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☆ SVB Collapse Under Investigation by SEC and DOJ: What to Know
▼ + stars: | 2023-03-16 | by ( Wall Street Journal | ) www.wsj.com time to read: 1 min

Customers Line Up to Access Accounts After SVB Collapse Silicon Valley Bank customers waited in line outside branches after the FDIC said depositors would be able to access their accounts Monday morning through a newly-created bridge bank. SVB collapsed late last week, in the second-biggest bank failure in U.S. history. Photo: Brittany Hosea-Small/Reuters

☆ A risk gauge for European banks is surging after SVB collapse: Here are the worst impacted
▼ + stars: | 2023-03-16 | by ( Ganesh Rao | ) www.cnbc.com time to read: +2 min

Risk indicators such as the rates on credit default swaps are rising for the European banking sector following the failure of Silicon Valley Bank last week. CDS — a type of financial derivative — rise in value as the risk of default increases. CDS rates above one percentage point are an extremely rare event seen only during market stress, such as the height of the euro zone debt crisis in 2012. No other European bank had rates above this level. CDS rates were at about 0.6% for Germany's largest lender Deutsche Bank , the second highest currently, which saw a nine basis point jump in CDS rates since the beginning of March.

☆ Canada should support startups after SVB collapse, says lobby group
▼ + stars: | 2023-03-16 | by ( ) www.reuters.com time to read: +2 min

TORONTO, March 16 (Reuters) - A lobby group for Canada's venture capital and private equity funds is asking Prime Minister Justin Trudeau's government to provide emergency financing to help startups hit by the collapse of Silicon Valley Bank (SVB), according to a letter seen by Reuters on Thursday. Spokespeople for Ng and Finance Minister Chrystia Freeland's office could not immediately be reached for comment. Reuters reported on Monday that the sudden collapse of SVB could choke funding for Canada's technology start-ups and place them in the hands of domestic lenders who may be more selective. The letter also asked the government to instruct the Business Development Bank of Canada to deploy a bridge financing program similar to the one used at the outset of the COVID-19 pandemic. ($1 = 1.3755 Canadian dollars)Reporting by Maiya Keidan, additional reporting by David Ljunggren; Editing by Josie KaoOur Standards: The Thomson Reuters Trust Principles.

☆ Here's how companies and investors can manage risk after SVB collapse: Gen. Stanley McChrystal
▼ + stars: | 2023-03-16 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHere's how companies and investors can manage risk after SVB collapse: Gen. Stanley McChrystalRetired four-star general Stanley McChrystal, McChrystal Group founder and CEO, joins 'Squawk Box' to discuss how McChrystal is currently advising clients, how investors can prepare for risk in today's environment, and more.

LONDON, March 16 (Reuters) - Banks should largely be able to cope with "unrealised losses" on bonds and the collapse of Silicon Valley Bank, top credit ratings agencies S&P Global and Moody's said on Thursday, although they remained guarded on Credit Suisse's woes. "At this stage, we view the risks from unrealized losses as manageable," S&P said in a report published just days after the collapse of Silicon Valley Bank, a lender it had rated as 'investment grade' until the day it fell. Rival agency Moody's also offered its balm to the Credit Suisse jitters, saying that while it would "act appropriately" with the Swiss bank's rating, Europe's lenders remain in fundamentally good health. "That kind of confidence shock that we've just seen from the U.S. is bound to have some impact," Hill said. Reporting By Marc Jones and Lawrence White Editing by Nick ZieminskiOur Standards: The Thomson Reuters Trust Principles.

New York CNN —First Republic Bank, facing a crisis of confidence from investors and customers, is actively discussing options for a lifeline — including a takeover, according to the Wall Street Journal. Participating in the discussions Thursday are massive Wall Street banks, including JPMorgan and Morgan Stanley, the Journal reported. Both Fitch Ratings and S&P Global Ratings downgraded First Republic Bank’s credit rating on Wednesday on concerns that depositors could pull their cash from the bank. Many regional banks, including First Republic, have large amounts of uninsured deposits above the $250,000 FDIC limit. To make money, banks use a portion of customers’ deposits to give out loans to other customers.

☆ Where wealthy investors are putting their cash after SVB collapse
▼ + stars: | 2023-03-16 | by ( Robert Frank | ) www.cnbc.com time to read: +4 min

Wealthy investors and family offices are moving more of their money out of bank cash-balances and into treasuries, money markets and other short-term instruments, according to wealth advisors. "Over [last] weekend there was a lot of worry," said Michael Zeuner, managing partner at WE Family Offices, which advises wealthy investors and family offices. The SVB crisis has only accelerated a broader push by wealthy investors over the past year to move cash out of bank balances and into Treasuries and money-markets. Loans and mortgagesWealthy investors and family offices will continue to rely on banks for loans and mortgages. But the strategy of banks requiring wealthy clients to give them deposits or primary-banking relationships in exchange for loans may be ending, advisers say.

☆ LatAm has 'resilient' financial system, IDB president says after SVB collapse
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +1 min

PANAMA CITY, March 15 (Reuters) - Latin America has a "very resilient and well-managed" financial system, Inter-American Development Bank President Ilan Goldfajn said on Wednesday, following the collapse of Silicon Valley Bank, which has roiled markets. "We hope that we are prepared for what is coming in the region," Goldfajn added, speaking at an IDB meeting in Panama City. Stocks and currencies in the region tumbled on Wednesday as traders showed worries over the stability of Swiss lender Credit Suisse (CSGN.S) following the crash of Silicon Valley Bank, raising international fears of financial contagion. "We're going to learn a lot in coming weeks and months about how to get through this period," Goldfajn said. He added that IDB leaders would meet to discuss the development bank's macroeconomic outlook and the impact of inflation, as well as risks to the region's financial systems.

☆ Uneasy calm descends after SVB-triggered turmoil
▼ + stars: | 2023-03-15 | by ( Dhara Ranasinghe | ) www.reuters.com time to read: +5 min

The European Central Bank is still leaning towards a half-percentage-point rate hike on Thursday, despite turmoil in the banking sector, given high inflation, a source close to its Governing Council told Reuters. European stocks slipped 0.9% (.STOXX) in early trade but held above three-month lows reached on Monday as panic gripped world markets following SVB's collapse last week. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) rose 0.9%, having slid 1.7% on Tuesday. Japan's Nikkei index was flat (.N225) while an index of Japanese banks, which has slid 8% this week, jumped over 3% (.IBNKS.T). There had been worries that stronger-than-expected data might lead the Fed to go for jumbo-sized hikes to battle inflation.

☆ Fed to consider tougher rules for midsize banks after SVB collapse-source
▼ + stars: | 2023-03-15 | by ( Pete Schroeder | ) www.reuters.com time to read: +2 min

March 14 (Reuters) - The Federal Reserve is considering tougher rules and oversight for midsize banks similar in size to Silicon Valley Bank (SIVB.O), which collapsed suddenly last week, according to a source familiar with the matter. Now, a review of the $209 billion bank's failure being conducted by Fed Vice Chair for Supervision Michael Barr could lead to strengthened rules on banks in the $100 billion to $250 billion range, the source told Reuters. That review of Fed supervision and regulation of the bank will be released by May 1, and augments a review of bank capital rules by Barr already underway. All those requirements could be reworked by the Fed in the aftermath of the collapse, which has also spurred fresh calls from proponents of tougher rules for regulators to rebuild those restrictions. On Tuesday, 50 Democratic lawmakers, including Senator Elizabeth Warren, introduced a bill to repeal the law that eased rules for banks in 2018.

☆ UK Budget: Hunt sets out his plan for growth
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +5 min

LONDON, March 15 (Reuters) - British finance minister Jeremy Hunt set out his budget on Wednesday, seeking to snap the world's sixth-biggest economy out of its run of stagnant growth. HUNT ON GROWTH"The OBR forecast we will not enter a recession at all this year with a contraction of just 0.2%. HUNT ON TECHNICAL RECESSION"Today the Office for Budget Responsibility forecast that because of changing international factors and the measures I take, the UK will not now enter a technical recession this year. HUNT ON BOOSTING UK INVESTMENT AFTER SVB COLLAPSE"I will return in the Autumn Statement with a plan to deliver that. HUNT ON PENSION TAX"Today I will increase the pensions annual tax-free allowance by 50% from 40,000 pounds to 60,000 pounds.

☆ This CEO halved her personal savings to meet payroll after SVB collapse: 'I don't really know yet what the repercussions will be'
▼ + stars: | 2023-03-15 | by ( Megan Sauer | ) www.cnbc.com time to read: +4 min

The Flex Co. CEO Lauren Schulte Wang and her husband took out half of their personal savings to fund employees' paychecks after SVB crashed. They withdrew half of the money in their personal savings account, and deposited it into a brand-new account set up last Friday. Wang and her husband are The Flex Company's co-founders, and serve as CEO and CFO, respectively. When Wang tried to transfer her company's money, which she says represented 100% of its liquid capital, the bank's website crashed. On Monday, the last of The Flex Company's 30,000-plus retail locations finally switched over to the new account.

☆ Israel FinMin says immediate liquidity risk averted after SVB collapse
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +2 min

JERUSALEM, March 14 (Reuters) - Israel's Finance Ministry said on Tuesday that a panel formed to assess the fallout from the collapse of Silicon Valley Bank (SIVB.O) determined that the immediate liquidity risk has been averted. The ministry in a statement cited a decision by U.S. authorities to back accounts - even those uninsured - at the bank, which has been an important lender for Israeli technology companies. "Israel's economy is strong and relatively easy to manage in times of crisis," Smotrich said. Smotrich was in the United States for Sunday's Israel Bonds conference. Reporting by Ari Rabinovitch; Additional reporting by Henriette Chacar; Editing by Steven Scheer and Bill BerkrotOur Standards: The Thomson Reuters Trust Principles.

LONDON, March 14 (Reuters) - British banks are not yet seeing a "flight to quality" in deposits among customers nervous about the safe-keeping of their money following the collapse of U.S. lender Silicon Valley Bank last week, Lloyds chief executive Charlie Nunn said on Tuesday. Shockwaves from the collapse of Silicon Valley Bank further pounded bank stocks across Asia and Europe on Tuesday as worries about potential contagion to other lenders deepened. Major U.S. banks including JPMorgan (JPM.N) and Citigroup (C.N) have seen a wave of customers applying to shift their accounts to larger lenders, the Financial Times reported on Tuesday. "We haven't seen what we've seen in the U.S., which is the flight to quality," Nunn said. "But let's see how that plays out and we'll see how people feel over the next period of time."

☆ No all-clear yet for European banks after SVB collapse - German economist
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

BERLIN, March 14 (Reuters) - European banks are not completely in the clear after the collapse of Silicon Valley Bank (SIVBV.UL) and Signature Bank (SBNY.O) even though they do not face a systemic risk, the president of German economic research group DIW said on Tuesday. But he said many European banks were also facing this issue. "We have to be very careful," Fratzscher said, adding that German banks haven't fully recovered from the 2008 financial crisis initiated by the fall of Lehman Brothers, which had "systemic meaning" and caused a domino effect. "We don't see that in the case of SVB, which is relatively small," he said. Reporting by Maria Martinez; Editing by Miranda Murray and Alison WilliamsOur 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.

☆ Moody's changes outlook on U.S. banking system to 'negative' after SVB collapse
▼ + stars: | 2023-03-14 | by ( ) www.reuters.com time to read: +1 min

March 14 (Reuters) - Moody's Investors Service on Tuesday revised its outlook on the U.S. banking system to "negative" from "stable", citing heightened risks for the sector after the rapid unraveling of SVB Financial Group (SIVB.O) fueled fears of contagion. Bank runs at Silicon Valley Bank, Silvergate Capital Corp (SI.N) and Signature Bank (SBNY.O) have deteriorated the operating environment for the sector that is now battling a crisis of confidence, both from investors and depositors, the ratings agency said. Lenders that had "substantial" unrealized securities losses and uninsured deposits may be hurt more as customers look for safer alternatives to park their funds. Moody's also said it was expecting the Federal Reserve to continue tightening monetary policy, in contrast to some others who are expecting the bank collapses this month to reshape the trajectory for interest rate hikes. Reporting by Niket Nishant in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D'SilvaOur Standards: The Thomson Reuters Trust Principles.

☆ Biden vows new bank rules after SVB collapse, cites Trump rollback
▼ + stars: | 2023-03-13 | by ( Trevor Hunnicutt | ) www.reuters.com time to read: +4 min

"Americans can have confidence that the banking system is safe. The managers of the banks will be fired, Biden noted, and investors will lose money. Biden also promised new regulation after the biggest U.S. bank failure since the 2008 financial crisis. The U.S. Federal Deposit Insurance Corporation on Monday said it had transferred all Silicon Valley Bank (SIVB.O) deposits to a newly created bridge bank and that all depositors would have access to their money beginning Monday morning. Silicon Valley bank had $209 billion in assets at the end of last year.

☆ Swiss regulator monitoring banks and insurers after SVB collapse
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +3 min

ZURICH, March 13 (Reuters) - Swiss financial regulator FINMA on Monday said it was closely monitoring the banks and insurers it oversees after the U.S. moved to guarantee the deposits of two failing lenders in an effort to stem contagion. "FINMA takes note of the media reports on Silicon Valley Bank and Signature Bank in the USA and is closely monitoring the situation," FINMA said in a statement. "FINMA is evaluating the direct and indirect exposure of the banks and insurance companies it supervises to the institutions concerned," it said. FINMA said it was in contact with various institutions which could be affected, but declined name them or the measures it might take. The Swiss National Bank declined to comment on the effect of the Silicon Valley Bank's collapse could have on Switzerland's financial sector.

Futures tracking the tech-heavy Nasdaq led the gains as U.S. Treasury yields dipped to one-month lows, but were off session highs. Money market bets have also changed dramatically, with participants now betting an 80.4% chance of a 25 basis points rate hike in March instead of a 50 bps increase, with the rest expecting a status quo. Goldman Sachs analysts said they no longer expect the Fed to raise rates by 25 basis points at its next policy meeting on March 21-22. SVB's failure followed sharp interest rate hikes that hurt its startup customers and a failed capital raise attempt by the bank, spurring deposit withdrawals. ET, Dow e-minis were up 82 points, or 0.26%, S&P 500 e-minis were up 21.25 points, or 0.55%, and Nasdaq 100 e-minis were up 90 points, or 0.76%.

☆ Futures rise on bets of likely rate hike pause after SVB collapse
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +2 min

Futures tracking the tech-heavy Nasdaq rose the most among Wall Street peers as U.S. Treasury yields dipped to one-month lows, with some investors now pricing in a pause in the Fed's rate hikes in March. The bank's closure had followed sharp interest rate hikes that hurt its startup customers and a failed capital raise attempt by the bank, spurring deposit withdrawals. Money market bets have also changed dramatically following SVB's collapse, with the participants now betting an 80.4% chance of a 25 basis points rate hike in March instead of a 50 bps increase, with the rest expecting a status quo. Along with the developments unfolding in the fallout of SVB, investors also await crucial inflation data due later in the week for more clues on Fed's monetary tightening plans. ET, Dow e-minis were up 365 points, or 1.14%, S&P 500 e-minis were up 60.25 points, or 1.56%, and Nasdaq 100 e-minis were up 200.25 points, or 1.69%.

☆ Charles Schwab tumbles as drop in margin balances fans concerns after SVB collapse
▼ + stars: | 2023-03-13 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +2 min

March 13 (Reuters) - Charles Schwab (SCHW.N) on Monday reported a 28% decline in average margin balances and a 4% fall in total client assets for February, piling more pressure on the company amid fears over the fallout from the collapse of Silicon Valley Bank. The company's shares tumbled as much as 18% in volatile trading after markets opened with multiple halts and resumptions. Average margin balances fell to $60.6 billion last month, while total client assets slipped to $7.38 trillion, Charles Schwab. A failed share sale at the tech lender had drained $42 billion in deposits in a single day and sucked out liquidity. U.S. lenders First Republic Bank (FRC.N) and Western Alliance (WAL.N) also sought to calm investor worries over their liquidity and deposits on Friday.

☆ Chinese companies and tycoons rush to calm investors after SVB collapse causes anxiety
▼ + stars: | 2023-03-13 | by ( Laura He | ) edition.cnn.com time to read: +4 min

Hong Kong CNN —The collapse of Silicon Valley Bank (SVB), which courted Chinese start-ups, has caused widespread concern in China, where a string of founders and companies rushed to appease investors by saying their exposure was insignificant or nonexistent. “As China’s first technology bank, SPD Silicon Valley Bank is committed to serving Chinese science and technology companies, and has always had sound operations in accordance with Chinese laws and regulations.”It’s unclear what will happen to SVB’s ownership of the joint venture. BeiGene, one of China’s largest cancer-focused drug companies, said Monday it had more than $175 million uninsured cash deposits at SVB, which represents approximately 3.9% of its cash, cash equivalents and short-term investments. Zai Lab, a pharmaceutical firm, announced that its cash deposits at SVB were “immaterial” at about $23 million. “We never opened an account with Silicon Valley Bank, nor placed a deposit,” he said late Sunday on his Weibo account.

☆ KBW gives a slew of safe-haven bank stocks to buy after SVB collapse
▼ + stars: | 2023-03-13 | by ( Sarah Min | ) www.cnbc.com time to read: +2 min

Some bank stocks remain "safe havens" for investors even after the Silicon Valley Bank collapse , according to Keefe, Bruyette & Woods. The firm recommended 11 stocks that investors should buy "right here, right now" following the sell-off in bank stocks in the wake of SVB's failure, as well as the regulatory response over the weekend, according to a Sunday note. That could spell a buying opportunity for some bank stocks. "We see a potentially significant rebound in several bank stocks, as the market is likely to believe that the Fed and FDIC stuck the landing," analyst Christopher McGratty said to clients on Sunday. Old National Bancorp is a buying opportunity that's also a best idea for 2023, according to the note.

Signature Bank was closed by regulators on Sunday, the second massive bank failure in three days. The New York-based bank faced a crisis of confidence after midsize lender SVB Financial Corp. was seized by regulators on Friday. Signature was also reeling from a bet on crypto banking that foundered after the sector imploded and banking regulators cracked down on lenders’ exposure to digital assets. The failure is the third-largest in U.S. history.

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