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☆ SVB's former parent may need new funding after $2 billion cash seizure
▼ + stars: | 2023-04-26 | by ( Dietrich Knauth | ) www.reuters.com time to read: +2 min

April 26 (Reuters) - Silicon Valley Bank's former owner may need to take out a bankruptcy loan amid uncertainty about the U.S. Federal Deposit Insurance Company's seizure of $2 billion in cash from the company, its attorney said Wednesday. The FDIC has also not fully explained why the cash was seized, Bromley said. FDIC's attorney, Derek Baker, told Glenn that SVB Financial's bank accounts were properly seized as part of FDIC's takeover of the failed bank. Glenn said he needed more information about the FDIC's authority to seize cash and how disputes related to the seizure should be resolved. SVB Financial is also still waiting for the full return of financial records that were seized as part of the bank takeover.

☆ SVB CEO, CFO resign, company appoints turnaround expert as interim finance head
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +1 min

April 21 (Reuters) - SVB Financial Group's CEO and chief financial officer resigned this week while the collapsed lender's restructuring committee appointed a turnaround expert as interim CFO, according to a regulatory filing on Friday. CEO Gregory Becker resigned on April 19, while finance chief Daniel Beck left the company on April 18, SVB said. The two top executives were sued in March by shareholders who accused them of concealing how rising interest rates would leave its Silicon Valley Bank unit "particularly susceptible" to a bank run. The restructuring committee appointed Nicholas Grossi of A&M as the company's interim chief financial officer on April 20, according to the filing. The regulators then agreed to backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire Silicon Valley Bank.

☆ SVB says CEO, CFO resigned this week
▼ + stars: | 2023-04-21 | by ( ) www.reuters.com time to read: +1 min

April 21 (Reuters) - SVB Financial Group CEO Gregory Becker and financial chief Daniel Beck resigned this week, the collapsed lender said in a regulatory filing on Friday. Becker resigned on April 19, while Beck left the company on April 18, SVB said. The two top executives were sued in March by shareholders who accused them of concealing how rising interest rates would leave its Silicon Valley Bank unit "particularly susceptible" to a bank run. The restructuring committee appointed Nicholas Grossi of A&M as the company's interim chief financial officer on April 20, according to the filing. The regulators then agreed to backstop a deal for regional lender First Citizens BancShares (FCNCA.O) to acquire Silicon Valley Bank.

☆ JPMorgan's Dimon says US banking crisis not over, sees long repercussions
▼ + stars: | 2023-04-04 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +3 min

NEW YORK, April 4 (Reuters) - The U.S. banking crisis is ongoing and will have effects for years to come, JPMorgan Chase & Co (JPM.N) CEO Jamie Dimon wrote in a letter to shareholders on Tuesday. "The market's odds of a recession have increased," Dimon wrote. "And while this is nothing like 2008, it is not clear when this current crisis will end. Even so, it is unclear whether the disruptions will slow the consumer spending that drives the U.S. economy, Dimon wrote. Any new regulations in response to the latest turmoil should be "thoughtful," including clearer rules for dealing with failed banks, Dimon wrote.

☆ JPMorgan's Dimon says US banking turmoil not over, sees long repercussions
▼ + stars: | 2023-04-04 | by ( Tatiana Bautzer | ) www.reuters.com time to read: +3 min

And the banking system is under renewed stress after the failure of Silicon Valley Bank and Credit Suisse's rescue by UBS last month. "The market's odds of a recession have increased," Dimon wrote. "And while this is nothing like 2008, it is not clear when this current crisis will end. Even so, it is unclear whether the disruptions will slow the consumer spending that drives the U.S. economy, Dimon wrote. Any new regulations in response to the latest turmoil should be "thoughtful," including clearer rules for dealing with failed banks, Dimon wrote.

☆ Cramer: Here's why I plan to trim some stocks at this stage of the bull market
▼ + stars: | 2023-04-02 | by ( Jim Cramer | ) www.cnbc.com time to read: +17 min

Back when bulls were everywhere From the time the great bull market began in 1982 until the financial collapse of 2007, we pretty much assumed stocks would always go higher. We often forget what the Great Recession of 2007 to 2009 was all about. A runaway bull market in all but banks — which are actually fueling the rally with their own ineptitude. My closing take, though, is that we have at last shaken off the ghosts of the Great Recession. But accept we are in a bull market and recognize that those who don't know it yet never will.

☆ Jamie Dimon is riding to the rescue again. This time, he's poised to come out on top.
▼ + stars: | 2023-03-31 | by ( Carter Johnson | ) www.businessinsider.com time to read: +15 min

Why, then, has Dimon been so willing to swing back into action in the wake of Silicon Valley Bank's collapse? But it's starting to look like JPMorgan — and Dimon — will end up winners no matter how things turn out. In backstopping First Republic, JPMorgan helps a client and a bank that experts say would fit nicely into its business. By saving First Republic, JPMorgan also stands to gain goodwill from Silicon Valley startups, which are customers of the smaller bank. The paper also reported that regulators asked Dimon, Bank of America, and other banks to buy Silicon Valley Bank and pay out depositors over the insured limit.

☆ Why so many banks seem to fail on Fridays
▼ + stars: | 2023-03-31 | by ( Allison Morrow | ) edition.cnn.com time to read: +7 min

That’s because when banks fail, they have a tendency to do so on Friday. Friday, March 10, 2023: Silicon Valley Bank seized by regulators, the second biggest bank failure in US history. “That was very unusual.”Similarly, Silicon Valley Bank’s unraveling happened at a head-spinning pace nearly three weeks ago. Skinny cansAnyone else notice how skinny cans are these days? My colleague Nathaniel Meyersohn, a reporter with an eagle eye for retail trends, explains that skinny cans are, in fact, in.

London/Oakland, California CNN —First Citizens Bank is buying most of the business of Silicon Valley Bank, the US tech lender that failed earlier this month. Seventeen former branches of SVB will begin operating as “Silicon Valley Bank, a division of First Citizens Bank,” on Monday, First Citizens said. The FDIC said First Citizens was getting the $72 billion in SVB loans at a discount of $16.5 billion. “The FDIC estimates the cost of the failure of Silicon Valley Bank to its Deposit Insurance Fund to be approximately $20 billion. It had to be rescued a week ago by bigger rival UBS (UBS) in an emergency takeover orchestrated by the Swiss government.

☆ Silicon Valley Bank red flags: Why did almost everyone fail to predict its collapse?
▼ + stars: | 2023-03-26 | by ( Allison Morrow | ) edition.cnn.com time to read: +8 min

A bank run took down Silicon Valley Bank on March 10, as depositors withdrew $42 billion in a single day. To embrace a uniquely Silicon Valley ethos that champions boldness, growth and disruption. Silicon Valley Bank held 55% of its customers' deposits in long-dated bonds whose value eroded as interest rates went up. Silicon Valley Bank held an unusually large proportion (55%) of its customers’ deposits in long-dated Treasuries. And for most of that year, Silicon Valley Bank was operating with a massive vacancy in its corporate leadership team: a chief risk officer.

☆ 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.

☆ Factbox: The biggest financial crises of the last four decades
▼ + stars: | 2023-03-25 | by ( ) www.reuters.com time to read: +4 min

Fears of banking contagion remain, and investors are worried that global economies will suffer if the effects of higher interest rates torpedo more lenders. Michael Milken had helped popularize the financial instrument, with many using it as a way of funding leveraged buyouts. The country ended up getting external financial support from the International Monetary Fund and a $50 billion bailout from the United States. GLOBAL FINANCIAL CRISIS OF 2008The biggest financial crisis since the Great Depression was rooted in risky loans to shaky borrowers, which started to lose value after central banks raised interest rates in the period leading up to the crisis. EUROPEAN DEBT CRISISSpurred by the 2008 financial crisis, surging debt at some of the major European economies led to a loss of confidence in the region's businesses.

☆ Why some Silicon Valley CEOs don't blame SVB for its crash: 'I still fundamentally believe' nothing was 'wrong with the bank'
▼ + stars: | 2023-03-23 | by ( Megan Sauer | ) www.cnbc.com time to read: +6 min

SVB was a great partner to all the innovation that's happened in Silicon Valley," Varun Badhwar, CEO and co-founder of Palo Alto, California-based security software startup Endor Labs, tells CNBC Make It. "I still fundamentally believe there was nothing foundationally wrong with the bank." Before the crash, SVB counted nearly half of the country's venture-backed startups as clients, according to its website. CNBC Make It spoke with a group of startup bosses across a variety of industries, all of whom lost access to some, or all, of their company's money during the crash. But as investors' and other founders' attitudes changed throughout the afternoon, he decided to get the company's money out.

March 19 (Reuters) - Talks over rescuing Credit Suisse (CSGN.S) rolled into Sunday as UBS AG (UBSG.S) sought $6 billion from the Swiss government to cover costs if it were to buy its struggling rival, a person with knowledge of the talks said. The guarantees UBS is seeking would cover the cost of winding down parts of Credit Suisse and potential litigation charges, two people told Reuters. Credit Suisse, UBS and the Swiss government declined to comment. U.S. President Joe Biden's administration moved to backstop consumer deposits while the Swiss central bank lent billions to Credit Suisse to stabilise its shaky balance sheet. There were multiple reports of interest for Credit Suisse from other rivals.

☆ Democratic lawmakers urge US to probe Goldman's role in SVB collapse
▼ + stars: | 2023-03-17 | by ( Kanishka Singh | ) www.reuters.com time to read: +2 min

"(We) wish to raise our concerns over the role of Goldman Sachs Group in advising SVB and in the purchase of its bond portfolio," the letter said. Californian regulators shuttered Silicon Valley Bank last Friday and appointed FDIC as receiver. U.S. prosecutors are investigating the SVB collapse, a source familiar with the matter told Reuters this week. Goldman Sachs did not immediately respond to a request for comment on the letter by lawmakers. Financial stocks have lost over billions of dollars in value since Silicon Valley Bank and Signature Bank (SBNY.O) collapsed last week.

WASHINGTON, March 17 (Reuters) - U.S. President Joe Biden said on Friday the banking crisis has calmed down after the recent collapse of Silicon Valley Bank (SVB) (SIVB.O) and Signature Bank (SBNY.O). "Yes," Biden told reporters at the White House on Friday when asked if the banking crisis had calmed down. Californian regulators shuttered Silicon Valley Bank last Friday and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. Earlier on Friday, Biden had called on Congress to give regulators greater power over the banking sector, including leveraging higher fines for managers, clawing back executives' compensation and barring officials from failed banks. Silicon Valley Bank CEO Greg Becker sold $3.6 million worth of shares in late February, about two weeks before the bank entered FDIC receivership, Bloomberg and CNBC reported.

Employees have been working around the clock to onboard as many startups as possible in the wake of the implosion of Silicon Valley Bank. Silicon Valley Bank, which had more than $175 billion in deposits and served nearly half of US VC-backed startups, was taken over by US regulators on March 10. "That said, I am worried that this bias towards a Big Four bank is a double-edged sword," Shekar added. "SVB did not think like a big bank. They could understand your operating plan when a big bank would balk at it," Ashley Tyrner, CEO and founder of FarmBoxRX, told Insider.

☆ Techies on a plane celebrated after hearing a passenger whoop at the news SVB customers would get their money, VC says
▼ + stars: | 2023-03-17 | by ( Britney Nguyen | ) www.businessinsider.com time to read: +4 min

Investor Prashant Fonseka was on a flight when he learned that SVB depositors' money was safe. Fonseka told Insider he heard other people on the plane celebrating with relief at the news. He told Insider he spent Friday and Saturday trying to calm the founders of his portfolio companies. Prior to boarding his flight, Fonseka was on the phone trying to confirm the amount of SVB's advanced dividend, or how much money would be guaranteed to be made available to the bank's customers. "Before, we thought we were going to die — like extinction-level fear about people's companies," Fonseka told Insider.

☆ Goldman Sachs just told us the banking crisis makes it more pessimistic about the economy - and other recession signals are blaring too
▼ + stars: | 2023-03-17 | by ( Phil Rosen | ) www.businessinsider.com time to read: +7 min

The bank crisis that started with Silicon Valley Bank last Friday continues to unfold with what feels like to-the-minute developments. First Republic Bank branch on Park Avenue in New York City. In light of the bank runs, bank failures, and bank stock volatility, those odds are now at 35%, strategists said Thursday, citing "increased near-term uncertainty" surrounding the effects of small bank stress. Silicon Valley Bank and Signature Bank marked the second and third largest bank failures in history, respectively, behind only Washington Mutual in 2008. She explained why you should be prepared for more interest-rate volatility as fears of a financial crisis rise.

☆ What caused the global banking crisis this week and will it lead to a recession?
▼ + stars: | 2023-03-17 | by ( Mark Thompson | ) edition.cnn.com time to read: +7 min

Silicon Valley Bank’s customers were frantically pulling their money from the California-based lender before US regulators intervened to take control. Thursday, March 16 — First Republic Bank was teetering on the brink as customers withdrew their deposits. In guaranteeing all deposits at Silicon Valley Bank and Republic Bank, the US Federal Reserve is on the hook for $140 billion. Then there’s the $54 billion the Swiss National Bank offered Credit Suisse in the form of an emergency loan. The $318 billion the Fed has loaned in total to the financial system is about half what was extended during the global financial crisis.

☆ SVB Financial seeks bankruptcy protection for reorganization
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

March 17 (Reuters) - SVB Financial Group (SIVB.O) said on Friday it filed for a court-supervised reorganization under Chapter 11 bankruptcy protection to seek buyers for its assets, days after its former unit Silicon Valley Bank was taken over by U.S. regulators. The plan to seek bankruptcy protection comes after the company said on March 13 it was planning to explore strategic alternatives for its businesses, including the holding company, SVB Capital and SVB Securities. SVB Securities and SVB Capital's funds and general partner entities are not included in the Chapter 11 filing, the company said on Friday. Reuters reported on Wednesday that the parent company was exploring seeking bankruptcy protection for selling assets. California banking regulators closed SVB on Friday and appointed the Federal Deposit Insurance Corporation as receiver for later disposition of its assets.

☆ First Republic just got a $30 billion lifeline from JPMorgan and other Wall Street giants. Here's why its problems aren't over.
▼ + stars: | 2023-03-16 | by ( Hayley Cuccinello | ) www.businessinsider.com time to read: +5 min

JPMorgan and 10 other banks are depositing $30 billion in First Republic Bank. A white knight has arrived to First Republic Bank's rescue. A consortium of America's biggest banks including JPMorgan Chase, Morgan Stanley, and Goldman Sachs are depositing a collective $30 billion in First Republic. This $30 billion lifeline may not be enough to reassure investors and depositors, and it may be a stopgap measure before a sale. The $70 billion lifeline from JPMorgan announced on Sunday did little to quell investors' concerns, Dahiya noted.

☆ U.S. banks' CDS prices surge as contagion concern widens
▼ + stars: | 2023-03-15 | by ( Mehnaz Yasmin | ) www.reuters.com time to read: +3 min

March 15 (Reuters) - A 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 bank Credit Suisse (CSGN.S) fell to a record low on Wednesday. Five-year credit default swaps for the flagship Swiss bank hit a new record high. Credit default swaps on Credit Suisse also inverted on Wednesday with the two-year rising above the five-year, and both hit a new 52-week high, according to data from Ortex. Some analysts believe that the larger banks are resilient and are more worried about the smaller and mid-sized banks.

☆ How SVB Financial Group imploded in two days
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: 1 min

March 14 (Reuters) - The swift downfall of SVB Financial Group (SIVB.O), the biggest collapse of a bank since Washington Mutual in 2008, has sparked fears of contagion in the financial sector and affected every asset class from stocks to forex. Bank stocks globally saw hundreds of billions of dollars wiped away from their market valuation in the aftermath of the collapse, which also shook the startup community the Santa Clara, California-based bank was mainly lending to. Below is a timeline of key events:Reporting by Mehnaz Yasmin in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

☆ Goldman Sachs bought the SVB bonds whose $1.8 billion loss set off the startup lender's meltdown
▼ + stars: | 2023-03-15 | by ( Zahra Tayeb | ) www.businessinsider.com time to read: +2 min

Goldman Sachs bought Silicon Valley Bank's bond portfolio whose $1.8 billion loss set off its shocking meltdown. That led to a loss of $1.8 billion for Silicon Valley Bank (SVB). The losses from SVB's bond fire sale was largely a result of the Federal Reserve's aggressive monetary policy over the past year. According to SVB Financial's updated investor deck, the company's $21 billion bond portfolio had a yield of 1.79% and a duration of 3.6 years. Today, the 3-Year US Treasury note yields 4%, a stark difference from the levels at which the bank bought the securities prior to 2022.

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