Asia Markets Silicon Valley Bank Crypto
An hour ago
Regulatory backstop for SVB failure aimed at protecting economy, officials say
Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and FDIC Chairman Martin J. Gruenberg issued a joint statement Sunday night explaining their rationale for drafting a plan to stop depositors and protect financial institutions with Silicon Valley Bank money.
“We are taking decisive action to protect the American economy by strengthening public confidence in our banking system,” the statement said. “This step will ensure that the U.S. banking system continues to perform its important roles of protecting deposits and providing access to credit to households and businesses in a way that promotes strong and sustainable economic growth.”
Silicon Valley Bank fell on Friday, marking the biggest bank failure since the financial crisis of 2008. This then raised concerns for other banks that could see similar risks.
“The U.S. banking system remains resilient and on solid footing, in large part because of reforms made after the financial crisis that ensured better protections for the banking industry,” the officials said in a statement.
“These reforms combined with today’s actions demonstrate our commitment to taking the necessary steps to ensure depositors’ savings remain safe,” they added.
— Fred Imbert
An hour ago
Cryptocurrencies jump with stock futures, even after Signature Bank shutdown
Bitcoin and ether climbed with stocks as US regulators unveiled a plan to ensure Silicon Valley Bank depositors would get their money after the bank’s spectacular collapse on Friday.
Bitcoin and ether each jumped about 7% after 6:30 p.m. ET, according to Coin Metrics.
The moves came even as New York’s Signature Bank was shut down by the New York State Department of Financial Services on Sunday, according to a joint statement from the Treasury, Federal Reserve and FDIC.
Signature Bank was another well-known crypto-friendly institution and the second largest next to Silvergate, which announced its impending liquidation last week.
Its shutdown raises fears among crypto-investors and entrepreneurs that the industry will be removed from the US banking system, leaving it without “on-ramps” that allow fiat money to flow into crypto-assets. Silvergate and Signature helped solve this problem by creating simple banking and payment platforms for crypto companies.
Wall Street analysts on Friday had maintained buy ratings on Signature Bank, despite the bad news about its peers earlier in the week.
– Tanaya Machel
An hour ago
Futures jump after regulators announce backstop for SVB depositors
Futures extended their gains just before 6:30 p.m. ET after U.S. regulators unveiled a plan to stem the damage from the collapse of Silicon Valley Bank.
Dow futures were last higher by 297 points, or 0.9%. S&P 500 futures rose 1.1% and Nasdaq Composite futures rose 1.2%.
– Tanaya Machel
