Hints and tips:
Related Special Reports
...San Francisco-based Zipline is awaiting final regulatory approval for the service from the Civil Aviation Authority....
...Their positions have worsened as debt capital has become more expensive as interest rates have risen, and after Silicon Valley Bank, a crucial provider of loans to small start-ups, collapsed in March....
...Banks that failed to keep up have been left exposed. Between spring 2022 and 2023, the US federal funds effective rate soared from almost zero to more than 5 per cent....
...Additional reporting by Demetri Sevastopulo in San Francisco...
...When Javier Milei, Argentina’s radical libertarian president-elect, this week selected Luis Caputo as his economy minister, some investors greeted the news with relief....
...The collapse last year of Silicon Valley Bank, the 16th largest in the US, exposed very basic mistakes, not least a failure to hedge against the risk of surging interest rates undermining the value of its...
...Valley....
...Federal Reserve officials discussed removing Greg Becker, the former chief executive of Silicon Valley Bank, from the board of the San Francisco Fed in 2022, but decided against it because they were worried...
...Moreover, Mary Daly, president of the San Francisco Fed, recently told the Financial Times that prematurely declaring victory over inflation and then having to raise rates again would hurt the central bank...
...And on Monday, British technologist Mike Lynch will go on trial in San Francisco over what US prosecutors have called “the largest fraud in the history” of Silicon Valley....
...Silicon Valley....
...Moreover, banks are much better positioned than they were in the runups to the Global Financial Crisis and Savings & Loan Crisis....
...Twelve months after the failure of Silicon Valley Bank shook the regional banking sector, NYCB’s recent struggles have underscored the continuing fragility at some US lenders....
...According to research from the San Francisco Fed, total “excess savings” for US households peaked at $2.1tn in mid-2021. By March 2023, much of that had gone....
...The presidents of the Federal Reserve banks of Dallas, Atlanta, San Francisco and Kansas City are also speaking in public later....
...Initially launched to help small savings banks and support mortgage markets, its mandate was expanded in the 1980s to cover mainstream commercial banks as well....
...So what to make of the Federal Reserve’s proposal for new bank regulation....
...Another, from Chase Bank, tells me I can “earn $600!” by signing up for a checking and a savings account....
...We still saw, in the aftermath of Silicon Valley Bank, the collapse and then the sale to JPMorgan of First Republic, another San Francisco bank, even though people knew deposits would be protected and that...
...While the federal government doesn’t directly guarantee this debt and FHLBs receive no federal funding, they can raise funds at favourable rates and pass the savings on to members....
...We note that the San Francisco Regional Bank has suffered significant reputational damage from SVB’s failure, even though SVB’s supervision was functionally overseen by the Federal Reserve Board in Washington...
...“San Francisco has always been a piggy bank for both parties,” said Bob Shrum, a former Democratic campaign strategist who is now a professor at the University of Southern California....
...Hirsch said she opened a new bank account the day the federal regulators took over SVB, but she has yet to deposit funds there....
...Even today, with short-term rates currently above 5 per cent, the average US savings account rate is just 0.45 per cent according to the Federal Deposit Insurance Corporation....
...The new owner of Silicon Valley Bank is suing HSBC and several former employees for more than $1bn, claiming the group “engineered a scheme to plunder” SVB of top bankers and confidential information....
International Edition