FDIC Faces $23 Billion in Costs From Bank Failures. It Wants Big Lenders to Pay
The Federal Deposit Insurance Corp., facing almost $23 billion in costs from recent bank failures, is considering steering a larger-than-usual portion of that burden to the nation’s biggest banks, according to people with knowledge of the matter.
How Many Bank Failures Will It Take for You to Consider Bitcoin?
The argument for owning Bitcoin strengthens as people worldwide watch major banks collapse. This may be a perfect time if you haven’t diversified into Bitcoin.
FDIC Investigating Signature Bank and Silicon Valley Bank for Mismanagement and Dangerous Concentrations in Digital Assets
The Federal Deposit Insurance Corp. (FDIC) is investigating the actions of the leaders of Signature Bank and Silicon Valley Bank for their role in the banks' collapses, according to Chairman Martin Gruenberg. In testimony prepared for a U.S. Senate hearing, Gruenberg detailed their mismanagement and dangerous business concentrations, particularly in digital assets at Signature Bank. The FDIC has put itself on the hook for an expected $22.5 billion hit to its insurance fund, mostly to cover uninsured deposits, due to the fall of the two banks.
First Citizens Bank Acquires Silicon Valley Bank, FDIC Estimates $20B Loss
First Citizens Bank & Trust Company has acquired Silicon Valley Bank (SVB) in a deal mediated by the Federal Deposit Insurance Corporation (FDIC). As of March 10, 2023, SVB had $167 billion in total assets and approximately $119 billion in total deposits.
First Citizens Snaps up Silicon Valley Bank — Branches Open Monday
North Carolina-based First Citizens Bank is set to acquire all deposits and loans of Silicon Valley Bank, according to a statement from the Federal Deposit and Insurance Corporation (FDIC). Under the agreement, 17 former branches of Silicon Valley Bank will open as First Citizens Bank and Trust Company on Monday, March 27, while all depositors of SVB will automatically become depositors of First Citizens Bank. "As of March 10, 2023, Silicon Valley Bridge Bank, National Association, had approximately $167 billion in total assets and about $119 billion in total deposits. Today’s transaction included the purchase of about $72 billion of Silicon Valley Bridge Bank, National Association’s assets at a discount of $16.5 billion," said the FDIC in a statement. (Cointelegraph)
Short Seller Carson Block Says SVB Depositors Should Have Taken Haircuts
Short seller Carson Block said depositors at Silicon Valley Bank and Signature Bank should have taken haircuts after federal regulators seized the troubled lenders.
The Evolution of the Dapp Industry in Response to America’s Banking Turmoil
In conclusion, the collapse of SVB and Signature Bank has had a significant impact on the crypto industry, particularly the dapp ecosystem. The events of the past few weeks have highlighted the need for the industry to become more self-sufficient and less reliant on traditional banking infrastructure.
Breaking the Stigma: Why Crypto Isn’t to Blame for Traditional Finance Failures
In the aftermath of the collapse, many people attributed the blame to crypto. However, crypto could be the solution rather than the root cause of the problem.
SVB’s Loans to Insiders Tripled to $219 Million Before It Failed
As Silicon Valley Bank deteriorated late last year and regulators began internally flagging flaws in its risk management, the lender opened up the credit spigot to one group: insiders.
Swedish Pension Fund Alecta Dumps First Republic Bank Shares After Price Plummets
Private Swedish pension fund Alecta has sold its shares in First Republic Bank, the American bank struggling to stay afloat after a serious drop in share value, a bank spokesperson announced March 21. Alecta was the bank’s fifth-largest shareholder.
