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Federal Deposit Insurance Corporation

All articles tagged with #federal deposit insurance corporation

business2 years ago

First Republic Bank's Future Uncertain as Shares Plummet and Buyers Stay Away

Shares of First Republic Bank fell 43% on Friday after reports that it is likely to be seized by federal financial regulators, making it the third bank to collapse since. The bank had roughly $233 billion in assets under management as of March 31. Deposit withdrawals of over $100 billion during last month's crisis raised concerns about the bank's stability. The bank now plans to sell off assets, restructure its balance sheet, lay off up to a quarter of its workforce, and shrink its corporate office footprint. Silicon Valley Bank's collapse was attributed to poor bank management, weakened regulations, and lax government supervision.

via CBS News|
#asset-management#bank-collapse#business
finance2 years ago

First Republic Bank's Rescue Deal Uncertainty Causes Stock Nosedive.

Shares of First Republic Bank continue to plummet amid uncertainty about a rescue deal, with the bank's share value down about 96% since the beginning of the year. Federal officials are reportedly coordinating talks to rescue the distressed lender, but private-sector efforts have yet to yield a deal. The Federal Deposit Insurance Corporation released its assessment of what led to Silicon Valley Bank's collapse, calling for greater supervision by regulators.

via Fox Business|
#federal-deposit-insurance-corporation#finance#first-republic-bank
finance2 years ago

US Bank Failures Under Scrutiny: Problems and Fixes Highlighted.

The Federal Reserve and Federal Deposit Insurance Corporation are set to release reports on the two recent US bank failures, with the speed of the collapses a primary focus. The reports will examine whether regulators could have acted faster to prevent the failures of Silicon Valley Bank and Signature Bank. The supervisory regime at both regulators is under scrutiny from lawmakers on both sides of the aisle who have questioned why bank examiners weren't more aggressive in pursuing fixes at the failed banks.

via Yahoo News Canada|
#bank-run#deposit-insurance-system#federal-deposit-insurance-corporation
finance2 years ago

US Bank Failures Under Scrutiny: Post-Mortems Highlight Problems and Fixes.

The Federal Reserve and Federal Deposit Insurance Corporation are set to release post-mortems on the second- and third-largest US bank failures ever, with the speed of the failures remaining a primary focus. The reports will examine the failures of Silicon Valley Bank and Signature Bank, which took just 36 hours to go from functioning regional lenders to being seized by regulators. The supervisory regime at both regulators is under scrutiny from lawmakers on both sides of the aisle who have questioned why bank examiners weren't more aggressive in pursuing fixes at the failed banks.

via Yahoo Finance|
#bank-run#deposit-insurance-system#federal-deposit-insurance-corporation
personal-finance2 years ago

Navigating the Fluctuating CD Rates: What You Need to Know.

Banks are offering high rates on certificates of deposit (C.D.s) and online savings accounts to attract deposits, but it's unclear how long the high rates will last. Savers looking for high yields may want to lock in C.D. rates soon. Creating a C.D. ladder can maximize interest earned while allowing periodic availability of funds. The Federal Deposit Insurance Corporation generally protects up to $250,000 per depositor, per insured bank. To avoid early withdrawal penalties with C.D.s, check the fine print before opening the account.

via The New York Times|
#cd-ladder#certificates-of-deposit#federal-deposit-insurance-corporation
cryptocurrency-regulation2 years ago

Sam Bankman-Fried's Influence and Investigations Amid FTX Collapse

Emails obtained by watchdog Protect the Public's Trust reveal that Sam Bankman-Fried and his now-bankrupt company FTX scored a meeting with the Federal Deposit Insurance Corporation (FDIC) in May 2022 and sought to influence the adoption of industry-friendly rules months before the exchange's collapse. FTX was on a lobbying spree to gain influence in Washington before its November 2022 collapse, which was due to it allegedly diverting customer funds to Alameda Research, a defunct-company Bankman-Fried co-founded. Bankman-Fried plead not guilty in January to a slew of criminal charges, including wire fraud and money laundering.

via Washington Examiner|
#cryptocurrency-industry#cryptocurrency-regulation#federal-deposit-insurance-corporation
business2 years ago

The Chaotic Collapse of Silicon Valley Bank and Its Impact on Startups

Dispatch Goods, a Silicon Valley Bank customer, scrambled to find alternatives to pay employees after the bank's collapse. Founder Lindsey Hoell raced to open a new account at Wells Fargo, but by the time she returned, the SVB site was bogged down. The FDIC eventually stepped in to protect all SVB depositors, and Dispatch Goods was able to access its account and make payroll on time. Hoell said the experience taught her the importance of diversifying banks.

via Business Insider|
#banking#business#dispatch-goods
finance2 years ago

The Ripple Effect of Bank Failures on Emerging Markets

Silicon Valley Bank, which began as a small community bank catering to fledgling tech companies, collapsed after its chief executive, Gregory Becker, paid less attention to risk management and was caught flat-footed by economic change. A warning from Moody’s set off a scramble at the bank, which announced a $1.8 billion loss and a hastily put together plan to raise $2.25 billion in fresh capital. The news spooked the bank’s depositors and investors so much that on Thursday, its stock plummeted roughly 60 percent and clients pulled out roughly $40 billion of their money. The Federal Deposit Insurance Corporation, which took over the bank, has since been trying to auction off all or parts of it.

via The New York Times|
#bankruptcy#federal-deposit-insurance-corporation#finance