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Deposit Guarantee

All articles tagged with #deposit guarantee

finance2 years ago

US Regional Bank Stocks Plunge Amid PacWest's Consideration of "All Options".

PacWest Bancorp's stock plunged nearly 42% to a new low triggering another day of selling in regional bank shares. The bank said it was in discussions with partners and investors and that the talks were ongoing. Shares of other regional lenders were also lower Thursday. Activist investor Bill Ackman called for a systemwide deposit guarantee regime to be implemented, adding “we are running out of time to fix this problem.”

via Barron's|
#deposit-guarantee#finance#interest-rates
finance2 years ago

PacWest Bank considers sale options as shares plummet.

Shares in California lender PacWest plummeted by as much as 60% amid fears of a new US banking crisis. The bank is in talks with several potential investors and has not experienced out-of-the-ordinary deposit flows. The US regional banking system is at risk, according to Bill Ackman, CEO of the New York hedge fund Pershing Square. Smaller, regional banks play a much larger role in the American economy, accounting for nearly half of consumer and business lending. JP Morgan recently acquired a majority of First Republic’s assets in a $10.6bn deal after regulators seized the lender, which became the largest US bank failure since the 2008 financial crisis.

via The Guardian|
#deposit-guarantee#finance#jp-morgan
finance2 years ago

Bill Ackman warns of imminent crisis in US regional banking system.

Billionaire hedge fund manager Bill Ackman has called for a system-wide deposit guarantee regime for regional banks, following the collapse of First Republic Bank and the subsequent takeover by JPMorgan Chase earlier this week. Ackman argues that uninsured depositors of regional banks are more at risk than global systematically important banks, which have an "unfair competitive advantage" being too big to fail. He warns that without a new guarantee regime, more unnecessary bank failures will occur, and calls on the FDIC, the US Treasury, and the government to act quickly.

via MarketWatch|
#bill-ackman#deposit-guarantee#fdic
finance2 years ago

Yellen's Comments on Deposit Guarantee Cause Bank Shares to Slide

Bank shares fell after US Treasury Secretary Janet Yellen suggested that a blanket deposit guarantee was unnecessary, stating that the US has a strong financial regulatory system in place. Yellen's comments were made in response to a question about the potential for a digital dollar and its impact on financial stability. The market reacted negatively to her comments, with bank shares sliding.

via Financial Times|
#bank-shares#deposit-guarantee#finance
finance2 years ago

Yellen pledges to protect depositors and prevent bank contagion.

US Treasury Secretary Janet Yellen has said that the US banking system is "sound" and recent bank failures are "very different" from the 2008 financial crisis. Yellen praised the government's intervention in guaranteeing depositors' money and suggested that similar actions could be taken in the future. She also highlighted the Bank Term Funding Program, which provides additional liquidity to financial institutions. Yellen defended the government's recent actions amid concerns and public frustration around its decision to effectively bail out financial institutions that critics say were mismanaged.

via Al Jazeera English|
#bank-failures#deposit-guarantee#finance
finance2 years ago

Bill Ackman warns of financial contagion risk spreading to largest banks.

Hedge fund manager Bill Ackman expressed concern over the spreading of risk of financial contagion to achieve a "false sense of confidence" in First Republic Bank (FRB), after it announced it would receive $30bn in uninsured deposits from larger banks and suspend its dividend. Tesla CEO Elon Musk also commented on the situation, calling the inefficiency of money "astounding." Ackman called for a temporary systemwide deposit guarantee until an expanded and modernized FDIC insurance system is made widely available.

via Benzinga|
#bill-ackman#deposit-guarantee#elon-musk
finance2 years ago

Yellen assures Congress of sound US banking system amid recent turmoil.

US Treasury Secretary Janet Yellen assured Americans that the US banking system is sound and that their deposits are safe. However, she denied that the emergency actions taken after the collapse of Silicon Valley Bank and Signature Bank meant that a blanket government guarantee now existed for all deposits. Yellen stated that a bank only gets that treatment if supermajorities of the boards of the Federal Reserve, the Federal Deposit Insurance Corp, and herself determine that the failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences.

via Reuters|
#deposit-guarantee#emergency-measures#finance