--------------------------------
We are all visitors to this time, this place. We are just passing through. Our purpose here is to observe, to learn, to grow, to love… and then we return home. - Australian Aboriginal proverb
Bazootiehead-in-training
quote:The government says it is working "at pace" on a plan to prevent UK tech firms caught in the collapse of Silicon Valley Bank from running out of cash.
The Treasury said it wanted to "minimise damage to some of our most promising companies in the UK" after the US bank's failure on Friday.
Firms could start to run into problems on Monday morning without intervention.
US regulators shut down the lender on Friday in what is the largest failure of a US bank since 2008.
The bank's UK subsidiary will be put into insolvency from Sunday evening.
Prime Minister Rishi Sunak, Chancellor Jeremy Hunt and Bank of England Governor Andrew Bailey "were up late last night" and have been "working through the weekend to come up with a solution" to the collapse of Silicon Valley Bank UK, Mr Hunt told the BBC's Sunday with Laura Kuenssberg programme.
While there's no risk to the UK's financial system as a whole, "there is a serious risk to some of our most promising companies in technology and life sciences", Mr Hunt said.
"These are very important companies to the UK, a very important part of our future.
"We want to find a way that minimises or avoids all losses to those incredibly promising [firms]," Mr Hunt said, although he said he could not commit to companies recovering all of their money.
--------------------------------
We are all visitors to this time, this place. We are just passing through. Our purpose here is to observe, to learn, to grow, to love… and then we return home. - Australian Aboriginal proverb
Bazootiehead-in-training
--------------------------------
We are all visitors to this time, this place. We are just passing through. Our purpose here is to observe, to learn, to grow, to love… and then we return home. - Australian Aboriginal proverb
Bazootiehead-in-training
quote:To support American businesses and households, the Federal Reserve Board on Sunday announced it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors. This action will bolster the capacity of the banking system to safeguard deposits and ensure the ongoing provision of money and credit to the economy.
The Federal Reserve is prepared to address any liquidity pressures that may arise.
The additional funding will be made available through the creation of a new Bank Term Funding Program (BTFP), offering loans of up to one year in length to banks, savings associations, credit unions, and other eligible depository institutions pledging U.S. Treasuries, agency debt and mortgage-backed securities, and other qualifying assets as collateral. These assets will be valued at par. The BTFP will be an additional source of liquidity against high-quality securities, eliminating an institution's need to quickly sell those securities in times of stress.
With approval of the Treasury Secretary, the Department of the Treasury will make available up to $25 billion from the Exchange Stabilization Fund as a backstop for the BTFP. The Federal Reserve does not anticipate that it will be necessary to draw on these backstop funds.
After receiving a recommendation from the boards of the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve, Treasury Secretary Yellen, after consultation with the President, approved actions to enable the FDIC to complete its resolutions of Silicon Valley Bank and Signature Bank in a manner that fully protects all depositors, both insured and uninsured. These actions will reduce stress across the financial system, support financial stability and minimize any impact on businesses, households, taxpayers, and the broader economy.
--------------------------------
We are all visitors to this time, this place. We are just passing through. Our purpose here is to observe, to learn, to grow, to love… and then we return home. - Australian Aboriginal proverb
Bazootiehead-in-training
--------------------------------
Life is short. Play with your dog.
--------------------------------
We are all visitors to this time, this place. We are just passing through. Our purpose here is to observe, to learn, to grow, to love… and then we return home. - Australian Aboriginal proverb
Bazootiehead-in-training
--------------------------------
Life is short. Play with your dog.
quote:Posted: Mar 12, 2023
20 Banks That Are Sitting On Huge Potential Securities Losses-As Was SVB
Silicon Valley Bank has failed following a run on deposits, after its parent company's share price crashed a record 60% on Thursday. Trading of SVB Financial Group's stock was halted early Friday, after the shares plunged again in premarket trading. Treasury Secretary Janet Yellen said SVB was one of a few banks she was " monitoring very carefully."
4 votes | Report Post
Comments
51hh
51hh | Mar 12, 2023 | 1,942 posts since 2010
Partial list:
https://www.morningstar.com/ne...ies-lossesas-was-svb
Reply
3 votes | Report Post
Rickny
Rickny | 9 hours ago | 507 posts since 2017
Silicon Valley Bank failed just 14 days after KPMG LLP gave the lender a clean bill of health. Signature Bank went down 11 days after the accounting firm signed off on its audit.
Reply
6 votes | Report Post
--------------------------------
The most dangerous word in the language is "obvious"
--------------------------------
www.PianoRecital.org -- my piano recordings -- China Tune album
--------------------------------
We are all visitors to this time, this place. We are just passing through. Our purpose here is to observe, to learn, to grow, to love… and then we return home. - Australian Aboriginal proverb
Bazootiehead-in-training
--------------------------------
We are all visitors to this time, this place. We are just passing through. Our purpose here is to observe, to learn, to grow, to love… and then we return home. - Australian Aboriginal proverb
Bazootiehead-in-training