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REUTERS/Kevin LamarqueMarch 29 (Reuters) - The scope of blame for Silicon Valley Bank's failure stretches across bank executives, Federal Reserve supervisors and other regulators, the banking system's top cop on Wednesday told U.S. lawmakers demanding answers for the lender's swift collapse. "I think that any time you have a bank failure like this, bank management clearly failed, supervisors failed and our regulatory system failed," Michael Barr, Fed Vice Chair for Supervision, told Congress. 'SOME REAL FLAWS'Barr told the House Financial Services Committee that he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable. The Fed was in discussions with Silicon Valley Bank the day before its collapse to move pledgable collateral to the discount window, a key facility long associated with providing emergency loans to banks, Barr said on Wednesday. "(Fed) staff were working with Silicon Valley Bank basically all afternoon and evening and through the morning the next day to pledge as much collateral as humanly possible to the discount (window) on Friday," Barr said.

March 29 (Reuters) - The Federal Reserve was in discussions with Silicon Valley Bank the day before its collapse to move pledgable collateral to the discount window, a key facility long associated with providing emergency loans to banks, the Fed's head of banking supervision told a Congressional committee on Wednesday. Fed Vice Chairman for Supervision Michael Barr said he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable. "(Fed) staff were working with Silicon Valley Bank basically all afternoon and evening and through the morning the next day to pledge as much collateral as humanly possible to the discount (window) on Friday," Barr said to the House Financial Services Committee. Barr told the Senate Banking Committee he first became aware of the interest rate risk issues at SVB in mid-February, while Fed supervisors had been raising issues with the bank directly in months prior to that. Some Democrats have also argued a 2018 bank deregulation law is to blame.

"I think that any time you have a bank failure like this, bank management clearly failed, supervisors failed and our regulatory system failed," Michael Barr, Fed Vice Chair for Supervision, told Congress. REPORTS DUE MAY 1Both the Fed and FDIC are is expected to produce reports on the failure of Silicon Valley Bank by May 1. Barr told the House Financial Services Committee that he first became aware of stress at Silicon Valley Bank on the afternoon of March 9, but that the bank reported to supervisors that morning that deposits were stable. Gruenberg of the FDIC told lawmakers he also became aware of SVB's stress that Thursday evening. "(Fed) staff were working with Silicon Valley Bank basically all afternoon and evening and through the morning the next day to pledge as much collateral as humanly possible to the discount (window) on Friday," Barr said.

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.

☆ Powell is leader of the free world – for now
▼ + stars: | 2023-03-28 | by ( Lauren Silva Laughlin | ) www.reuters.com time to read: +8 min

As former President Donald Trump will attest, Powell will do what he thinks it’s right. This month, Democratic Senator Elizabeth Warren, a left-wing firebrand, went on TV and called Powell a “dangerous man,” saying she doesn’t think that he should be Fed Chair. CNN television host Jake Tapper asked her if she had told Biden that Powell should be fired. Then Trump called Powell “a golfer who can’t putt, has no touch.” Trump wanted economic growth. Powell resisted and later responded saying that the Fed chair, more than anyone else, needs to be free from political pressures.

March 28 (Reuters) - Immediate investor concerns over the banking sector eased on Tuesday, lifting stock prices, with the European Central Bank's supervisory chief saying recent sector volatility underscored the need to step up regulatory scrutiny. Credit Suisse (CSGN.S) shares rose 1.7%. Top U.S. banking regulators said on Monday they planned to tell Congress that the overall financial system remains on a solid footing after recent bank failures, but will comprehensively review their policies in a bid to prevent future collapses. Regional U.S. lender First Citizens BancShares on Monday scooped up the assets of SVB, in a vote of confidence for the battered banking sector that prompted a rally in bank shares. Bailey said the stresses which led to a crisis in confidence in Credit Suisse were down to specific issues in Switzerland's second-largest bank.

☆ Magic Johnson and Josh Harris group officially place bid on Washington Commanders
▼ + stars: | 2023-03-28 | by ( Matt Egan | ) edition.cnn.com time to read: +2 min

New York CNN —A group led by billionaire Josh Harris and NBA legend Magic Johnson has officially placed a bid to buy the NFL’s Washington Commanders from embattled owner Daniel Snyder, a source told CNN on Tuesday. CNN confirmed last week that Johnson joined the Harris group. ESPN, which first reported news of the bid, reports that the Harris and Johnson-led group is offering to pay Snyder’s $6 billion asking price. A representative for Johnson, the Los Angeles Lakers hall of famer, did not immediately respond to a request for comment. Magic Johnson and Josh Harris have bid on the Washington Commanders.

☆ Morning Bid: Swinging between bank fears and rate risks
▼ + stars: | 2023-03-28 | by ( ) www.reuters.com time to read: +5 min

A look at the day ahead in U.S. and global markets from Mike DolanMarkets seem caught between the devil and the deep blue sea. Easing concerns about bank stability this week have merely re-introduced interest rate risk, reining in any suggestion of a runaway relief rally as the first quarter closes on Friday. While nerves persist over March bank failures and contagion fears, central banks are still faced with punchy growth and inflation and will likely switch attention back to cooling that down once they're assured banks can take the strain. But interest rate markets are already correcting as signs of stability in the banking arena emerge. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

☆ How protected is your money in accounts outside of banks?
▼ + stars: | 2023-03-28 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +6 min

Spoiler alert: You likely have at least some protection in all but your crypto accounts. There are several types of deposit accounts you may have at one bank (e.g., individual savings account, joint checking, business account, etc.) NCUA, which is backed by the full faith and credit of the US government, covers accounts up to $250,000, in much the same way the FDIC covers bank accounts. Crypto accountsIf you invest in crypto assets you have no federally guaranteed protections should the company acting as custodian of your assets go under. Even if you’re holding your crypto assets at a firm that is an SEC-registered broker-dealer and it is a member of SIPC, your crypto assets will not receive SIPC protection.

☆ The world's largest wealth manager is warning investors to avoid stocks for the rest of 2023. Here's its advice across asset classes.
▼ + stars: | 2023-03-28 | by ( Marley Jay | ) www.businessinsider.com time to read: +4 min

UBS, the world's largest asset manager, downgraded stocks and says they have little upside now. The firm says investors shouldn't sit on the sidelines, especially in the bond market. UBS advised investors on what to buy in stocks, bonds, currencies, and alternative assets. "The bond market is pricing for a recession to start as soon as the summer," Haefele wrote, while oil prices and credit spreads also reflect substantial recession risk. Speaking of stocks, Haefele doesn't like what he sees.

March 27 (Reuters) - The Federal Deposit Insurance Corp (FDIC) and its flagship deposit insurance fund have been active since the Great Depression to provide an orderly resolution for failed banks and to reimburse certain customer accounts. Here's what you need to know about the fund and how it works:WHAT IS THE DEPOSIT INSURANCE FUND? The FDIC's deposit insurance fund helps to fulfill the agency's guarantee of bank deposits up to $250,000. As of the end of last year, the deposit insurance fund balance stood at $128.2 billion. The FDIC by law is required to resolve failed banks using the least costly option to minimize losses to its deposit insurance fund.

☆ Banks' internship and analyst programs could be in flux, and that might spell bad news for senior dealmakers
▼ + stars: | 2023-03-27 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +6 min

But before we get started, First Citizens BancShares has agreed to buy Silicon Valley Bank, according to a statement from the FDIC. Some of the ripples from the fall of Silicon Valley Bank have felt particularly significant (Credit Suisse bankers nod ominously). Some banks had to even break a cardinal rule of Wall Street: Turn away business. Click here to read more about how college students are feeling on edge about their upcoming Wall Street jobs and internships. You don't necessarily need seven-figures in assets to call it quits, per The Wall Street Journal.

☆ FDIC coverage limits may be raised above $250,000 again. How experts say you can have more of your deposits insured
▼ + stars: | 2023-03-27 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Experts say there are still ways to gain FDIC coverage even if you are over that $250,000 limit. Citizens Bank of Edmond offers additional coverage, with a limit of $150 million per depositor, through IntraFi Network. "If you're able to use IntraFi, then you don't necessarily have to go to another bank to get another $250,000," Castilla said. Jill Castilla CEO of Citizens Bank of EdmondBecause the bank's average deposit is typically $25,000, Citizens Bank of Edmond does not use the amplified coverage often, Castilla said. Add beneficiaries to your accountAnother way of getting more than $250,000 in coverage for your deposits is to add beneficiaries.

☆ Saudi National Bank chair resigns after Credit Suisse comments
▼ + stars: | 2023-03-27 | by ( Hanna Ziady | ) edition.cnn.com time to read: +2 min

Ammar Al Khudairy had resigned “due to personal reasons” and would be replaced by CEO Saeed Mohammad Al Ghamdi, Saudi National Bank said in a statement Monday. During an interview with Bloomberg TV on March 15, Al Khudairy ruled out increasing the bank’s stake in Credit Suisse. That was in response to a question on whether Saudi National Bank was open to further equity injections into Credit Suisse if there was a call for additional funds. Saudi National Bank, which is 37%-owned by Saudi Arabia’s sovereign wealth fund, acquired a 9.9% stake in Credit Suisse in October for $1.5 billion, making it an anchor investor in the bank’s turnaround plan. Had the bank increased its shareholding in Credit Suisse beyond the 9.9% level, it would have been subjected to additional regulatory obligations.

☆ Here’s why the U.S. had to sweeten terms to get the SVB sale done
▼ + stars: | 2023-03-27 | by ( Hugh Son | ) www.cnbc.com time to read: +3 min

First Citizens BancShares is acquiring $72 billion in SVB assets at a discount of $16.5 billion, or 23%, according to a Sunday release from the Federal Deposit Insurance Corporation. But even after the deal closes, the FDIC remains on the hook to dispose of the majority of remaining SVB assets, about $90 billion, which are being kept in receivership. All told, the SVB failure will cost the FDIC's Deposit Insurance Fund about $20 billion, the agency said. The deal terms may be explained by tepid interest in SVB assets, according to Mark Williams, a former Federal Reserve examiner who lectures on finance at Boston University. The ongoing sales process for First Republic may have cooled interest in SVB assets, according to a person with knowledge of the process.

☆ Morning Bid: Brittle banks find a berth
▼ + stars: | 2023-03-27 | by ( ) www.reuters.com time to read: +4 min

With few fresh weekend developments on the European bank stock rigor late last week, European bourses and bank stocks found a level too. Deutsche Bank, whose stock lurched lower on Friday amid fears about rising bank funding costs, regained about 3% on Monday. Deposits at small banks fell by $120 billion in the week to March 15, while borrowing jumped $253 billion. Economists polled by Reuters expect the headline year-on-year inflation rate to have cooled to 7.2% from 8.5% in February. * U.S. Treasury auctions 2-year notes* U.S. corporate earnings: CarnivalReuters GraphicsReuters Graphics Reuters GraphicsReuters GraphicsReuters GraphicsBy Mike Dolan, editing by Ed Osmond, <a href="mailto:mike.dolan@thomsonreuters.com" target="_blank">mike.dolan@thomsonreuters.com</a>.

☆ As banking sector confidence falters, central banks called on to do more
▼ + stars: | 2023-03-26 | by ( Davide Barbuscia | ) www.reuters.com time to read: +4 min

NEW YORK, March 26 (Reuters) - Some investors and analysts are calling for more coordinated interventions from central banks to restore financial stability, as they fear that tumult in the global banking sector will continue amid rising interest rates. On Friday, shares of Deutsche Bank (DBKGn.DE) plunged amid concerns that regulators and central banks have yet to contain the worst shock to the banking sector since the 2008 global financial crisis. Global central banks including the Federal Reserve have recently taken measures to enhance the provision of liquidity through the standing U.S. dollar swap line arrangements. "The issue with European banks and big U.S. banks at the moment is confidence. Meanwhile, overall deposits in the banking sector have declined by almost $600 billion since the Fed began to raise interest rates last year, the biggest banking sector deposit outflow on record, noted Torsten Slok, chief economist at Apollo Global Management.

☆ Standard Chartered agrees to sell business in Jordan
▼ + stars: | 2023-03-26 | by ( Hadeel Al Sayegh | ) www.reuters.com time to read: +1 min

DUBAI, March 26 (Reuters) - Standard Chartered (STAN.L) plans to sell its Jordanian business to Arab Jordan Investment Bank (AJIB) (AJIB.AM), the two parties said on Sunday, as the emerging markets-focused lender presses ahead with plans to exit seven markets in Africa and the Middle East. All Standard Chartered Bank employees in Jordan will be transferred to AJIB, it said an emailed statement. AJIB said the purchase falls within the Jordanian lender's strategy to grow its market share in the country, which continues to grow after it acquired HSBC's banking business in Jordan in 2014 and National Bank of Kuwait's banking business in Jordan in 2022. Standard Chartered in April 2022 said it plans to leave seven markets, consisting of Angola, Cameroon, Gambia, Jordan, Lebanon, Sierra Leone and Zimbabwe. Reporting by Hadeel Al Sayegh, Editing by Louise Heavens and Elaine HardcastleOur Standards: The Thomson Reuters Trust Principles.

☆ Standard Chartered enters agreement to sell business in Jordan - statement
▼ + stars: | 2023-03-26 | by ( Hadeel Al Sayegh | ) www.reuters.com time to read: 1 min

DUBAI, March 26 (Reuters) - Standard Chartered (STAN.L) said on Sunday it plans to sell its Jordanian business to Arab Jordan Investment Bank (AJIB) (AJIB.AM), as the emerging markets-focused lender presses ahead with plans to exit seven markets in Africa and the Middle East. The bank entered into an agreement with AJIB, subject to central bank approval, which will see Standard Chartered's corporate, commercial and institutional banking, consumer lending and private banking businesses migrated to AJIB. All Standard Chartered Bank employees in Jordan will be transferred to AJIB, it said an emailed statement. Reporting by Hadeel Al Sayegh, Editing by Louise HeavensOur Standards: The Thomson Reuters Trust Principles.

☆ 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.

Discussions between the SEC and Coinbase broke down in recent weeks, with one source saying the two sides had moved "further apart." The crypto industry believes it operates in a regulatory gray area not governed by existing U.S. securities laws - and that new legislation is needed to regulate the industry. "But if necessary, we welcome the opportunity for Coinbase and the broader crypto community to get clarity in court." Prior to Gensler's arrival, the SEC engaged in targeted enforcement, but the Democratic chair has ratcheted up focus on crypto platforms themselves. "There couldn't be a more significant development for crypto markets and crypto investors," said Philip Moustakis, former SEC enforcement lawyer and partner with Seward and Kissel LLP in New York.

☆ Yellen chairs closed US Financial Stability Oversight Council meeting
▼ + stars: | 2023-03-24 | by ( David Lawder | ) www.reuters.com time to read: +2 min

WASHINGTON, March 24 (Reuters) - U.S. Treasury Secretary Janet Yellen will chair a closed meeting of the Financial Stability Oversight Council on Friday morning, according to daily media advisory for the department. The Treasury statement provided no further details about the subject of the FSOC meeting, which comes two weeks after regulators closed Silicon Valley Bank (SIVB.O), whose failure kicked off a bank-run contagion crisis. The body of financial regulators, led by the Treasury and including the heads of the Federal Reserve, the Federal Deposit Insurance Corp (FDIC), the Securities and Exchange Commission and other regulatory agencies, meets regularly to discuss the state of U.S. financial stability risks and oversight initiatives. 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. Responding to a Senate hearing question on risks in the non-bank financial sector, Yellen said on Wednesday that the oversight council was working on revised guidance that would restore the body's capacity to designate non-bank financial institutions as systemically important.

☆ 'It was agony': Why SVB's collapse is especially hard as a Black founder, says CEO
▼ + stars: | 2023-03-24 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +1 min

Isa Watson, founder of voice-only social messaging app Squad, was on a plane when she got the news: Silicon Valley Bank had collapsed, and the Federal Deposit Insurance Corporation had taken over. Prior to the crash, Watson was a depositor at Silicon Valley Bank, using it as the primary bank for all of her business expenses, including cloud services, databases and products that her developers and designers use to collaborate. By Friday, March 10, regulators shuttered the bank and seized its deposits in what would become the largest U.S. bank failure since the 2008 financial crisis and the second-largest bank failure in U.S. history. At that point, Watson says she didn't know whether she'd be able to get her business's money back beyond the FDIC-insured $250,000. She put thousands of dollars' worth of business charges on her personal credit card to keep things running smoothly.

March 23 (Reuters) - The U.S. Securities and Exchange Commission on Thursday issued an investor alert warning that firms offering crypto asset securities may not be complying with U.S. laws. Unregistered offerings of such securities may not provide important data, including audited financial statements, for informed decision making, the SEC said. The securities watchdog has been cracking down on the crypto industry, which its chair has called a "Wild West" riddled with misconduct. Crypto exchange Coinbase (COIN.O) announced on Wednesday that it had received a Wells notice - a formal declaration that SEC staff intend to recommend an enforcement action. "Crypto asset entities might use these in lieu of audited financial statements in order to obscure and confuse customers about the safety of their assets," the SEC said.

☆ Banks ramp up use of new Fed facility created during crisis
▼ + stars: | 2023-03-23 | by ( Hugh Son | ) www.cnbc.com time to read: +1 min

American banks deepened their reliance on a new Federal Reserve lending program created after the collapse of Silicon Valley Bank this month. Institutions borrowed $53.7 billion from the Bank Term Funding Program as of Wednesday, up sharply from $11.9 billion last week. Another category of loans made mostly to shuttered banks to meet obligations to depositors and other expenses jumped as well. Meanwhile, banks' use of the discount window, which is the traditional way they borrow from the Fed, dropped this week. The discount window offers market value rather than par value for the securities and provides 90-day loans as compared to the one-year term under the BTFP.

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