The collapse of 3 major banks in the US within a span of 2 months indicates that the crisis in the financial sector is deeper than one probably imagined. Valuation guru Aswath Damodaran believes there are more dominos waiting to fall in the US banking business, with banks that have grown the most in the … Read more
First Republic Bank has become the second large regional bank with assets over $200 billion to fail in just a few weeks. Like Silicon Valley Bank, which was seized by the government on March 10, First Republic catered to a wealthy clientele, which helped it grow deposits rapidly but may have also contributed to its … Read more
JPMorgan Chase & Co. posted a 52% jump in its first quarter profits, helped by higher interest rates, which allowed the bank to charge customers more for loans. The bank saw deposits grow noticeably, as business and customers flocked to the banking titan after the failure of Silicon Valley Bank and Signature Bank. With JPMorgan’s … Read more
The ongoing instability of the world banking sector will urge central banks to go slow on aggressive monetary policy. We can expect the rates to peak in the next couple of months.And the world economy and stock market will take it with open arms. Generally, it is a good development, preaching out the probability of … Read more
Until early March, investors worldwide were expecting the US Federal Reserve to raise interest rates by a smaller quantum of 25 basis points this month as inflation cooled off for the 8th straight month in February. However, the collapse of two commercial banks – Silicon Valley Bank and Signature Bank – changed things overnight and … Read more
U.S officials are looking at ways to temporarily expand Federal Deposit Insurance Corp (FDIC) coverage to all deposits, Bloomberg News reported on Monday. U.S. Treasury Department staff are studying whether federal regulators have enough emergency authority to insure deposits above the current $250,000 cap on accounts without the consent of Congress, the report said, citing … Read more
ET CONTRIBUTORS The previous week remains a technically damaging one as the Nifty violated a few important supports while closing on a negative note. The volatility too increased. This was though on the expected lines. The past five days also saw the global markets dealing with the collapse of SVB. The negative sentiment was seen … Read more
State regulators closed New York-based Signature Bank on Sunday, making it the third largest failure in U.S. banking history. Signature’s failure followed Silicon Valley Bank‘s Friday shutdown, the second largest in U.S. history behind Washington Mutual, which collapsed during the 2008 financial crisis. The Federal Deposit Insurance Corporation (FDIC) took control of Signature, which had … Read more
British clearing bank The Bank of London is considering a rescue bid for the UK arm of collapsed U.S. bank Silicon Valley Bank, Sky News reported on Saturday. The British bank has appointed investment bank Perella Weinberg Partners to advise it on its interest in Silicon Valley Bank UK Limited (SVB UK), the report said, … Read more
A few banks are emerging as potential beneficiaries as some startups withdraw funds from Silicon Valley Bank. The chief executive officer of Mercury, Immad Akhund, tweeted that his “DMs + emails are going a little crazy” and posted a link for those seeking to open an account. The company describes itself as “financial technology company, … Read more