Banking Crisis 2023

When Circle USDC broke its peg to the dollar days after SVB's crisis, it revealed new uncertainties for cryptocurrency that's designed to resist volatility.

Community lenders do not share the problems that led to the downfall of Silicon Valley Bank and Signature Bank — but their customers and members don't always know that.

The KBW Nasdaq Bank Index dropped 9.6% on Monday as the fallout from two bank failures prompted investors to trim their exposures. Some regional institutions saw declines of 30% or more, while the nation's largest banks had much more modest declines.

Regulators covered Silicon Valley Bank and Signature Bank customers' money, and will need to replenish the Deposit Insurance Fund with higher assessments. But smaller banks don't want to pay for larger banks' mistakes.

The bank was best known in the industry for managing smaller renewables projects—including community solar projects—which other companies often avoided because of the legal and tax paperwork burden involved.

Tim Mayopoulos, who led the government-sponsored enterprise for six years following the Great Recession, will oversee the FDIC-created entity intended to protect Silicon Valley Bank depositors.

Observers say that most other banks with an overlapping customer base are in a better place than SVB to manage the risks.

Frank, to the surprise of some, landed on the board of Signature Bank, a New York-based lender that boomed during the pandemic. It was seized by regulators Sunday, making it the third U.S. bank to collapse in just five days.

Rep. Brad Sherman, D-Calif., a senior member of the House Financial Services Committee, said he's considering a bill to shore up regulation and oversight of medium-size banks.

HSBC Holdings is buying the U.K. arm of Silicon Valley Bank, the culmination of a frantic weekend where ministers and bankers explored various ways to avert the SVB unit's collapse.