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Some banks are rolling out the welcome mat for cryptocurrency firms that found themselves in need of banking services after the downfall of two big crypto-friendly lenders, Signature Bank and Silvergate Capital Corp.As crypto companies have scrambled to establish new bank relationships, industry executives say they have received a positive reception from regional banks such as Customers Bancorp ., based in West Reading, Pa., and Fifth Third Bancorp , based in Cincinnati.

☆ Signature Bank’s Quirky Mix of Customers Fueled Its Rise and Hastened Its Fall
▼ + stars: | 2023-03-19 | by ( Rachel Louise Ensign | David Benoit | ) www.wsj.com time to read: 1 min

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The biggest banks in the U.S. swooped in to rescue First Republic Bank with a flood of cash totaling $30 billion, in an effort to stop a spreading panic following a pair of recent bank failures. The bank’s executives came together in recent days to formulate the plan, discussing it with Treasury Secretary Janet Yellen and other officials and regulators in Washington, D.C., people familiar with the matter said.

Eleven banks have deposited $30 billion in First Republic Bank , according to a joint statement from the heads of the Treasury, Federal Reserve, Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency. “This show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system,” the federal officials said.

☆ Signature Bank Is Shut by Regulators After SVB Failure
▼ + stars: | 2023-03-13 | by ( Rachel Louise Ensign | David Benoit | ) www.wsj.com time to read: 1 min

Signature Bank became one of the crypto market’s leading banks. 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 history.

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.

☆ First Republic Gets Additional Funding From Fed, JPMorgan
▼ + stars: | 2023-03-12 | by ( Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

First Republic Bank was under pressure following the collapse of Silicon Valley Bank. First Republic Bank said it has shored up its finances with additional funding from the Federal Reserve and JPMorgan Chase & Co. The fresh funding gives the bank, which was under pressure following the collapse of SVB Financial Corp. last week, $70 billion in unused liquidity. That doesn’t include money First Republic is eligible to borrow through a new Fed lending facility designed to help banks meet withdrawals.

Shares of SVB Financial, parent of Silicon Valley Bank, have declined sharply. SVB Financial Group is seeking a buyer after the beleaguered Silicon Valley lender scrapped a plan to shore up its finances through a capital raise, according to people familiar with the matter. Facing widespread customer withdrawals that have raised questions about its ability to stay in business, the bank’s shares have declined sharply since Thursday, falling as much as 68% in premarket trading before the stock was halted.

Silicon Valley Bank collapsed Friday in the second-biggest bank failure in U.S. history after a run on deposits doomed the tech-focused lender’s plans to raise fresh capital. The Federal Deposit Insurance Corp. said it has taken control of the bank via a new entity it created called the Deposit Insurance National Bank of Santa Clara. All of the bank’s deposits have been transferred to the new bank, the regulator said.

Max Cho found himself in the middle of a bank run while sitting on a shuttle bus in Montana. The co-founder of insurance startup Coverage Cat, Mr. Cho had landed at the Bozeman airport Thursday and boarded the bus for the hourlong drive to a startup founders’ retreat in Big Sky.

☆ Crypto Bank Silvergate to Shut Down, Repay Deposits
▼ + stars: | 2023-03-08 | by ( Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

The crypto meltdown has claimed its first big casualty in the mainstream financial system: Silvergate Capital Corp. The California lender, one of the crypto market’s top banks, said it would wind down and return all deposits following a run that forced it to sell off assets at a steep loss to cover billions of dollars of withdrawals. Silvergate “is also considering how best to resolve claims and preserve the residual value of its assets,” the bank said in a news release Wednesday.

☆ Banks Are Breaking Up With Crypto During Regulatory Crackdown
▼ + stars: | 2023-02-16 | by ( Rachel Louise Ensign | David Benoit | ) www.wsj.com time to read: 1 min

Banks are backing away from crypto companies, spooked by a regulatory crackdown that threatens to sever digital currencies from the real-world financial system. Banking regulators are raising concerns about banks’ involvement with crypto clients following last year’s blowup of Sam Bankman-Fried ’s FTX. The Securities and Exchange Commission is aggressively pursuing the industry’s bigger players in a crackdown that threatens to narrow their reach. That move has alarmed bankers who don’t want to do business with customers in the SEC’s crosshairs, people familiar with the matter said.

☆ These Millionaires Tried Turning a Yacht Into a Tax Break. The IRS Sank Their Plan.
▼ + stars: | 2023-02-11 | by ( Richard Rubin | Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

JR and Loren Ridinger wanted a new yacht. First, they needed to get rid of the old one. The 116-foot Utopia II wasn’t selling, so the Ridingers and their lawyers hatched an alternative plan: Donate it, and reap a big tax deduction.

☆ Rich Customers Pull Money From Banks Offering Paltry Interest Rates
▼ + stars: | 2023-01-24 | by ( Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

Wealthy savers are starting to take their cash out of bank accounts in search of higher yields. Big banks are still paying paltry interest on checking and savings accounts despite the Federal Reserve’s steepest rate increases in decades. Their wealth-management customers are done waiting: They are moving the extra savings they accumulated during the pandemic into products whose rates have more closely tracked the Fed.

☆ Rookie Traders Are Calling It Quits, and Their Families Are Thrilled
▼ + stars: | 2023-01-01 | by ( Rachel Louise Ensign | Photographs Meridith Kohut For The Wall Street Journal | ) www.wsj.com time to read: 1 min

Some novices who took up trading during the pandemic are abandoning the hobby. Their loved ones are breathing a sigh of relief. Spouses, parents and other family members who were subjected to one too many play-by-plays of market movements say they are happy to have their loved ones back—and equally glad they no longer have to hear about buzzy stocks or cryptocurrencies.

☆ Rookie Traders Are Calling it Quits, and Their Families Are Thrilled
▼ + stars: | 2023-01-01 | by ( Rachel Louise Ensign | Photographs Meridith Kohut For The Wall Street Journal | ) www.wsj.com time to read: 1 min

☆ Sam Bankman-Fried Said He Would Give Away Billions. Broken Promises Are All That’s Left.
▼ + stars: | 2022-11-25 | by ( Rachel Louise Ensign | Ben Cohen | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/sam-bankman-frieds-plans-to-save-the-world-went-down-in-flames-11669257574

☆ Sam Bankman-Fried’s Plans to Save the World Went Down in Flames
▼ + stars: | 2022-11-24 | by ( Rachel Louise Ensign | Ben Cohen | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/sam-bankman-frieds-plans-to-save-the-world-went-down-in-flames-11669257574

☆ Anti-Woke Bank GloriFi to Shut Down
▼ + stars: | 2022-11-21 | by ( Annamaria Andriotis | Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

GloriFi’s app was aimed at people who saw Wall Street as too liberal. The Texas startup that sought to build a conservative banking alternative is shutting down. GloriFi has laid off most of its employees and told them that it is closing up shop, according to people familiar with the matter and emails to employees reviewed by The Wall Street Journal.

☆ FTX Crypto Customers Worry They Will Never See Their Money Again
▼ + stars: | 2022-11-21 | by ( Caitlin Mccabe | Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

Customers of beleaguered crypto exchange FTX are losing hope they will ever see their money again. The company’s massive financial problems began spilling into the open early this month, and FTX was quick to halt withdrawals from its international unit. American customers had hoped they might be luckier, but many of them haven’t been able to get their money out either.

☆ Banks Are Offering 4.5% CDs—Just Not to Regular Customers
▼ + stars: | 2022-10-24 | by ( Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

JPMorgan Chase & Co. offers most of its customers a one-year certificate of deposit paying a 2% interest rate. The bank recently offered clients of broker Fidelity Investments a nearly identical product—at 4.5%. Banks are selectively raising interest rates on deposits following the Federal Reserve’s steep rate increases this year. Many are paying their best rates on so-called brokered CDs, which well-off customers buy through brokerage firms. The offers are helping CDs—deposits that are locked up for a set period—regain popularity after falling out of favor in the era of low rates that followed the financial crisis.

☆ CEO of Anti-Woke Bank Startup GloriFi Resigns
▼ + stars: | 2022-10-17 | by ( Peter Rudegeair | Rachel Louise Ensign | ) www.wsj.com time to read: 1 min

GloriFi was launched as a financial-services company for people who think traditional banks are too liberal. The chief executive of a Texas startup that sought to build a banking alternative for conservative Americans resigned over the weekend. Toby Neugebauer stepped down as GloriFi CEO on Sunday, according to an email he sent to employees that was reviewed by The Wall Street Journal. His resignation follows a Journal article earlier this month that detailed GloriFi’s turbulent start.

An A-list group of financial backers including Ken Griffin and Peter Thiel gave Toby Neugebauer tens of millions of dollars to build a new kind of bank—one aimed at people who see Wall Street as too liberal. The potential customer base was huge, Mr. Neugebauer and his business partner, former Mike Pence chief of staff Nick Ayers , told the investors. Plumbers, electricians and police officers, the pitch went, are fed up with big banks that don’t share their values.

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