One week into the U.S. banking storm, following the failures of Silicon Valley Bank on March 10 and Signature Bank of New York on March 12, Odeon Capital Group analyst Dick Bove declared on Thursday that the crisis was “over” and that the industry would “solve its own problems.”Silicon... One week into the U.S.
Following the regulators’ actions on March 12, First Republic said its liquidity and capital remained “very strong,” not only because of the Fed’s new lending facility, but because of “continued access to funding through the Federal Home Loan Bank [of San Francisco], and ability to access additional financing through JPMorgan Chase & Co.”
Bove wrote in a note to clients late on Thursday that it appeared the U.S. banking industry was “coming together… to fix the industry’s problems,” that there would be enough money available to stop deposit runs at “any meaningfully sized bank,” and that it appeared the federal government was “off the hook.”
Silicon Valley Bank, by its holding company’s estimate, had $151.5 billion in uninsured deposits as of Dec. 31. Between the bank’s failure on March 10 and the federal regulators’ promise to cover all deposits on March 12, many companies had a lot to worry about. Roku Inc. ROKU , for example, said on March 10 that $487 million, or 26% of its cash, was on deposit at SVB, with most of it uninsured.
It turns out that depending on how your bank accounts are registered, you can have a lot more than $250,000 insured by the FDIC at a single bank. CD Moriarty shares a strategy for maximizing your insured deposits.Will the bank mess cause the Fed to stop raising interest rates? Rising interest rates are a mixed bag for banks. So far, the rates the industry has been paying for deposits have risen slowly, compared with the pace of increases for loan rates. This is why U.S.
Most economists expect the Fed to raise the federal-funds rate target range by another 25 basis points, following the European Central Bank’s 50 basis-point move on Thursday, Greg Robb reports.What’s next for venture capital and startup companies? The California venture capital community lost an important pillar of support when Silicon Valley Bank failed.
Did Silicon Valley Bank and Signature Bank provide their CD holders immediate access to their money? Will the FDIC or CFPB compensate CD holders for loss of interest income, and depositors in general for fees associated with using a debit card to make payments?
Heck, they're (investors) are still waiting to see if a whole week + weekend goes by without another bailout.
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