![]() Semafor reported over the weekend hedge funds have been reaching out to startups with cash stuck at Silicon Valley Bank with offers to buy their deposits at a discount, as some companies face a cash crunch with payroll looming and a potentially long road ahead to being made whole on money deposited with the failed bank. But the general story of a surge in deposits in 2021, outflows in recent months, and losses in securities portfolios is likely to challenge some regional banks in the near term.Īcross the Atlantic, UK finance minister Jeremy Hunt said the British government has been working to ensure any UK firm's facing cash needs from SVB's failure "are able to meet their cashflow requirements to pay their staff." The scale and particular challenges that took down Silicon Valley Bank are unique - its exposure to the cash-burning tech world most punished by investors during the Fed's rate-hiking campaign being at the top of this list. ![]() In a note to clients published Friday, Kabir Caprihan, an analyst at JPMorgan, echoed much of this sentiment, writing: "At the outset, we don’t believe to be systemic, but it does reflect some of the structural issues that we highlighted in our outlook and what drove our Underweight on regional banks." "This left the bank more exposed to interest rate risk as its funding got more expensive, but its assets were not repricing higher."Ī view of the Park Avenue location of Silicon Valley Bank (SVB), in New York City, U.S., March 10, 2023. "Much like Silvergate ( SI), Silicon Valley had a unique business model that was less dependent on retail deposits than a traditional bank," Seiberg added. futures opened higher on Sunday evening.Īs Yahoo Finance's Jennifer Schonberger reported Friday, TD Cowen analyst Jaret Seiberg wrote Friday that the firm does "not see this as the start of a broader threat to the safety and soundness of the banking system." No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer." Depositors will have access to all of their money starting Monday, March 13. In a joint statement, the heads of the Federal Reserve, Treasury Department, and FDIC said: "After receiving a recommendation from the boards of the FDIC and the Federal Reserve, and consulting with the President, Secretary Yellen approved actions enabling the FDIC to complete its resolution of Silicon Valley Bank, Santa Clara, California, in a manner that fully protects all depositors. ![]() On Sunday evening, financial regulators said SVB depositors will have access to all of their money starting Monday, March 13. history could mean for the broader financial system. Investor focus on the Fed's next steps in the inflation fight, however, has been usurped as the top focus for investors in recent days with Friday's shock collapse of Silicon Valley Bank and fears over what the second-largest bank failure in U.S. This content is not available due to your privacy preferences.
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