Global Central Banks take action to boost US dollar flow
The world's major central banks have taken co-ordinated action to enhance liquidity in the global banking system amidst recent financial instability.
The program will offer US dollar liquidity "swap lines" daily between the US Federal Reserve, Bank of England, Bank of Japan, Bank of Canada, Swiss National Bank, and the European Central Bank. 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.
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.
Experts, banks look for ideas to stop next bank failure
U.S. Senator Dick Durbin tests positive for COVID-19
The warning signs were all there
U.S. Senator Dick Durbin, the No. 2 Democrat, has tested positive for COVID-19 and will be quarantining.
He is fully vaccinated and only experiencing minor symptoms.
His absence adds to the growing number of lawmakers from both parties who have been out of the Senate due to health reasons. "Actor Lance Reddick, known for 'The Wire' and 'John Wick,' dies at 60"
Actor Lance Reddick, best known for his roles in "The Wire" and the "John Wick" franchise, has died at the age of 60.
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.
After a Wild Week, What Are Markets Saying About the World?
Elizabeth Warren calls for independent investigation into Silicon Valley Bank collapse
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.
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. Warren calls for investigation into Federal Reserve over weakened regulatory processes
Senator Elizabeth Warren has called for an investigation into the Federal Reserve System, after the collapse of Silicon Valley Bank and Signature Bank.
A study suggests that nearly 200 other US banks are at risk of failing if depositors demand their holdings, because they contain large portions of their assets in interest-rate sensitive financial instruments.
Both SVB and Signature invested their deposits in higher-yield, long-term mortgage-backed securities and bonds with low interest rates during the pandemic, only for the assets' value to drop sharply when the Fed raised rates this month. US mortgage rates drop after weeks of increase
The average long-term US mortgage rates have fallen after five weeks of increase, bringing it down to 6.60% from last week's 6.73%.
This is good news for potential homebuyers who are about to enter the spring buying season. FDIC may seek temporary guarantees for all uninsured U.S. bank deposits
Former FDIC chair Sheila Bair has suggested that the FDIC may need to guarantee all uninsured deposits of US banks temporarily to prevent a drain of funds from small and regional banks after deposit bailouts for Signature Bank and SVB Financial. UBS takes over Credit Suisse in a $3.2 billion deal
After Swiss authorities announced that UBS would take over Credit Suisse, Asian markets are expected to be volatile on Monday.
The forced merger is viewed by investors as an attempt to ease the strain on the global banking system and prevent a crisis.
The deal comes in the wake of significant turbulence in the banking sector, including two U.S. bank failures and the implosion of Credit Suisse which has led to unprecedented volatility in interest rates and bond markets. Saudi Arabia's stock market gains amid expectations of U.S. interest rate cut
The Saudi Arabian stock market outperformed the rest of the Gulf region on Sunday due to the expectation of a potential U.S. interest rate cut.
The U.S. Federal Reserve is meeting next week, and markets are now predicting a 25 basis points increase instead of the previously anticipated 50 basis points.
The benchmark index rose 1.8%, with all sectors experiencing gains, particularly the banking and materials sectors.
Inside Biden's SVB move to stop future bank runs
Collapse of Silicon Valley Bank Raises Questions on Bank Safety
The decision to protect depositors carried some risks.
The collapse of America's Silicon Valley Bank and the rescue of Credit Suisse by Swiss National Bank has led to concerns regarding the safety of banks across the world.
Investors are wary of another financial crisis similar to that of 2008. U.S. Banking System in Crisis Due to Weakening of Financial Rules
Over the past few days, the U.S. banking system has faced failures, which experts attribute to the weakening of financial rules by leaders in Washington.
While the 2008 Dodd-Frank Act aimed to protect consumers and prevent another financial crisis, Wall Street executives lobbied to weaken the law, leading to its easing in 2018.
The recent banking crisis is a result of this move, and some officials who supported the change now face criticism from their peers. US Inflation Slows Down While Stocks Rise
Multiple news outlets have reported that the US inflation rate and wholesale prices have slowed down or remained steady from the previous month, which has helped to ease concerns about potential interest rate hikes by the US Federal Reserve.
As a result, US stocks have risen on Tuesday, following a volatile day of trading on Monday in response to the collapse of Silicon Valley Bank. The Consequences of The Implosion of Silicon Valley Bank
The fallout from the implosion of Silicon Valley Bank is beginning to be felt by America's economy.
This has led The New York Times to question whether the low-everything era of inflation, annual economic growth and interest rates is coming to an end. Silicon Valley Bank Collapse Sparks Uncertainty
The collapse of Silicon Valley Bank, one of the tech industry's leading financial institutions, has caused a stir among venture firms, the startup community, and the banking industry.
The incident has led to a tizzy on Wall Street, with investors and depositors uncertain about the future of other banks.
The Biden administration and the Federal Reserve and planning the most aggressive emergency intervention in the banking system since the 2008 financial crisis. Silicon Valley Bank Collapse Sends Shockwaves Through Tech Industry
Silicon Valley Bank (SVB), a large bank catering to the technology industry, has collapsed after a bank run, amid fears over its financial health, becoming the largest bank failure in the US since 2008.
It had provided its services to venture capital-backed technology and life-science companies, and to over 2,500 venture capital firms.
The bank's swift collapse sent shockwaves through the tech industry, Wall Street, and Washington, as many tech companies used it to hold their cash, leading to an influx of deposits during the pandemic.
The collapse of SVB instigated emergency measures from government agencies from around the world to backstop the financial system and shore up confidence in the global financial system. Two US banks collapse causing ripple effects around the world
The collapse of the Silicon Valley Bank and Signature Bank has caused a decrease in the value of shares in banks around the world.
If the US government had not protected deposits over $250,000, workers would not have been paid and start-ups banking with Silicon Valley Bank would be in danger.
The US President, Joe Biden, sought to assuage fears by saying that people's money is safe.
However, the collapse of the banks will have wider ramifications for the US and beyond.