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☆ The FDIC might make big banks fill the $23 billion hole left by its rescue of SVB and Signature Bank
▼ + stars: | 2023-03-30 | by ( Carla Mozée | ) www.businessinsider.com time to read: +2 min

The FDIC is looking at $23 billion in costs from the SVB and Signature Bank failures. Bloomberg reported the agency may push big banks to shoulder a larger-than-usual share of those costs. The FDIC is under political pressure to spare small banks from filling the hole in the agency's coffers. A special assessment may be applicable to bank behemoths such as JPMorgan Chase, Bank of America, and Wells Fargo. The cost of the bank failures has piled up because the FDIC, the US Treasury, and the Federal Reserve said all depositors at SVB and Signature Bank would fully protected.

☆ Bank runs have the crypto industry on high alert. 3 experts explain why the latest batch is especially worrisome — and what comes next.
▼ + stars: | 2023-03-26 | by ( Laila Maidan | ) www.businessinsider.com time to read: +10 min

Only a decade ago, bank runs happened at a much slower pace. The era of digital bank runsOne thing the past few weeks has made clear is that bank runs now unfold differently, especially for smaller banks that service specialized sectors. "Bank runs are evolving into a different and much more dangerous beast because they happen faster," Baker said. By comparison, on March 9, SVB lost $42 billion in a day — and it was a smaller bank, Baker added. Long said she warned regulators again after FTX collapsed that banks servicing the crypto sector face the danger of bank runs.

☆ Fed emergency lending to banks boosted overall Fed holdings in latest week
▼ + stars: | 2023-03-23 | by ( Michael S. Derby | ) www.reuters.com time to read: +4 min

However, as of Wednesday, banks boosted borrowing under the central bank’s newly launched Bank Term Funding Program to $53.7 billion. In its first outing last week, the facility had drawn a smaller than expected $11.9 billion in lending. The Fed also reported lending to foreign central banks and monetary authorities went from nothing on March 15 to $60 billion on Wednesday. Several major central banks announced recently they would draw on Fed dollar liquidity as needed. “Our banking system is sound and resilient with strong capital and liquidity” and “all depositors’ savings in the banking system are safe,” he told a media conference.

☆ The US is heading for a credit crunch and now is the time to buy gold and bitcoin, Galaxy CEO Mike Novogratz says
▼ + stars: | 2023-03-15 | by ( Phil Rosen | ) www.businessinsider.com time to read: +3 min

Galaxy Digital CEO said that the US is heading for a credit crunch and economic downturn. "[T]he commodity market is telling you, the oil market is telling you we're heading into a recession." "The commodity market is telling you, the oil market is telling you we're heading into a recession." Gold, meanwhile, rallied 1.37% Wednesday to about $1,937.50, and Brent crude oil, the international oil benchmark, tumbled 5.6% to trade around $73 a barrel. "And so you're going to see a credit crunch happening in the United States and that's starting to get priced into the market in a dramatic way."

Rising CDS spreads signal investors are hedging bets on a deterioration in credit quality. In money markets, a closely watched indicator of credit risk in the U.S. banking system edged up on Monday. With investors worried about possible bank runs, the Federal Reserve on Sunday unveiled a new program to ensure banks can meet needs of all their depositors. "Hedge funds are probably the ones that are buyers in this case," said Dan Bruzzo, a strategist at Santander US Capital Markets. Other banks with California exposure were taking the brunt of the selloff in the debt capital markets, he added.

There's a big shift in rate expectations," said Marc Chandler, chief market strategist at Bannockburn Global Forex in New York. Goldman Sachs (GS.N), among other big banks, said it no longer expects the Fed to deliver a rate hike at the end of its two-day policy meeting on March 22. "There's been a radical change in interest rate expectations and in that scenario the dollar has weakened," said Niles Christensen, chief analyst at Nordea. The Japanese yen strengthened 1.47% at 133.04 per dollar, while the dollar fell 1.23% against the Swiss franc at 0.910. Earlier, it hit a near one-month high of $1.0737, ahead of the European Central Bank's policy meeting on Thursday.

☆ Dollar slides on likely rate pause in wake of SVB collapse
▼ + stars: | 2023-03-13 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

Investor focus will now be on Tuesday's inflation data to gauge how hawkish the Fed is likely to be. "Given what's happened in the U.S. financial system, a 25 basis point hike is more likely than a 50 basis point hike." The market is now pricing a nearly 18% chance of the Fed sticking to its current rate and an 82% chance of a 25 basis point hike. In contrast, the market was pricing a 70% chance of a 50 basis point hike before the SVB collapse. Meanwhile, the Japanese yen strengthened 0.61% versus the U.S. dollar to 134.18 per dollar, having touched a one-month high of 133.58 earlier in the session.

WASHINGTON/SINGAPORE, March 13 (Reuters) - U.S. authorities launched emergency measures on Sunday to shore up confidence in the banking system after the failure of Silicon Valley Bank (SIVB.O) threatened to trigger a broader financial crisis. Silicon Valley Bank (SVB), a mainstay for the startup economy, was a product of the decades-long era of cheap money, with unique risks that made it especially vulnerable. With the Fed poised to continue raising interest rates, investors said the financial system may not be fully out of the woods just yet. Goldman Sachs' analysts said they no longer expect it to raise rates at that meeting, amid the stress in the banking sector. A senior U.S. Treasury official said the actions taken would protect depositors, while providing additional support to the broader banking system, but officials and regulators were continuing to monitor financial system stability.

☆ Dollar sinks as US intervenes on SVB collapse
▼ + stars: | 2023-03-13 | by ( Ankur Banerjee | ) www.reuters.com time to read: +3 min

It had previously expected a 25 basis point hike. The SVB collapse led investors to speculate that the Fed would now hesitate to hike interest rates by a super-sized 50 basis points this month. "Given what's happened in the U.S. financial system, a 25 basis point hike is more likely than a 50 basis point hike." In contrast, the market was pricing a 70% chance of a 50 basis point hike before the SVB collapse. The Australian dollar surged 1.41% to $0.667, and was on track for its biggest one-day percentage jump since Jan. 6.

☆ Factbox: Key elements of Fed's new US bank funding program
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +4 min

The Bank Term Funding Program (BTFP) will offer loans with maturities of up to a year to banks, savings associations, credit unions and other eligible depository institutions. Here are some key elements of the Fed's program:STRESS RELIEFThe Fed has raised rates from near zero a year ago to between 4.50-4.75% now to combat inflation that hit a 40-year high last year. The same collateral terms will also be available for loans drawn from the Fed's "discount window," its traditional lender-of-last-resort facility. Ordinarily, loan amounts were governed by the market value of the pledged collateral. In fact, the Fed loans are made with "recourse beyond the pledged collateral," which takes into account the fact that the collateral may be impaired.

☆ US stock futures rally as Fed acts to stabilise banks
▼ + stars: | 2023-03-13 | by ( Wayne Cole | ) www.reuters.com time to read: +4 min

The moves came as authorities took possession of New York-based Signature Bank (SBNY.O), the second bank failure in a matter of days. Analysts noted that, importantly, the Fed would accept collateral at par rather than marking to market, allowing banks to borrow funds without having to sell assets at a loss. Investors reacted by sending U.S. S&P 500 stock futures up 1.2%, while Nasdaq futures rose 1.3%. Fed fund futures surged in early trading to imply only a 17% chance of a half-point hike, compared to around 70% before the SVB news broke last week. The dollar eased 0.4% on the Swiss franc , while the euro firmed 0.4% to $1.0690 as short-term U.S. yields dropped.

NEW YORK, March 13 (Reuters) - Credit risk indicators flashed red on Monday, as investors worried about contagion risks across corporate debt markets after the collapse of Silicon Valley Bank (SVB) and New York's Signature Bank in the space of 72 hours. Investment grade credit spreads, which indicate the premium investors demand to hold corporate bonds over safer government debt securities, have also been widening. The BlackRock Investment Institute said that after recently trimming its 'overweight' recommendation for investment grade credit, it was reassessing its view due to tighter financial conditions. In money markets, a closely watched indicator of credit risk in the U.S. banking system edged up on Monday. Other banks with California exposure were taking the brunt of the sell-off in the debt capital markets, he added.

☆ Crypto just lost both of its main banks. Here's what it means for the industry going forward
▼ + stars: | 2023-03-13 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +4 min

The days before the industry had crypto-forward banks to turn to were some of the darkest for the industry. At the end of February, three major banking regulators issued a joint statement warning banks of the liquidity risks associated with banking crypto companies. "Banks and law firms are getting a clear message from regulators: distance yourselves from crypto companies," said Ric Edelman, founder of the Digital Assets Council of Financial Professionals. "But for the moment, crypto companies are increasingly finding themselves where cannabis companies were a decade ago." Employees work at a Signature Bank branch in Manhattan on March 13, 2023 in New York City.

☆ Stock futures, bonds rally as U.S. acts to stabilise banks
▼ + stars: | 2023-03-12 | by ( Wayne Cole | ) www.reuters.com time to read: +4 min

The moves came as authorities took possession of New York-based Signature Bank (SBNY.O), the second bank failure in a matter of days. Investors reacted by sending U.S. S&P 500 stock futures up 0.9%, while Nasdaq futures rose 1.1%. Fed fund futures surged in early trading to imply only a 28% chance of a half-point hike, compared to around 70% before the SVB news broke last week. That, combined with the shift to safety, saw yields on two-year Treasuries dive 47 basis points on Thursday and Friday to stand at 4.58%, a long way from last week's 5.08% peak. Treasury 10-year bond futures added another 6 ticks on Monday, having been up over 20 ticks at one stage in hectic early trade.

WASHINGTON (Reuters) - The U.S. administration stepped in on Sunday with a series of emergency measures to shore up confidence in the banking system after the failure of Silicon Valley Bank threatened to trigger a broader systemic crisis. “The American people and American businesses can have confidence that their bank deposits will be there when they need them,” Biden said in a statement. Silicon Valley Bank (SVB), a mainstay for the startup economy, was a product of the decades-long era of cheap money, with unique risks that made it especially vulnerable. With the Fed poised to continue raising interest rates, investors said the financial system may not be fully out of the woods just yet. “Going forward, we will work with Congress and the financial regulators to consider additional actions we could take in the future to strengthen the financial system,” the official said.

The move will not lead to losses by American taxpayers and all depositors will be made whole, the statement said. “Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the statement said. SVB equity and bondholders would be wiped out, said the official, who briefed reporters after the announcement. The Biden administration will work with Congress and financial regulators to consider additional actions to further strengthen the financial system, the official said. The official said the economy remains in good shape but officials would continue to take steps to ensure the financial system remains strong.

☆ Signature Bank shut down by regulators
▼ + stars: | 2023-03-12 | by ( Katherine Tangalakis-Lippert | ) www.businessinsider.com time to read: +4 min

The crypto-friendly Signature Bank was shut down by regulators on Sunday. Signature Bank's closure comes on the heels of Silicon Valley Bank being shuttered on Friday. Signature Bank's closure comes on the heels of the shuttering of Silicon Valley Bank on Friday. Signature Bank has assets of more than $110 billion as of December 31. We are also announcing a similar systemic risk exception for Signature Bank, New York, New York, which was closed today by its state chartering authority.

☆ US regulators bail out Silicon Valley Bank customers
▼ + stars: | 2023-03-12 | by ( Katherine Tangalakis-Lippert | ) www.businessinsider.com time to read: +6 min

Federal regulators announced that depositors of Silicon Valley Bank will be paid in fullIn a statement released Sunday, the Treasury, Federal Reserve and the FDIC said they would "fully protect" depositors with funds in the bank. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer." "Still to be determined is the fate of the assets of Silicon Valley Bank. No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer. As with the resolution of Silicon Valley Bank, no losses will be borne by the taxpayer.

☆ Why Silvergate’s post-FTX financial woes could spell trouble ahead for crypto
▼ + stars: | 2023-03-06 | by ( Tanaya Macheel | ) www.cnbc.com time to read: +8 min

Further, the spillover into a traditional bank and its stock price could fuel regulators' arguments that crypto poses a systemic risk. The big problem in crypto is that to buy bitcoin, you eventually have to interact with the traditional banking system. Silvergate's crypto bet worked for the bank, particularly in bull markets. A big part of Silvergate's crypto banking efforts was the Silvergate Exchange Network, better known as SEN, a platform that institutions used to move money to crypto exchanges. Custodia is a Wyoming-chartered special purpose depository institution designed to bridge the crypto and traditional banking systems.

Pros Check mark icon A check mark. Pros Check mark icon A check mark. No minimum opening deposit Check mark icon A check mark. Eligible for new accounts after your child turns 13 Check mark icon A check mark. But if you'd like to open a savings account for your child, it only lets you open one of the bank's regular savings accounts as a joint bank account.

☆ U.S. Federal Reserve rejects Custodia Bank's request for reconsideration of Fed supervision
▼ + stars: | 2023-02-23 | by ( ) www.reuters.com time to read: 1 min

Feb 23 (Reuters) - The U.S. Federal Reserve on Thursday denied crypto-focused Custodia Bank's request that the central bank reconsider its application to become a member of the Federal Reserve System. The Fed previously said Custodia, which is based in Wyoming and is chartered through the state as a special purpose depository institution, lacked a sufficient risk management framework to address the heightened risks associated with crypto. Reporting by Hannah Lang in Washington; Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

☆ Fintech threat to big banks fizzled in 2022 as rates rose - report
▼ + stars: | 2023-02-15 | by ( Hannah Lang | ) www.reuters.com time to read: +2 min

Feb 15 (Reuters) - The competitive threat of financial technology companies to big banks diminished over the past year as rising interest rates constricted funding, a new report from Moody's Investor Service found. The report cited figures from CB Insights that showed global fintech funding fell 46% from 2021 to 2022. Banks have long recognized that technology could disrupt business models and allow technology conglomerates to enter banking, Moodys said. Fintech companies often face more regulatory obstacles than banks and may have encountered new requirements in certain jurisdictions in recent years, according to Moody’s. But although the current macroeconomic environment may pose challenges to fintech companies, the sector still has the potential to increase financial inclusion and lower costs to consumers, the report found.

☆ Columbia Savings and Loan Association Review: Black-owned Bank With CDs and Conservative Investment Accounts
▼ + stars: | 2023-02-13 | by ( Laura Grace Tarpley | Sophia Acevedo | Personal Finance Reviews Editor | ) www.businessinsider.com time to read: +11 min

Columbia Savings and Loan Association bank accounts Columbia Savings and Loan Association Certificate of DepositColumbia Savings and Loan Association IRA Certificate of Deposit Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options. How Columbia Savings and Loan Association WorksColumbia Savings and Loan Association is designated as a minority-led financial institution (MDI) by the FDIC. Columbia Savings and Loan Association vs. Liberty Bank and TrustLiberty Bank and Trust has more types of banking products than Columbia Savings and Loan, including traditional and Roth IRAs. Columbia Savings and Loan Association: Frequently Asked QuestionsWhere is Columbia Savings and Loan Association? Columbia Savings and Loan Association has CDs and IRA CDs.

☆ U.S. Federal Reserve rejects crypto-focused bank's application to be supervised by the Fed
▼ + stars: | 2023-01-27 | by ( Hannah Lang | ) www.reuters.com time to read: +2 min

[1/2] The U.S. Federal Reserve building is pictured in Washington, March 18, 2008. REUTERS/Jason Reed/File PhotoJan 27 (Reuters) - The U.S. Federal Reserve on Friday rejected crypto-focused Custodia Bank's application to become a member of the Federal Reserve System, saying the bank's proposed business model and focus on digital assets presented significant safety and soundness risks. Custodia Bank Chief Executive Caitlin Long said in a statement that the bank was "surprised and disappointed" by the Fed's decision. “Custodia actively sought federal regulation, going above and beyond all requirements that apply to traditional banks," she said. Separately, Custodia has sued the Federal Reserve Bank of Kansas City, arguing that it has unfairly delayed a decision on Custodia' application for a highly coveted master account, which gives companies access to Fed payment services.

Today, there are 54 Hispanic American banks and credit unions that are FDIC or NCUA insured around the US. We selected Hispanic American-owned credit unions from the National Credit Union Administration's list of minority depository institutions which was also updated in September 2022. In our list of Hispanic American-owned banks and credit unions, many of the institutions listed offer customer support in Spanish and English. You can open up savings accounts, checking accounts, CDs, and money market accounts in most of the institutions listed. To help you learn more about a specific Hispanic American-owned bank or credit union, we've included links to reviews of individual institutions.

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