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March 20 (Reuters) - SVB Financial Group (SIVB.O) on Monday filed a number of "First Day Motions" to seek authorization from a bankruptcy court to support the operations of the company's SVB Capital and SVB Securities businesses. Reporting by Manya Saini in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

☆ German regulator allows SVB to conduct lending business through local branch
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +1 min

BERLIN, March 20 (Reuters) - Silicon Valley Bridge Bank (SVB) (SIVBV.UL) has been granted permission to conduct its lending business through its SVB Germany branch, German financial regulator BaFin said on Monday. BaFin had imposed a moratorium on the German branch of SVB in the wake of the U.S. lender's demise and noted the branch had "no systemic relevance". SVB Germany worked with German companies such as HelloFresh (HFGG.DE) and Lilium (5KD.F). Its total assets stood at 789.2 million euros ($846.26 million) at the end of 2022, according to BaFin. SVB Financial filed for bankruptcy protection on Friday, about a week after Silicon Valley Bank was shut down in the largest U.S. bank failure since the 2008 financial crisis.

☆ Global banking turbulence prompts Wall Street banks to trim hawkish Fed bets
▼ + stars: | 2023-03-20 | by ( Susan Mathew | ) www.reuters.com time to read: +3 min

Peer Citigroup sees a smaller 25 bps hike, down from a 50 bps hike forecast earlier in the month. The brokerage started with a 50 bps hike and then changed to a pause following the collapse of SVB Financial. It now sees a 25 basis points hike. Nomura expects a 25 bps rate cut at the end of the Fed's two-day meeting on Wednesday. Major investment banks now expect the ECB to deliver a 25 bps hike in May.

☆ FDIC to break up SVB, seeks separate sale of private unit
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +2 min

March 20 (Reuters) - The Federal Deposit Insurance Corporation on Monday decided to break up Silicon Valley Bank (SVB) and hold two separate auctions for its traditional deposits unit and its private bank after failing to find a buyer for the failed lender last week. It will seek bids for Silicon Valley Private Bank until March 22 and for the bridge bank until March 24. The private bank, which is housed within SVB's retail operations, caters to high net-worth individuals. Last week, sources told Reuters that the FDIC was planning to relaunch the sale process for SVB, with the regulator seeking a potential break-up of the failed lender. The parent company of the lender SVB Financial Group had on Friday filed for a reorganization under Chapter 11 bankruptcy protection and sought buyers for its assets after steps to shore up investor confidence failed.

☆ Silicon Valley Bank's parent company cut off from bank's records
▼ + stars: | 2023-03-20 | by ( Dietrich Knauth | ) www.reuters.com time to read: +3 min

SVB Financial has no employees of its own, and the new bank's employees "cut off access" to a substantial portion of SVB Financial's "books, records, files, electronic systems and key employees," according to Kosturos. The FDIC receivership removed SVB Financial's primary source of liquidity and most of its business infrastructure, as well as triggering defaults on SVB Financial's debt, forcing the company into bankruptcy, according to court documents. SVB Financial's court filings listed $19 billion in assets, $2.2 billion in cash and cash equivalents, and $3.4 billion in liabilities. About $15.5 billion of SVB Financial's asset value was attributed to the SVB banking business that was seized by regulators. Those investment funds include direct venture funds that invest in companies, funds-of-funds that invest in other venture capital funds, and debt funds that provide lending and other financing solutions to startups.

☆ Water’s big moment risks getting lost in the weeds
▼ + stars: | 2023-03-20 | by ( Antony Currie | ) www.reuters.com time to read: +6 min

The latest is research published last Thursday by the Global Commission on the Economics of Water. The sum, though, is just $140 million, and the U.S. government’s International Development Finance Corporation is pouring in three-quarter of the proceeds. But there is a decent investment case for water without state or supranational support. Without them, water’s big moment risks getting lost in the weeds. Follow @AntonyMCurrie on TwitterCONTEXT NEWSThe United Nations 2023 Water Conference starts on March 22, World Water Day, in New York.

☆ Picking up the pieces in the wake of SVB's collapse
▼ + stars: | 2023-03-20 | by ( Dan Defrancesco | ) www.businessinsider.com time to read: +5 min

It's just over a week from Federal regulators announcing they would be bailing out depositors of Silicon Valley Bank and Signature Bank. Now, the FDIC said Sunday that New York Community Bancorp's Flagstar Bank will take on nearly all of Signature Bridge Bank's deposits. Credit Suisse, whose problems long preceded SVB's downfall, to be fair, is getting acquired by Swiss rival UBS. Silicon Valley Bank was the bank for tech. The people backing venture capitalists, known as limited partners, share their thoughts on how VCs handled the crisis at Silicon Valley Bank.

☆ S&P cuts First Republic deeper into junk, says $30 billion infusion may not solve problems
▼ + stars: | 2023-03-19 | by ( ) www.cnbc.com time to read: +2 min

A First Republic Bank branch is pictured in Midtown Manhattan in New York City, March 13, 2023. First Republic Bank saw its credit ratings downgraded deeper into junk status by S&P Global, which said the lender's recent $30 billion deposit infusion from 11 big banks may not solve its liquidity problems. S&P cut First Republic's credit rating three notches to "B-plus" from "BB-plus," and warned that another downgrade is possible. Sunday's downgrade by S&P was the second in four days for First Republic, which previously held an "A-minus" credit rating. In a statement following the S&P downgrade, First Republic said the new deposits and cash on hand leave it "well positioned to manage short-term deposit activity.

☆ SVB UK handed out over 15 mln stg in bonuses days after HSBC rescue - Sky News
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +1 min

March 18 (Reuters) - Silicon Valley Bank's UK arm handed out over 15 million pounds ($18 million) in bonuses days after its rescue deal this week by HSBC, Sky News reported on Saturday. Payouts to staff including senior executives were signed off by HSBC earlier in the week, the report said, adding that the bonuses would not have been paid this week if SVB UK had not been acquired while still solvent. Sky cited sources familiar with the matter as saying the bonus pool was "modest" at 15 million to 20 million pounds. SVB UK and HSBC did not immediately respond to Reuters requests for comment. ($1 = 0.8214 pounds)Reporting by Jyoti Narayan in Bengaluru; Editing by Frances Kerry and Hugh LawsonOur Standards: The Thomson Reuters Trust Principles.

☆ Moody's downgrades credit ratings on First Republic Bank
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +1 min

March 17 (Reuters) - Ratings agency Moody's on Friday downgraded the credit of First Republic Bank (FRC.N), citing deterioration in the bank's financial profile and challenges faced by the lender due to increased reliance on funding amid deposit outflows. The agency cut the bank's long-term issuer rating and local currency subordinate ratings to B2 from Baa1 and long-term local currency bank deposit rating to Baa3 from A1, among others. The outlook on the issuer rating and long-term bank deposits of First Republic Bank remain under review, Moody's said. "In addition, the rating agency noted that while the news of the banking consortium's deposits is positive in the short-run, the longer-run path for the bank back to sustained profitability remains uncertain." Reporting by Akriti Sharma and Juby Babu in Bengaluru; Editing by Sandra Maler and William MallardOur Standards: The Thomson Reuters Trust Principles.

Credit Suisse Chief Financial Officer Dixit Joshi and his teams will hold meetings over the weekend to assess strategic scenarios for the bank, people with knowledge of the matter said on Friday. Swiss regulators are encouraging UBS and Credit Suisse to merge but neither bank wanted to do so, one source said. The boards of UBS and Credit Suisse were expected to separately meet over the weekend, the Financial Times said,Credit Suisse shares jumped 9% in after-market trading following the FT report. Credit Suisse and UBS declined to comment. Efforts to shore up Credit Suisse come as policymakers including the European Central Bank and U.S. President Joe Biden sought to reassure investors and depositors the global banking system is safe.

☆ China's c.bank warns SVB failure shows impact of rapid global rate hikes- state media
▼ + stars: | 2023-03-18 | by ( ) www.reuters.com time to read: +1 min

March 18 (Reuters) - A senior official at the People's Bank of China said on Saturday the collapse of Silicon Valley Bank (SVB) showed how rapid monetary policy shifts were having spillover effects, state-owned newspaper Shanghai Securities News reported. Silicon Valley Bank's balance sheet characteristics made it more sensitive to interest rates changes and ultimately led to risk, the newspaper cited him as saying. "Based on the current situation, there is still uncertainty about whether inflation in the major developed economies will fall significantly in the short term, and continuing to maintain relatively high interest rates may also have an adverse impact on the steady operations of the banking and financial system," he said. SVB Financial Group (SIVB.O) on Friday sought protection under Chapter 11 of the U.S. bankruptcy code, days after its former unit Silicon Valley Bank was taken over by U.S. regulators. Reporting by Juby Babu in Bengaluru and Brenda Goh in Shanghai; Editing by William Mallard and Sonali PaulOur Standards: The Thomson Reuters Trust Principles.

A source with knowledge of the matter said that Swiss regulators are encouraging UBS and Credit Suisse to merge, but that both banks do not want to do so. Credit Suisse shares jumped 9% in after-market trading following the FT report. Credit Suisse and UBS declined to comment on the report. "Credit Suisse is a very special case," said Frédérique Carrier, head of investment strategy at RBC Wealth Management. The supervisors were told deposits were stable across the euro zone and exposure to Credit Suisse was immaterial, a source familiar with the meeting's content told Reuters.

Credit Suisse declined to comment on the banks' actions. MARKET TROUBLES LINGERBanking stocks globally have been battered since Silicon Valley Bank collapsed, raising questions about other weaknesses in the wider financial system. A view of the Park Avenue location of the First Republic Bank, in New York City, U.S., March 10, 2023. The supervisors were told deposits were stable across the euro zone and exposure to Credit Suisse was immaterial, a source familiar with the meeting's content told Reuters. "Japan's financial system remains stable as a whole," Kishida told a news briefing.

☆ Wall Street ends sharply lower on bank contagion fears
▼ + stars: | 2023-03-17 | by ( Stephen Culp | ) www.reuters.com time to read: +3 min

For the week, while the benchmark S&P 500 ended higher than last Friday's close, the Nasdaq and the Dow posted weekly declines. "(The sell-off) is a bit of an overreaction," said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. Those concerns have spread to Europe, as Credit Suisse (CSGN.S) shares stumbled over liquidity worries, prompting policymakers to scramble to reassure markets. First Republic Bank (FRC.N) plunged after the bank announced it was suspending its dividend, reversing Thursday's surge that was sparked by an unprecedented $30 billion rescue package from large financial institutions. First Republic's peers, PacWest Bancorp (PACW.O) and Western Alliance (WAL.N), both ended the session sharply lower.

☆ U.S. regulators willing to share losses for sale of SVB, Signature Bank - FT
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +2 min

March 17 (Reuters) - U.S. regulators are willing to consider the prospect of the government backstopping losses at Silicon Valley Bank and Signature Bank (SBNY.O) if it helps push through a sale, the Financial Times reported on Friday, citing people briefed on the matter. The FDIC did not comment on the Financial Times report. [1/2] A notice hangs on the door of Silicon Valley Bank (SVB) located in San Francisco, California, U.S. March 10, 2023. The Financial Times said Blackstone Group and Apollo Global Management (APO.N) have expressed interest in buying parts of SVB's loan book. SVB Financial Group (SIVB.O), the parent company of Silicon Valley Bank, earlier on Friday filed for a court-supervised reorganization under Chapter 11 bankruptcy protection.

☆ 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.

☆ Charles Schwab a 'safe port' in banking storm as weekly inflows surge
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

March 17 (Reuters) - Financial broker Charles Schwab (SCHW.N) on Friday reported $16.5 billion in core net new assets for the week on strong inflows from clients moving funds amid several high-profile collapses that have whipsawed the U.S. banking sector. The Texas-based company's stock pared losses to trade 3.2% lower. read moreThe implosion of SVB Financial Group (SIVB.O) and Signature Bank (SBNY.O) last week, triggered by massive deposit outflows, has stoked contagion fears and hammered financial stocks. "Charles Schwab remains a safe port in a storm, driven by its conservative balance sheet, strong liquidity position," the company said in a statement. read moreReporting by Mehnaz Yasmin in Bengaluru; Editing by Devika SyamnathOur Standards: The Thomson Reuters Trust Principles.

The boost was shortlived and fears of a banking crisis gripped the market on Friday, with shares of First Republic Bank (FRC.N), which also suspended its dividend payout, dropping 24.5%. The KBW regional banking index (.KRX) and the S&P 500 banks index (.SPXBK) fell over 9% each in the week. Investors are now looking ahead to the Federal Reserve's interest rate decision, due next week, to gauge how it will tame inflation. Money market participants now see a 67% chance of the Fed raising rates by 25 basis points on March 22. . Declining issues outnumbered advancers by a 5.46-to-1 ratio on the NYSE by a 3.56-to-1 ratio on the Nasdaq.

March 17 (Reuters) - Credit Suisse and First Republic Bank shares came under renewed pressure on Friday despite multibillion-dollar support deals, while a source said European Central Bank supervisors see no contagion for euro zone banks from the turmoil. With investor confidence far from restored, analysts, investors and bankers think the loan facility has only bought Credit Suisse some time to work out what to do next. Meanwhile, U.S. regional bank shares, including PacWest Bancorp (PACW.O), also opened sharply lower, with First Republic down around 25%. But the supervisors were told deposits were stable across the euro zone and exposure to Credit Suisse was immaterial, a source familiar with the meeting's content told Reuters. The ECB pressed forward with a 50 basis-point rate hike, arguing that euro zone banks were in good shape and that if anything, higher rates should bolster their margins.

March 17 (Reuters) - Oil prices took a dive on Friday, reversing early gains of more than $1 a barrel and falling by more than $3, as banking sector fears set crude on course for its biggest weekly decline in months. Brent was on track for its biggest weekly fall since December at more than 10%, with WTI heading toward a loss of more than 11%, its biggest since last April. Pressure this week followed the collapse of Silicon Valley Bank (SVB) and Signature Bank and trouble at Credit Suisse and First Republic Bank. The drop in prices highlights "the continued fragile state of the market", said Ole Hansen, head of commodity strategy at Saxo Bank. Analysts still expect constrained global supply to support prices in the foreseeable future.

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

[1/2] Destroyed SVB (Silicon Valley Bank) logo is seen in this illustration taken March 13, 2023. REUTERS/Dado Ruvic/Illustration/File PhotoMarch 17 (Reuters) - SVB Financial Group (SIVB.O) on Friday sought protection under Chapter 11 of the U.S. bankruptcy code, days after its former unit Silicon Valley Bank was taken over by U.S. regulators. Bank stocks globally have seen 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 leading up to the Chapter 11 filing:Reporting by Mehnaz Yasmin and Priyamvada C in Bengaluru; Editing by Maju Samuel and Saumyadeb ChakrabartyOur Standards: The Thomson Reuters Trust Principles.

Shares of First Republic fell 20.7% in early trading after the bank suspended its dividend payout. The KBW regional banking index (.KRX) and the S&P 500 banks index (.SPXBK) fell over 2% each. "Deposits have fled from regional banks like First Republic into the big banks who are now bailing them out by putting the deposits back in. "Until you stop the deposit flight from regional banks into the systemically important banks that are too big to fail, it doesn't matter how much money you pour into the bucket." The S&P index recorded two new 52-week highs and four new lows, while the Nasdaq recorded seven new highs and 75 new lows.

☆ Actions giving banks more time to address organization, US's Adeyemo says
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +1 min

WASHINGTON, March 17 (Reuters) - Global markets will need time to process actions by regulators and banks this week, U.S. Deputy Treasury Secretary Wally Adeyemo told CNBC on Friday, adding that U.S. officials will remain vigilant going into the weekend. Adeyemo said deposits have stabilized over the course of this week and backed actions by large U.S. banks on Thursday to give San Francisco-based First Republic Bank (FRC.N) a $30-billion lifeline. "The market is taking time to price in the actions that have been taken by regulators but also by the biggest banks," he told CNBC. Adeyemo said a number of U.S. banks pre-positioned themselves by utilizing the Federal Reserve's discount window, but they have been taking less funds as the week progressed. "What we expect to see over time, is that they're going to need less liquidity from the discount window," he told CNBC.

☆ SVB Financial seeks bankruptcy protection
▼ + 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 planned to seek bankruptcy protection among other restructuring alternatives to seek buyers for its assets, days after its former unit Silicon Valley Bank was taken over by U.S. banking regulators. SVB Securities and SVB Capital's funds and general partner entities are not included in the Chapter 11 filing, the company said. The plan to seek bankruptcy protection comes after the tech lender said on March 13 it was planning to explore strategic alternatives for its businesses, including the holding company, SVB Capital and SVB Securities. California banking regulators closed the bank on Friday and appointed the Federal Deposit Insurance Corporation (FDIC) as receiver for later disposition of its assets. Reporting by Mehnaz Yasmin in Bengaluru; Editing by Sriraj KalluvilaOur Standards: The Thomson Reuters Trust Principles.

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