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☆ As the market digests the banking crisis, Morgan Stanley is a buy. But investors should sit tight on Wells Fargo
▼ + stars: | 2023-03-13 | by ( Kevin Stankiewicz | ) www.cnbc.com time to read: +6 min

Unlike Wells Fargo, Morgan Stanley's business model doesn't really depend on collecting deposits and issuing loans, which is the bread and butter of conventional banking. "We think we own the best with Morgan Stanley and Wells Fargo," Jim said. A compression of NIM can put downward pressure on overall earnings at a bank like Wells Fargo. For Wells Fargo and other consumer-oriented banks, investors aren't concerned that startup cash burn will cause deposit levels to decline. Pedestrians pass a Wells Fargo bank branch in New York, U.S., on Thursday, Jan. 13, 2022.

☆ Europe's banks unlikely to get hit by bond portfolio losses - Moody's
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +1 min

MILAN, March 13 (Reuters) - European banks are unlikely to find themselves compelled to liquidate their bond holdings at a loss like their U.S. peer Silicon Valley Bank (SIVBV.UL), Moody's Investors Service said on Monday. Though rising interest rates have hit the value of banks' bond portfolios, their market value will tend to converge with their nominal value as they approach maturity, under an effect known as 'pull-to-par'. "Based on their sound liquidity and funding profiles, cash holdings and stable deposit bases, we consider large European banks are generally well placed to avoid the need to sell their bonds at a loss," Moody's said in a comment. Moody's noted that a third of European banks' government bond holdings mature within the next two years, ensuring a continuous inflow of cash and reducing the need to sell assets. The agency noted that the failures of U.S. banks Silicon Valley Bank and Silvergate (SILV.UL) resulted from "a sudden loss of confidence and resulting high cash outflows from concentrated deposit bases".

☆ Are your bank deposits FDIC-insured? What to know in the wake of Silicon Valley Bank, Signature Bank closures
▼ + stars: | 2023-03-13 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Liu Guanguan | Getty ImagesThe unexpected shutdowns of Silicon Valley Bank and Signature Bank have prompted new questions about the level of protection for bank deposits that many consumers have not asked since the 2008 financial crisis. The limit for FDIC coverage is $250,000 per depositor, per bank, in each account ownership category. For example, a married couple with a business may have up to $250,000 insured in an account in one spouse's name, up to $250,000 insured in an account in the other spouse's name and up to $250,000 insured in a business account. How to check, boost FDIC coverageIf you want to know whether your deposits are FDIC-insured, check your statement, Jenkin said. The majority of Americans are going to be covered by FDIC insurance.

☆ 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.

☆ Instant view: US intervenes to shore up SVB deposits, limit financial fallout
▼ + stars: | 2023-03-13 | by ( ) www.reuters.com time to read: +11 min

March 13 (Reuters) - The U.S. government announced actions to shore up deposits and stem any broader financial fallout from the sudden collapse of tech startup-focused lender Silicon Valley Bank (SIVB.O) (SVB), sending U.S. stock futures higher. ALVIN TAN, HEAD OF ASIA FX STRATEGY, RBC CAPITAL MARKETS, SINGAPORE:"Markets remain unsettled from the SVB failure. "The market turbulence sparked by SVB has upended rising market expectations on the Fed rate path. ANTHONY SAGLIMBENE, CHIEF MARKET STRATEGIST, AMERIPRISE FINANCIAL, TROY, MICHIGAN:"It was imperative that regulators stepped in and decisively acted before markets around the world opened for the week. GREG MCBRIDE, CHIEF FINANCIAL ANALYST, BANKRATE:"While the Fed has talked about a lot in the past year, until today it has been in the context of monetary policy.

If a bank fails, insured deposits will be moved to another FDIC-insured bank or paid out. Checking accounts, savings accounts, money market accounts, and certificates of deposit are examples of FDIC-insured bank accounts. Single bank accounts and joint bank accounts are examples of different ownership categories. If you want to keep more money in the bank than the FDIC will insure, you could open another bank account at a separate bank. Aside from Silicon Valley Bank and Signature Bank, the last bank failure happened in October 2020.

☆ After SVB and Signature failures, what small businesses should look for when choosing a bank
▼ + stars: | 2023-03-13 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +3 min

Employees stand outside of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. The same holds true for customers of Signature Bank, which was shut down by regulators Sunday. Yet they now need to find another place to keep their money — and they and other small firms may fear a similar calamity elsewhere. For starters, the message is that when a bank fails, customer deposits will be covered for an unlimited amount, Boneparth said. FDIC coverage may be enough for some firmsAdditionally, for some small businesses, the FDIC coverage at their bank should be sufficient.

☆ Hundreds of venture capital firms vow to work with Silicon Valley Bank again if new owner is found
▼ + stars: | 2023-03-12 | by ( Lora Kolodny | ) www.cnbc.com time to read: +3 min

More than three hundred venture capital firms have signed a joint statement vowing to do business again with Silicon Valley Bank if it is "purchased and appropriately capitalized," after the financial institution failed on Friday. The SVB failure marks the largest in U.S. banking since the 2008 financial crisis and the second-largest ever. Some venture firms withdrew their own money and instructed their portfolio companies to withdraw their deposits from SVB before the run. The joint statement was shared by many individual venture capitalists on social networks following the bank failure. It said:Silicon Valley Bank has been a trusted and long-time partner to the venture capital industry and our founders.

☆ Treasury Secretary Janet Yellen says U.S. government won't bail out Silicon Valley Bank
▼ + stars: | 2023-03-12 | by ( Ashley Capoot | ) www.cnbc.com time to read: +3 min

Janet Yellen, US Treasury secretary, speaks during a Financial Stability Oversight Council (FSOC) meeting at the Treasury Department in Washington, DC, US, on Friday, Dec. 16, 2022. After regulators shuttered Silicon Valley Bank and seized its deposits Friday, U.S. Treasury Secretary Janet Yellen said Sunday that she has been working "to address the situation in a timely way," but that a major government bailout is not on the table. "This is really a decision for the FDIC, as it decides on what the best course is to resolve this firm," Yellen said. "The problem is this was a liquidity failure, it was a bank run, so they didn't have time to prepare to market the bank," Bair told NBC's "Meet the Press." "The shareholders in the bank are going to lose their money, let's be clear about that.

☆ We're looking for stocks to buy for the Club now that regulators saved SVB depositors
▼ + stars: | 2023-03-12 | by ( Jim Cramer | ) www.cnbc.com time to read: +6 min

You can't just wipe out a bank and about $170 billion in SVB deposits and expect to see business as normal in the country. If you are a depositor, let's just say you aren't going to be so foolish as to concentrate your deposits going forward. But it did have a very low retail share of deposits, like SVB, so perhaps that may have had something to do with it. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

☆ Cramer to the Fed: You have an elegant fix for the Silicon Valley Bank crisis — please use it
▼ + stars: | 2023-03-12 | by ( Jim Cramer | ) www.cnbc.com time to read: +11 min

ET, where Jim and other experts will discuss the ramifications of Silicon Valley Bank's demise on the economy and the stock market. The who is Silicon Valley Bank. Silicon Valley Bank was not likely to support your company if it did not receive all of your deposits. ET, where Jim and other experts will discuss the ramifications of Silicon Valley Bank's demise on the economy and the stock market. A Brinks armored truck sits parked in front of the shuttered Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California.

☆ Investors implore the government to step in after Silicon Valley Bank failure
▼ + stars: | 2023-03-11 | by ( Matt Rosoff | ) www.cnbc.com time to read: +5 min

Big names in Silicon Valley and the finance sector are calling publicly for the federal government to push another bank to assume Silicon Valley Bank's assets and obligations after the financial institution failed on Friday. But the vast majority of SVB's customers were businesses that had more than that on deposit at the bank. As of December, more than 95% of the bank's deposits were uninsured, according to regulatory filings. Investors are concerned that these failures could reduce confidence in the banking sector, particularly mid-sized banks with under $250 billion in deposits. "This was a hysteria-induced bank run caused by VCs," Ryan Falvey, a fintech investor at Restive Ventures, told CNBC on Friday.

☆ Etsy warns sellers of delay in processing payments due to Silicon Valley Bank collapse
▼ + stars: | 2023-03-11 | by ( Rob Wile | ) www.cnbc.com time to read: +3 min

Etsy is warning sellers that the collapse of Silicon Valley Bank on Friday is causing delays in processing payments, according to an email from the company shared with NBC News. "We wanted to let you know that there is a delay with your deposit that was scheduled for today," the email from Etsy said. "Please know that our teams are working hard to resolve this issue and send you your funds as quickly as possible." One affected Etsy seller told NBC News the deposits delay would have a "catastrophic" effect on his business. The FDIC has formed a separate entity where all insured SVB deposits — up to $250,000 per depositor — will be available by Monday morning.

☆ Takeaways from America’s second-largest bank failure
▼ + stars: | 2023-03-11 | by ( Ramishah Maruf | ) edition.cnn.com time to read: +7 min

New York CNN —Silicon Valley Bank’s 48-hour collapse led to the second-largest failure of a financial institution in US history. Its stunning, and seemingly rapid, fall is the largest shutdown of a US bank since Washington Mutual in 2008. “That’s because its depositors were withdrawing their money so fast that the bank was insolvent, and an intraday closure was unavoidable due to a classic bank run.”High interest rates led to its demiseTo combat rampant inflation, the central bank has been aggressively raising interest rates since 2022. When interest rates were near historical lows, the banks bought up on long-dated, seemingly low-risk Treasuries. Faced with these higher interest rates, loss of IPOs and a funding drought, SVB’s clients began pulling money out of the bank.

☆ How much will Silicon Valley Bank customers get back from the money they deposited? They may not recover it all, analysts say.
▼ + stars: | 2023-03-11 | by ( Alistair Barr | ) www.businessinsider.com time to read: +3 min

Moody's, backed by Warren Buffett, specializes in assessing the financial strength of financial institutions, so SVB depositors should pay attention. Moody's downgraded SVB's long-term bank deposit rating to "Caa2," which reflects "an expected recovery rate of 80-90% for uninsured depositors," the rating agency said. For anything over $250,000 in your SVB bank account, Moody's estimates you will get 80 cents to 90 cents for each dollar deposited. That could mean that a newly supported SVB bank might open on Monday morning and depositors will have full access to their accounts. But it illustrates the risks to uninsured bank depositors.

☆ Run on Silicon Valley Bank injects some panic into an already slumping stock market
▼ + stars: | 2023-03-11 | by ( Michael Santoli | ) www.cnbc.com time to read: +8 min

The charts suggest that breaking the December low in the S & P 500 around 3765 – down just 2.5% from here – would lose the bullish case a lot more credibility than has been surrendered so far. Of course, fears of contagion can outrun the facts and sometimes can become self-fulfilling, but the S & P 500 has (for now) simply backslid to a nine-week low. Jason Hunter, technical strategist at JP Morgan, had been expecting "a weakening corporate earnings environment would eventually take the narrative away from the Fed driven rates market. In the past week Apple shares lost about a third of what the S & P 500 did. Inflation has been at generational highs for two years as it was not then, and the labor market wasn't nearly as tight.

☆ Europe's lenders sucked into global banks rout
▼ + stars: | 2023-03-10 | by ( Alun John | ) www.reuters.com time to read: +2 min

[1/4] The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, March 8, 2023. The episode underscored the vulnerability of banks, many of which were propped up by taxpayers' cash following the global financial crisis more than a decade ago. Investors in SVB's stock had fretted over whether the capital raise would be sufficient given the deteriorating fortunes of many technology startups that the bank serves. But some startups have been advising their founders to pull out their money from SVB as a precautionary measure, the sources added. Writing By John O'Donnell; Additional reporting by Jo Mason; Editing by Elisa Martinuzzi and Toby ChopraOur Standards: The Thomson Reuters Trust Principles.

☆ Silicon Valley Bank is a particularly scary failure. Here's why.
▼ + stars: | 2023-03-10 | by ( Alistair Barr | ) www.businessinsider.com time to read: +4 min

JPMorgan has only about 43% of its deposits uninsured via this US government backstop. Look at JPMorgan at the end of last year: Estimated uninsured deposits of $1.38 trillion versus total deposits of $2.34 trillion. "All insured depositors will have full access to their insured deposits no later than Monday morning, March 13, 2023. "Uninsured depositors will receive a receivership certificate for the remaining amount of their uninsured funds. As the FDIC sells the assets of Silicon Valley Bank, future dividend payments may be made to uninsured depositors."

The S&P 500 banks index (.SPXBK) dropped 6.6% on Thursday and was set to open lower again on Friday. The crisis at SVG was feeding growing investor concerns that banks will be vulnerable to the rising cost of money. In an unusual step, Commerzbank, one of Germany's largest banks, issued a statement, playing down any threat from SVB, saying it did not see "a corresponding risk for us". "The market is treating this as a potential contagion risk," said Antoine Bouvet, senior rates strategist at ING in London. A spike in interest rates has led to a sell-off in bonds, leaving banks exposed to potential losses on the securities they hold.

SummarySummary Companies Tech bank's troubles panic marketsFears spread over fallout from rising interest ratesBanks vulnerable as bond values dropLONDON, March 10 (Reuters) - For months, investors had shrugged off the threat of rising interest rates. In SVB's case, venture capital clients, unable to raise cash elsewhere, pulled money from the bank, forcing its hasty sale of bonds at a loss. In February, U.S. regulators said U.S. banks had unrealised losses of more than $620 billion on securities, underscoring the scale of the risks. Jason Benowitz, senior portfolio manager at CI Roosevelt, said SVB's risks were not unique with many banks sitting on such unrealised losses because rates have moved so rapidly. "The SVB situation is a reminder that many institutions are sitting on large unrealised losses," said AJ Bell investment research director Russ Mould.

London CNN —The failure of Silicon Valley Bank is rattling markets and raising uncomfortable questions: Will it undermine the broader banking system and start a new meltdown? A crucial lender to US technology startups, the bank came under pressure as Silicon Valley funding dried up, the result of an economic slowdown and rapidly rising interest rates. Bank stocks rattledFounded in 1983, SVB provided financing for almost half of US venture-backed technology and health care companies. SVB put the bonds up for sale as customers, facing leaner times, pulled their money from the bank. Silicon Valley Bank had about $209 billion in total assets and $175 billion in total deposits as of the end of last year, according to the FDIC.

☆ Silicon Valley Bank is shut down by regulators in biggest bank failure since global financial crisis
▼ + stars: | 2023-03-10 | by ( Jesse Pound | ) www.cnbc.com time to read: +3 min

Financial regulators have closed Silicon Valley Bank and taken control of its deposits, the Federal Deposit Insurance Corp. announced Friday, in what is the largest U.S. bank failure since the global financial crisis more than a decade ago. According to press releases from regulators, the California Department of Financial Protection and Innovation closed SVB and named the FDIC as the receiver. The FDIC in turn has created the Deposit Insurance National Bank of Santa Clara, which now holds the insured deposits from SVB. The last U.S. bank failure of this size was Washington Mutual in 2008, which had $307 billion in assets. The shares of parent company SVB Financial Group fell 60% on Thursday, and dropped another 60% in premarket trading on Friday before being halted.

☆ Silicon Valley investors and founders express shock over SVB's collapse, describe struggles to get money out
▼ + stars: | 2023-03-10 | by ( Jonathan Vanian Ashley Capoot Jordan Novet Annie Palmer | Jonathan Vanian | Ashley Capoot | ) www.cnbc.com time to read: +9 min

Nikolas Kokovlis | Nurphoto | Getty ImagesVenture capitalists and technology executives are scrambling to make sense and account for the potential repercussions of the sudden implosion of Silicon Valley Bank on Friday. The Federal Deposit Insurance Corp. said Friday that U.S. federal regulators shut down Silicon Valley Bank , the premiere financial institution for Silicon Valley tech startups for the past 40 years. On Friday, Yang returned to the Silicon Valley Bank branch 15 minutes before it opened to remove the remaining money. One person showed a tweet on their phone suggesting that bank employees had been instructed not to come to work. Watch: CEO's react to the closure of Silicon Valley Bank

However, if you open an add-on CD, you'll be able to make deposits at any time. The main perk of an add-on CD is that it's the only type of CD that lets you add money while the account is open. Add-on CD vs. regular CDYou can use the chart below to understand the similarities and differences between add-on CDs and regular bank CDs. Add-on CDs allow you to add money at any time. Add-On CDs: Frequently asked questionsCan you add money to a CD?

☆ As parliament meets, China keeps would-be protesters at bay
▼ + stars: | 2023-03-07 | by ( Engen Tham | ) www.reuters.com time to read: +4 min

[1/2] Demonstrators hold up signs during a protest over the freezing of deposits by some rural-based banks, outside a People's Bank of China building in Zhengzhou, Henan province, China July 10, 2022, in this screengrab from video obtained by Reuters. Text in foreground reads, "Henan Bank, return to us our legal deposits! The people's life-saving deposits!" China has a low tolerance for group displays of discontent, even if anger is not directed against the government. Some of those who spoke with Reuters declined to use their full names due to the sensitivity of the matter.

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