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Failed Banks

All articles tagged with #failed banks

finance2 years ago•1 min saved

Senate bill proposes seizing pay of failed bank executives.

Senators Sherrod Brown and Tim Scott have introduced a bill that would allow regulators to seize bank executives' compensation from the 24 months leading up to a failure, including salaries, bonuses, and profits from the sale of bank stock. The bill also triples the civil penalty that regulators could assess on an executive who "recklessly" violates the law or engages in "unsafe and unsound practices." The move comes as regulators investigate the collapse of Silicon Valley Bank, with Goldman Sachs under scrutiny for its role in advising the troubled bank on raising capital before it folded.

via The Washington Post|

#executive-compensation #failed-banks #finance

finance2 years ago•3 min saved

Warren Buffett's Views on Banks, Bitcoin, and CEOs

Billionaire investor Warren Buffett has called for CEOs, presidents, and directors of failed banks to be held accountable for their actions by giving back their pensions and salaries. He believes that there should be consequences for those who make bad decisions, rather than penalizing shareholders with fines. Buffett's ideal system would force CEOs to live like production line workers and give back their pensions if they "screw up," while directors should return five years' worth of their salaries if they lead a bank to its demise. Although he admits it's unlikely his idea will come to fruition, he believes it's necessary to deter similar behavior in the future.

via Fortune|

#accountability #ceos #failed-banks

finance2 years ago•0 min saved

BlackRock to Sell $114 Billion in Failed Banks' Securities.

BlackRock has been hired by US regulators to sell $114 billion in securities from failed lenders Signature Bank and Silicon Valley Bank, mostly consisting of agency mortgage-backed securities, collateralized mortgage obligations, and commercial MBS. The holdings remained after the government sold the rest of the firms in March.

via Bloomberg|

#asset-management #blackrock #failed-banks

finance2 years ago•3 min saved

BlackRock to Sell $114 Billion of Failed Banks' Securities for FDIC

BlackRock has been hired by US regulators to sell $114 billion in securities it amassed from failed lenders Signature Bank and Silicon Valley Bank, returning the asset-manager to its role as an adviser to the government in times of crisis. The holdings are mostly agency mortgage-backed securities, collateralized mortgage obligations and commercial MBS that remained after the government sold the rest of the firms in March, the FDIC said. The goal is for the sales to be “gradual and orderly,” the FDIC said, and that authorities seek “to minimize the potential for any adverse impact on market functioning by taking into account daily liquidity and trading conditions.”

via Yahoo Finance|

#blackrock #failed-banks #fdic

finance2 years ago•4 min saved

First Citizens Bank's Acquisition of SVB Assets Leads to Financial Success and New Home for SVB Assets.

The Federal Deposit Insurance Corporation (FDIC) has agreed to reimburse First Citizens Bank for 50% of all commercial loan losses if the losses of those loans made by Silicon Valley Bank are above $5 billion. The FDIC has done so nine previous times, on more than $8 billion in other loans First Citizens assumed from failed institutions. Loss-share agreements became a fixture following the 2008 financial crisis as regulators took down hundreds of banks and scrambled to find buyers willing to take on a mountain of troubled mortgages.

via Yahoo Finance|

#failed-banks #fdic #finance

finance2 years ago•2 min saved

First Citizens' Acquisition of SVB Raises Questions About Future Moves in Financial Sector

First Citizens Bank, run by the Holding family, known for buying failed banks, has acquired the assets of SVB at a deep discount negotiated in part by the family. First Citizens has purchased more than 20 small banks since 2008, with assistance from the FDIC. The Holding family collectively owns about 20% of the stock in the Raleigh-based company and has nearly 50% of the voting power. With the SVB deal, First Citizens is moving into the ranks of the largest 20 banks in the US, with $219 billion in assets.

via Markets Insider|

#acquisitions #failed-banks #fdic

finance2 years ago•3 min saved

"Senators propose bill to hold bank executives accountable for failures through compensation clawbacks"

A bipartisan group of senators has introduced the Failed Bank Executives Clawback Act, which would give regulators the authority to claw back executive compensation and bonuses from failed banks. The bill would mandate that federal regulators return to a bank all or part of the compensation its executives had received in the five years leading up to a bank’s failure. The legislation would also ensure that when an insured depository institution affiliated with a bank holding company fails, investors in the holding company bear the losses of that institution.

via NBC News|

#banking-industry #executive-compensation #failed-banks

finance2 years ago•1 min saved

Biden urges Congress to hold failed bank executives accountable.

President Biden has called on Congress to impose tougher penalties on executives who oversee failed banks. The move comes after Silicon Valley Bank and Signature Bank were both taken over by the FDIC in the last week, events that threatened to grow into a larger-scale banking crisis. Biden said that when banks fail due to mismanagement and excessive risk-taking, it should be easier for regulators to claw back compensation from executives, impose civil penalties, and ban executives from working in the banking industry again.

via Axios|

#banking-industry #biden #executive-accountability

economy2 years ago•3 min saved

Biden Pushes for Accountability of Bank Executives in Wake of Failures.

President Biden has requested Congress to pass legislation that would give financial regulators new powers to claw back ill-gotten gains from executives of failed banks and impose fines for failures. The proposal would also seek to bar executives at failed banks from taking other jobs in the financial industry. The measures contained in Mr. Biden’s plan would build on existing regulatory powers held by the Federal Deposit Insurance Corporation. The proposals face an uncertain future in Congress, where Republicans control the House and have opposed other pushes by Mr. Biden to strengthen federal regulations.

via The New York Times|

#biden #clawback-powers #congress

business2 years ago•2 min saved

Biden Urges Congress to Strengthen Regulations on Bank Executives and Pay Clawbacks

President Biden has requested Congress to pass legislation that would give financial regulators new powers to recover ill-gotten gains from executives of failed banks and impose fines for failures. The proposal would also seek to bar executives at failed banks from taking other jobs in the financial industry. The measures would build on existing regulatory powers held by the Federal Deposit Insurance Corporation. The proposals face an uncertain future in Congress, where Republicans control the House and have opposed other pushes by Mr. Biden to strengthen federal regulations.

via The New York Times|

#biden #business #congress

finance2 years ago•0 min saved

Navigating the Challenges of Bank Failures and Depositor Protection

The FDIC has promised to make all depositors whole at failed Silicon Valley Bank and Signature Bank, regardless if they are insured or not. However, if all depositors decided to take their money today, the Federal Deposit Insurance Corp. doesn’t appear to have enough money in its insurance fund to pay everybody off. But the two failed banks hold billion of dollars in Treasuries and loans that can be sold and used to make many of the depositors whole.

via Barron's|

#depositors #failed-banks #fdic