Federal Reserve faces conflicting challenges as it considers interest rates
The Federal Reserve is currently meeting to discuss interest rates amidst the threat of persistently high inflation and a nervous banking system.
Most economists expect a quarter-point increase to be announced to signal the Fed's efforts to reduce inflation.
However, the recent collapse of two major banks has prompted concerns regarding the stability of the banking sector, further complicating the Fed's decision.
Goldman Sachs, JPM expect hit to US economic growth from SVB crisis
The pressure on small and mid-sized U.S. banks following the swift downfall of SVB Financial Group could further slow the economy, and will likely raise the probability of a recession this year, analysts at Wall Street said.
Take Five: Everything Everywhere All at Once
The U.S. Federal Reserve meets after global banking turmoil has left deep scars on financial markets - with the risk of more to come.
Bank shares volatile after Credit Suisse takeover
Central banks face difficult choice amid global banking crisis
Shares in European banks regain ground but are still under pressure amid fears of a wider banking crisis.
The Bank of England and US Federal Reserve, among other major central banks, are facing the difficult choice of whether to increase interest rates or maintain the status quo amidst global banking trouble.
While the European Central Bank announced a 50 basis point rise in its interest rates in February, it remains unclear whether the Bank of England will follow suit or maintain its current interest rates to keep inflation under control.
Similarly, the US Federal Reserve is expected to announce a 25 basis point rise in interest rates later this month despite growing concerns about the impact of recent banking sector turmoil. First Republic Bank crisis raises concerns for potential banking crisis
The lending crisis that developed at First Republic Bank has raised concerns among investors about a potential banking crisis.
Several large banks provided a $30 billion lifeline to the troubled regional lender, but this was unable to calm the nerves of investors, causing a widespread bank selloff.
The latest bank to fall victim to the crisis is First Republic Bank, with their shares dropping by as much as 21% in early trading after the bank suspended its dividend payout. Wall Street Banks Rescue First Republic Bank with $30 Billion Deposit
A consortium of leading US banks, comprising JPMorgan Chase, Citigroup, Bank of America, Wells Fargo, Goldman Sachs, Morgan Stanley and others, have initiated a bailout and deposited $30 billion into First Republic Bank, an act in which the government also encouraged.
The San Francisco-based bank was on the brink of collapse after the implosions of Silicon Valley Bank and Signature Bank over the past week triggered a panic in the banking sector.
The bailout marks an unprecedented show of support for, and indication that First Republic's difficulties do not reflect deeper systematic trouble. Credit Suisse borrowing revelation intensifies fear of banking crisis
Credit Suisse has announced that it will borrow up to 50 billion Swiss francs from the Swiss central bank to shore up its finances.
This has sparked heavy declines in Asian shares, as fears of a wider banking crisis increased.
The bank's share price fell 24% on Wednesday after it revealed "weakness" in its financial reporting.
Despite the steep falls in Asian markets, European markets are expected to open higher.
Billionaire Peter Thiel claims he has $50m of his own money stuck in SVB fall
Wall Street titans warn of crisis in global financial sector
In the wake of the bank’s crisis, venture capitalists have been trading accusations over who is responsible for the collapse
The implosion of Silicon Valley Bank (SVB) and signs of trouble at Credit Suisse have sparked fears of global contagion in the financial sector as economies report slowing growth and lingering inflation.
Key figures in business including the CEO of BlackRock, Larry Fink, have raised the possibility that the current upheaval could lead to a slow-rolling crisis similar to the savings and loan (S&L) crisis of the 1980s and 1990s.
Wall Street firms are warning of more seizures and shutdowns within the US regional banking sector. Silicon Valley Bank UK Pays Bonuses After HSBC Acquisition
Silicon Valley Bank UK paid millions of pounds in bonuses to its staff days after its acquisition by HSBC in a rescue deal.
The acquisition occurred after the California-based bank collapsed, sparking concerns in the banking industry.
The new owner, HSBC, approved the payouts, describing the bonus pool as "modest", ranging from £15m to £20m.
The bonus payment signaled HSBC's intention of retaining key staff and showed confidence in SVB UK's talent base.
The UK bank, which employs around 700 people, remains profitable. Banking Shares Slump Amid Fears of Financial Crisis
Shares in European and US banks have fallen sharply causing concerns of a new financial crisis, as regulators attempt to ease investor fears about the stability of banking giants like Credit Suisse.
Saudi National Bank, Credit Suisse's largest shareholder, has ruled out additional financial injections, leading to a 20% drop in its share price.
Credit Suisse, which is regarded as systemically important to the global financial system, was dealt a severe blow after its top investor withdrew additional funding due to regulatory limits on ownership.
Experts, banks look for ideas to stop next bank failure
The warning signs were all there
Bonds were seen as a safe haven – but they are central to this bank crisis | Toby Nangle
Banks Borrow $300bn to Cover Cash Shortage
Troubles at Silicon Valley Bank and Credit Suisse are partly due to impact of rising interest rates
Two major US banks that failed last week, Silicon Valley Bank and Signature Bank, were granted nearly half of $300bn in emergency funds available from the US Federal Reserve.
The banks borrowed the money from holding companies set up by the Federal Deposit Insurance Corporation, which took over both banks.
The money was used to pay uninsured depositors with bonds posted as collateral.
An additional $148bn from a long-standing program called the "discount window" was also provided – a record level.
The Federal Reserve has lent $11.9bn from a new lending facility announced on Sunday, which enables banks to raise cash and pay depositors withdrawing funds. First Republic Bank seeks funds to support finances
First Republic Bank is in talks to issue new shares and raise funds from banks or private equity firms.
A full sale of the bank remains a possibility.
The bank received a $30 billion infusion from the largest U.S. banks but needs additional support to improve its finances.
After a Wild Week, What Are Markets Saying About the World?
Stocks, bonds and commodities markets are all sending different signals. While the S&P 500 actually rose this week, oil prices fell along with bond yields, signs that investors are worried about the economy.
Parent of Silicon Valley Bank seeks bankruptcy protection
Silicon Valley Bank collapses, causing bailout and anger at CEO
The parent of Silicon Valley Bank, seized last week by the U.S., is filing for Chapter 11 bankruptcy protection. SVB Financial Group, along with its CEO and its chief financial officer, were targeted this week in a class action lawsuit that claims the co
Silicon Valley Bank has collapsed after a run on deposits, prompting a bailout by the Federal Reserve and Treasury Department to prevent a nationwide banking collapse.
The bank, which had $209 billion in assets, was a major lender to venture capital firms and half of American VC-backed start-ups.
The blame game is on, with some pointing to SVB CEO Greg Becker's poor risk management and public acknowledgement of the bank's troubles before securing financial support, causing customers to panic and withdraw their money.
While The Vanity Fair highlights the bank's failure and public policy failures, and The Atlantic reports on the Treasury Department's intervention and return of deposits, CNN Business focuses on an anonymous employee's criticism of the CEO's actions. Elizabeth Warren calls for independent investigation into Silicon Valley Bank collapse
US Senator Elizabeth Warren has called for an independent probe into the recent failures of Silicon Valley Bank and Signature Bank.
Warren, a Democrat who is pushing for tighter banking regulations, sent a letter to the inspectors general of the US Treasury Department, the Federal Deposit Insurance Corp (FDIC), and the Federal Reserve on Sunday, urging regulators to examine the recent management and oversight of the banks which collapsed earlier this month.
On Friday, the bank's parent, SVB Financial Group, said it filed for Chapter 11 bankruptcy protection. UBS examines possible takeover of Credit Suisse, Swiss regulators urge merger
UBS is reportedly considering taking over Credit Suisse's Swiss business, with the Swiss government offering guarantees against the risks involved.
However, both UBS and Switzerland's financial regulator FINMA have declined to comment on the matter.
Meanwhile, Credit Suisse is reportedly under pressure to pursue a deal with UBS, as other banks become cautious in their dealings with the troubled institution.
Bitcoin price resurgence revives ‘digital gold’ comparisons
Banking Crisis fears raised as Credit Suisse sold and First Republic rescued
Analysts say crypto’s comeback boosts credentials as safe-haven asset
UBS has acquired Credit Suisse whilst US federal financial authorities have brokered a £24.7bn rescue package for First Republic Bank, following the collapse of Silicon Valley Bank, causing stock markets to become nervous about the possibility of isolated failures affecting the global banking system.
ECB pushes through 50 bps rate hike despite market turmoil
Wall Street closes with drops amid banking industry fears
The European Central Bank pushed through another big increase in interest rates on Thursday, sticking to its inflation fight despite turmoil in financial markets that has raised fears about a global banking crisis.
The stock market suffered drops as fears intensified over the banking industry and its potential impact on the economy, reducing the gains from earlier in the week.