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☆ Futures fall as caution about banks lingers, economic data awaited
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +3 min

After the recent collapse of SVB Financial (SIVB.O) and Signature Bank (SBNY.O), assurances and emergency measures by U.S. authorities allayed worries about the health of other banks to some extent. Regional banks extended gains to premarket trading on Wednesday after a strong rebound in the previous session. First Republic Bank (FRC.N) jumped nearly 13%, with peers Western Alliance Bancorp (WAL.N) and PacWest Bancorp (PACW.O) up 8.3% and 6.5%, respectively. Big U.S. banks such as JPMorgan Chase & Co (JPM.N), Citigroup (C.N) and Bank of America Corp (BAC.N) edged lower between 0.2% and 0.8%. ET, Dow e-minis were down 171 points, or 0.53%, S&P 500 e-minis were down 19.25 points, or 0.49%, and Nasdaq 100 e-minis were down 51.75 points, or 0.42%.

☆ Cautious calm returns to bank stocks as focus shifts to regulation
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +5 min

Focus is also shifting to the possibility of tighter regulation in the U.S. banking sector, particularly for mid-tier banks like SVB (SIVB.O) and New York-based Signature Bank, whose collapses last week roiled financial markets. Investors had been particularly concerned about the huge bond holdings, particularly in U.S. Treasuries, of Japanese lenders. However, Japanese finance minister Shunichi Suzuki said on Wednesday differences in the structure of bank deposits, meant local banks wouldn't face incidents similar to SVB's collapse. In an attempt to avert a similar crisis down the line, the Federal Reserve is also considering tougher rules and oversight for midsize banks similar in size to SVB. "A year after starting to raise interest rates, the Federal Reserve is still chasing evidence that higher borrowing costs are slowing the U.S.

☆ First Republic spoke to private equity before securing financing -sources
▼ + stars: | 2023-03-15 | by ( ) www.reuters.com time to read: +3 min

NEW YORK, March 15 (Reuters) - First Republic Bank (FRC.N) spoke to at least one private equity firm about raising capital before it secured financing from JPMorgan Chase & Co (JPM.N) and U.S. authorities intervened with support for the industry, two sources familiar with the matter said. First Republic had various approaches and ideas put to it, a third source familiar with the matter said, adding that private equity firms have capital to deploy and were looking for opportunities. They added that the private equity deal talks ended once First Republic announced its credit line with JPMorgan. First Republic said on Sunday night it had secured additional financing through JPMorgan, giving it access to a total of $70 billion in funds through various sources. In some cases, the situation had flipped from banks looking for capital to investors seeking bargains, one of the sources said.

"We have not raised capital and we are not in the market at this point for M&A transactions," Walt Bettinger, CEO of Charles Schwab, told Reuters in an interview. The firm saw an influx of $4 billion in assets to the parent company on Friday as clients moved assets to Schwab from other firms, Bettinger said. Schwab's shares closed up 9.2% at $56.68 on Tuesday, along with a broad rise in bank shares. Schwab shares, however, are down 25.6% from their close last Wednesday, the day before many bank shares began a downward spiral in reaction to problems at Silicon Valley Bank (SIVB.O). The bank has "access to significant liquidity" including an estimated $100 billion of cash flow from cash on hand, portfolio-related cash flows, plus new assets.

☆ Leaked email: VC giant Andreessen Horowitz says it's sticking with SVB for now — but is setting up accounts at another bank too
▼ + stars: | 2023-03-15 | by ( Kali Hays | ) www.businessinsider.com time to read: +4 min

a16z said in an email it intends to keep banking with SVB, as the bank is "fully operational." The VC firm noted it is working on a "general diversification plan" and will find anther bank in the future. "We have been working closely with the new leadership at SVB (alongside our existing relationship managers) and are pleased to report that the bank is now fully operational," Andreessen Horowitz, commonly referred to as a16z, wrote. The regional bank was taken over by the government on Friday after a bank run. Most of that is not in cash stored in bank accounts but in other investments.

☆ Warren Buffett has likely seen $8 billion wiped off the value of his financial stocks in 3 days, as SVB's collapse rattles the banking sector
▼ + stars: | 2023-03-14 | by ( Theron Mohamed | ) www.businessinsider.com time to read: +3 min

Warren Buffett has likely seen an $8 billion hit to his financial stocks from SVB's collapse. Bill Ackman has suggested Buffett may capitalize on the chaos and buy cut-price bank stocks. Berkshire's other financial stocks dropped as well, including Ally Financial (-22%), US Bancorp (-20%), Jefferies (-15%), Citigroup (-12%), BNY Mellon (-11%), and Globe Life (-10%). Overall, its 15 financial holdings have shed $8 billion of value in the past three trading days, a Markets Insider analysis shows. Here's a chart showing the blow to Berkshire's financial stocks over the past three trading days:

☆ Volkswagen announces five-year $193 billion investment plan as electrification gathers pace
▼ + stars: | 2023-03-14 | by ( Elliot Smith | ) www.cnbc.com time to read: +1 min

People look at the Volkswagen id buzz electric car during the press day at the Los Angeles Auto Show in Los Angeles, California, November 17, 2022. Volkswagen on Tuesday announced plans to invest 180 billion euros ($192.6 billion) between 2023 and 2027, with more than two thirds targeting "electrification and digitalization." The BEV expansion was driven by a 68% spike in China, while the company also completed the landmark electrification of its plant in Chattanooga, Tennessee. However, overall delivery numbers declined by 7% to 8.3 million vehicles in 2022 and the automotive division's net cash flows decreased to 4.8 billion euros from 8.6 billion euros in 2021. Volkswagen Group CFO & COO Arno Antlitz said the strong financial position should enable the company to "continue investing in electrification and digitalization" even in a "challenging economic environment."

TORONTO, March 13 (Reuters) - Last week's sudden collapse of Silicon Valley Bank (SVB) could choke funding for Canada's technology start-ups and place them in the hands of domestic lenders who may be more selective in financing new ventures, financiers told Reuters. Companies including Shopify Inc (SHOP.TO) were examples of Canada's tech success story, which helped pull more investments into the sector. Benjamin Bergen, president at Council of Canadian Innovators, a lobby group for Canadian technology companies, agreed. "Before SVB went down, accessing capital was increasingly becoming tighter and tighter for Canadians for startups for scale ups," he said. Aside from the banks, the federal government also has a Venture Capital Catalyst Initiative program that invests in promising Canadian technology companies.

☆ Factbox: Global firms with exposure to collapsed SVB
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +7 min

March 13 (Reuters) - Startup-focused lender SVB Financial Group (SIVB.O) became the largest bank to fail since the 2008 financial crisis last week, sending shockwaves across global markets as billions of dollars belonging to companies and investors were left stranded. The collapse raised concerns that the end of decades-long era of cheap money would reveal cracks in the global financial system as climbing interest rates expose vulnerabilities in the economy. HSBC (HSBA.L) said on Monday it is acquiring the UK subsidiary of SVB for 1 pound, rescuing a key lender for technology start-ups in Britain. Below is a list of companies across the globe that have revealed their exposure to SVB:EUROPEAround 16 tech and life sciences companies in Europe have disclosed about $190 million in exposure to SVB in the UK and the United States. Moonpig adds that SVB UK is one of ten lenders that provide senior debt facilities to the group as part of a strong banking syndicateASIA-PACIFICNITRO SOFTWARE (NTO.AX)Australia's productivity software maker Nitro Software Ltd (NTO.AX) said it had about $12.18 million of its global cash reserves held on deposit at SVB.

☆ Over a dozen Chinese-based firms say they have minimal exposure to SVB
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +3 min

HONG KONG, March 13 (Reuters) - Over a dozen Hong Kong-listed companies have stepped forward to say they had little or no exposure to Silicon Valley Bank, the failed U.S. lender which has roiled investors and markets globally. Startup-focussed SVB Financial Group (SIVB.O), which did business as Silicon Valley Bank, collapsed on Friday in the largest bank failure since the 2008 financial crisis. China-based drug developer Beigene Ltd (6160.HK) said it has uninsured cash deposits held at the bank representing 3.9% of its last reported total cash and cash equivalents. Six Hong Kong-listed companies, mostly Chinese pharmaceutical firms also over the weekend disclosed cash deposits at Silicon Valley Bank. Broncus Holding Corporation (2216.HK) said it held $11.8 million at SVB, representing around 6.5% of its total cash.

☆ Factbox: Which companies are affected by SVB collapse?
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +6 min

ROKU (ROKU.O)Streaming devices maker says it has about $487 million, or 26% of its cash and cash equivalents, held in deposits with SVB. CIRCLEUS cryptocurrency firm Circle says $3.3 billion of its $40 billion of USD Coin reserves are at SVB. BLOCKFIBankrupt crypto lender BlockFi Inc has roughly $227 million in unprotected funds at SVB, the Wall Street Journal reported on Friday. VIR BIOTECHNOLOGY (VIR.O)Biotech firm says it maintains operating accounts at SVB with about $220 million as of Friday. EUROPEAround 16 tech and life sciences companies in Europe have disclosed about $190 million in exposure to SVB in the UK and the United States.

The sale means UK startups and investors will be able to access their money. Like its US parent, SVB UK mostly served tech startups and their investors. Insider understands from a person close to SVB UK that there is some internal frustration at the bank run. The feeling is that SVB UK was sold off simply because of groupthink. That evening, it looked feasible that the government would allow SVB UK to collapse.

☆ 9 startup founders who banked with Silicon Valley Bank share where they're moving their money: 'We will not get caught like this again'
▼ + stars: | 2023-03-13 | by ( Samantha Stokes | Stephanie Palazzolo | Melia Russell | ) www.businessinsider.com time to read: +10 min

Silicon Valley Bank's failure has left startup founders scrambling for a new home for their money. Last Friday morning, the startup founder Mang-Git Ng zipped up the interstate before sunrise to a Silicon Valley Bank branch in St. Helena, in California's wine country. Ng's plight is similar to countless other founders following the failure of Silicon Valley Bank, who waited with bated breath over the weekend on whether they'd ever get their money back. DiversificationSilicon Valley Bank's collapse could forever change how startups stash their cash, at least two investors told Insider. Silicon Valley Bank had exclusivity clauses with some of its clients, according to a CNBC report, forcing them to use the firm for most or all of their banking services.

☆ Relax, SVB's implosion is nothing like the 2008 financial crisis, and the economy will be fine
▼ + stars: | 2023-03-13 | by ( Jacob Zinkula | ) www.businessinsider.com time to read: +5 min

But it's not a repeat of the 2008 financial crisis, when the government stepped in to support the US banking system. In recent days, many have drawn comparisons to the 2008 financial crisis, when the federal government doled out roughly $200 billion to hundreds of banks to support the US banking system. The size of SVB's bank failure has only been surpassed once in American history — by Washington Mutual when it collapsed in 2008. While the economy and markets aren't the same thing, a struggling market can be a negative leading indicator for a weakening economy. If the US economy does enter a recession as some experts expect, SVB's failure is unlikely to be the reason why.

☆ The tech industry avoided an ‘extinction-level event,’ but it’s not unscathed
▼ + stars: | 2023-03-13 | by ( Catherine Thorbecke | ) edition.cnn.com time to read: +7 min

CNN —For much of the weekend, Silicon Valley scrambled to find a way through what one prominent tech investor described as an “extinction-level event for startups” after the collapse of a top lender in the industry. “You can feel the collective *sigh*,” Ryan Hoover, a tech founder and investor wrote on Twitter Sunday. SVB’s collapse also risks changing how the world, and prospective recruits, think of Silicon Valley. The bank worked with nearly half of all venture-backed tech and healthcare companies in the United States. President Joe Biden emphasized in remarks Monday that “no losses will be borne by the taxpayers” related to the government’s intervention for Silicon Valley Bank.

☆ Here are Monday's biggest analyst calls: Apple ,Tesla, First Republic, Roku, Sunrun, JPMorgan Chase & more
▼ + stars: | 2023-03-13 | by ( Michael Bloom | ) www.cnbc.com time to read: +19 min

Baird upgrades Truist to outperform from neutral Baird said it sees an attractive risk/reward for the regional bank. "Regional bank risk/reward trade-off improving, and we would get more aggressive on the regional bank side, upgrading TFC to Outperform." Bank of America reiterates Alphabet as buy Bank of America said it's bullish on Alphabet's entry into AI. Bank of America reiterates Roku as buy Bank of America said it's standing by the stock in the wake of the Silicon Valley Bank collapse. "Regional bank risk/reward trade-off improving, and we would get more aggressive on the regional bank side, upgrading TFC to Outperform."

☆ SVB had roughly $16 billion in unrealized losses: Raging Capital Ventures' William Martin, who called its collapse
▼ + stars: | 2023-03-13 | 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 EmailSVB had roughly $16 billion in unrealized losses: Raging Capital Ventures' William Martin, who called its collapseBill Martin, the founder of Raging Capital Ventures, joins 'Halftime' to discuss Silicon Valley Bank's investment in low rate mortgages, the scale of SVB's unrealized losses and the venture capital response to the SVB collapse.

☆ I hid my pregnancy from clients and coworkers for 8 months. I don't regret it.
▼ + stars: | 2023-03-13 | by ( Jen Glantz | ) www.businessinsider.com time to read: +8 min

She decided to hide her pregnancy so she wouldn't risk losing clients or business. Jen GlantzWhich is why I decided, from day one of being pregnant, that I'd still work when the baby came. Jen GlantzWhen I asked if I should also hide my pregnancy from clients and people approaching me with opportunities, she said it's one the best things she ever did. After this happened, I decided to revert back to my original plan and not tell anyone else about my pregnancy. I don't regret hiding my pregnancy for eight months, but I do wonder if being honest at the start would've cost me business or not.

☆ Analysts raise one main concern with regional bank stocks: deposit flight
▼ + stars: | 2023-03-13 | by ( Jesse Pound | ) www.cnbc.com time to read: +4 min

The events of the past few days have shown that regional banks with large amounts of uninsured deposits, like SVB, and New York's Signature Bank, which was closed Sunday, are at risk of deposit flight. KRE 5D mountain Regional bank stocks were under pressure again on Monday after sliding last week. In the case of SVB, the bank had mostly large deposits from companies and wealthy individuals. That can make a bank run worse because smaller retail deposits are seen as more "sticky" than big uninsured accounts. "Unfortunately, one of the first consequences of SIVB's collapse is probably that it will cause a flight of uninsured deposits from smaller, less diverse banks to larger, more diverse ones.

☆ Payments firm Wise says it has 'minimal' exposure to Silicon Valley Bank
▼ + stars: | 2023-03-12 | by ( Martin Coulter | ) www.reuters.com time to read: +2 min

LONDON, March 12 (Reuters) - Payments firm Wise became the biggest European company to reveal it held funds in Silicon Valley Bank on Sunday, but a spokesperson said the firm faced "minimal exposure". London-based Wise, formerly known as TransferWise, processes more than 9 billion pounds ($10.83 billion) in cross-border transactions every month. A company spokesperson told Reuters the firm held a small cash balance in a corporate account with SVB. More than 250 UK tech firm executives signed a letter addressed to Hunt on Saturday, calling for government intervention and warning of an "existential threat" to the UK tech sector. ($1 = 0.8314 pounds)Reporting by Martin Coulter; Editing by Hugh Lawson and Frank Jack DanielOur Standards: The Thomson Reuters Trust Principles.

☆ Six Hong Kong-listed firms say their deposits at SVB are immaterial
▼ + stars: | 2023-03-12 | by ( ) www.reuters.com time to read: +3 min

HONG KONG, March 12 (Reuters) - Six Hong Kong-listed companies, mostly Chinese pharmaceutical firms, disclosed cash deposits at Silicon Valley Bank on Sunday, adding that their exposure to the failed U.S. lender and its impact on operations were immaterial, in an effort to calm investors. Startup-focussed SVB Financial Group (SIVB.O), which did business as Silicon Valley Bank, collapsed on Friday in the largest bank failure since the 2008 financial crisis, roiling global markets and stranding billions of dollars belonging to companies and investors. Broncus Holding Corporation (2216.HK) said it held $11.8 million at SVB, representing around 6.5% of its total cash. Noah Holdings Private Wealth and Asset Management Limited has less than $1 million with SVB, less than 0.2% of its total cash. CANbridge Pharmaceuticals Inc (1228.HK) said the amount of cash deposited with SVB is "immaterial and is generally within the amount guaranteed by the FDIC accordingly", without giving any figures.

☆ I just traveled to Argentina — and doubled my money with a 'black market' exchange rate
▼ + stars: | 2023-03-11 | by ( Greg Iacurci | ) www.cnbc.com time to read: +15 min

A legal exchange rate influenced by the black marketA worker lays out 500 Argentine peso note sheets on Aug. 14, 2020 in Buenos Aires. Greg IacurciPut another way: Your money goes almost twice as far with the "blue dollar" exchange rate. The exchange rate for the transaction was 366 Argentine pesos per U.S. dollar, almost double the official exchange rate (190 pesos per dollar) at the time. Anyone who wants to save more cash in U.S. dollars must turn to the black market, which sets the "blue dollar" exchange rate. The exchange rate offered by Western Union has been similar to that of the "blue dollar" rate on the black market.

☆ VinFast delays US electric vehicle plant operation to 2025
▼ + stars: | 2023-03-10 | by ( ) www.reuters.com time to read: +2 min

"We need more time to complete administrative procedures," VinFast said in a statement on the delay, which did not specify when in 2025 the plant was expected to start operations. Last year VinFast filed for an initial public offering in the United States to list on the Nasdaq to fund its the plant construction. VinFast started its first sales outside Vietnam last week, delivering its first 45 cars in California on the first day. Its revenue in 2022 was 14.9 trillion dong ($631 million), down about 6.9% against 2021. Net losses rose 55% to 49.8 trillion dong from 32.2 trillion dong, its latest prospectus showed.

☆ US senators blast Treasury's 'lack of progress' on climate risks
▼ + stars: | 2023-03-10 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

In a letter to Yellen viewed by Reuters, Democratic Senators Elizabeth Warren, Sheldon Whitehouse and Edward Markey criticized the work done by John Morton, Yellen's first climate counselor. "Treasury has been central to delivering on the Biden Administration’s climate agenda," she said, when asked about the senators' letter. In their letter, the senators also faulted Treasury's leadership of climate work by the Financial Stability Oversight Council, which identified climate change as an "emerging and increasing threat to U.S. financial stability" in October 2021. The second Treasury official, who was not authorized to speak publicly, said the independent agencies grouped under FSOC were taking action, but those steps followed prescribed processes. No Treasury climate counselor could speed up that work since the agencies were independent, the official said.

☆ US senators blast Treasury's failure to move faster on climate risks
▼ + stars: | 2023-03-10 | by ( Andrea Shalal | ) www.reuters.com time to read: +3 min

WASHINGTON, March 9 (Reuters) - Three U.S. senators blasted the Treasury Department on Thursday for its failure to act more swiftly to counter climate risks, and urged Secretary Janet Yellen to appoint a new climate counselor to lead the effort. In a letter to Yellen viewed by Reuters, Democratic Senators Elizabeth Warren, Sheldon Whitehouse and Edward Markey criticized the work done by John Morton, Yellen's first climate counselor. The second Treasury official, who was not authorized to speak publicly, said the independent agencies grouped under FSOC were taking action, but those steps followed prescribed processes. No Treasury climate counselor could speed up that work since the agencies were independent, the official said. They asked Yellen to respond to over a dozen questions on Treasury's efforts to mitigate risks to the U.S. economy posed by accelerating climate change.

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