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☆ FDIC coverage limits may be raised above $250,000 again. How experts say you can have more of your deposits insured
▼ + stars: | 2023-03-27 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Experts say there are still ways to gain FDIC coverage even if you are over that $250,000 limit. Citizens Bank of Edmond offers additional coverage, with a limit of $150 million per depositor, through IntraFi Network. "If you're able to use IntraFi, then you don't necessarily have to go to another bank to get another $250,000," Castilla said. Jill Castilla CEO of Citizens Bank of EdmondBecause the bank's average deposit is typically $25,000, Citizens Bank of Edmond does not use the amplified coverage often, Castilla said. Add beneficiaries to your accountAnother way of getting more than $250,000 in coverage for your deposits is to add beneficiaries.

☆ Morning Bid: Brittle banks find a berth
▼ + stars: | 2023-03-27 | by ( ) www.reuters.com time to read: +4 min

With few fresh weekend developments on the European bank stock rigor late last week, European bourses and bank stocks found a level too. Deutsche Bank, whose stock lurched lower on Friday amid fears about rising bank funding costs, regained about 3% on Monday. Deposits at small banks fell by $120 billion in the week to March 15, while borrowing jumped $253 billion. Economists polled by Reuters expect the headline year-on-year inflation rate to have cooled to 7.2% from 8.5% in February. * U.S. Treasury auctions 2-year notes* U.S. corporate earnings: CarnivalReuters GraphicsReuters Graphics Reuters GraphicsReuters GraphicsReuters GraphicsBy Mike Dolan, editing by Ed Osmond, <a href="mailto:mike.dolan@thomsonreuters.com" target="_blank">mike.dolan@thomsonreuters.com</a>.

☆ Fed's Barr calls Silicon Valley Bank failure a 'textbook case of mismanagement'
▼ + stars: | 2023-03-27 | by ( Jeff Cox | ) www.cnbc.com time to read: +3 min

The Federal Reserve's top banking regulator said Monday that the failure of Silicon Valley Bank was due largely to mismanagement, though he noted that regulation and oversight also need to step up. "To begin, SVB's failure is a textbook case of mismanagement," he said. Along with the examination into what happened specifically with the bank, Barr also noted that the probe will examine whether the Fed's testing of risk was adequate. He pointed out that the supervisors identified problems with SVB's liquidity risk management as far back as late-2021. Part of the review also will look at whether more stringent standards would have pushed SVB to have a better handle on its liquidity risk.

☆ SVB failure is a ‘textbook case of mismanagement,’ top Fed regulator tells Congress
▼ + stars: | 2023-03-27 | by ( Matt Egan | ) edition.cnn.com time to read: +3 min

“SVB’s failure is a textbook case of mismanagement,” Barr says in testimony to be delivered before the Senate Banking Committee. “Our banking system is sound and resilient, with strong capital and liquidity,” Barr said. In his testimony, Barr discloses that near the end of 2021, bank supervisors found “deficiencies” in the bank’s liquidity risk management. That resulted in six supervisory findings linked to SVB’s liquidity stress testing, contingency funding and liquidity risk management. Barr said the Fed will weigh whether the applying those tougher rules to SVB would have helped the bank manage the risks that led to its failure.

[1/2] An employee holds the door open at the Silicon Valley Bank branch office in downtown San Francisco, California, U.S., March 13, 2023. Supervision of large banks like SVB, which was the 16th biggest U.S. bank at the time of its failure, is a shared responsibility of bank examiners employed by the regional Fed bank and Fed Board staff in Washington. Fed Chair Jerome Powell said this week he wants to identify "what went wrong here". Bank examiners at San Francisco Fed had flagged escalating problems at the Santa Clara-based bank suggesting issues with its ability to meet short-term cash needs like depositor withdrawals. As San Francisco Fed chair, Mehran headed the search committee that hired Daly for the top job at the bank in 2018.

☆ Op-ed: Here are 4 key things investors should consider during volatile times
▼ + stars: | 2023-03-24 | by ( Ivory Johnson | ) www.cnbc.com time to read: +2 min

It's worth noting that crystal balls are in short supply, and we cannot predict the immediate future. These are four things investors should consider during times of uncertainty. The banks will begin to reassess their penchant for taking risks, which will likely reduce their willingness to take chances. Investors should follow suit and reconsider the high beta assets that outperform in a less rigorous environment. During times of crisis, it's always a good idea to have access to readily available resources.

☆ Morning Bid: Bank angst persists, unnerves Europe
▼ + stars: | 2023-03-24 | by ( ) www.reuters.com time to read: +5 min

But banks boosted borrowing under the Fed's newly launched Bank Term Funding Program to $53.7 billion - almost 5 times its first outing the previous week. European bank stocks fell 3% early on Friday, with Deutsche Bank shares (DBKGn.DE) down for a third day - losing 5% amid rising market costs for insuring against the risk of default. European Central Bank President Christine Lagarde is due to attend Friday's European Union summit in Brussels and update leaders on the state of affairs in the financial system. Wider markets were lower in Asia and Europe and U.S. stock futures were in the red again ahead of the open. With less than a 50% chance of another Fed rate rise in this cycle now priced into the futures, almost 80 basis points of rate cuts are now seen by year-end.

☆ 'It was agony': Why SVB's collapse is especially hard as a Black founder, says CEO
▼ + stars: | 2023-03-24 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +1 min

Isa Watson, founder of voice-only social messaging app Squad, was on a plane when she got the news: Silicon Valley Bank had collapsed, and the Federal Deposit Insurance Corporation had taken over. Prior to the crash, Watson was a depositor at Silicon Valley Bank, using it as the primary bank for all of her business expenses, including cloud services, databases and products that her developers and designers use to collaborate. By Friday, March 10, regulators shuttered the bank and seized its deposits in what would become the largest U.S. bank failure since the 2008 financial crisis and the second-largest bank failure in U.S. history. At that point, Watson says she didn't know whether she'd be able to get her business's money back beyond the FDIC-insured $250,000. She put thousands of dollars' worth of business charges on her personal credit card to keep things running smoothly.

☆ These beaten-down bank stocks have strong deposit bases and are well liked by analysts
▼ + stars: | 2023-03-23 | by ( Alex Harring | ) www.cnbc.com time to read: +4 min

Bank stocks have been pummeled in recent weeks amid the ongoing crisis centered around regional banks — but Wall Street sees some buying opportunities among the financial shares that have solid fundamentals and strong deposit bases. The financial shock spurred by the closure of Silicon Valley Bank has pushed down a bevy of bank stocks in recent days as investors considered the risk of contagion. Silicon Valley Bank had around 95% of it deposits uninsured as of December. But Wall Street is expecting some bank stocks to come back as investors look past the broader crisis and find comfort in those with relatively strong fundamentals and customers. First Citizens BancShares and Goldman Sachs also made the list, with each having 33% of its deposits uninsured.

☆ Elon Musk jokes ChatGPT 'couldn't do worse' than Jerome Powell as he slams the Fed's latest rate hike
▼ + stars: | 2023-03-23 | by ( George Glover | ) www.businessinsider.com time to read: +3 min

Elon Musk has slammed the Federal Reserve again after it decided to keep hiking interest rates. Musk warned the Fed's latest decision could make the US regional banking crisis worse. "A major driver of depositor flight is people moving money from low interest savings accounts to high interest money market (Treasury Bill) accounts," Musk said. Bond yields tend to rise when the Fed lifts interest rates, making money market accounts more attractive. He's noted that higher interest rates bump up monthly car-loan payments, effectively making it more expensice to buy vehicles.

Currently, the Federal Deposit Insurance Corp (FDIC)guarantees deposits of up to $250,000 per person, per bank. More than $9.2 trillion of U.S. bank deposits were uninsured at the end of last year, accounting for more than 40% of all deposits, according to U.S. central bank data. COULD THE GOVERNMENT RAISE THE DEPOSIT INSURANCE LIMIT? Some U.S. lawmakers have said Congress should consider whether a higher federal insurance limit on bank deposits was needed in the wake of the collapse of SVB and Signature Bank. Senator Elizabeth Warren, a Democrat, and Senator Mike Rounds, a Republican, have questioned whether the $250,000 deposit insurance limit is still appropriate.

March 22 (Reuters) - The management of Silicon Valley Bank "failed badly," Federal Reserve Chair Jerome Powell said on Wednesday, but its collapse also underscores the need for better controls despite what had been escalating oversight by the Fed's own examiners. "It does kind of suggest there's a need for ...regulatory and supervisory changes, just because supervision and regulation need to keep up with what's happening," Powell said. RED FLAGSFederal Reserve bank examiners had called out problems at Silicon Valley Bank <SIVB.O> as early as 2019. In all the bank received six citations, Powell said, including both matters "requiring attention" and their escalated cousin, matters "requiring immediate attention." A key part of the bank examiner's toolkit, MRAs and MRIAs are often included in reports following regular examinations of a bank's health, or in a separate supervisory letter.

Some banking groups have urged the Biden administration and the Federal Deposit Insurance Corp (FDIC) to temporarily guarantee all U.S. bank deposits, a move they say will help quell a crisis of confidence after the failure of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O). "I have not considered or discussed anything having to do with blanket insurance or guarantees of deposits," she said. "The failure of a small bank, of a community bank, could likewise trigger a run on other banks," she said. "To the best of my knowledge, we've never seen deposits flee at the pace that they did from Silicon Valley Bank," Yellen said. Yellen said it was "not obvious" that banks would pass those costs on to bank customers.

☆ Some Lawmakers Explore Expanding Bank Deposit Insurance
▼ + stars: | 2023-03-22 | by ( Andrew Duehren | Lindsay Wise | ) www.wsj.com time to read: 1 min

WASHINGTON—Some lawmakers and banks are discussing whether to expand deposit insurance after two banks collapsed this month, exploring an overhaul that some influential Republicans and Biden administration officials haven’t endorsed. Federal regulators this month stepped in to guarantee all deposits at Silicon Valley Bank and Signature Bank, declaring them a systemic financial risk, in an effort to prevent a broader run on banks. Since then, many financial regulation experts and some lawmakers have said the U.S. should raise or suspend the limit on deposit insurance, currently set at $250,000 per depositor.

☆ What would a federal expansion of deposit insurance look like?
▼ + stars: | 2023-03-22 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +7 min

That’s the Federal Deposit Insurance Corporation’s standard limit, meaning any bank deposits up to that amount are protected by the independent government agency. But now there’s growing support for raising that insurance cap. A higher insurance cap doesn’t automatically mean banks will be subject to tighter regulations, Dollar noted, but there could be some call for it. The FDIC insurance limit has been raised seven times since 1950 — and $250,000 also isn’t a calculated number, Collins said. In 2008, the FDIC used the same system for temporary unlimited deposit insurance guarantee on certain accounts.

☆ A real estate investor who grosses more than $100,000 in monthly rental income explains the kind of account he uses that safeguards his money better than an FDIC-insured account would
▼ + stars: | 2023-03-22 | by ( Kathleen Elkins | ) www.businessinsider.com time to read: +4 min

To better protect his cash, an investor bringing in six figures a month uses a "DIF member bank." The Depositors Insurance Fund (DIF) is a private insurance fund that banks can pay for to provide extra insurance to their customers. "The FDIC covers you for the first $250,000, but DIF covers you for anything over that," the real estate investor, who grosses over $100,000 per month from rental income, told Insider. That doesn't mean you have to live in Massachusetts to use a DIF member bank. As the DIF website explains: "Several DIF member banks have branches in neighboring states.

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☆ Sens. Booker, Warnock press big bank CEOs to pause overdraft fees after SVB failure
▼ + stars: | 2023-03-22 | by ( Chelsey Cox | ) www.cnbc.com time to read: +3 min

Cory Booker and Raphael Warnock have urged the CEOs of 10 major banks to waive overdraft and nonsufficient fund fees that could cost some Americans more than $100 a day in the wake of the failures of Silicon Valley Bank and Signature Bank. The letters went to the CEOs of Wells Fargo , U.S. Bank , Truist Financial Corp ., TD Bank , Regions Financial Corp ., PNC Bank , JPMorgan Chase , Huntington National Bank , Citizens Bank and Bank of America . Regulators shuttered New York-based Signature Bank days later in an effort to stall a potential banking crisis. Booker and Warnock said banking customers whose paydays fell between March 10 and March 13 were unable to receive or deposit checks from payroll providers banking with SVB and Signature Bank. Treasury Secretary Janet Yellen on Tuesday said the department is prepared to guarantee all deposits for financial institutions beyond SVB and Signature Bank if the crisis worsens.

[1/2] The logo of the Swiss bank Credit Suisse is seen in Zurich, Switzerland March 20, 2023. While the nation's central bank and financial regulator publicly declared that Credit Suisse was sound, behind closed doors the race was on to rescue the nation's second-biggest bank. The Swiss National Bank declined to comment while the finance ministry did not respond to a request for comment. Battered by years of scandals and losses, Credit Suisse for months had been battling a crisis of confidence of its own making. By Wednesday, two days later, Credit Suisse was swept up in a full-blown crisis.

☆ This bank set a fresh high for yield paid on 1-year CDs, now topping 5%
▼ + stars: | 2023-03-21 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +2 min

That's because the online bank just lifted the rate on its 1-year certificate of deposit to a fresh high. Bread boosted the rate on its 1-year CD by 5 basis points this week to an annual percentage yield of 5.05% — a new high and a threshold that's 55 basis points above the median rate, according to Stephens. One basis point is equal to one one-hundredth of a percentage point. Discover Financial Services hiked rates to 3.6%, a 10 basis point boost, while American Express increased its rate by 25 basis points to 3.75%. SoFi added 25 basis points to its rate, landing at 4%.

With the collapse of Silicon Valley Bank (SIVB.O) and Signature Bank (SBNY.O) and the U.S. government backstopping all deposits at those firms, here is the state of play of deposit insurance in the United States:WHAT IS THE U.S DEPOSIT INSURANCE LIMIT? Currently, the Federal Deposit Insurance Corp (FDIC)guarantees deposits of up to $250,000 per person, per bank. Any losses to the FDIC's deposit insurance fund will be recovered by a special assessment on banks, the FDIC said. COULD THE GOVERNMENT RAISE THE DEPOSIT INSURANCE LIMIT? Senator Elizabeth Warren, a Democrat, and Senator Mike Rounds, a Republican, have questioned whether the $250,000 deposit insurance limit is still appropriate.

☆ Credit Suisse reinforces Japan’s offshore anxiety
▼ + stars: | 2023-03-21 | by ( Pete Sweeney | Thomson Reuters | Asia Economics Editor Pete Sweeney Joined Reuters Breakingviews In Hong Kong In September Previously He Served As Reuters' Chief Correspondent For China Economy | ) www.reuters.com time to read: +4 min

HONG KONG, March 21 (Reuters Breakingviews) - The crisis at Credit Suisse has traders wondering who’s next. Japanese lenders, with their staid depositor bases, look like unlikely targets for bank runs. Yet the rising cost of short-term dollar and euro credit, combined with extreme yen volatility, have made hedging much more expensive. Domestic commercial lenders alone held $600 billion of international debt securities at the end of 2022, and some look overexposed. Take Japan Post Bank (7182.T), a $32 billion institution whose parent is partly owned by the Ministry of Finance.

California banking regulators on March 10 closed Silicon Valley Bank in the largest U.S. bank failure since the 2008 financial crisis. Kurt Gwynne, an attorney for the FDIC as receiver for Silicon Valley Bank, disputed at Tuesday's hearing that regulators had done anything improper. Destroyed SVB (Silicon Valley Bank) logo is seen in this illustration taken March 13, 2023. Glenn said he was prepared to allow SVB Financial to use up to $100 million for investment activity. Silicon Valley Bank was SVB Financial's largest asset, accounting for more than $15.5 billion of SVB Financial's $19.7 billion in total assets.

☆ Morning Bid: Fed halt being priced as bank blaze smoulders
▼ + stars: | 2023-03-20 | by ( ) www.reuters.com time to read: +5 min

A look at the day ahead in U.S. and global markets from Mike DolanAnother weekend of financial firefighting has doused the whole interest rate horizon as the banking blaze smoulders. European bank chiefs were immediately on guard for further contagion and insisted more support was required. And that thinking has crushed the interest rate horizon everywhere. Futures markets now see the first Fed rate cut emerging by midyear. * European Central Bank President Christine Lagarde speaks at the European Parliament in Brussels* Chinese President Xi Jinping meets Russian President Vladimir Putin in Moscow.

☆ UBS rescue of Credit Suisse doesn't resolve the U.S. banking crisis
▼ + stars: | 2023-03-20 | by ( Bob Pisani | ) www.cnbc.com time to read: +4 min

The Swiss government gets an "A" for its speed in addressing the Credit Suisse problem, but it doesn't resolve the U.S. banking crisis. The banking crisis has tightened financial conditions because it has dramatically interrupted the flow of capital. Banks, particularly regional banks, will likely be doing much less lending for the rest of the year. The bad news: this banking crisis has once again revealed an age-old problem with capitalism: much of it is based on faith. "It should be clear that the most expedient and effective solution to this crisis is an expansion and modernization of the FDIC deposit insurance regime."

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