DIRS.INFO The most relevant business & tech news

WASHINGTON, March 31 (Reuters) - The U.S. Treasury Department on Friday unveiled stricter electric vehicle tax rules that will reduce or cut tax credits on some zero-emission models but grant buyers another two weeks before the new requirements take effect. The EV battery sourcing guidance issued on Friday triggers new requirements for critical minerals and battery components and takes effect for vehicle purchases starting April 18. The government will publish by April 18 a revised list of qualifying models and tax credit amounts. The $430 billion Inflation Reduction Act (IRA) signed by Biden in August eliminated manufacturer's EV sales caps but imposed new conditions on EV credits. Republican Senator Marco Rubio introduced legislation this month seeking to block EV tax credits for batteries produced using Chinese technology, saying it would "significantly restrict the eligibility of IRA tax credits and prevent Chinese companies from benefiting."

Production is expected to have risen as the automaker ramped up production at new factories in Texas and Berlin, and as China production recovered from a COVID-19 lockdown hit. Analysts expect Tesla to further lower prices as many automakers have matched the price cuts and concerns about a weakening economy persist. Musk said in January that the price cuts stoked demand, playing down concerns about a weak economy. In China, Tesla's retail sales totaled 106,915 units in the year to March 19, one of the best quarters on record, according to data from China Merchants Bank International. Tesla's price cuts in China ignited a price war, with Chinese rivals including BYD (002594.SZ) and Xpeng (9868.HK) dropping prices.

☆ PDVSA's supervising board to appeal new creditors' move to go after Citgo
▼ + stars: | 2023-03-31 | by ( ) www.reuters.com time to read: +2 min

HOUSTON, March 31 (Reuters) - A board that supervises Venezuela's overseas assets said it plans to file an appeal to a U.S. court's decision granting four firms the right to seize shares in one of the parent companies of Venezuela-owned U.S. refiner Citgo Petroleum. Other companies have sought to attach their own judgments to the case, leading to a feud this week among attorneys over priority. The decision by a U.S. judge in Delaware to approve the attachments is contingent on green light by the U.S. Treasury Department. An ad-hoc board created by Venezuela's National Assembly in 2019 to supervise PDVSA's foreign subsidiaries, especially Houston-based Citgo Petroleum, will oppose any conditioned auction, board's president Horacio Medina told Reuters. Reporting by Marianna Parraga and Gary McWilliams Editing by Marguerita ChoyOur Standards: The Thomson Reuters Trust Principles.

Venezuelan oil resumed flowing to the U.S. in January under a Treasury Department license granted to Chevron that allowed it to expand output there and export the oil. Refiners including Valero and Phillips 66 (PSX.N) have bought cargoes from Chevron, according to U.S. Customs and shipping data. Chevron's license - and approvals granted to European firms Eni (ENI.MI) and Repsol (REP.MC) - allow only for oil or debt swaps. Chevron's resumption of Venezuelan crude imports has not led to an increase in the country's overall exports this year, according to PDVSA schedules and Refinitiv Eikon data. 2 U.S. oil company exported some 86,000 barrels per day of Venezuelan oil in February.

☆ Tesla expects reduced tax credit for Model 3 by March-end
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +1 min

March 29 (Reuters) - Tesla Inc (TSLA.O) said on Wednesday a $7,500 tax credit in place since January will be reduced for its Model 3 rear-wheel drive by March 31, subject to guidance due this week from the U.S. Treasury Department on the sources of battery components. The Treasury Department is due to issue guidance on sourcing of electric vehicle (EV) batteries by Friday that will impact the credit available for some EVs. The credit is in effect for deliveries taken before the updated guidance is issued. A U.S. official told Reuters that the Treasury Department's guidance on the EV tax credit due March 31 would result in fewer vehicles getting full or partial credits. Tesla added that only consumers buying the model for their own use in the U.S. could take advantage of the tax credit.

☆ Factbox: How U.S. electric vehicle subsidy rules impact Europe
▼ + stars: | 2023-03-30 | by ( ) www.reuters.com time to read: +5 min

MADE IN AMERICA CONDITIONSThe Treasury is not expected to specify vehicle models but merely lay out the subsidy criteria. EU AUTO SECTOR STRENGTHThe European Union exported some 36 billion euros ($39 billion) of cars to the United States in 2022, according to Eurostat, some 65% from Germany, with less than 9 billion euros worth of cars coming the other way. The EU also exported about 9 billion euros of car parts to the United States, compared with 2 billion euros of imports. For example, EU trade officials are wondering whether the local content requirement for battery components means just specific components or all components and how comprehensive final assembly must be. Some in the EU industry express concern that a change of U.S. president could see this lease car concession end.

☆ US battery sourcing guidance to cut some EV tax credits -official
▼ + stars: | 2023-03-29 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

WASHINGTON, March 29 (Reuters) - The U.S. Treasury Department's long-awaited guidance on battery sourcing requirements for electric vehicle tax credits due out by Friday will result in fewer vehicles getting full or partial credits, a U.S. official told Reuters. The Biden administration believes that over time the tax credit will result in more EVs sold as automakers revamp supply chains to meet critical mineral and battery component rules, the official said. It is not immediately clear when or how many EVs will lose tax credits or see them cut. On Tuesday, the United States and Japan on Tuesday signed a trade deal on EV battery minerals, which will grant Japanese automakers wider access to a new $7,500 U.S. EV tax credit. Some of those vehicles may see credits decline after the battery guidance takes effect.

☆ U.S. Treasury to Change Proposed Corporate-Ownership Reporting Form
▼ + stars: | 2023-03-28 | by ( Dylan Tokar | ) www.wsj.com time to read: 1 min

Treasury’s Financial Crimes Enforcement Network says it is focused on implementing reporting rules to maximizes its ability to conduct compliance and enforcement reviews. The U.S. Treasury Department said it would change its plans for rolling out a corporate-ownership database, after its release of a draft reporting form appeared to give companies a way to opt out of providing certain information and prompted criticism by lawmakers and advocacy groups. “FinCEN is working to issue an updated beneficial ownership information reporting form as soon as possible,” Himamauli “Him” Das, the acting director of the Treasury’s Financial Crimes Enforcement Network, said in a statement.

☆ FinCEN’s Efforts to Implement Shell-Company Law Draw Criticism
▼ + stars: | 2023-03-23 | by ( Dylan Tokar | ) www.wsj.com time to read: +1 min

A bipartisan group of senators last week sent a letter to Treasury Secretary Janet Yellen about the department’s proposed rule on accessing a corporate-ownership database. Two years into the process of building a corporate-ownership database to tamp down on the use of anonymous shell companies, U.S. Treasury Department officials are facing mounting concerns around what supporters of the database view as potential loopholes in their plans for collecting and managing the information it will eventually hold. Lawmakers, bankers and advocacy groups have written to the Treasury about several recent proposals around the database that they say would defeat the purposes of creating it. In letters this week, the various groups criticized a proposed reporting form that would give companies the option to say that they were unable to identify their owners, and to mark “unknown” with respect to key information about any owners.

[1/5] The logo of Raiffeisen Bank International (RBI) is seen on their headquarters in Vienna, Austria, March 14, 2023. REUTERS/Leonhard FoegerVIENNA, March 23 (Reuters) - The European Central Bank is pressing Austria's Raiffeisen Bank International (RBIV.VI) to unwind its highly profitable business in Russia, five people with knowledge of the matter told Reuters. One person said such a plan could include the sale or closure of its Russian bank. A Raiffeisen spokesperson said that it was examining options for its Russia business "including a carefully managed exit" and that it was "expediting" its assessment, adding that it had also reduced lending in the country. HIGH STAKESIn January, the U.S. sanctions authority launched an inquiry into Raiffeisen over its business related to Russia.

☆ U.S. Treasury to release EV battery sourcing rules next week
▼ + stars: | 2023-03-22 | by ( Nichola Groom | ) www.reuters.com time to read: +3 min

REUTERS/Phil Noble/File PhotoMarch 22 (Reuters) - The U.S. Treasury Department on Wednesday said it will release guidance next week on sourcing requirements for electric vehicle battery tax subsidies under President Joe Biden's climate change law, the first in a string of highly anticipated rules to determine how broadly the credits can be used. It will also issue guidance on selling tax credits and making them refundable, which allows entities without tax liability to use them. The IRA specifices, for instance, that a $7,500 EV tax credit is only available to North American-assembled vehicles that meet certain local battery production and mineral extraction processing standards. In December, Treasury decided not to issue proposed guidance on battery sourcing rules until March, effectively giving some EVs not meeting new requirements a few months of eligibility in 2023 before battery rules take effect. The other half requires manufacturing or assembly of at least 50% of battery components in North America.

☆ 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.

☆ US officials study ways to expand FDIC coverage to all deposits -Bloomberg News
▼ + stars: | 2023-03-21 | by ( ) www.reuters.com time to read: +1 min

March 20 (Reuters) - U.S officials are looking at ways to temporarily expand Federal Deposit Insurance Corp (FDIC) coverage to all deposits, Bloomberg News reported on Monday. U.S. Treasury Department staff are studying whether federal regulators have enough emergency authority to insure deposits above the current $250,000 cap on accounts without the consent of Congress, the report said, citing people familiar with the matter. One legal framework that is being looked at for expanding FDIC insurance would use the Treasury Department's authority to take emergency action and lean on the Exchange Stabilization Fund, the report added. "Due to decisive recent actions, the situation has stabilized, deposit flows are improving and Americans can have confidence in the safety of their deposits," a U.S. Treasury spokesperson told Bloomberg. Reporting by Gokul Pisharody and Juby Babu in Bengaluru; Editing by Neil Fullick and Jamie FreedOur Standards: The Thomson Reuters Trust Principles.

HOUSTON, March 21 (Reuters) - Venezuela's state-run oil company PDVSA has accumulated $21.2 billion in accounts receivable, according to documents viewed by Reuters, after turning to dozens of little known intermediaries three years ago to export its oil under U.S. sanctions. The scale of the receivables explains a January freeze on supply contracts by PDVSA's new boss Pedro Tellechea, who sought to halt unpaid cargoes immediately after taking office. A series of attempts to tighten contract terms came after some vessels absconded without payment in recent years. PDVSA and Venezuela's oil ministry did not immediately reply to a request for comment. Reporting by Marianna Parraga; Editing by Gary McWilliams and Daniel WallisOur Standards: The Thomson Reuters Trust Principles.

☆ Chevron-chartered tanker involved in collision with sanctioned vessel in Venezuela
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +2 min

Companies Chevron Corp FollowHOUSTON, March 20 (Reuters) - A Liberia-flagged oil tanker chartered by Chevron Corp (CVX.N) had a minor collision with another vessel, the Bueno, in Venezuelan waters on Sunday, according to sources and a shipping report seen by Reuters on Monday. Incidents involving vessels, oil spills, fires and power outages are very frequent in Venezuela as state-run PDVSA's aging oil infrastructure does not receive proper maintenance and needed repairs amid U.S. sanctions on the country. Both were told by the port captain to anchor in specific positions and await inspections, according to a PDVSA shipping report. Tanker Bueno has been working for PDVSA since last year, moving oil and fuel between domestic ports under a time-charter contract. As of Monday, the Kerala had moved away from the collision site while waiting for a loading window at the Bajo Grande terminal, according to Refinitiv Eikon vessel monitoring data.

☆ TikTok confirms the U.S. has threatened ban if Chinese parent ByteDance doesn't sell stake
▼ + stars: | 2023-03-16 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +3 min

TikTok spokesperson Brooke Oberwetter told Reuters that the company had recently heard from the U.S. Committee on Foreign Investment in the United States (CFIUS). The committee told ByteDance to sell its shares in TikTok, or the app could face a U.S. ban. Washington asked TikTok's Chinese parent company ByteDance to divest its stake in the short video app or face a possible ban in the U.S., CNBC has confirmed. TikTok has repeatedly stated that U.S. user data is not stored in China where those laws apply. A TikTok spokesperson said divesting the business would not resolve the U.S.'s concerns.

☆ U.S. Treasury reviewing U.S. financial sector exposure to Credit Suisse - Bloomberg News
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: 1 min

March 15 (Reuters) - The U.S. Treasury Department is actively reviewing the U.S. financial sector's exposure to Credit Suisse Group AG (CSGN.S) after the bank's shares fell to a record low, Bloomberg reported on Wednesday citing people familiar with the matter. Officials from the Treasury are working closely with the Federal Reserve and European regulators as well, the report added. U.S. Treasury spokesperson declined to comment on the Bloomberg report. Reporting by Jyoti Narayan in Bengaluru; Additional reporting by Akanksha Khushi; Editing by Franklin Paul and Chizu NomiyamaOur Standards: The Thomson Reuters Trust Principles.

☆ Fed's new banking backstop could slow balance sheet drawdown
▼ + stars: | 2023-03-15 | by ( Michael S. Derby | ) www.reuters.com time to read: +4 min

Those bonds - collateral for Fed loans of up to a year in duration - will end up on the central bank's $8.4 trillion balance sheet. So far it has managed to shed nearly $600 billion of bonds from a balance sheet that topped out above $9 trillion in the middle of last year. "The more advantageous financial terms of the new Fed facility could divert a substantial amount of borrowing from the (Federal Home Loan Banks) and boost the size of the Fed's balance sheet," Wrightson said. Still, "reserve balances might not fall as much as they thought before because BTFP will actually add reserves and grow the balance sheet." Some observers believe the unsettled nature of markets right now means the Fed should consider stopping the balance sheet drawdown process.

Signature was a traditional commercial bank with a wide range of activities and customers,” an NYDFS spokesperson said. The spokesperson added that as withdrawal requests ballooned over the weekend, Signature Bank failed to provide reliable and consistent data. In response to NYDFS' statement, Frank said he was surprised the regulator said the decision to close the bank was not related to cryptocurrency. Signature was a commercial bank with private client offices with nine national business lines including commercial real estate and digital asset banking. The FDIC established a "bridge" successor bank to Signature Bank on Sunday to enable depositors to access their funds.

[1/3] A person walks into the lobby of the Signature Bank headquarters, in New York City, U.S., March 13, 2023. Signature Bank did not immediately respond to a request for comment. Signature was a traditional commercial bank with a wide range of activities and customers,” an NYDFS spokesperson said. The spokesperson added that as withdrawal requests ballooned over the weekend, Signature Bank failed to provide reliable and consistent data. The FDIC established a "bridge" successor bank to Signature Bank on Sunday to enable depositors to access their funds.

☆ Silicon Valley Bank collapse: What you need to know
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +4 min

March 13 (Reuters) - Bank stocks around the world plunged on Monday even as President Joe Biden vowed to ensure the safety of the U.S. banking system, after Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) collapsed. U.S. authorities launched emergency measures on Sunday to shore up confidence in the banking system after the failure of Silicon Valley Bank threatened to trigger a broader financial crisis. *California banking regulators closed the bank, which did business as Silicon Valley Bank, and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of its assets. All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and "no losses will be borne by the taxpayer," the U.S. Treasury Department and other bank regulators said. *In Britain, HSBC (HSBA.L) bought the UK arm of Silicon Valley Bank for a symbolic one pound on Monday, rescuing a key lender for technology startups in England.

March 12 (Reuters) - State regulators closed New York-based Signature Bank (SBNY.O) on Sunday, the third largest failure in U.S. banking history, two days after authorities shuttered Silicon Valley Bank (SIVB.O) in a collapse that stranded billions in deposits. All of the depositors of Signature Bank and Silicon Valley Bank will be made whole, and "no losses will be borne by the taxpayer," the U.S. Treasury Department and other bank regulators said in a joint statement. Signature's failure followed Silicon Valley Bank's Friday shutdown, the second largest in U.S. history behind Washington Mutual, which collapsed during the 2008 financial crisis. Signature Bank's depositors and borrowers will automatically become customers of the bridge bank, the FDIC said. Signature Bank cut ties with Trump in 2021 following the deadly Jan. 6 riots on Capitol Hill, and urged Trump to resign.

The U.S. Treasury Department and other bank regulators said in a joint statement on Sunday that all depositors of Signature Bank will be made whole, and "no losses will be borne by the taxpayer." Signature Bank reported deposit balances totaling $89.17 billion as of March 8. Representatives for Signature Bank did not immediately respond to a request for comment. The FDIC on Sunday established a "bridge" successor bank to Signature Bank, which will enable customers to access their funds on Monday. Signature Bank's depositors and borrowers will automatically become customers of the bridge bank, the FDIC said.

A large fire last year destroyed a portion of the country's largest oil terminal, Matanzas, and has created obstacles to discharge fuel imports. The Panama-flagged supertanker Nolan this week is loading 400,000 barrels of fuel oil for power generation at Venezuela's Jose terminal. Seeking to avoid its own fuel crisis, Venezuela's oil supplies to Cuba last year fell about 6% to 53,600 barrels per day (bpd), independent data based on tanker movement showed. PDVSA, Venezuela's oil ministry and Cuba's Center for International Press did not immediately reply to requests for comment. The tanker has not sent a signal from its transponder since mid-December while in Venezuela, according to Refinitiv Eikon vessel monitoring data.

☆ Sri Lanka needs institutional changes for long-term debt sustainability, says professor
▼ + stars: | 2023-03-10 | by ( Sumathi Bala | ) www.cnbc.com time to read: +4 min

Buddhika Weerasinghe | Bloomberg | Getty ImagesSri Lanka needs institutional reforms in order to achieve long-term debt sustainability, said Steve Hanke, who played a key role in establishing new currency regimes in emerging markets like Argentina and Montenegro. "In fact, most of the personalities involved in Sri Lanka at the high level are exactly the same as they've been for years. In September, the IMF outlined a series of steps that it wanted Sri Lanka's government to implement prior to loan approval, which included major tax reforms. "Debt relief from Sri Lanka's creditors and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps," the fund said at the time. "The Secretary welcomed Sri Lanka's commitments to transparency and comparable treatment for all bilateral official and private creditors."

Search resuls for: ". Treasury Department"

25 mentions found