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...The Federal Deposit Insurance Corporation is auctioning the loan book and other parts of the California lender after a bank run led to its collapse this month....
...The section head wrote one column this week on the squeeze on Generation Rent via higher buy-to-let mortgages....
...The FDIC’s first in-depth report into California-based First Republic’s collapse put the blame squarely on “a loss of market and depositor confidence” that had been triggered by the demise of Silicon Valley...
...Shares in First Republic plunged 49 per cent in after-hours trading on Friday as the embattled California bank prepared to end another week of turmoil without a long-term plan for its survival....
...The Federal Deposit Insurance Corporation was left holding the assets of mortgage-backed securities, collateralised mortgage obligations and commercial mortgage-backed securities following the interventions...
...after an assurance by chair Jay Powell that bulk sales were not imminent....
...how much it would cost to take over the embattled California lender....
...“This is a potential path but with no assurance at all it gets done,” said a person with direct knowledge of the conversations....
...Sharing First Republic’s loan losses with JPMorgan will limit the costs to the Federal Deposit Insurance Corporation to $13bn....
...Ro Khanna, a Democratic congressman from California, on Sunday encouraged the FDIC to work with private-sector institutions to come up with a solution for First Republic....
...The Federal Deposit Insurance Corporation and California regulators, which announced the deal early on Monday morning, said they were simultaneously closing First Republic and selling off all $93.5bn of...
...US debt and mortgage bonds....
...Rising interest rates have also pushed down the value of other long-dated assets, such as mortgage loans....
...The shares of First Republic, a California bank with some similarities to SVB, had been hit particularly hard amid fears that it would be forced to sell its mortgage portfolio at a steep loss to cover deposit...
...A shrewd and driven businessman, Herbert grew First Republic, his California-based lender, from just nine employees to America’s 14th largest bank by offering affluent urban professionals cheap mortgages...
...SVB was taken over by the Federal Deposit Insurance Corporation on March 10 after it announced a $1.8bn loss on sales of securities, sparking a share price collapse and a deposit run....
...This week California’s PacWest became the latest midsize US lender to get swept up in the growing panic....
...This is a teaching case for business schools drawing on topical issues and debates reported in the FT On March 10, the Federal Deposit Insurance Corporation moved into Santa Clara, California, headquarters...
...California’s state regulator was also a key supervisor given SVB’s state-chartered bank status....
...Its interest expense shot up 10-fold, to $525mn in the last three months of 2022, from just under $50mn a year earlier, data from the Federal Deposit Insurance Corporation shows....
...Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors....
...The wholesale reform of corporation tax, including the abolition of stock relief and investment allowances, set the tone for his chancellorship....
...But their large deposits exceeded the Federal Deposit Insurance Corporation’s insurance limits and were susceptible to flight....
...The scale of the withdrawals was revealed in a possession order by a California financial regulation agency on Friday, which said the bank was insolvent and its liquidity position was inadequate....
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