Banking Crisis 2023

A full accounting of regulators' actions in the lead-up to the collapse of Silicon Valley Bank, as well as other recent bank failures, is necessary to restore public confidence in both the banking system and the government itself.

Banks with between $50 billion and $250 billion of assets leaned particularly heavily on the Federal Reserve and the Federal Home Loan banks amid deposit outflows in March and April, according to new research that quantifies the scramble for funding.

Ever since Silicon Valley and Signature banks collapsed in March, a scramble began among regulators, politicians, bank executives and others to manage the fallout from this spring's banking crisis. Here are 10 predictions of what still lies ahead to be dealt with.

Like it or not, Big tech is going to become a player in financial services. It would be better to write rules now than to wait for a crisis.

To strengthen the industry, large regional banks should be subjected to heightened supervision and the Federal Deposit Insurance Corp. should change how it assesses deposit insurance premiums.

After the failures of Silicon Valley Bank and Signature Bank, other institutions rushed to reassure their customers. But it can be tricky to ensure these messages do no harm.

The global accord's provision on supervision establishes broad authorities over risks not expressly covered in capital rules. The Federal Reserve's top regulator has already hinted that those authorities might be relied on more in the wake of this spring's bank failures.

After the three bank failures, PacWest customers yanked billions of dollars as the firm scrambled to stabilize capital and liquidity levels, and the stock has plunged 70% this year.

JPMorgan Chase notifies about 1,000 First Republic Bank employees that they aren't being given jobs — even temporarily — following its takeover of the failed lender.

Two former top bank regulators argue that efforts to eliminate risk from the business of banking is a fool's errand, and say it is time to refocus banks' managers and boards on the business of managing it.

The San Francisco-based bank — which regulators seized and sold to JPMorgan Chase early this month — was paying dozens of employees more than $10 million apiece annually in the heyday before its collapse.

The regional bank made the deal as part of an effort to bolster liquidity following turmoil among its peers.

A string of bank failures has increased scrutiny of banks' underwater Treasury securities — holdings that have traditionally been viewed as risk-free. As regulators reimagine the bank capital framework, they should reconsider whether anything can or should be considered riskless.

Venture capital banking and wealth management are two areas where the nation's largest bank sees a chance to make gains amid a rash of bank failures. After the company's investor day on Monday, one analyst wrote: "Goliath is winning."

After First Citizens acquired SVB in March, HSBC poached 42 bankers, misusing SVB's confidential, proprietary and trade secret information to execute their scheme, according to a complaint filed Monday in federal court in Northern California.

Traders added $2.1 billion to short positions in regional banks for the five-day week ending May 19, a net increase of about $2 billion from a week earlier, according to data from S3 Partners LLC.

JPMorgan bought First Republic Bank earlier this month after it became the second-largest bank failure in U.S. history and the fourth regional-bank collapse this year.

In April, the government extended a plan to continue selling down its stake in NatWest, which was around 84% at its peak. The latest disposal means the U.K. has sold more than half its shareholding.

The bank said it agreed to sell a $2.6 billion portfolio of 74 real estate construction loans as part of its plan to shore up liquidity.

Deposits at commercial banks decreased by $26.4 billion in the week ended May 10 to $17.1 trillion, according the Federal Reserve. The drop was mostly at large banks.