Hints and tips:
...“It should stop the deposit outflow from the small regional and community banks,” Peltz said. “I don’t think we want all of the funds just going to major banks.”...
...big exposures to real estate), First Republic (which, like SVB, had a high proportion of rich customers whose accounts exceeded the official $250,000 bank insurance limit, making them a potential flight...
...The bank derives its income from a variety of business lines: fund and asset management; investing in companies alongside VC firms such as Andreessen Horowitz and Sequoia Capital; underwriting tech IPOs;...
...The old SVB’s lending terms typically required start-ups to hold all of their cash at the bank, meaning many were unable to fund their operations or payroll during SVB’s meltdown last year....
...Branches When Dimon became chief executive of JPMorgan in 2006, the US had more than 7,600 banks. Only around 4,300 remain, according to BankRegData....
...In fact, the FHLB system has been criticised for exploiting such protections in order to lend to failed institutions like Silicon Valley Bank and First Republic Bank....
...But all of the kind of year-ahead outlook research that I’ve read — and regular listeners will know I’m a bit of a nerd about these things — a consistent theme that runs through all of the Wall Street bank...
...While all the banks above could have benefited from more capital in hindsight, it’s not because of their unrealised losses....
...All of those were acquired by rivals at steep multibillion-dollar losses to the banking deposit insurance fund....
...According to Moneyfacts, the average rate on such accounts is 4.77 per cent. But some analysts point out that the pool of people able to lock money up will be much smaller....
...And all of this pales in comparison to the $130bn peak in single-day debt issuance in the wake of Silicon Valley Bank’s failure, according to the bank: There are doubtless some forms of regional-banking...
...Only about 17 per cent of Schwab’s client accounts were located in California at the end of 2022. More than 40 per cent of its $25.7bn in residential real-estate loans are on properties in California....
...All of Omsom’s money was in an SVB account that by the end of the day she could no longer access. Pham was just one of thousands of Americans caught up in the financial panic of the past month....
...The Federal Reserve has lent as much as $109bn to First Republic, at present the most precarious US regional bank. It is doing so at an annualised cost of 4.75 per cent....
...Consolidation of America’s 4,000-plus banks may be a good thing, by raising robustness....
...It was worth fighting for.” 4....
...They added that the bank was also exploring a potential new capital raise. The steep fall of PacWest’s shares raised fresh questions about the health of other regional banks in the US....
...To remain healthy, the lenders must woo back customers from money market funds, which currently pay more than 4 per cent annually versus about 0.5 per cent for most bank savings accounts, said Jim Bianco...
...bank account to Sam Bankman-Fried’s very large bank account....
...And there is plenty of capital in the American bank system as a whole to absorb such credit losses....
...You can make up to 3.01 per cent on an easy access cash Isa and 4.25 per cent on a one-year fixed rate cash Isa....
...Late on Thursday, several of the country’s largest banks announced $30bn in aid for First Republic Bank in order to shore up investor confidence in the California lender....
...The quarter-point increase in the federal funds rate to a range of between 4.5 per cent and 4.75 per cent, the highest level since September 2007, marked a return to a more orthodox approach to rate rises...
...Maintaining a military capable of fighting one isn’t cheap either. That’s the brutal reality facing European capitals in light of Russia’s invasion of Ukraine....
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