Fed Board wants to examine if SVB was adequately supervised and regulated.
The bank's collapse led to broad stock market sell-offs, including a 60% slump in First Republic Bank shares.
The US Federal
Reserve (Fed) announced on Monday the initiation of an internal probe into the Silicon Valley Bank (SVB) failure, which Michael S. Barr, the Vice Chair for Supervision at the central bank, will lead.
Fed Initiates Internal
Probe Over SVB Collapse
According
to the official publication from 13 March 2023, Bar and his team will review how
SVB was regulated and supervised by Fed before its collapse in search of potential
negligence that could explain the reasons for the sudden bankruptcy of the
institution. The final results will be released to the public by 1 May 2023.
"The
events surrounding Silicon Valley Bank demand a thorough, transparent, and
swift review by the Federal Reserve. We need to have humility, and conduct a
careful and thorough review of how we supervised and regulated this firm, and
what we should learn from this experience," Jerome H. Powell, the Chairman
of the Federal Reserve Board, commented.
On 10 March,
the California Department of Financial Protection and Innovation took the
decision to close down SVB without providing any clear explanation for the
abrupt action. According to reports, SVB had been struggling with severe
liquidity issues and was teetering on the brink of collapse. This was
attributed to significant losses incurred on government bond investments as
well as deposit withdrawals by worried customers, which compounded the bank's
financial woes.
The
Californian authority's decision triggered a market panic and led to a dynamic
fall of bank shares around the world.
Credit Suisse Tests Record-Lows,
First Republic Bank Slumps over 60%
The
collapse of SVB triggered a strong response from the cryptocurrency community due
to the capital links of large companies in the industry with the bank. Circle,
a stablecoin USDC issuer, allocated 8% of its USDC reserves, equivalent to
$3.3 billion, to Silicon Valley Bank. This caused initial panic and a
depreciation of the stablecoin against the US dollar. However, most of the
panic subsided over the weekend and Bitcoin (BTC) rebounded quickly from
multi-month lows to near-month highs.
Nonetheless,
uncertainty continues to grip traditional stock exchanges, particularly in the
banking sector. According to a report by Finance Magnates, Credit
Suisse, the troubled banking giant, saw its shares drop to historic lows in
response to news of SVB's collapse.
Shares in
Credit Suisse (SIX: CSGN) started this week at EUR 2.5 but were down around 9.5%,
to EUR 2.15 after the closing bell on Monday, touching an all-time low. The
lender has lost approximately 20% since the beginning of the year after
its shares plummeted almost 70% in 2022.
However, the
stocks of the regional lender, First Republic Bank tanked the most, plunging over
60% on Monday, accounting for the largest share loss. Several other lenders saw
significant drops in their stock prices as well. For instance, Zions
Bancorporation's shares fell by 25% to $30, while Charles Schwab's dropped by
11% to $52, and Bank of America's decreased by 3% to $29, among others. The volatile
trading activity led to many of these stocks being halted multiple times
throughout the day.
On Sunday, Treasury
Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, and FIDC Chairman
Martin Gruenberg said in a joint statement that the depositors' claims would be
fully protected. The Fed convened a special meeting to address the market panic
and issued a notice to launch an internal investigation.
The US Federal
Reserve (Fed) announced on Monday the initiation of an internal probe into the Silicon Valley Bank (SVB) failure, which Michael S. Barr, the Vice Chair for Supervision at the central bank, will lead.
Fed Initiates Internal
Probe Over SVB Collapse
According
to the official publication from 13 March 2023, Bar and his team will review how
SVB was regulated and supervised by Fed before its collapse in search of potential
negligence that could explain the reasons for the sudden bankruptcy of the
institution. The final results will be released to the public by 1 May 2023.
"The
events surrounding Silicon Valley Bank demand a thorough, transparent, and
swift review by the Federal Reserve. We need to have humility, and conduct a
careful and thorough review of how we supervised and regulated this firm, and
what we should learn from this experience," Jerome H. Powell, the Chairman
of the Federal Reserve Board, commented.
On 10 March,
the California Department of Financial Protection and Innovation took the
decision to close down SVB without providing any clear explanation for the
abrupt action. According to reports, SVB had been struggling with severe
liquidity issues and was teetering on the brink of collapse. This was
attributed to significant losses incurred on government bond investments as
well as deposit withdrawals by worried customers, which compounded the bank's
financial woes.
The
Californian authority's decision triggered a market panic and led to a dynamic
fall of bank shares around the world.
Credit Suisse Tests Record-Lows,
First Republic Bank Slumps over 60%
The
collapse of SVB triggered a strong response from the cryptocurrency community due
to the capital links of large companies in the industry with the bank. Circle,
a stablecoin USDC issuer, allocated 8% of its USDC reserves, equivalent to
$3.3 billion, to Silicon Valley Bank. This caused initial panic and a
depreciation of the stablecoin against the US dollar. However, most of the
panic subsided over the weekend and Bitcoin (BTC) rebounded quickly from
multi-month lows to near-month highs.
Nonetheless,
uncertainty continues to grip traditional stock exchanges, particularly in the
banking sector. According to a report by Finance Magnates, Credit
Suisse, the troubled banking giant, saw its shares drop to historic lows in
response to news of SVB's collapse.
Shares in
Credit Suisse (SIX: CSGN) started this week at EUR 2.5 but were down around 9.5%,
to EUR 2.15 after the closing bell on Monday, touching an all-time low. The
lender has lost approximately 20% since the beginning of the year after
its shares plummeted almost 70% in 2022.
However, the
stocks of the regional lender, First Republic Bank tanked the most, plunging over
60% on Monday, accounting for the largest share loss. Several other lenders saw
significant drops in their stock prices as well. For instance, Zions
Bancorporation's shares fell by 25% to $30, while Charles Schwab's dropped by
11% to $52, and Bank of America's decreased by 3% to $29, among others. The volatile
trading activity led to many of these stocks being halted multiple times
throughout the day.
On Sunday, Treasury
Secretary Janet Yellen, Federal Reserve Chair Jerome Powell, and FIDC Chairman
Martin Gruenberg said in a joint statement that the depositors' claims would be
fully protected. The Fed convened a special meeting to address the market panic
and issued a notice to launch an internal investigation.
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
BGC Group Secures Backing from Global Banks for New $600M Trading Platform
Network, Learn, Grow | FMAS:24
Network, Learn, Grow | FMAS:24
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
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Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Get ready to mark your calendars for FMAS:24, returning this May! Take a quick glimpse of what awaits at the Sandton Convention Centre in Sandton, South Africa from May 20-22, 2024.
Don't miss out on this 5-second invite packed with energy and urgency!
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
🐦 Twitter: https://twitter.com/F_M_events
🎥 TikTok: https://www.tiktok.com/@fmevents_official
▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Here's a sneak peek into the FMAS:24 vibrant atmosphere! Join us at Africa’s premium financial event for a transformative experience that combines the best of finance and technology.
From May 20-22, 2024, the Sandton Convention Centre in Sandton, South Africa, will be the hub for over 3,500 attendees to engage in unparalleled networking opportunities, learn from over 150 industry-leading speakers, and explore innovations from 120+ exhibitors.
Secure your free ticket now 🔗 https://events.financemagnates.com/yQx0l?utm_source=youtube&utm_campaign=fmas-is-back&utm_medium=video&RefId=FMAS24+Video+Ad+%5B1%5D
#fmas24 #fmas #fmevents #financeinafrica #traders #investors #affiliates #forexTraders #investmentOpportunities #B2BNetworking #finTech #Innovations #TradingCommunity #BusinessOpportunities #AfricanBusiness #Johannesburg #southafrica
📣 Stay updated with the latest in finance and trading!
Follow FMevents across our social media platforms for news, insights, and event updates. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/showcase/financemagnates-events/
👍 Facebook: https://www.facebook.com/FinanceMagnatesEvents
📸 Instagram: https://www.instagram.com/fmevents_official
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▶️ YouTube: https://www.youtube.com/@FinanceMagnates_official
Don't miss out on our latest videos, interviews, and event coverage. Subscribe to our YouTube channel for more!
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 | Africa's Premium Financial Event
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
👍 Facebook: https://www.facebook.com/financemagnates/
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Don't miss out on our latest videos, interviews, and event coverage.
🔔 Subscribe to our YouTube channel for more!🔔
Looking to expand your network in #Africa? Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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🔔 Subscribe to our YouTube channel for more!🔔
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Join 3500+ Attendees at FMAS:24 - Africa's Premium Financial Event
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Looking to expand your network in #Africa?
Join 3500+ attendees at FMAS:24, where online trading, fintech, payments, and crypto meet! Connect with industry leaders and innovators for an unmatched networking experience.
20-22 MAY 2024
Sandton Convention Center, Sandton, South Africa
Register now to secure your spot: https://bit.ly/3JbUpCK
#fmas #fmas24 #fmevents #networking #finance #africa
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Where the Prop Trading Industry Goes from Here | Finance Magnates Podcast
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
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🔔 Subscribe to our YouTube channel for more!🔔
Explore the tumultuous world of prop trading in this Finance Magnates podcast episode, featuring insights from Head of Axi Select, Greg Rubin.
We're discussing the challenges and shifts caused by MetaQuotes' pivotal decisions affecting MT4 and MT5 users, and how Axi Select offers a unique, realistic path to professional trading, steering clear of traditional prop firm pitfalls.
Tune in for expert analysis on the future of trading and innovative funding models.
The Axi Select programme is only available to clients of AxiTrader Limited. CFDs carry a high risk of investment loss. In our dealings with you, we will act as a principal counterparty to all of your positions. This content is not available for AU, NZ, EU and UK residents. For more information, refer to our Terms of Service. Standard trading fees apply.
This content is provided solely for general informational purposes and should not be construed as financial product advice or an investment recommendation. It has been prepared without considering your personal circumstances.
📣 Stay updated with the latest in finance and trading!
Follow Finance Magnates for news, insights, and event updates across our social media platforms. Connect with us today:
🔗 LinkedIn: https://www.linkedin.com/company/financemagnates/
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