DIRS.INFO The most relevant business & tech news

☆ What happens during a ‘credit crunch’ — and how you can prepare for one
▼ + stars: | 2023-03-20 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

But what is a credit crunch and how might you prepare? Loans would be tougher to getDuring a credit crunch, banks significantly tighten their lending standards. Banks may prioritize a healthier balance sheetA credit crunch seems likely given banking woes that have unfurled over the past two weeks. A severe credit crunch isn't a foregone conclusion, though. How to prepare for a credit crunchThere are some steps consumers can take now to prepare for a possible credit crunch.

☆ U.S. lawmakers to examine merits of higher bank deposit insurance cap
▼ + stars: | 2023-03-19 | by ( David Lawder | ) www.reuters.com time to read: +4 min

[1/4] Signs explaining Federal Deposit Insurance Corporation (FDIC) and other banking policies are shown on the counter of a bank in Westminster, Colorado November 3, 2009. "I think that lifting the FDIC insurance cap is a good move," Senator Elizabeth Warren, a Democrat, said on CBS's "Face The Nation" program, referring to the Federal Deposit Insurance Corporation's current $250,000 limit per depositor. During the financial crisis that erupted in 2008, the FDIC temporarily backstopped all deposits to safeguard smaller banks. Pressure on midsized and smaller banks from deposit outflows continued on Friday despite a move by several large banks to deposit $30 billion into First Republic Bank (FRC.N), an institution rocked by the failure of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O). McHenry said he wanted to examine the trade-offs of higher deposit insurance limits, "the moral hazard of having more risk taking in the financial sector, and also the impact it would have on community banks."

☆ U.S. lawmakers to examine merits of higher FDIC bank deposit insurance cap
▼ + stars: | 2023-03-19 | by ( ) www.cnbc.com time to read: +3 min

"I think that lifting the FDIC insurance cap is a good move," Senator Elizabeth Warren, a Democrat, said on CBS's "Face The Nation" program, referring to the Federal Deposit Insurance Corporation's current $250,000 limit per depositor. "What I will do though, legislatively, and in an oversight function, is to determine whether or not we need to address the FDIC deposit level," McHenry told the same CBS program. During the financial crisis that erupted in 2008, the FDIC temporarily backstopped all deposits to safeguard smaller banks. Pressure on midsized and smaller banks from deposit outflows continued on Friday despite a move by several large banks to deposit $30 billion into First Republic Bank, an institution rocked by the failure of Silicon Valley Bank and Signature Bank. McHenry said he wanted to examine the trade-offs of higher deposit insurance limits, "the moral hazard of having more risk-taking in the financial sector, and also the impact it would have on community banks."

☆ Founders and VCs reveal why they're sticking with the failed Silicon Valley Bank, at least for now: 'We owe them to keep them healthy'
▼ + stars: | 2023-03-18 | by ( Stephanie Palazzolo | Samantha Stokes | ) www.businessinsider.com time to read: +5 min

But for some startup customers of the failed Silicon Valley Bank, there's nothing to fix about their banking situation — yet. After Silicon Valley Bank's ultimate failure on March 10, federal regulators stepped to seize control and announced two days later that all depositors would be made whole. But some founders and VCs, like Shaprio, have chosen to stay with their hometown bank. Although their own business' health comes first, for many, the survival of Silicon Valley Bank is crucial, as a long-standing emblem of the tech community and a figure that welcomed risky startups when traditional institutions turned them down. And Silicon Valley Bank, by being there for 40 years, is the hub of this community, it's the thing the most startups have in common.

☆ Midsize U.S. banks reportedly ask the FDIC to insure all deposits for two years
▼ + stars: | 2023-03-18 | by ( ) www.cnbc.com time to read: 1 min

The Silicon Valley Bank headquarters in Santa Clara, California, on March 13, 2023. A coalition of midsize U.S. banks, Mid-Size Bank Coalition of America (MBCA), asked regulators to extend FDIC insurance to all deposits for the next two years, Bloomberg News reported on Saturday citing an MBCA letter to regulators. This is breaking news. Please check back for updates.

☆ Yellen says uninsured deposits may be at risk in future bank failures. Here’s how FDIC coverage works
▼ + stars: | 2023-03-17 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

How FDIC coverage worksThe limit for FDIC coverage is $250,000 per depositor, per bank, in each account ownership category. The majority of Americans are going to be covered by FDIC insurance. For example, a married couple with a business may have up to $250,000 insured in an account in one spouse's name, up to $250,000 insured in an account in the other spouse's name and up to $250,000 insured in a business account. How to check, boost FDIC protectionIf you want to know whether your deposits are FDIC-insured, check your bank statement, Jenkin said. Not all accounts provide FDIC coverage, Jenkin noted.

☆ Silicon Valley Bank's CEO and CFO were ousted but other bank executives still have their jobs — and they're wooing new customers, acting CEO told clients.
▼ + stars: | 2023-03-17 | by ( Kali Hays | Darius Rafieyan | Dakin Campbell | ) www.businessinsider.com time to read: +5 min

Clients were told that the CEO and CFO are out of SVB, while other managers remain. His message to them: Silicon Valley Bank was fully operational, protected by unlimited FDIC insurance even for new deposits, and all business was functioning normally, as if the bank run on Friday never happened. In this case, Silicon Valley Bridge Bank is a full-service bank." Retaining management is, perhaps, a good outcome for the moment for SVB employees who have been cast in a pall of uncertainty since last week. SVB employees now seem to fall into three groups, according to the recruiter, who has spoken with SVB employees in recent days.

☆ Moral hazard? Hawkish pause? What these terms mean and why should investors care
▼ + stars: | 2023-03-17 | by ( Zev Fima | ) www.cnbc.com time to read: +7 min

Two phrases are being thrown around on CNBC and elsewhere: "moral hazard" and "hawkish pause." Now that's not to say there isn't a middle ground, a scenario in which deposits are 100% guaranteed nationwide and regulations are put in place to protect against any resulting moral hazard. This is an interesting solution that does address the concern of moral hazard — at least at First Republic Bank — while providing needed liquidity. Given the Fed's dual mandate to ensure price stability and maximize unemployment, the argument for a rate hike is relatively straightforward — keep going until inflation reaches more sustainable levels. Two possible scenarios: a rate hike with more dovish commentary or the "hawkish pause."

☆ Why our brains are hard-wired for bank runs like those that toppled SVB, Signature
▼ + stars: | 2023-03-17 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

Rebecca Noble | AFP | Getty ImagesCustomer fear became a self-fulfilling prophecyOur brains are hard-wired for a bank run. Last week, bank customers saw their peers run for the exits; sensing danger, that herd mentality meant they also rushed to withdraw their cash. More from Personal Finance:What small businesses should look for when choosing a bankWhat Signature Bank, Silicon Valley Bank failures mean for consumers and investorsWhat to know about FDIC insuranceWhy the bank run on SVB seemed 'rational' for someThere are firewalls against this kind of behavior. The Federal Deposit Insurance Corporation, or FDIC, backstops bank customers' savings up to $250,000. "If you don't rationally understand the way the market interprets signals, you can make a mistake like Silicon Valley Bank," Shefrin said.

☆ Stock futures are flat after banks bolster deposits at First Republic: Live updates
▼ + stars: | 2023-03-16 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

U.S. stock futures were flat on Thursday night. S&P 500 and Nasdaq 100 futures dipped 0.03% and 0.09%, respectively. Shares of First Republic Bank slid about 24% in after-hours trading, a sharp reversal from its nearly 10% surge in the regular session. These gains came after a group of banks said it would aid First Republic with $30 billion in deposits as a sign of confidence in the banking system. We urge people to be a little bit cautious, particularly until we hear what the Fed has to say," Hatfield added.

☆ First Republic Bank plunges 30% on report that it's evaluating strategic alternatives including a potential sale
▼ + stars: | 2023-03-16 | by ( Matthew Fox | ) www.businessinsider.com time to read: +2 min

First Republic Bank plunged 30% on Thursday following a report that it was considering a sale. The bank has been roiled by the collapse of its regional banking peer, Silicon Valley Bank. Almost 70% of First Republic's deposits have no FDIC insurance and the bank has $4 billion in unrealized bond losses. First Republic Bank has many similarities to Silicon Valley Bank, including the fact that nearly 70% of First Republic Bank's deposit base doesn't have FDIC insurance. First Republic Bank is also sitting on $4 billion in unrealized losses on its held-to-maturity bond portfolio, which is what sparked the initial downfall for Silicon Valley Bank last week.

WASHINGTON, March 16 (Reuters) - The U.S. banking system remains sound and Americans can feel confident that their deposits are safe, Treasury Secretary Janet Yellen said on Thursday, but she denied that emergency actions after two large bank failures mean that a blanket government guarantee now existed for all deposits. "I can reassure the members of the committee that our banking system is sound, and that Americans can feel confident that their deposits will be there when they need them," Yellen said. More than $9.2 trillion of U.S. bank deposits were uninsured at the end of last year, accounting for more than 40% of all deposits, according to U.S. central bank data. Those uninsured deposits are not distributed evenly across the country, FDIC data shows. She also noted the high level of uninsured deposits at Silicon Valley as an aggravating factor.

☆ How 'bailout' became a dirty word
▼ + stars: | 2023-03-15 | by ( Nathaniel Meyersohn | ) edition.cnn.com time to read: +5 min

New York CNN —“Bailout” became a curse word in American politics following the 2008 global financial crisis, fueling backlash among people who felt the risks and potential consequences of capitalism didn’t apply to big corporations or the wealthy. A financial bailout is generally considered to be providing compensation for losses when there was reckless, irresponsible or nefarious behavior at play, he added. “Bailout is a dirty word. The politics of bailoutsBailout politics have returned in response to the Silicon Valley and Signature meltdown. If those depositors are made whole, that would constitute a bailout, he said.

☆ 3 ways to easily check if your bank account is FDIC insured
▼ + stars: | 2023-03-14 | by ( Jason Stauffer | Elizabeth Gravier | ) www.cnbc.com time to read: +7 min

Nearly all banks are insured by the FDIC, which protects your deposits up to $250,000 (per person, bank, and account type). CNBC Select explains how to check if your bank is an FDIC member, as well as what you need to know about the types of bank accounts the FDIC protects. 3 ways to check if your bank is FDIC insuredThe FDIC makes it easy to check if your bank is insured. Check online You can easily discover if your bank is FDIC insured using the BankFind Suite tool. Marcus by Goldman Sachs High Yield Online Savings Learn More Goldman Sachs Bank USA is a Member FDIC.

☆ Charles Schwab shares bought by CEO, Baron Capital - CNBC
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +2 min

March 14 (Reuters) - Charles Schwab (SCHW.N) chief executive officer Walt Bettinger said he bought 50,000 shares of the company while billionaire investor Ron Baron said he "modestly increased" his position in the stock, CNBC reported on Tuesday, as investors aim to buy a dip in shares amid a meltdown in financial stocks. Shares of the broker jumped 12% to $58.1 in afternoon trading, recouping losses a day after falling 12% to their lowest since November 2020. A few investors are turning bargain-hunters to cash in on stocks trading at very attractive prices. Baron, the 79-year-old founder of Baron Capital, did not disclose how much stock of Charles Schwab he purchased, according to the report. Baron Capital declined to comment while Charles Schwab did not immediately respond to a Reuters request for comment.

☆ Quotes: Global banks under pressure as SVB triggers contagion worries
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +8 min

LONDON, March 14 (Reuters) - The health of the global banking sector as interest rates rise remained in the spotlight on Tuesday in the wake of the collapse of Silicon Valley Bank (SVB). But days of wild swings in global markets and hefty losses in bank shares, left the outlook for the sector in focus. Banks are now faced with the classic problem that has threatened banks throughout history: a mismatch in terms between assets and liabilities." Hopefully we'll go over the next few days, whether or not the financial system is going to calm down or not. "It’s been an indiscriminate sell off in banking stocks, the financial sector repriced everywhere.

☆ Citi says Europe's banks are unlikely to face SVB-like issues and names 3 top picks
▼ + stars: | 2023-03-14 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

European banks are unlikely to experience the issues seen at U.S.-based Silicon Valley Bank , according to analysts at investment bank Citi, who named their three top stocks in the sector. 12, Citi analysts said there is "very limited read-across" to the European banking sector due to differences in reserve capital and regulatory framework. "In Europe we are not aware of any banks with such high deposit concentration risk," the Citi analysts added. European bank stocks to buy Citi analysts are overweight European banks, and said BBVA , Lloyds , Intesa were their "top picks." This means that European banks have not experienced a large drawdown in capital from a change in bond values, according to the analysts.

☆ FDIC insurance: Safeguarding your cash
▼ + stars: | 2023-03-14 | by ( Sharon Epperson | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFDIC insurance: Safeguarding your cashCNBC's Sharon Epperson joins 'The Exchange' to discuss how investors can safeguard their money with FDIC insured banks.

Annual Percentage Yield Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. 5.00% Minimum Deposit Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. $0 Annual Percentage Yield Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. 4.60% Minimum Deposit Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. $1,000 Annual Percentage Yield Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.

☆ Sen. Warren urges Fed Chair Powell to recuse himself from review of Silicon Valley Bank collapse
▼ + stars: | 2023-03-14 | by ( Chelsey Cox | ) www.cnbc.com time to read: +3 min

WASHINGTON — Sen. Elizabeth Warren on Tuesday pushed Fed Chair Jerome Powell to remove himself from the central bank's review of the Silicon Valley Bank collapse, accusing him of allowing dangerous practices that helped to cause its failure. The Massachusetts Democrat contended Powell's "actions to allow big banks like Silicon Valley Bank to boost their profits by loading up on risk directly contributed to these bank failures." "For the Fed's inquiry to have credibility, Powell must publicly and immediately recuse himself from this internal review," Warren said in a statement. "The events surrounding Silicon Valley Bank demand a thorough, transparent, and swift review by the Federal Reserve," Powell said in a statement Monday. The agency created the Deposit Insurance National Bank of Santa Clara to hold the insured deposits from SVB.

☆ The Fed faces a 'no-win situation' but must keep raising interest rates anyway, former FDIC and Fed official says
▼ + stars: | 2023-03-14 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

It’s a no-win situation for them,” Hoenig, the former vice chair of the Federal Deposit Insurance Corporation, told CNN in a phone interview on Monday. Raising interest rates at the Fed’s monetary policy meeting next week could add to the financial pressure facing the banking system, in part by further depressing the value of the bonds that banks are sitting on. But Hoenig, who led the Kansas City Fed during the 2008 financial crisis, urged the Fed to keep hiking rates because inflation hasn’t gone away. Nomura is going a step further, predicting the Fed will completely reverse course and start cutting interest rates next week and halt the shrinkage of its balance sheet. Hoenig said he would be “disappointed” if the Fed started to cut interest rates now, warning of “long-run consequences” that could invite a repeat of 1970s-style runaway inflation.

☆ Should you be worried about your money, your bank or the U.S. banking system? Experts weigh in
▼ + stars: | 2023-03-14 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

However, the unexpected shutdowns of Silicon Valley Bank and Signature Bank have many consumers concerned about their deposits, their bank and the U.S. banking system. Here, experts answer what a bank run is, how FDIC insurance works and whether your deposits are still secure. andresr | E+ | Getty ImagesThe short answer is "possibly," according to Stacy Francis, a certified financial planner and president and CEO of Francis Financial in New York. "This is happening, in part, because of the Federal Reserve's sharp rise in interest rates," Francis said. Further, "many banks are seeing large withdrawals from cash depositors who are looking [for higher rates] to make more money," Francis added.

☆ From using multiple banks to managing VC relationships, these are the 5 lessons every founder should have learned from the Silicon Valley Bank nightmare
▼ + stars: | 2023-03-14 | by ( Julie Bort | ) www.businessinsider.com time to read: +7 min

If something happens to one bank, such as a bank run, your company won't face ruin. Silicon Valley Bank famously required such clauses as CNBC reported, for at least some of its loans. Why Silicon Valley Bank failed: SVB's management surprised the market by unveiling bad news coupled with a planned capital raise that failed, among other factors. How Silicon Valley Bank imploded: There was lots of blame to go around. More of our Silicon Valley Bank coverage can be found here.

☆ Is the money in your bank account safe? Here's what to know if you're worried about your deposits
▼ + stars: | 2023-03-13 | by ( Jason Stauffer | Elizabeth Gravier | ) www.cnbc.com time to read: +5 min

But a checking account and savings account won't necessarily be in different categories. However, if you had a joint savings account, then the savings account balance would fall under a different category. As you're shopping around for a deposit account, you can find out if a bank is insured with the FDIC's BankFind tool. It's also a good idea to open checking accounts or savings accounts with no monthly maintenance fees and the highest interest rate you can find. Below are a few of the best deposit accounts with FDIC insurance, according to CNBC Select's rankings:Ally Interest Checking Account Learn More Ally Bank is a Member FDIC.

☆ Stocks making the biggest moves midday: First Republic Bank, Moderna, Newmont, Illumina and more
▼ + stars: | 2023-03-13 | by ( Michelle Fox | ) www.cnbc.com time to read: +3 min

REUTERS/Mike SegarCheck out the companies making the biggest moves midday:Regional banks —Shares of regional banks plummeted following the collapse of Silicon Valley Bank and Signature Bank. Citi , Bank of America , Goldman Sachs — Shares of major banks also saw losses after the closure of the Silicon Valley Bank and Signature Bank. Moderna — The biotechnology company's shares gained nearly 6% after TD Cowen upgraded the stock to outperform from market perform. Spot gold passed the key level of $1,900 as investors bet the Federal Reserve may tone down rate hikes on the heels of Silicon Valley Bank's collapse. Over the weekend, NBC News reported that the e-commerce company warned sellers that the collapse of Silicon Valley Bank is causing delays in processing payments.

Search resuls for: "C Insurance"

25 mentions found