 | by ( Jess Bravin | Andrew Ackerman | ) www.wsj.com time to read: 1 min

The CFPB was created as part of the Dodd-Frank financial overhaul intended to safeguard consumer welfare. WASHINGTON—The Supreme Court said it would review an appeals court decision striking down the independent funding system Congress designed for the Consumer Financial Protection Bureau, a ruling that conflicted with other lower-court rulings and placed a cloud over the regulator’s activities. The CFPB was created as part of the 2010 Dodd-Frank financial overhaul, and was intended to safeguard consumer welfare following the financial crisis. Conservatives have challenged the agency’s legitimacy on various grounds, and in 2020 the Supreme Court struck down a provision preventing the president from removing the CFPB director without cause.

☆ Jon Tester’s Decision to Run Again Boosts Hopes of Senate Democrats
▼ + stars: | 2023-02-22 | by ( Andrew Ackerman | Eliza Collins | ) www.wsj.com time to read: 1 min

‘Montanans need a fighter holding Washington accountable and I’m running to defend our Montana values,’ said Sen. Jon Tester. WASHINGTON—Sen. Jon Tester said Wednesday that he would seek reelection in 2024 in solidly conservative Montana, boosting Democrats’ hopes of hanging on to control of the Senate in what is expected to be a difficult landscape for the party. “I am running for re-election so I can keep fighting for Montanans and demand that Washington stand up for our veterans and lower costs,” Mr. Tester said in a statement. “Montanans need a fighter holding Washington accountable and I’m running to defend our Montana values.”

☆ Biden Administration to Cut Mortgage Insurance Costs for Lower-Income Buyers
▼ + stars: | 2023-02-21 | by ( Andrew Ackerman | Tarini Parti | ) www.wsj.com time to read: 1 min

WASHINGTON—The Biden administration is expected to trim costs under a mortgage program for first-time and lower-income buyers, a bid to boost affordability while median home prices remain near record highs, according to people familiar with the move. The Federal Housing Administration will reduce the fee borrowers pay to have their mortgages insured by the agency by about $800 a year on a typical loan, or 0.3 percentage point, the people said.

Austan Goolsbee, currently president of the Chicago Fed, served as a top economic adviser to former President Barack Obama. The White House is considering nominating Austan Goolsbee , who became president of the Federal Reserve Bank of Chicago last month, to serve as vice chair of the Federal Reserve’s board of governors, according to people familiar with the matter. Mr. Goolsbee, 53, served as a top economic adviser to former President Barack Obama and before his appointment this year was a professor of economics at the University of Chicago’s Booth School of Business.

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