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Emergency Lending

All articles tagged with #emergency lending

finance2 years ago•2 min saved

"Banking Crisis Looms as First Republic Takeover Limits Emergency Lending"

Borrowing from the Federal Reserve's discount window and Bank Term Funding Program dropped significantly after the FDIC takeover and sale of First Republic Bank to JPMorgan Chase. The decline in bank borrowing comes amid another rough week for regional banks, with stocks losing value to their lowest levels since 2020. The FDIC is providing $228.2 billion in lending for Silicon Valley Bank, Signature Bank, and First Republic takeovers. The Bank Term Funding Program was created after the Silicon Valley Bank failure and the takeover of Signature Bank by the Fed to give other institutions better terms than the traditional “discount window” borrowing.

via Investopedia|

#emergency-lending #fdic #federal-reserve

finance2 years ago•1 min saved

First Republic Bank's Stock Soars Amid Potential Expansion of Emergency Lending Support

First Republic Bank's stock surged 30% in premarket trading after reports that U.S. regulators are considering expanding an emergency lending facility for banks, potentially giving the bank more time to shore up its balance sheet. The bank's stock had plummeted nearly 90% in the past month due to fears over the liquidity of other regional banks operating in Silicon Valley. First Republic is reportedly considering selling parts of its business to raise cash and cut costs.

via Seeking Alpha|

#balance-sheet #emergency-lending #finance

finance2 years ago•0 min saved

US Considers Expanding Emergency Lending and Support for Banks, Including First Republic (NYSE:FRC)

US regulators are considering expanding the emergency lending facility for banks, which could potentially give First Republic Bank more time to strengthen its balance sheet. This is one of several options being evaluated, and officials have not yet decided on what support they may give to the bank. Fitch Ratings recently downgraded First Republic's long-term issuer default rating, and the bank is now seeking options to sell parts of its business to raise cash and cut costs.

via Seeking Alpha|

#balance-sheet #emergency-lending #finance

finance2 years ago•2 min saved

Yellen's Confidence in Financial Stability Shaken by Bank Panic and Unprotected Deposits.

Treasury Secretary Janet Yellen's 2017 statement that she did not "believe" another financial crisis like the 2008 crash would happen in our lifetime has resurfaced as a banking crisis looms in America and globally. Yellen had cited the changes in the financial system that made it safer for all parties involved, including the Fed's annual stress testing practices. However, the recent collapse of Silicon Valley Bank and the rush on the Fed by banks taking advantage of the emergency lending program have ignited the big, red, blinking crisis sign. Banks borrowed $11.9 billion from the new emergency backstop known as the Bank Term Funding Program, and $152.8 billion from the discount window, which is up from $4.58 billion the previous week and smashes the record of $111 billion hit during the 2008 financial crisis.

via Fox News|

#banking-system #emergency-lending #federal-reserve

finance2 years ago•2 min saved

Banks Rely on Fed Crisis Lending Programs for Record-Breaking Support

Banks borrowed a record-breaking $160 billion from the Federal Reserve's emergency lending programs this week, with $11.9 billion from the new Bank Term Funding Program and $152.8 billion from the discount window. The emergency lending comes after the collapse of Silicon Valley Bank, which saw a bank run after investing in long-term U.S. Treasury bonds and other mortgage-backed securities. The lending programs will allow banks to borrow against those bonds should customers wish to make withdrawals, rather than sell them at a loss. The Fed also lent $143 billion to support the deposit guarantees at SVB and another bank that collapsed, Signature Bank.

via Fox Business|

#banks #emergency-lending #federal-reserve

finance2 years ago•2 min saved

Banks borrow $300bn from Fed amidst financial strain.

Cash-strapped banks have borrowed around $300bn from the Federal Reserve in the past week, with nearly half going to holding companies for two major banks that failed over the past week, Silicon Valley Bank and Signature Bank. The rest of the money was borrowed by banks seeking to raise cash, likely to pay off depositors who tried to withdraw their money. The Fed's lending programs, particularly the new facility it unveiled on Sunday, enable financial institutions to post bonds as collateral and borrow against them, rather than having to sell them.

via The Guardian|

#bank-failures #collateral #deposit-insurance