Silicon Valley Bank Financial News

Anthony Scaramucci's SkyBridge Capital and Atlas Merchant Capital are competing for SVB Capital, the venture capital and credit-investment arm of SVB Financial Group, the former parent company of Silicon Valley Bank. 

The consultation comes nearly a year after the collapse of Silicon Valley Bank, when HSBC stepped in to buy the bank’s UK subsidiary for £1 in March.

A review of the senior managers regime is also on the table, which would lead to an evolution in the regulations rather than an overhaul. | Credit: iStock

The move follows similar action by Moody's, warning funding risks and weaker profitability will likely test the sector's credit strength.

The move follows similar action by Moody's, warning funding risks and weaker profitability will likely test the sector's credit strength.

National Bank of Canada says it will acquire the Canadian branch of Silicon Valley Bank’s commercial loan portfolio.

The cash balance, which is held in an account at its banking subsidiary, has been described as “the most significant asset” of the SVB Financial estate, the group said.

The nation’s 23 largest banks passed the Federal Reserve‘s so-called stress tests this year, a sign that the nation’s banking system remains resilient despite the recent banking crisis that led to the failure of Silicon Valley Bank, Signature Bank and First Republic Bank.

With traditional banks becoming more cautious about servicing the cryptocurrency industry, smaller regional banks and alternative payment service providers are stepping up to fill the gap. 

US Senators have slammed executives of failed banks for trying to deflect blame away from their poor management practices and toward digital asset firms.

Sen. Cynthia Lummis said she found it disappointing that a former crypto-friendly Signature Bank executive is not taking the blame for the failed bank, while criticizing his wordiness about crypto. 

Crypto-friendly Signature Bank “significantly’ cut back on digital asset deposits in the wake of increased volatility and regulators' concerns at the end of last year, said the former chairman and co-founder of the now-shuttered bank. 

tether is winning the race for the title of the crypto world's «least risky» asset. As a regional U.S. banking crisis widens and a regulatory crackdown on crypto firms deepens, investments within the cryptosphere are moving into tokens and coins perceived as relatively safe. Tether is already the top performer among stablecoins — digital tokens pegged to some fiat asset like the dollar — and has seen its market value soar since March. Its value is anchored by a 1-to-1 peg against a cache of dollars and a supply cap at around 85 billion tokens. Demand for the coin has been so strong that its peg has held above 1 since mid-April, hitting 1.002 last week.

US Senator and well-known crypto-critic Elizabeth Warren has joined hands with Congresswoman Alexandria Ocasio-Cortez in asking for more details about Silicon Valley Bank’s (SVB) dealings with crypto companies.

The infamously volatile cryptocurrency seems positively hale and hearty, just as a banking meltdown drives markets into the arms of a recession. Bitcoin has risen 21% this month, while a choppy S&P 500 has lost 1.4% and gold has gained 8%. «If you were going to describe an environment where there were successive bank runs because central banks are trying to fight inflation with fast rate increases, that is pretty close to as spot-on a thesis for owning bitcoin as you've ever heard,» said Stephane Ouellette, CEO at digital asset investment platform FRNT Financial.

Silicon Valley Bank on 10th March 2023, Bitcoin prices have zoomed nearly 40%. «The current BTC rally is driven by the importance of decentralised finance in the global financial system after a series of bank collapses in the US. Bitcoin being the torch bearer of decentralised finance is witnessing a demand from retail and institutional investors amidst the banking chaos as BTC is being deployed as a shield against the ongoing crisis,» Dhruvil Shah, SVP of technology at Liminal, said. Meanwhile, Edul Patel, CEO and Co-Founder of Mudrex, said, «The collapse of SVB and Silvergate was like a Cyprus moment for crypto. As these crypto-friendly banks collapsed, much money flowed directly into the cryptocurrency ecosystem. And a chunk of the smart money usually flows into blue-chip cryptocurrencies, such as Bitcoin and Ethereum.» «With instability in the banking sector, inflation data that exceeded expectations, and renewed optimism about a dovish Federal Reserve, Bitcoin has reached levels unseen in approximately nine months,» Edul added.

The popular stablecoin USD Coin (USDC) has seen outflows of around $3 billion over three days this week, issuer Circle said in a blog post on Thursday.

Crypto companies are moving their money from banks to asset managers as the turmoil in global banks continue, but industry insiders don’t see the bank failures as the end of banking for the crypto sector.

Bitcoin and other cryptocurrencies rallied on Monday after U.S. authorities announced plans to limit the fallout from the collapse of Silicon Valley Bank (SVB) and as cryptocurrency firm Circle assured investors its peg was secure. The U.S. Treasury and Federal Reserve announced a range of measures to stabilise the banking system and said depositors at SVB would have access to their deposits on Monday. The moves came as authorities took possession of New York-based Signature Bank, the second bank failure in a matter of days. Stablecoin USD Coin (USDC), which had lost its 1:1 dollar peg and hit an all-time low on Saturday on concerns over the exposures of Circle, the firm behind USDC, to Silicon Valley Bank, recovered. It was at $0.9917, closer to par and up from last week's lows around $0.88.

The popular stablecoin USDC has regained its $1 peg price after regulators in the US assured that depositors in Silicon Valley Bank (SVB) can access their money today.

Yet another crypto-friendly bank has gone down with the collapse of New York-based Signature Bank. But according to the industry, crypto now cannot be stopped.