Banking Crisis 2023

A letter from U.K. regulators threatening to close risky companies is an example of how governments are pressuring firms that manage cash flow and fraud risk.

Net interest margin, a key earnings metric, had been rising across the industry in recent quarters. Now it could suffer at the megabanks that have gained customers amid the turmoil of the last two weeks.

Treasury Secretary Janet Yellen repeated her comment from a day earlier that the government's recent actions were "taken to ensure that Americans' deposits are safe." She sought to clarify it with a new line: "Certainly, we would be prepared to take additional actions if warranted."

Organizations must have fully-staffed internal controls to manage risk and ensure regulations are properly followed.

House Financial Services Committee Chairman Patrick McHenry, R-N.C., and Rep. French Hill, R-Ark., asked Treasury Secretary Janet Yellen how a systemic risk determination was made on Silicon Valley Bank and Signature Bank.

The Federal Reserve wants a smaller balance sheet to help rein in inflation. But uncertainty in the banking system is pushing it in the opposite direction.

Billions of dollars funneled into the two neobanks after Silicon Valley Bank failed. But fintechs may have to work hard to retain that business.

Citigroup CEO Jane Fraser said mobile apps and consumers' ability to move millions of dollars with a few clicks of a button mark a sea change for how bankers manage and regulators respond to the risk of depositor panics.

Regional bank shares slumped, dragging down the broader market, after Treasury Secretary Janet Yellen's comments and as Federal Reserve Chair Jerome Powell said he's prepared to keep raising rates until inflation shows signs of cooling.

The San Francisco bank said the move is designed to "foster closer alignment with the shareholder experience and signal commitment to the bank and all of its stakeholders." The company's stock price has fallen 89% this year, and government officials have reportedly been working with industry leaders on a rescue deal.

Financial tightening stemming from two recent bank collapses has served as its own check on inflation, according to Federal Reserve Chair Jerome Powell. He said the relatively small rate hike announced Wednesday was not the result of financial stability concerns.

SVB acquired Boston Private for $900 million in 2021 as part of its "vision is to be the premier financial partner for the innovation economy." 

The Senate Banking Committee Chairman Sen. Sherrod Brown will introduce legislation soon along the lines of President Joe Biden's framework for executive compensation outlined last week.

Rep. Patrick McHenry, R-N.C., the chairman of the House Financial Services Committee, said that expanding deposit insurance could have "serious consequences."

Hannah Olson, CEO of disability compliance solution Disclo, explains how she moved through days of uncertainty when her startup's bank failed.

Sen. Sherrod Brown, D-Ohio, chairman of the Senate Banking Committee, told bankers not to lobby for weaker regulation in the wake of the Silicon Valley Bank and Signature Bank failures.

The Los Angeles company says it secured $1.4 billion of cash from a financing facility from Atlas SP Partners after clients drew down an additional 20% of the bank's deposits. Deposit levels have "stabilized," PacWest says.

The neobank has added tools for payments, booking and other uses, while it's also receiving an influx of customers who fled Silicon Valley Bank.

Combining the two Swiss megabanks means more assets and a bigger brand for UBS. But it could be a heavy lift, slowing U.S. advisor recruitment.

Wall Street leaders and U.S. officials discussing an intervention at First Republic Bank are exploring the possibility of government backing to encourage a deal that would shore up the lender, people with knowledge of the matter say.