Kashkari Says Unclear If SVB Collapse Will Cause Credit Crunch
Federal Reserve Bank of Minneapolis President Neel Kashkari said it was premature to judge what impact the collapse of Silicon Valley Bank will have on the economy, but the Fed also needs to focus on lowering inflation.
US Treasury Official: Crypto Had No Direct Role in Bank Failures
Nellie Liang, the US Treasury Department's undersecretary for domestic finance, stated that crypto did not play a direct role in the recent failures of Silicon Valley Bank (SVB) and Signature Bank. While Signature Bank was particularly active in the sector, with about a fifth of its deposit base tied to crypto customers at the end of 2022, Liang did not believe that digital assets should be blamed for the banks' runs. The banks' failures were attributed to business risks that undermined their resilience.
US Officials Signal New Rules for Banks After SVB, Signature Failures
Top US financial officials on Tuesday outlined what’s likely to be the biggest regulatory overhaul of the banking sector in years, in an initiative aimed at addressing underlying issues that contributed to the collapse of Silicon Valley Bank and other US regional lenders.
Fed Watchdog Launches Investigation Into SVB Supervision
The Federal Reserve’s internal watchdog has launched its own review of the failure of Silicon Valley Bank.
Moelis Hires Team of Senior SVB Securities Technology Bankers
Moelis & Co. hired at least seven senior managing directors from SVB Securities, according to people with knowledge of the matter, marking one of the largest poachings of an investment-banking team in recent years.
Bitcoin’s Correlation to Traditional Assets Raises Red Flags
In recent weeks, in light of the SVB collapse, Bitcoin had uncorrelated itself from the traditional markets. Bitcoin was up 24%, other assets remained relatively flat, and gold was also a winner. But in recent days, the correlation to assets has spiked back up to almost February levels. Bitcoin has a negative relationship with the dollar, which would be bearish if the dollar was to start going higher in the face of a liquidity or credit crisis as investors rush to dollars.
Senators Grill Federal Officials Over Lack of Oversight Into SVB, Signature Bank Collapse
US senators have grilled federal officials over the lack of oversight into the collapse of SVB Signature Bank, which was a significant player in the cryptocurrency industry. The bank collapsed in 2022, causing significant losses for investors and raising concerns about the risks and challenges facing the cryptocurrency industry.
Crypto-Friendly SVB Acquired by First Citizens Bank at 99% Discount
First Citizens Bank acquires Silicon Valley Bank (SVB) for $500 million. The crypto-friendly Silicon Valley Bank bank was worth $40 billion a year ago, now it’s acquired at a 99% discount. First Citizens BancShares will take over $119 billion in deposits.
Billionaire Tim Draper Tells Businesses to Hold Bitcoin in the SVB Aftermath
Billionaire venture capitalist Tim Draper believes businesses should hold “at least two payrolls worth of cash” in Bitcoin (BTC) and other cryptocurrencies.
Small Banks Lost $120 Billion in Deposits During SVB Tumult
As regional and community banks lost $120 billion during the week ending March 15, the 25 biggest banks raked in $67 billion in new deposits on a seasonally adjusted basis, according to new Fed data released Friday. The net outflow from all banks was $98 billion, an annual drop of 5.8%. Total industry deposits of $17.5 trillion was the lowest count since September 2021.
