Fallout Financial News

​​​A drop in retail sales and easing price pressures in February offered preliminary signs of a cooling economy as the spread of financial turmoil on Wall Street called into question whether the Federal Reserve would continue raising interest rates. 

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The potential collapse of Silicon Valley Bank (SVB) has caused alarm among regulators, investors, and depositors alike, with experts warning that the fallout could extend far beyond the tech bank itself. The Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) have been closely monitoring the situation and considering their options, but there are growing concerns that any missteps could have serious consequences for small banks across the United States.

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The collapses of Silicon Valley Bank and Signature Bank give Federal Reserve policy makers two good reasons to hold off on raising rates when they meet next week. But the latest run of economic data can only serve to remind them why, until last week anyway, they planned to keep raising rates.

The annual inflation rate in February continued its gradual cooling trend, though it remained well above policymakers' target.

The collapse of U.S.-based Silicon Valley Bank is unlikely to hit fundraising for tech startups in Southeast Asia, venture capitalists and an analyst told CNBC.

Short-sellers have turned their focus to First Republic Bank as the Silicon Valley Bank collapse has pushed the share prices of the nearly four decades old bank to multi-year lows.

The Silicon Valley Bank fallout has ripple effects on Chinese startups, particularly those backed by U.S. dollar-denominated funds.

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Billionaire investor Bill Ackman said the U.S. government's action to protect depositors after the implosion of Silicon Valley Bank is «not a bailout» and helps restore confidence in the banking system.

HSBC has bought Silicon Valley Bank UK for just £1 in a dramatic rescue deal for the failed technology lender.

The sudden collapse of Silicon Valley Bank has set the stage for the latest fight over the role of the federal government in the financial sector, with Republican 2024 presidential hopefuls threatening to make any hint of a taxpayer-funded bailout a campaign issue.The issue’s clout and staying power will likely depend heavily on whether regulators are able to successfully shield the banking system from wider fallout, and by how losses are dealt with for depositors with holdings above the Federal Deposit Insurance Corp.’s $250,000-protection limits.Nikki Haley, the former South Carolina governor and United Nations ambassador running for the GOP nomination, was among the first in the still-emerging GOP field to call for no taxpayer exposure to the bank’s failure and by Sunday was already soliciting online campaign contributions on the topic.“Taxpayers should absolutely not bail out Silicon Valley Bank,” she said in a statement. “Private investors can purchase the bank and its assets. It is not the responsibility of the American taxpayer to step in. The era of big government and corporate bailouts must end.”

The UK is racing ahead of the clock to salvage the British arm of the collapsed Silicon Valley Bank after it sent jitters through the startup scene of the country.

After regulators shuttered Silicon Valley Bank and seized its deposits Friday, U.S. Treasury Secretary Janet Yellen said Sunday that she has been working «to address the situation in a timely way,» but that a major government bailout is not on the table.

On 10 March, Silicon Valley Bank's UK boss Erin Platts told a Zoom call with investors the bank was "doing the best that it can" to support them.

On Wednesday, Silicon Valley Bank was a well-capitalized institution seeking to raise some capital.

JPMorgan Chase sued its former investment banking chief Jes Staley over his ties to disgraced former financier Jeffrey Epstein, alleging that Staley is to blame for any legal fallout from a pair of lawsuits against the bank.

Binance.US – the American subsidiary of Binance – has defeated the United States Securities and Exchanges Commission (SEC). The American crypto exchange won the rights to acquire Voyager Digital’s assets, according to a report by Bloomberg. The bankruptcy judge of the Southern District of New York – Michael Wiles – gave the crypto exchange the green light after four days of the hearing. The judge struck down the claims made by the SEC.