In response to the bank’s failure in early March, U.S. officials made the controversial decision to protect all existing account holders including those who held deposits exceeding the $250,000 limit imposed by the Federal Deposit Insurance Corporation.

“I can’t imagine anybody saying I’d like to be the one [on] television tomorrow and explain [to] the American public why we’re keeping only $250,000 insured and we’re going to start a run on every bank in the country and disrupt the world’s financial system,” Buffett revealed during Berkshire Hathaway’s annual meeting on Saturday.

Following the start of the banking crisis, Buffett decided to pull back his banking investments. He criticized the banking sector for not sufficiently punishing the culprits of misdeeds.

Berkshire Hathaway’s banking portfolio suffered in the first quarter as a result of the financial sector’s instability, with its Bank of America stake declining by $4.7 million during the first three months of the year.

The post “Catastrophic” to Let SVB Depositors Lose Money, Buffett States appeared first on theprimarymarket.com.

While the Federal Reserve ultimately decided to implement an interest rate hike of 0.25% at its policy meeting on 21 and 22 March, this came after top US officials spent the weekend formulating emergency measures aimed at halting a deposit run following the collapse of the two major U.S. banks.

Federal Reserve Chair Jerome Powell explained that while an interest rate pause was being considered, the central bank ultimately decided that different tools would be required to handle a complex situation, whereby higher interest rates remained necessary to combat inflation.

Silicon Valley Bank’s collapse was the largest banking failure since the financial crisis that spanned 2007 to 2009. Prior to this failure as well as that of Signature Bank, the Fed was considering bumping interest rates up by half a percentage point.

The post Fed Meeting Minutes to Detail Debate Regarding SVB, Signature Bank Failures appeared first on theprimarymarket.com.

According to a statement made by the regulator on Wednesday, the value of the Signature Bank portfolio is about $27 billion, while that of Silicon Valley Bank is approximately $87 billion.

On Monday, FDIC stated that it was beginning the marketing process for Signature Bank loan portfolio retained in receivership to the value of about $60 billion. Reuters later reported that the FDIC had retained advisers to sell the securities portfolios that the regulator had acquired following its takeover of Silicon Valley Bank and Signature Bank.

In a statement on Wednesday, the FDIC confirmed that the securities are primarily comprised of agency mortgage-backed securities, collateralized mortgage obligations, and commercial mortgage-backed securities.

The post BlackRock Unit Retained to Sell Failed U.S. Banks’ Securities appeared first on theprimarymarket.com.

Carney’s comments came in response to the recent banking turmoil that has caused anxiety across global financial markets. In Carney’s eyes, the collapse of Silicon Valley Bank, which sparked the beginning of the turmoil, highlighted exactly why such reflection is needed.

Over $40 billion was withdrawn from Silicon Valley Bank during the 24 hours after its failure. This phenomenon got authorities thinking of another emerging risk, namely the “social media bank” from which clients are able to withdraw funds with just a few taps on their phone.

“That will, I think, require some rethinking of the assumptions behind liquidity coverage ratio, the net stable funding ratio,” Carney stated during his interview on a Reuters Breakingviews podcast.

The post Bank of England Governor Suggests Liquidity Rules Need to Be Reevaluated Following Silicon Valley Bank Collapse appeared first on theprimarymarket.com.

The collapse of Silicon Valley Bank and the banking sector instability that followed has driven China’s central bank to seek measures to ensure that financial authorities closely monitor financial institutions’ date accuracy in order to prevent risks.

While the authors of the article claimed that China’s commercial banks as a whole remain stable and sound, they believe that China’s insurance deposit system needs to utilize its full authority in order to swiftly address and eliminate systematic risks.

In addition, the authors, who are from PBOC’s Financial Stability Bureau and the Deposit Insurance Corp, suggested that the Chinese government consolidates the nation’s capital reserves to ensure that it has the necessary resources at its disposal to combat future risks.

The post China’s Central Bank Seeking Stronger Financial Security Measures appeared first on theprimarymarket.com.

S&P 500 e-minis were up 0.82%, or 32.75 points, while Nasdaq 100 e-minis were up 0.81%, or 103.5 points. Dow Jones e-minis were advanced by 0.68% or 221 points. Among the high-performing stocks were Microsoft Corp, Alphabet and Meta Platforms, each of which rose between 0.8% and 1.5% during premarket trading.

Now, investor focus has shifted to this week’s upcoming economic data, which is expected the indicate the effectiveness of the Federal Reserve’s monetary policy, particularly its latest 25 basis point interest rate hike.

“There are growing expectations that the Federal Reserve may hike interest rates again at the next meeting, but it’s still believed to be close to the summit of peak rates, particularly as banking lending is expected to tighten, causing a drag on the economy,” Susannah Streeter, head of money and markets at Hargreaves Lansdown commented. She added that the decline in banking sector concerns has restored investors’ willingness to take risks.

The post Futures Rise As Banking Sector Concerns Subside appeared first on theprimarymarket.com.

Optimism has improved surrounding the U.S. economy’s ability to withstand the recent banking sector instability which started with the collapse of California’s tech company-focused Silicon Valley Bank and the New York City-based Signature Bank almost two weeks ago.

10-year U.S. Treasury yields rose by two basis points to 3.553% on Tuesday, thereby continuing their recovery after hitting a six-month low of 3.285% on Friday. They still remain below the 15-year high of 4.338% obtained on October 21 last year.

Two-year yields increased by five basis points to 4.010%, up from a six-month low of 3.555% on Friday. They remain below the almost 16-year high of 5.084% that was reached on March 8.

The Treasury Department is set to sell $43 billion in five-year notes on Tuesday along with an additional $35 billion in seven-year notes on Wednesday.

The post Treasury Yields Rise As Confidence In Banks Improves appeared first on theprimarymarket.com.

According to the details of the deal, First Citizens will take on $72 billion in loans at a discount price of $16.5 billion. It will also receive SVB’s assets valued at $110 billion and $56 billion in deposits.

“In addition, the FDIC received equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, a common stock with a potential value of up to $500 million,” the FDIC said in a statement adding that they will keep “$90 billion in securities and other assets” from SVB.

On Monday, 17 of SVB’s former branches re-opened as First Citizens locations. Also, all of SVB’s clients have automatically become the clients of First Citizens.

Silicon Valley Bank was closed by regulators earlier in March due to “inadequate liquidity and insolvency.” It was the second-largest bank failure in the history of the U.S. and sparked a banking crisis that also caused New York-based Signature Bank to fold. Following the collapse of two banks, the Federal Reserve stepped in and promised the full protection of all deposits.

The post First Citizens Bancshares Makes a Deal to Acquire Collapsed Silicon Valley Bank appeared first on theprimarymarket.com.

In response to the bank’s failure in early March, U.S. officials made the controversial decision to protect all existing account holders including those who held deposits exceeding the $250,000 limit imposed by the Federal Deposit Insurance Corporation.

“I can’t imagine anybody saying I’d like to be the one [on] television tomorrow and explain [to] the American public why we’re keeping only $250,000 insured and we’re going to start a run on every bank in the country and disrupt the world’s financial system,” Buffett revealed during Berkshire Hathaway’s annual meeting on Saturday.

Following the start of the banking crisis, Buffett decided to pull back his banking investments. He criticized the banking sector for not sufficiently punishing the culprits of misdeeds.

Berkshire Hathaway’s banking portfolio suffered in the first quarter as a result of the financial sector’s instability, with its Bank of America stake declining by $4.7 million during the first three months of the year.

The post “Catastrophic” to Let SVB Depositors Lose Money, Buffett States appeared first on theprimarymarket.com.

While the Federal Reserve ultimately decided to implement an interest rate hike of 0.25% at its policy meeting on 21 and 22 March, this came after top US officials spent the weekend formulating emergency measures aimed at halting a deposit run following the collapse of the two major U.S. banks.

Federal Reserve Chair Jerome Powell explained that while an interest rate pause was being considered, the central bank ultimately decided that different tools would be required to handle a complex situation, whereby higher interest rates remained necessary to combat inflation.

Silicon Valley Bank’s collapse was the largest banking failure since the financial crisis that spanned 2007 to 2009. Prior to this failure as well as that of Signature Bank, the Fed was considering bumping interest rates up by half a percentage point.

The post Fed Meeting Minutes to Detail Debate Regarding SVB, Signature Bank Failures appeared first on theprimarymarket.com.

According to a statement made by the regulator on Wednesday, the value of the Signature Bank portfolio is about $27 billion, while that of Silicon Valley Bank is approximately $87 billion.

On Monday, FDIC stated that it was beginning the marketing process for Signature Bank loan portfolio retained in receivership to the value of about $60 billion. Reuters later reported that the FDIC had retained advisers to sell the securities portfolios that the regulator had acquired following its takeover of Silicon Valley Bank and Signature Bank.

In a statement on Wednesday, the FDIC confirmed that the securities are primarily comprised of agency mortgage-backed securities, collateralized mortgage obligations, and commercial mortgage-backed securities.

The post BlackRock Unit Retained to Sell Failed U.S. Banks’ Securities appeared first on theprimarymarket.com.

Carney’s comments came in response to the recent banking turmoil that has caused anxiety across global financial markets. In Carney’s eyes, the collapse of Silicon Valley Bank, which sparked the beginning of the turmoil, highlighted exactly why such reflection is needed.

Over $40 billion was withdrawn from Silicon Valley Bank during the 24 hours after its failure. This phenomenon got authorities thinking of another emerging risk, namely the “social media bank” from which clients are able to withdraw funds with just a few taps on their phone.

“That will, I think, require some rethinking of the assumptions behind liquidity coverage ratio, the net stable funding ratio,” Carney stated during his interview on a Reuters Breakingviews podcast.

The post Bank of England Governor Suggests Liquidity Rules Need to Be Reevaluated Following Silicon Valley Bank Collapse appeared first on theprimarymarket.com.

The collapse of Silicon Valley Bank and the banking sector instability that followed has driven China’s central bank to seek measures to ensure that financial authorities closely monitor financial institutions’ date accuracy in order to prevent risks.

While the authors of the article claimed that China’s commercial banks as a whole remain stable and sound, they believe that China’s insurance deposit system needs to utilize its full authority in order to swiftly address and eliminate systematic risks.

In addition, the authors, who are from PBOC’s Financial Stability Bureau and the Deposit Insurance Corp, suggested that the Chinese government consolidates the nation’s capital reserves to ensure that it has the necessary resources at its disposal to combat future risks.

The post China’s Central Bank Seeking Stronger Financial Security Measures appeared first on theprimarymarket.com.

S&P 500 e-minis were up 0.82%, or 32.75 points, while Nasdaq 100 e-minis were up 0.81%, or 103.5 points. Dow Jones e-minis were advanced by 0.68% or 221 points. Among the high-performing stocks were Microsoft Corp, Alphabet and Meta Platforms, each of which rose between 0.8% and 1.5% during premarket trading.

Now, investor focus has shifted to this week’s upcoming economic data, which is expected the indicate the effectiveness of the Federal Reserve’s monetary policy, particularly its latest 25 basis point interest rate hike.

“There are growing expectations that the Federal Reserve may hike interest rates again at the next meeting, but it’s still believed to be close to the summit of peak rates, particularly as banking lending is expected to tighten, causing a drag on the economy,” Susannah Streeter, head of money and markets at Hargreaves Lansdown commented. She added that the decline in banking sector concerns has restored investors’ willingness to take risks.

The post Futures Rise As Banking Sector Concerns Subside appeared first on theprimarymarket.com.

Optimism has improved surrounding the U.S. economy’s ability to withstand the recent banking sector instability which started with the collapse of California’s tech company-focused Silicon Valley Bank and the New York City-based Signature Bank almost two weeks ago.

10-year U.S. Treasury yields rose by two basis points to 3.553% on Tuesday, thereby continuing their recovery after hitting a six-month low of 3.285% on Friday. They still remain below the 15-year high of 4.338% obtained on October 21 last year.

Two-year yields increased by five basis points to 4.010%, up from a six-month low of 3.555% on Friday. They remain below the almost 16-year high of 5.084% that was reached on March 8.

The Treasury Department is set to sell $43 billion in five-year notes on Tuesday along with an additional $35 billion in seven-year notes on Wednesday.

The post Treasury Yields Rise As Confidence In Banks Improves appeared first on theprimarymarket.com.

According to the details of the deal, First Citizens will take on $72 billion in loans at a discount price of $16.5 billion. It will also receive SVB’s assets valued at $110 billion and $56 billion in deposits.

“In addition, the FDIC received equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, a common stock with a potential value of up to $500 million,” the FDIC said in a statement adding that they will keep “$90 billion in securities and other assets” from SVB.

On Monday, 17 of SVB’s former branches re-opened as First Citizens locations. Also, all of SVB’s clients have automatically become the clients of First Citizens.

Silicon Valley Bank was closed by regulators earlier in March due to “inadequate liquidity and insolvency.” It was the second-largest bank failure in the history of the U.S. and sparked a banking crisis that also caused New York-based Signature Bank to fold. Following the collapse of two banks, the Federal Reserve stepped in and promised the full protection of all deposits.

The post First Citizens Bancshares Makes a Deal to Acquire Collapsed Silicon Valley Bank appeared first on theprimarymarket.com.