JPMorgan CEO Jamie Dimon leads efforts to craft new rescue plan for First Republic Bank

JPMorgan CEO Jamie Dimon leads efforts to craft new rescue plan for First Republic Bank

Discussions, though preliminary, have focused on how the industry could arrange an investment that would increase the bank’s capital, according to people familiar with the matter. Among the options on the table, people said, is investment in the First Republic by the banks themselves. Eleven major banks banded together last week to deposit $30 billion … Read more

The Fed raised concerns about SVB’s risk management in 2019

The Fed raised concerns about SVB’s risk management in 2019

WASHINGTON — The Federal Reserve raised concerns about risk management at Silicon Valley Bank at least four years before its failure earlier this month, documents show. In January 2019, the Fed issued a warning to SVB SIVB -60.41% on its risk management systems, according to a presentation released last year to employees of SVB’s venture … Read more

From SVB’s sudden collapse to Credit Suisse fallout: 8 charts show financial market turmoil

From SVB’s sudden collapse to Credit Suisse fallout: 8 charts show financial market turmoil

A tumultuous week in U.S. financial markets ended on an uncertain note on Friday after a massive injection of $30 billion in deposits from major banks into First Republic Bank failed to calm investors. Last week, the sudden collapse of three US banks – Silvergate Capital, Signature Bank SBNY and Silicon Valley Bank – began … Read more

How Goldman’s plan to consolidate Silicon Valley Bank fell apart

How Goldman’s plan to consolidate Silicon Valley Bank fell apart

Silicon Valley Bank executives went to Goldman Sachs Group Inc. GS -3.09% end of February looking for advice: they needed to fundraise, but weren’t sure how to do it. Soaring interest rates had weighed heavily on the bank. Deposits and the value of the bank’s bond portfolio had fallen sharply. Moody’s Investors Service was preparing … Read more

Fed eyes tougher rules for midsize banks after SVB and signing failures

Fed eyes tougher rules for midsize banks after SVB and signing failures

WASHINGTON — The Federal Reserve is overhauling a number of its own rules for midsize banks following the collapse of two lenders, potentially expanding restrictions that currently only apply to Wall Street’s biggest firms. A series of stricter capital and liquidity requirements are being considered, along with measures to strengthen the annual “stress tests” that … Read more

The Department of Justice and the SEC investigate the collapse of Silicon Valley Bank

The Department of Justice and the SEC investigate the collapse of Silicon Valley Bank

WASHINGTON — The Justice Department and the Securities and Exchange Commission are investigating the collapse of Silicon Valley Bank, people familiar with the matter say, after the California lender was taken over by regulators last week amid a historic race on its deposits. The separate investigations are in their preliminary stages and cannot lead to … Read more

FDIC transfers all deposits from Silicon Valley Bank to newly created bridge bank

FDIC transfers all deposits from Silicon Valley Bank to newly created bridge bank

The Federal Deposit Insurance Corp. said Monday it had transferred all deposits, insured and uninsured, from the old Silicon Valley Bank to a new full-service bridge bank operated by the FDIC as part of an action to protect all depositors from the bank. . The move comes after the regulator closed the bank and its … Read more

UK offers aid to Silicon Valley bank customers

UK offers aid to Silicon Valley bank customers

The UK government said on Sunday it was working on a lifeline for companies that had deposits blocked at the UK branch of Silicon Valley Bank following the collapse of its US parent company. In a statement, the UK Treasury said it wanted to “avoid or minimize damage to some of our most promising businesses”, … Read more

The First Republic hit by the bankruptcy of a Silicon Valley bank

The First Republic hit by the bankruptcy of a Silicon Valley bank

Bank of the First Republic FRC -14.84% came under renewed pressure amid Friday’s collapse of Silicon Valley Bank as investors tried to determine which other banks might face similar risks. First Republic shares fell 52% in early trading before recovering to near the previous day’s closing level, only to end the day down 15%. Investors … Read more

Silicon Valley Bank Shut Down by Regulators, FDIC Takes Over

Silicon Valley Bank Shut Down by Regulators, FDIC Takes Over

SANTA CLARA, Calif. — Silicon Valley Bank collapsed Friday in the second-largest bank failure in U.S. history after a run on deposits doomed the tech-focused lender’s plans to lift new capital. The Federal Deposit Insurance Corp. said it took control of the bank through a new entity it created, Deposit Insurance National Bank of Santa … Read more