Banking Crisis 2023

Jelena McWilliams, who chaired the agency during the Trump administration, said removing the cap on insured deposits would impact the banking sector in three key ways.

Federal Reserve Vice Chairman for Supervision Michael Barr said that regulators and bank management failures contributed to the bank collapses, but insisted rescue of uninsured deposits was warranted.

Some millionaires and billionaires who have accounts with the bank are making backup plans for their account and loans.

The FDIC informed depositors on Tuesday that any accounts not closed by April 5 will be automatically shut and depositors will receive a check in the mail. 

The agency responsible for monitoring SVB was plagued by heightened turnover, among other issues.

Speaking at a Consumer Bankers Association conference in Las Vegas, Consumer Financial Protection Bureau director Rohit Chopra said speedy communication channels represent "an opportunity and a risk."

After experiencing deposit growth above 11% in 2021, credit unions saw that figure drop to 3% last year. But some CEOs say funds are flowing in again in the wake of recent bank failures.

The Federal Reserve's top regulator told the Senate Banking Committee that new standards are needed for banks with more than $100 billion in assets — standards that the Fed has broad discretion to rewrite.

Lenders had started tightening as early as the fourth quarter in anticipation of a possible recession. Now, the banking crisis is driving community and regional banks in particular to hit the brakes harder, stoking renewed recessions fears.

Fintech funding was drying up before the collapse of Silicon Valley Bank, Silvergate Capital and Signature Bank. The banking crisis has set it back a bit further.

Brian Graham, partner and co-founder of advisory and investment firm Klaros Group, breaks down what went wrong with Silvergate Capital, Silicon Valley Bank and Signature Bank and what banks can do to avoid the problems that brought these banks down.

Vice Chair for Supervision Michael Barr will attempt to downplay the immediate threat of the banking crisis as limited to Silicon Valley Bank and Signature Bank, while calling for long-term reforms in congressional testimony this week.

The unusual financing is meant to help First Citizens meet liquidity needs that arise in the next two years as it integrates SVB into its operations, the Raleigh, North Carolina, lender said in a regulatory filing.

Unrealized losses on the company's balance sheet ballooned to more than $29 billion last year. At the same time, higher interest rates are encouraging customers to move their cash out of certain accounts that underpin Schwab's business.

With the acquisitions of CIT Group and a large portion of the failed Silicon Valley Bank, the North Carolina company has doubled in size for the second time in a little more than a year and joined the class of super regionals.

Deal supply remains relatively strong in the sector, but new originations still face a scarcity of new assets to roll into the deals.

Federal Deposit Insurance Corp. Chairman Martin Gruenberg said in prepared testimony that the agency is looking at adjusting capital treatment for unrealized losses and resolution requirements for midsize banks.

Silicon Valley Bank and its customers favored the simplicity and convenience of eschewing deposit insurance coverage despite the risks. Some experts say regulators' decision to make depositors whole might be sending the industry the wrong message.

The beleaguered sector hopes machine learning will reduce the odds of defaults and delinquencies.

The banks invested in bonds at a time when rates were low, and their value has since dropped substantially. While there appears to be very little risk that the banks will ever have to realize the losses, an American Banker data analysis raises questions about whether regulators should toughen their monitoring of interest rate risk.