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☆ Crypto group DCG seeks new partners for portfolio firms amid SVB collapse - CoinDesk
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

March 14 (Reuters) - Crypto conglomerate Digital Currency Group (DCG) is looking to find new banking partners for portfolio companies following the collapse of Silicon Valley Bank (SIVB.O), Signature Bank (SBNY.O) and Silvergate (SI.N), CoinDesk reported on Tuesday, citing messages viewed by the outlet. Santander (SAN.MC), HSBC (HSBA.L) and Deutsche Bank (DBKGn.DE) are still willing to connect with crypto firms, CoinDesk said, after recent banking failures in the United States left crypto firms and tech startups stranded and hunting for new banking partners. DCG has also reached out to BlackRock (BLK.N), JPMorgan (JPM.N) and Bank of America (BAC.N), the report added. Banks may restrict some services for crypto firms, such as brokerage and money market services and the ability to wire money to third parties, according to the messages seen by CoinDesk. Traditional banks may set up banking accounts for crypto firms, but would place restrictions based on the level of crypto exposure, the report added.

☆ Major European bank tells Credit Suisse to seek urgent central bank liquidity backstop - source
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: 1 min

U.S. banks' CDS prices surge as contagion concern widens, article with imageFinance category · March 15, 2023 · 7:58 PM UTCA jump in the cost for Wall Street banks to insure bonds against default on Wednesday was another worrisome indicator of credit stress for investors amid the crisis at Credit Suisse and at U.S. regional banks.

☆ Swiss National Bank says it will provide Credit Suisse with liquidity if necessary
▼ + stars: | 2023-03-15 | by ( Jesse Pound | ) www.cnbc.com time to read: +1 min

The logo of Swiss bank Credit Suisse is seen at a branch office in Zurich, Switzerland, November 3, 2021. The Swiss National Bank said Wednesday that Credit Suisse is currently well capitalized and that the central bank will provide additional liquidity if necessary, as regulators on both sides of the Atlantic tried to calm fears of a spreading crisis. The statement comes after the Swiss-listed shares of Credit Suisse fell more than 20% on Wednesday. Additionally, the Saudi National Bank — which is Credit Suisse's biggest financial backer — said it could not provide additional capital to the company because of a regulatory issue. The American depositary receipts of Credit Suisse pared their losses after the announcement from regulators to about 14% for the session.

LONDON, March 15 (Reuters) - Central banks juggling inflation and financial stability mandates are prompting the wildest swings in bedrock government bonds for over a decade and a surge in volatility that may end up causing problems of its own. "The Fed and other central bankers have lost the luxury of focusing singularly on the fight against inflation," said Manulife Investment Management's Frances Donald. If the history of banking crashes and related credit crunches show them to be deflationary anyway, then many argue a central bank pause now may be the wisest choice. "The Fed is now fighting inflation as well as potential financial contagion," Lombard Odier Chief Investment Officer Stéphane Monier said. The first sign of regional bank stock calm on Tuesday, alongside the sticky core inflation readings for February, prompted a build-back of some bets for one last hike from each central bank.

☆ Larry Fink says more bank seizures could come, but it's too early to know how widespread crisis is
▼ + stars: | 2023-03-15 | by ( Yun Li | ) www.cnbc.com time to read: +2 min

BlackRock CEO Larry Fink issued a somber warning on the state of the financial markets, saying the banking crisis brought on by the collapse of Silicon Valley Bank could spread, but it was too early to determine. The financial sector continued to be under pressure Wednesday and concerns have spread beyond regional banks. Shares of Credit Suisse, a Swiss Bank that has large U.S. and global operations, tumbling more than 20% to another all-time low. Saudi National Bank, Credit Suisse's largest investor, reportedly said it could not provide any more funding. "These dramatic changes in financial markets are happening at the same time as equally dramatic changes in the landscape of the global economy – all of which will keep inflation elevated for longer," Fink said.

☆ Oil tumbles 6%, heads for worst day since July as banking crisis routs markets
▼ + stars: | 2023-03-15 | by ( Fred Imbert | ) www.cnbc.com time to read: +2 min

Oil prices fell Wednesday, as traders feared a brewing banking crisis could dent global economic growth. "Now near the mid-$60s, WTI crude's plunge is at the mercy of how much worse the macro picture gets." It also raised concern over the state of the global banking system less than a week after two U.S. regional banks failed. Entering this week, traders had priced in at least a 25 basis-point rate hike. Correction: Oil was headed for its worst day since July.

☆ BlackRock's Larry Fink says the US banking system may face 'more seizures and shutdowns' after Silicon Valley Bank's collapse
▼ + stars: | 2023-03-15 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

BlackRock CEO Larry Fink raised the prospect of more bank "seizures and shutdowns" taking place. Markets remain on edge even after regulators took decisive action on Silicon Valley Bank, he said. Fink, in his annual letter to shareholders released Wednesday, addressed last week's seizure of SVB following its asset-liability mismatch. A jump in interest rates since March 2022 spurred billions in losses in Silicon Valley Bank's bond holdings, sparking last week's run on deposits. Fink said the fall of SVB recalled other periods of "spectacular financial flameouts" following prior tightening cycles.

☆ Silicon Valley Bank and inflation complicate the Fed’s next move
▼ + stars: | 2023-03-15 | by ( Phil Rosen | ) www.businessinsider.com time to read: +5 min

Everyday now we've been talking about Silicon Valley Bank — SVB — and I've had to catch myself several times from saying SBF — Sam Bankman-Fried — the guy behind the other big financial collapse in recent months. A) No rate hike at allB) 25 basis pointsC) 50 basis pointsTweet me (@philrosenn) or email me (prosen@insider.com) to let me know. Bank stocks are rising again as nerves calm — though SVB-driven fears are still niggling. Bank of America picked out a batch of financial stocks that offer upside right now amid the chaos. The token soared 15% as the February CPI print fueled more speculation for a smaller rate hike.

☆ 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.

☆ Silicon Valley Bank collapse: What you need to know now
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +3 min

March 14 (Reuters) - U.S. bank stocks jumped on Tuesday, recovering some ground after the failure of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) triggered heavy selling by investors who were already anxious about the impact on lenders of rising interest rates. Senator Elizabeth Warren called on Federal Reserve Chair Jerome Powell to recuse himself from an internal review of recent bank failures, saying his actions "directly contributed" to them. * Chancellor Olaf Scholz said Germans should not have major concerns and that regulators had learned lessons from the global financial crisis in 2008. MARKETS* U.S. regional bank shares bounced, with First Republic Bank (FRC.N) up 42.3% at $44.40 a share, a day after touching a record low of $17.53. * Global shares turned higher, ending a five-session rout, as U.S. inflation data bolstered bets on a smaller interest rate hike by the Federal Reserve next week.

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.

☆ Shares of US regional banks attempt recovery after SVB-fueled rout
▼ + stars: | 2023-03-14 | by ( Medha Singh | ) www.reuters.com time to read: +2 min

March 14 (Reuters) - Shares of U.S. regional banks rose on Tuesday after suffering double-digit losses over the past few days following the biggest bank collapse since the 2008 global financial crisis. The collapse of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) sent shockwaves through global markets, despite assurances from U.S. President Joe Biden and other policymakers that banks and deposits were safe. First Republic Bank (FRC.N) rose 57% before trading was halted for volatility, a day after hitting an intraday record low of $17.53. The S&P 1500 regional banks sub-industry index (.SPCOMBNKS) advanced 7.7% after shedding 20% in the past three sessions. Big banks rose with JPMorgan up 1.6%, Wells Fargo (WFC.N) 6.6% and Bank of America (BAC.N) 4.2%.

☆ 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.

Banking giants Citi (C.N), Wells Fargo (WFC.N) and JP Morgan (JPM.N) were also 1%-3% higher in the pre-market. Japanese financial institutions have sufficient capital buffers to absorb losses caused by external factors, including risks caused by SVB's collapse, the Bank of Japan said. Traders currently see a 50% chance of no rate hike at that meeting, with rate cuts priced in for the second half of the year. The prospect of higher rates had been "the reason investors have been really excited about Japan bank stocks", Ikeda added. We just ask for a little bit of time because of the volume," FDIC employee Luis Mayorga told waiting customers.

☆ AMERICAS Bank stress, bond volatility and disinflation
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +5 min

But the implications of this sudden bout of financial instability - and its potential economic and policy fallout - were most clearly seen in the interest rate and bond markets. Implied terminal rates for the European Central Bank and Bank of England have been dramatically scaled back too - though one or two further hikes are still priced for those central banks. But the Fed rethink has led to seismic action on the U.S. Treasury market, with the biggest drop in 2-year Treasury yields on Monday since the stock market crash of 1987. Credit spreads in the corporate bond markets have also widened sharply as investors fear an economy-wide tightening of borrowing standards and financial conditions. It would certainly think twice about tightening policy again into this level of financial stress and bond market upheaval.

☆ Crypto group DCG looking for new partners following SVB collapse - CoinDesk
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

☆ SVB contagion fears hammer banks, roil markets
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +4 min

The Tokyo Stock Exchange banks index (.IBNKS.T) fell more than 7%, setting it on course for its steepest drop in nearly six months. Banks shares in Singapore and Australia fell. Heavy selling hit U.S. regional bank stocks overnight and traders raced away from bets on U.S. rate hikes, reckoning the instability would turn policymakers cautious. "Bank runs have started (and) interbank markets have become stressed," said Damien Boey, chief equity strategist at Sydney-based investment bank Barrenjoey. "Bank stocks had run up (when) it was thought that monetary policy might normalise a bit," said Jamie Halse, who manages a Japan-focused fund at Platinum Asset Management in Sydney.

Fears remained on Wall Street on Monday despite the measures announced over the weekend following the collapse of California-based Silicon Valley Bank (SIVB.O) and New York-based Signature Bank (SBNY.O). Some investors have called for further action by banking regulators to reassure markets. But banking experts said regulators would likely want to see the extent of any further contagion before deciding on fresh measures. In addition, the Fed announced Monday it was doing an internal review of its oversight of Silicon Valley Bank, where it was the primary regulator. Prior to Silicon Valley Bank's collapse, banks had been lobbying lawmakers to push back against the Fed's review, arguing it could slow the economy.

☆ Bank slide deepens as SVB contagion fear rattles markets
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +4 min

The Tokyo Stock Exchange banks index (.IBNKS.T) fell more than 5%, setting it on course for its steepest drop in nearly six months. Banks shares in Singapore and Australia fell. Heavy selling hit U.S. regional bank stocks overnight and traders raced away from bets on U.S. rate hikes, reckoning the instability would turn policymakers cautious. "Bank runs have started (and) interbank markets have become stressed," said Damien Boey, chief equity strategist at Sydney-based investment bank Barrenjoey. "Bank stocks had run up (when) it was thought that monetary policy might normalise a bit," said Jamie Halse, who manages a Japan-focused fund at Platinum Asset Management in Sydney.

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.

☆ Japanese banks slide as SVB contagion fear rattles markets
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +3 min

"Bank runs have started (and) interbank markets have become stressed," said Damien Boey, chief equity strategist at Sydney-based investment bank Barrenjoey. "Fear has started to feed on itself, and higher uncertainty by itself has triggered its own de-leveraging and de-risking dynamics." Overnight the VIX (.VIX) volatility index, nicknamed Wall Street's "fear gauge", shot higher and other indicators of market stress showed early signs of strain. In Tokyo, Resona Holdings (8308.T) led losses with a 9% slide, followed by Sumitomo Mitsui Financial Group (8306.T), down 8%. U.S. inflation data due later in the day is likely to inject more volatility, even if investors see the Fed prioritising financial stability.

☆ Bank stocks are now oversold but it's not time to buy the dip just yet, DataTrek says
▼ + stars: | 2023-03-14 | by ( Jennifer Sor | ) www.businessinsider.com time to read: +3 min

Bank stocks are now oversold, but it's not time to buy in just yet, DataTrek's Nicholas Colas said. He said regional bank stocks could see more downside, pointing to data in previous financial crises. In a note on Tuesday, the research firm pointed to the plunge in bank stocks on Monday as Wall Street reels from the collapse of SVB. Meanwhile KRE, a regional bank ETF, has plunged 23% over the past 50 trading days, which is 2 standard deviations below its long-run average. Regional banks posted a strong rebound in early Tuesday trading.

☆ JPMorgan, other big U.S. banks flooded with new clients post SVB collapse-FT
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

Even the U.S. government's emergency measures to stop the collapse of more banks have not stopped depositors from trying to move their accounts to larger banks or to shift to money market funds, FT reported. The Federal Deposit Insurance Corporation stepped in on Friday to protect the deposits of up to $250,000, but deposits over that amount - which accounted for 85% of SVB accounts - are at risk. Citi declined to comment on the report, while JPMorgan and Bank of America did not respond to Reuters requests for comment. Shares of U.S. regional banks such as First Republic Bank (FRC.N), Western Alliance (WAL.N) and KeyCorp (KEY.N) have slumped on fears of possible bank contagion following the collapse of SVB and Signature Bank (SBNY.O). Reporting by Lavanya Ahire in Bengaluru; Editing by Savio D'Souza and Janane VenkatramanOur Standards: The Thomson Reuters Trust Principles.

NEW YORK, March 14 (Reuters) - U.S. consumers have flooded banking giants, including JPMorgan Chase & Co (JPM.N), Bank of America Corp (BAC.N) and Citigroup Inc (C.N) with deposits after the collapse of Silicon Valley Bank, sources familiar with the matter said. Large banks saw in influx of money from consumers and businesses in the last week as SVB teetered, one of the sources told Reuters. Rating agency Moody's Investors Service on Tuesday changed its outlook on the U.S. banking system to negative from stable to reflect the rapid deterioration in the operating environment following deposit runs at Silicon Valley Bank, Silvergate Bank, and Signature Bank. Shares of U.S. regional banks such as First Republic Bank (FRC.N), Western Alliance Bancorp (WAL.N) and KeyCorp (KEY.N) have slumped on fears of possible bank contagion following the collapse of SVB and Signature Bank (SBNY.O). For example shares of First Republic climbed nearly 40 percent after plunging more than 60% on Monday.

☆ Jim Cramer's top 10 things to watch in the stock market Tuesday: As-expected CPI boosts Wall Street
▼ + stars: | 2023-03-14 | by ( Jim Cramer | ) www.cnbc.com time to read: +4 min

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