Treasury Secretary Janet Yellen appeared before the Senate Finance Committee on Thursday to testify on President Biden’s 2024 budget proposal, as well as to reassure legislators and citizens that the country’s banking system remains “sound” despite the recent collapse of the second largest bank in U.S. history.[0] The government’s response to the bank failure was […]
Continue readingIn the wake of the collapse of Silicon Valley Bank and Signature Bank, Senator Elizabeth Warren and Representative Katie Porter of California have proposed a bill that would put banks with at least $50 billion in assets back under the Dodd-Frank Act’s stringent regulations.[0] This would repeal a Trump-era banking regulation rollback that raised the […]
Continue readingAmid days of financial market turmoil, First Republic Bank is in dire straits. On Wednesday, ratings agencies S&P Global and Fitch downgraded the bank to junk status citing liquidity and funding risks, and the stock plummeted another 20% on Thursday to $20.65 per share, a fresh decade low.[0] The bank’s market capitalization has fallen from […]
Continue readingOn March 16, 2023, Treasury Secretary Janet Yellen sought to reassure Congress that the U.S. banking system remains “sound” after a week of market turbulence.[0] Yellen testified before the Senate Finance Committee, praising the government’s “decisive and forceful actions to strengthen public confidence in our banking system” in the wake of Silicon Valley Bank’s failure […]
Continue readingShares of Credit Suisse surged in pre-market trading Thursday after the troubled European bank announced it would borrow up to $54 billion from Switzerland’s central bank.[0] The emergency loan from the Swiss National Bank comes as investor confidence in Credit Suisse has crumbled in recent days, with stocks in the U.S. and around the world […]
Continue readingOn March 12, 2023, the Federal Reserve Board (FRB) announced the Bank Term Funding Program (BTFP), a new loan program that provides up to $25 billion in emergency funding to U.S. banks, savings associations, credit unions, and other eligible depository institutions.[0] This move was made with the support of the U.S. Treasury, which is offering […]
Continue readingCredit Suisse shares soared by over +7% in pre-market trading on Thursday, a day after investors sent the stock crashing over -30% due to waning investor confidence.[0] The Swiss banking giant said it will tap its central bank for 50 billion francs ($54 billion) to bolster its liquidity and launch an offer to buy beaten-up […]
Continue readingThe collapse of Silicon Valley Bank (SVB) in March 2023 sent shockwaves through the tech industry.[0] Founded in 1983, SVB specialized in banking for tech startups that were often too risky for more traditional banks.[1] It was the go-to lender for tech startups, and it provided financing for almost half of US venture-backed technology and […]
Continue readingCredit Suisse Group AG, the Swiss bank whose shares tumbled Wednesday as fears about the health of global banks jumped the Atlantic Ocean, announced overnight that it had taken decisive action to strengthen its liquidity by borrowing up to 50 billion Swiss Francs ($53.7 billion) from the Swiss National Bank.[0] Investors responded positively to the […]
Continue readingThe banking industry was shaken this week as Silicon Valley Bank, one of the world’s most powerful tech investors, collapsed on Friday and was taken over by federal regulators. This marks the largest U.S. bank to fail since the 2008 global financial crisis.[0] Investors are now wondering what caused the collapse of Silicon Valley Bank. […]
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