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☆ Goldman Sachs bought SVB's bond portfolio, lender says
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: 1 min

March 14 (Reuters) - Troubled lender SVB Financial Group (SIVB.O) said on Tuesday Goldman Sachs Group Inc (GS.N) had bought its bond portfolio before federal regulators took the bank into receivership. Reporting by Niket Nishant in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

☆ Investors tiptoe back into US bank stocks, regulators probe SVB collapse
▼ + stars: | 2023-03-14 | by ( Chris Prentice | ) www.reuters.com time to read: +6 min

March 14 (Reuters) - Bruised U.S. bank stocks regained some ground on Tuesday, as a sell-off sparked by Silicon Valley Bank's collapse gave way to bargain-hunting by investors hopeful that efforts to shore up confidence would avert a wider financial crisis. The S&P 500 regional banks index (.SPLRCBNKS) rebounded 1.4%, leaving it with a 26% loss over the past five sessions. Investors worry about the health of smaller banks, the prospect of tighter regulation and authorities' preference for protecting depositors before shareholders. Reuters Graphics Reuters GraphicsINVESTIGATIONSAs markets adjusted to the impact of SVB's collapse, regulars turned their focus to the circumstances around the bank's collapse. Officials are also examining stock sales by officers of SVB Financial Group, which owned the bank, the WSJ reported, citing people familiar with the matter.

☆ U.S. Treasury says record FDIC cash draw won't affect debt ceiling 'X-date'
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +3 min

[1/3] A sign reads “FDIC Insured” on the door of a branch of First Republic Bank in Boston, Massachusetts, U.S., March 13, 2023. REUTERS/Brian Snyder/File PhotoMarch 14 (Reuters) - The Federal Deposit Insurance Corp said its withdrawal of a record $40 billion in U.S. Treasury Funds on Friday as it seized control of Silicon Valley Bank will not affect when the Treasury runs out of operating room under the debt ceiling. The FDIC withdrawal from the Treasury General Account was many times larger than any previous largest draws, according to data from the Daily Treasury Statement for March 10 released late on Monday. The Treasury has not altered that early June estimate, but Yellen has acknowledged that April tax receipts "will be informative" on the timing of the X-date. The Congressional Budget Office has estimated that the Treasury could hold out until sometime between July and September without a debt ceiling increase, but the timing was uncertain due to the pace of revenues and economic developments.

☆ 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.

☆ U.S. Treasury says bank stability actions have not changed debt ceiling 'X-date'
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, March 14 (Reuters) - The U.S. Treasury's actions to protect depositors in failed banks SVB Financial (SIVB.O) and Signature Bank (SBNY.O) will not affect the date on which the Treasury may no longer be able to pay all U.S. obligations without a debt limit increase, a department spokesperson said on Tuesday. Asked whether a record $40 billion draw by the Federal Deposit Insurance Corp from the Treasury General Account on Friday could bring the so-called "X-date" closer, the spokesperson said in an emailed statement to Reuters: "The actions we have taken to protect depositors and the stability of the banking system have not affected the X-date for the debt limit.”The Treasury has not revised its forecast that it will be able to pay U.S. obligations at least through early June, despite predictions from the Congressional Budget Office and private forecasters that Treasury's cash balances and extraordinary cash management measures may last until September without action by Congress to raise the debt ceiling. Reporting by David LawderOur Standards: The Thomson Reuters Trust Principles.

☆ U.S. prosecutors probing collapse of Silicon Valley Bank -source
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +2 min

REUTERS/Al Drago/File PhotoMarch 14 (Reuters) - U.S. prosecutors are investigating the collapse of Silicon Valley Bank, according to a source familiar with the matter, as scrutiny mounts over the firm's sudden collapse and regulators scramble to contain the fallout. The U.S. Justice Department is probing the sudden demise of the bank, which was shuttered on Friday following a bank run, the source said, declining to be named as the inquiry is not public. Spokespeople for the SEC, SVB and the Justice Department declined to comment. The rapid demise of Silicon Valley Bank and the fall of Signature Bank have left regulators racing to contain risks to the rest of the sector. SVB Financial Group and two top executives were sued this week by shareholders, who accused them of concealing how rising interest rates would leave its Silicon Valley Bank unit susceptible to a bank run.

[1/3] A security guard walks in the ATM lobby of a Signature Bank branch in New York City, U.S., March 13, 2023. The proposed class action against Signature and its former chief executive officer Joseph DePaolo, chief financial officer Stephen Wyremski and chief operating officer Eric Howell was filed in the federal court in Brooklyn. Silicon Valley Bank is the largest. On Sunday, U.S. regulators decided to make Signature and Silicon Valley Bank depositors whole regardless of how much they held in their accounts. The case is Schaeffer v Signature Bank et al, U.S. District Court, Eastern District of New York, No.

Consumer Price Index (CPI) rose 0.4% in February from 0.5% in January as Americans faced persistently higher costs for rents and food. On a yearly basis, the CPI rose 6% in February, compared with 6.4% the previous month. The S&P 500 banking index (.SPXBK) rose 2.9% after recording its biggest one-day percentage drop since June 2020 in the previous session. Advancing issues outnumbered decliners by a 6.05-to-1 ratio on the NYSE and by a 3.52-to-1 ratio on the Nasdaq. The S&P index recorded two new 52-week highs and five new lows, while the Nasdaq recorded 18 new highs and 79 new lows.

Worries about potential contagion had also slammed bank shares in Asia and Europe as investors re-examined their risks, despite assurances from U.S. President Joe Biden and other global policymakers that the financial system is safe. In Europe, where some see lenders as less vulnerable, the banking index (.SX7P) first fell then recovered to rise 2.7%. Asian banking stocks had extended their declines overnight, with Japanese banks hard-hit despite reassurances from the Bank of Japan said about their capital buffers. Regulator FDIC had moved swiftly to close New York's Signature Bank SBNY.O as well as taking control of SVB. Citing people familiar with the matter, the WSJ said the investigators are also examining stock sales that SVB Financial Group's executives made days before SVB failed, adding that the Justice Department's probe involves the department's fraud prosecutors in Washington and San Francisco.

☆ Citadel discloses 5% stake in Western Alliance amid sell-off
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

March 14 (Reuters) - Hedge fund Citadel on Tuesday said it bought a 5.3% stake in Western Alliance Bancorporation (WAL.N), sending a strong signal of confidence as the company was swept up in growing fears of a broader financial crisis after two other banks were seized. Western Alliance's share price, which had tumbled on Monday, shot higher on Tuesday, rising as much as 43% shortly after the opening of trading. Last year's returns made Citadel the most successful hedge fund ever. Western Alliance was one of a number of banks caught in a crippling sell-off since last week when regulators shut down startup-focused bank SVB Financial Group (SIVB.O) that triggered worries of a contagion and rippled across financial markets. Reporting by Svea Herbst-Bayliss in Boston, Mehnaz Yasmin in Bengaluru; editing by Uttaresh VenkateshwaranOur Standards: The Thomson Reuters Trust Principles.

☆ 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.

Data showed that U.S. Consumer Price Index (CPI) rose 0.4% in February versus 0.5% a month ago. Traders held on to bets of a 25-basis-point rate hike at the Fed's next meeting in March, with odds of a pause in hikes slipping a bit to 17%. The S&P 500 banking index (.SPXBK) rose 3.9% after recording its biggest one-day percentage drop since June 2020 in the previous session. Advancing issues outnumbered decliners by a 7.92-to-1 ratio on the NYSE and by a 4.87-to-1 ratio on the Nasdaq. The S&P index recorded no new 52-week highs and no new lows, while the Nasdaq recorded 9 new highs and 36 new lows.

☆ Apollo, Blackstone eye SVB assets - Bloomberg News
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

[1/2] Customers wait outside as an employee enters the Silicon Valley Bank branch office in downtown San Francisco, California, U.S., March 13, 2023. REUTERS/Kori Suzuki/File PhotoMarch 14 (Reuters) - Apollo Global Management Inc (APO.N) and Blackstone Inc (BX.N) have expressed interest in a book of loans held by Silicon Valley Bank (SVB), a subsidiary of the defunct SVB Financial Services Group (SIVB.O), Bloomberg News reported on Tuesday. Last week, Californian regulators shut down tech lender SVB after a failed share sale that saw $42 billion of deposit outflows in a day and escalated worries of a contagion across financial markets. Apollo, Blackstone, and SVB did not immediately respond to Reuters' requests for comment. Reporting by Mehnaz Yasmin in Bengaluru; editing by Uttaresh VenkateshwaranOur Standards: The Thomson Reuters Trust Principles.

☆ Silicon Valley Bank’s Fall Is a Passing Cloud Over Clean Energy
▼ + stars: | 2023-03-14 | by ( Jinjoo Lee | ) www.wsj.com time to read: 1 min

SVB made about $1.2 billion worth of project finance loans to U.S. renewable energy projects in 2022. Silicon Valley Bank’s fallout has clearly spooked some investors in clean energy stocks. How worried should they really be? Even after a rebound Tuesday, residential solar company Sunrun , battery-storage company Stem and fuel-cell manufacturer Bloom Energy are all down around 7% to 10% since SVB Financial proposed a capital raise on March 8. All three companies are previous or current clients of the bank.

☆ Justice Department, SEC Investigating Silicon Valley Bank’s Collapse
▼ + stars: | 2023-03-14 | by ( Dave Michaels | ) www.wsj.com time to read: 1 min

Securities filings show that two top Silicon Valley Bank executives sold shares in the company the week before it collapsed. WASHINGTON—The Justice Department and the Securities and Exchange Commission are investigating the collapse of Silicon Valley Bank, according to people familiar with the matter, after the California lender was taken over by regulators last week amid a historic run on its deposits. The separate probes are in their preliminary phases and may not lead to charges or allegations of wrongdoing. Prosecutors and regulators often open investigations after financial institutions or public companies suffer big, unexpected losses. Shares in SVB Financial Group , which formerly owned the bank, fell 60% last week and have been stopped from trading since Friday.

Oil prices dropped alongside a continued slide in equities markets (.MIWD00000PUS). A lower rate rise could mean the dollar weakening which in turn is a bullish signal for oil prices. A stronger-than-expected U.S. consumer inflation outcome could put further downward pressure on oil prices. Meanwhile, consumer inflation in China, the world's biggest oil importer, slowed to the lowest rate in a year in February. IEA/SOn the supply side, the American Petroleum Institute is expected to release industry data on U.S. oil inventories at 1630 ET/2030 GMT.

☆ Oil prices fall as SVB collapse rocks financial markets
▼ + stars: | 2023-03-14 | by ( Emily Chow | ) www.reuters.com time to read: +2 min

ETSINGAPORE, March 14 (Reuters) - Oil prices fell more than $1 on Tuesday, extending the previous day's slide, as the collapse of Silicon Valley Bank rattled equities markets and sparked fear about a fresh financial crisis. U.S. West Texas Intermediate crude futures (WTI) dropped 82 cents, or 1.1%, to $73.98 a barrel. A stronger-than-expected U.S. consumer inflation outcome would put further downward pressure on near term oil prices, National Australia Bank analysts said in a note. Beyond the Silicon Valley Bank shockwaves, oil prices were also under pressure due to signs of a weaker-than-expected economic recovery in China, despite the lifting of its strict COVID-19 restrictions, said Leon Li, an analyst at CMC Markets. In U.S. supply news, the American Petroleum Institute is expected to release industry data on U.S. oil inventories on Tuesday.

Possible outcomes for under-pressure regional banks could see a stronger rival take over a weaker, or cash infusions from investors such as private equity, the industry sources said. Reuters GraphicsUNDER PRESSUREInvestors voted with their feet on Monday, putting bank stocks under pressure around the world. So investors think it’s a relative gamble staying around owning regional banks before knowing what will change in regulation," said Brian Levitt, global market strategist for Invesco. Regional bank stocks are "an incredible bargain now," billionaire investor Bill Ackman said on Twitter on Monday. "There’s value in these banks, they are not all alike," said Michael Farr, chief executive of investment advisory firm Farr, Miller & Washington who owns banks stocks including PNC and Truist.

ETMarch 14 (Reuters) - Oil prices fell more than $1 on Tuesday, extending the previous day's slide, as the collapse of Silicon Valley Bank rattled equities markets and sparked fear about a fresh financial crisis. U.S. West Texas Intermediate crude futures (WTI) dropped 85 cents, or 1.1%, to $73.93 a barrel. On Monday, Brent fell to its lowest since early January, while WTI dropped to its lowest since December. Beyond the Silicon Valley Bank shockwaves, oil prices were also under pressure due to signs of a weaker-than-expected economic recovery in China, despite the lifting of its strict COVID-19 restrictions, said Leon Li, an analyst at CMC Markets. In U.S. supply news, the American Petroleum Institute is expected to release industry data on U.S. oil inventories on Tuesday.

SummarySummary Companies POLL-U.S. crude stockpiles seen up, products likely downComing up: API data on U.S. stockpiles at 4:30 p.m. ETMarch 14 (Reuters) - Oil prices slipped on Tuesday, extending the previous day's slide, as the collapse of Silicon Valley Bank startled equities markets and raised worries about a fresh financial crisis. A weaker dollar makes oil cheaper for holders of other currencies and typically supports oil prices. In U.S. supply news, the American Petroleum Institute is expected to release industry data on U.S. oil inventories on Tuesday. Six analysts polled by Reuters estimated on average that crude inventories rose by about 600,000 barrels in the week to March 10.

☆ Oil prices edge lower as Silicon Valley Bank collapse spooks financial markets
▼ + stars: | 2023-03-14 | by ( ) www.cnbc.com time to read: +1 min

Oil prices slipped on Tuesday, extending the previous day's slide, as the collapse of Silicon Valley Bank startled equities markets and raised worries about a fresh financial crisis. On Monday Brent fell to its lowest since early January, while WTI dropped to its lowest since December. A weaker dollar makes oil cheaper for holders of other currencies and typically supports oil prices. In U.S. supply news, the American Petroleum Institute is expected to release industry data on U.S. oil inventories on Tuesday. Six analysts polled by Reuters estimated on average that crude inventories rose by about 600,000 barrels in the week to March 10.

☆ SVB-rattled banks First Republic and Western Alliance go on downgrade watch at Moody's
▼ + stars: | 2023-03-14 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Ratings agency Moody's has put First Republic and Western Alliance under review for possible downgrade. Shares in the regional banks cratered Monday as Silicon Valley Bank's collapse rattled markets. The agency's downgrade warning came after First Republic shares plunged 75% Monday, while Western Alliance plummeted 80%. The New York Stock Exchange repeatedly halted trading of both regional banks' shares on volatility concerns in the session, as worries around SVB's implosion rocked markets. Small-to-midsize banks like San Francisco's First Republic and Arizona-based Western Alliance have borne the brunt of the fallout from the SVB crisis so far.

☆ Wells Fargo says buy this regional bank stock that has been 'thrown out with the bathwater,' sees nearly 150% upside
▼ + stars: | 2023-03-14 | by ( Hakyung Kim | ) www.cnbc.com time to read: +2 min

Investors should snap up shares of beaten-down regional bank Western Alliance, according to Wells Fargo. The firm reiterated its overweight rating on the stock, while lowering its price target to $65 from $90. Still, the new price target implies 148.9% upside from the stock's Monday closing price of $26.12. Western Alliance shares declined 47% on Monday as part of a massive selloff of regional bank stocks following the failures of SVB Financial and Signature Bank. Western Alliance shares were up 18.2% during premarket trading on Tuesday.

☆ Nigeria launches $672 million tech fund for young investors
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

LAGOS, March 14 (Reuters) - Nigeria launched a $672 million fund on Tuesday to support tech and creative sectors for young investors who struggle to raise capital in Africa's largest economy. So far only Chipper Cash, a cross border payments startup, has said it had $1 million in SVB. Vice President Yemi Osinbajo launched the $672 million fund under the Digital and Creative Enterprises Programme (DCEP) in the federal capital Abuja, the presidency said in a statement. African Development Bank will put in $170 million, $116 million will come from Agence Francaise de Developpement and another $70 million from Islamic Development Bank, the presidency said. The government through Bank of Industry Nigeria will release $45 million while the private sector pledged $271 million.

☆ Wall Street reacts to Silicon Valley Bank's bailout
▼ + stars: | 2023-03-14 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +3 min

When federal regulators stepped in to guarantee deposits at Silicon Valley Bank and Signature Bank late Sunday (more on that here), the goal was simple: Ease the public concerns and calm the markets. Silicon Valley Bank was shut down by regulators on Friday. So about that auction... SVB Financial Group, the parent company of Silicon Valley Bank, is still looking for a buyer. Silicon Valley Bank's UK arm was sold to HSBC for roughly $1 (no, I'm not missing any zeros). Silicon Valley Bank died so interest-rate hikes would stop.

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