California lender PacWest Bancorp (PACW) fell over 20% on Thursday after the company revealed it had lost a significant portion of its deposits. This follows a string of US regional bank failures this year that were preceded by similar red flags. Depositors Flee From PacWest Per its quarterly report filed with the Securities and Exchange...Read More
Republican Senator John Kennedy of Louisiana called banks “sophisticated Ponzi schemes” while discussing the US banking crisis that’s claimed multiple crypto-supportive financial institutions in the past two months. The politician also spoke on the state of inflation, which he believes the Federal Reserve will need to bring to at least 8% to cool down. Banks...Read More
A Democratic presidential candidate is pushing against the growing anti-crypto sentiment within his party by blaming regulatory agencies’ “war on crypto” for various bank failures that transpired in March. In recent days, environmental lawyer Robert Kennedy Jr. has spoken out against the Biden administration’s general handling of the ongoing banking crisis, opposing the bailout approach...Read More
Another wave of banking fear swept the markets on Tuesday as stocks for PacWest, Western Alliance, and other financial institutions slid over 20% on the day. This comes shortly after California financial watchdogs took control of First Republic Bank on Monday, of which 84 branches will reopen under JP Morgan Chase. Another Bank Stock Selloff...Read More
First Republic became another American bank to fail this year as all attempts to resuscitate the ailing platform fell short. The California Department of Financial Protection and Innovation (DFPI) has now taken possession of the First Republic Bank. The Federal Deposit Insurance Corporation (FDIC) was appointed as the receiver by the Californian financial regulator and...Read More
Analysts at Bernstein Private Wealth Manager think the shaking banking system in the United States could benefit bitcoin adoption and potentially increase the price of the asset. The experts went further, advising people to invest in BTC, which could soon enter a new bull run due to the shaking condition of traditional finance. Weak Banks...Read More
The shares of First Republic Bank have declined to a record low after the lender announced that depositors withdrew over $100 billion in the first quarter. It has been under massive pressure since a series of bank failures in the United States sparked fears of a wider crisis. The private-sector initiatives are being led by...Read More
Austrian cooperative banking company – Raiffeisenlandesbank Niederösterreich-Wien (RLB NÖ-Wien) – has partnered with Bitpanda to roll out crypto investment services through the latter’s software as a service (SaaS) offering. With this collaboration, RLB NÖ-Wien has become the first major traditional bank in the European Union to move into digital assets. The Partnership Alongside crypto investment,...Read More
First Republic Bank stock (FRC) lost half its value on Tuesday, April 25, following a disappointing quarterly earnings report. The embattled bank was the worst performer on the S&P 500 for the day as investors dumped its shares. Since the beginning of the year, First Republic stock has dumped 93%. The bank has become the...Read More
In a note published on April 24, Standard Chartered analysts predicted that Bitcoin prices will climb to $100,000 by the end of 2024. Analyst Geoff Kendrick noted that the collapse of several U.S. banks, including Silicon Valley Bank, Silvergate, and Signature, has solidified the case for Bitcoin as a “decentralized, trustless, and scarce digital asset.”...Read More
BlackRock – the world’s largest asset manager – is collaborating with the U.S. government to sell off eleven figures worth of securities tied up with American banks that failed last month. The sale $114 billion sale will include $27 billion worth of securities from Signature Bank, and $87 billion from Silicon Valley Bank (SVB). Securities...Read More
Adrienne A. Harris – Superintendent of the New York State Department of Financial Services (NYDFS) – said the premise that the bank’s ties to crypto-related businesses were behind its closure is “ludicrous.” The financial institution revealed severe operational difficulties last month and was shut down by American regulators to prevent further issues. Crypto Was not...Read More
BTG Pactual – one of Latin America’s largest investment banks – will reportedly launch its own stablecoin, whose value will be tied to the American dollar. The corporation joined the industry years ago by issuing a security token called ReitBZ and introducing a cryptocurrency exchange in Brazil. The Latest Push According to Reuters, Banco BTG...Read More
The insiders of the now-defunct Signature Bank have reportedly sold over $100 million of shares in the years after the bank shifted its focus to attract cryptocurrency companies. According to an analysis conducted by the Wall Street Journal, Signature Bank’s chairman, its former chief executive officer, as well as his successor collectively sold around $50...Read More
The United States banking sector is hesitant to do business with crypto firms following the closures of the nation’s most crypto-supportive financial institutions earlier this month. A collection of industry participants, bank executives, and investors are reporting various instances of banks making crypto partnerships more difficult, from forming lengthy application procedures for such companies to...Read More
The President of the United States – Joe Biden – thinks the turbulence that recently shook the banking sector is not entirely gone. As such, his cabinet is ready to impose further legislative changes to cope with any potential issues in the future. Two of America’s leading banks – Silicon Valley Bank (SVB) and Signature...Read More
The notice comes after NYCB’s purchase of most of Signature’s deposits and loans. After Signature was placed in receivership by the FDIC, the process of bidding for its remaining business operations, as well as the branding associated with the company, kicked off. The FDIC’s takeover came shortly after the collapse of both Silvergate and SVB....Read More
The financial watchdogs of Hong Kong will reportedly host a meeting between domestic cryptocurrency businesses and bankers. The initiative could ease financing for the industry as the region seeks to emerge as a global digital asset hub. Crypto firms based in Hong Kong have supposedly received support from leading Chinese banks in the past several...Read More
The subsidiaries of some of the largest Chinese banking institutions, including the Bank of Communications, the Bank of China, and Shanghai Pudong Development Bank, have reportedly either started offering their services to cryptocurrency businesses based in Hong Kong or reached out to them. The special administrative region has recently emerged as a digital asset hub,...Read More
Nearly 3 weeks after SVB unceremoniously collapsed, it seems the U.S. authorities have finally found a buyer to take over and revive the bank. SVB, the bank that powered much of the startup culture ever-present in the Bay Area and beyond, collapsed following a bank run once it became apparent that trouble was brewing for...Read More
Shares in Deutsche Bank – Germany’s largest lender – began to crash on Friday as financial industry fears continue to spread following a string of global bank failures this month. Meanwhile, the cost of default insurance on the bank’s potential collapse has risen to four-year highs. Is Deutsche Bank Next? Deutsche Bank (DBK) shares fell...Read More
Treasury Secretary Janet Yellen suggested that her department might be willing to further backstop bank deposits if needed, only one day after seemingly ruling out the possibility. Her comments were followed by brief fluctuations in bank stocks, which then continued their downward daily trend. Are Deposits Backstopped or Not? In her prepared testimony before the...Read More
The banking sector could potentially undergo a much-needed revamp, but until then, investors appear to be scrambling for a safety net. As the traditional financial world is rocked by the Credit Suisse chaos and the failure of a series of US banks, investors have flocked to the largest stablecoin, Tether (USDT). The turmoil has once...Read More
The US-based cryptocurrency exchange – Coinbase – reportedly offered a line of credit worth $3 billion to Circle to help it fix its financial cracks after the collapse of Silicon Valley Bank. The stablecoin-issuer revealed a whopping $3.3 billion exposure to SVB, which negatively affected the price of USDC. The asset plunged way below the...Read More
Bill Ackman – an American billionaire investor and Founder of Pershing Square Capital – thinks the US Federal Reserve should temporarily halt its policy to stabilize the local banking system and prevent contagion. Tesla’s CEO and one of the world’s richest people – Elon Musk – urged the central bank to drop the interest rates...Read More
A recent report by David Duong, the head of institutional research for leading American crypto exchange Coinbase, suggests that crypto is the solution to the point of failure in the existing financial system. The researcher opined that the recent U.S. banking turmoil has caused more people to see and appreciate the value proposition of having...Read More
Following an unsuccessful first attempt by the FDIC to find a buyer for Signature Bank, the latter placed in receivership by the fiscal authority will be bought out by Flagsta Bank – a subsidiary of New York Community Bancorp, Inc. Today, we entered into an agreement with a subsidiary of New York Community Bancorp, Inc.,...Read More
With the largest crypto-supportive banks in the U.S. crumbling at the seams, industry firms appear to be retreating to Switzerland for a financial lifeline. Crypto-focused banks in the region are reporting higher traffic after Silvergate, Signature Bank, and Silicon Valley Bank (SVB) all effectively failed over the past two weeks. Where to Crypto Firms Go?...Read More
Balaji Srinivasan, a venture capitalist and former CTO of Coinbase, claimed that the US economy would enter a phase of hyperinflation in 90 days, catapulting BTC to $ 1 million. Balaji, whose crypto venture Earn.com was acquired by Coinbase in 2019, also offered to pay $1 million in BTC to the best 1,000 tweets that...Read More
Silicon Valley Bank (SVB) was the backbone of many startups and venture capital funds around the world. Its collapse signifies the biggest banking failure since the 2008 financial crisis. While the crypto market has largely been spared from an adverse effect, the same cannot be said for the non-fungible token (NFT) space. According to the...Read More
