Some financial industry executives and investors were growing increasingly concerned on Saturday that the collapse of Silicon Valley Bank could have a domino effect on other U.S. regional banks if regulators did not find a buyer over the weekend to protect uninsured deposits. Startup-focused lender SVB Financial Group became the largest bank to fail since … Read more
To address potential financial stability risks and protect investors, it is important to arrive at a common approach to crypto assets, the Financial Stability Report released by RBI said on Thursday. In this context, various options are being considered internationally, it said. One option is to apply the same-risk-same-regulatory-outcome principle and subject them to the … Read more
The Reserve Bank of India (RBI) believes that the Insolvency and Bankruptcy Code (IBC) is probably the best mechanism for creditors to recover their dues and said the right way to look at its effectiveness would be to compare the resolution value to the liquidation and not the total loans. RBI, in the latest report … Read more
Institutional investors were souring on cryptocurrencies even before this week. The sudden downfall of Sam Bankman-Fried’s FTX.com may have permanently damaged their prospects of being included in mainstream portfolios. While plenty of industry die-hards remain, many professional money managers are saying the case for crypto as a portfolio diversifier or digital gold has been debunked. … Read more
Revlon Inc. filed for Chapter 11 bankruptcy, unable to manage its heavy debt load amid the supply chain crunch and steep inflation. The cosmetics giant owned by billionaire Ron Perelman sought court protection in the Southern District of New York, and listed both assets and liabilities of as much as $10 billion, according to court … Read more
Seeking to address concerns over the deep haircuts taken by banks in some of the insolvency resolutions, Reserve Bank Deputy Governor M Rajeshwar Rao on Saturday said comparing the outstanding loan amounts with the value realised may not be a ‘reasonable indicator’ to assess the bankruptcy law’s effectiveness. Admitting that there have been concerns, Rao … Read more
Embattled Chinese property giant Evergrande on Tuesday conceded it is under “tremendous pressure”, a day after insisting it will avoid a bankruptcy that many fear could have a huge impact on the world’s number-two economy. The Hong Kong-listed developer is sinking under a mountain of liabilities totalling more than $300 billion after years of borrowing … Read more
The government is looking to make the Insolvency & Bankruptcy Code more comprehensive and broad-based so that there is an enhanced ease of exit, a senior official said Friday. ”We continue to work together to make this insolvency framework more effective and efficient. It will surely be one of the important chapters in the success … Read more
A day after Haryana and Punjab witnessed massive protests against the new farm laws and SAD left NDA, I&B minister Prakash Javadekar said some political parties were misleading farmers and politicising the reform move. In an interview with Vasudha Venugopal, he accused the opposition of resorting to “undemocratic methods” to register their protest in Parliament … Read more