Deposit outflows at America’s banks accelerated last week, driven by the larger and smaller commercial financial institutions, according to new data from the Federal Reserve. For the week ending May 10, total U.S. commercial bank deposits declined by $26.4 billion, or 0.15 percent, to roughly $17.123 trillion, the lowest level since July 2021. This represented…
Senators Accuse Financial Regulators of Lack of Accountability, Competence
Sens. Tim Scott (R-S.C.) and Jon Tester (D-Mont.) grilled a panel of financial regulators on Thursday morning, with Scott going so far as to demand immediate dismissals at the Federal Reserve in response to the central bank’s failure to effectively regulate Silicon Valley Bank in view of its collapse. During the Senate Banking Committee hearing,…
Senators Rip Former Silicon Valley Bank CEO for Executive Payouts Prior to Bank’s Collapse
May 16, 2023
admin
Archivedbanking crisisBusiness & MarketscollapseCompaniescongressNewsPoliticsSignature BankSVBUSUS News
0 Comment
During a Senate Banking Committee hearing on Tuesday, senators denounced the actions of Silicon Valley Bank (SVB) CEO Greg Becker, who has been accused of distributing bonuses and selling stock in the bank shortly before its collapse. “In 2022, in particular, you [Becker] paid yourself a $1.5 million cash bonus even as the value of…
Short Selling Comes Under Fire Amid Bank Turmoil
U.S. bankers want federal regulators to investigate the short-selling of financial institutions as regional banks get clobbered in the stock market. The American Bankers Association (ABA) penned a May 4 letter to Securities and Exchange Commission (SEC) chair Gary Gensler, requesting that the regulatory body probe the substantial short sales of bank stocks that the…
Regulators Failed to Do Their Jobs in Preventing Banking Turmoil: Senate Committee
Federal regulators who fell asleep at the wheel and failed to do their job of preventing distress in the banking system need to be held accountable., lawmakers argued at a Senate hearing. The Senate Banking, Housing, and Urban Affairs Committee held a hearing to hold executives accountable after the three bank failures. There was chatter…
Regional Banking System ‘at Risk,’ Warns Bill Ackman
Famed investor Bill Ackman is warning that America’s regional banking system is at risk and criticized the Federal Deposit Insurance Corporation (FDIC) for worsening the banking crisis facing the nation. “The regional banking system is at risk,” Ackman stated in a tweet on May 4. The collapse of Silicon Valley Bank (SVB) has “woke up…
The Next Phase of the Banking Crisis
May 4, 2023
admin
bank failuresbanking crisisBusiness & MarketsBusiness ColumnistseconomyFirst RepublicSignature BankSilicon Valley BankUSUS News
0 Comment
Commentary In the most recent failure in the banking sector, earlier this week First Republic Bank collapsed, was placed into Federal Deposit Insurance Corp. (FDIC) receivership, and had most of its assets sold to JPMorgan Chase. With some $232 billion of assets, this marked the second-largest U.S. bank failure ever, only surpassed by Washington Mutual…
Mervyn King’s Proposal for Preventing Bank Runs Deserves Another Hearing
Commentary March was a bad month for the Dodd-Frank Act. We now know that Dodd-Frank, passed in the wake of the 2007–2008 banking crisis, doesn’t prevent bank runs. Neither do post–2008 arrangements tell depositors whether large deposits are safe or should be withdrawn with a swipe on a smartphone. This time, uninsured deposits were bailed…
First Republic Shares Crash Following Massive Deposit Outflows
First Republic Bank announced “unprecedented deposit outflows” in the quarter ended March 31, with the news sending the company’s stock crashing by over 20 percent. For the quarter ended March 31, 2023, First Republic deposits have declined by 40.8 percent since Dec. 31, 2022, according to an April 24 press release (pdf) by the bank….
Corporate Defaults to Rise and US Will Enter Recession: Survey
April 14, 2023
admin
banking crisisBusiness & Marketscorporate defaultseconomic recessioneconomyMarketsrecessionUSUS News
0 Comment
Credit portfolio managers estimate U.S. corporate defaults to rise, according to a recent survey, with the vast majority of respondents expecting the country to slip into recession this year. In the Credit Outlook survey conducted by the International Association of Credit Portfolio Managers (IACPM), 86 percent of respondents stated that defaults will rise over the…
US News
RSS Error: A feed could not be found at `https://www.theepochtimes.com/c-us/feed`; the status code is `200` and content-type is `text/html; charset=utf-8`