SVB Financial News

SVB Financial Group, the former parent company of Silicon Valley Bank, said it reached a deal to sell its venture capital unit to a newly created affiliate of Pinegrove Capital Partners. 

Subscribe to enjoy similar stories. India’s tax authorities have blamed Skoda Auto Volkswagen India Pvt. Ltd for the delay in its provisional assessment of $1.4 billion (about ₹11,526 crore) tax demand, saying the Indian unit of the German automaker did not provide the information needed promptly.

HSBC Holdings Plc won the dismissal of most claims brought by First Citizens Bank & Trust Co. over the hiring of dozens of Silicon Valley Bank employees following the lender’s collapse last year.

the failure of Silicon Valley Bank (SVB), New York Community Bank has lost about half of its value since it announced on January 31st that it was setting aside $552m to cover troubled loans secured against commercial real estate. Last spring the bank was a saviour of sorts, buying $38bn of assets from Signature Bank, which failed around the same time as SVB. Now it is the first example of a new set of problems facing the industry.

Silicon Valley Bank plans to sell its entire stake in Indian subsidiary SVB Global Services India to lender First Citizens Bancshares, it said in a filing on Wednesday. SVB Financial Group is currently seeking approval from a bankruptcy court, with a hearing scheduled for April 9.

Quiver Quantitative — The failure of Silicon Valley Bank (SVB) last year came with a hefty price tag, not just for the bank itself, but also for the US banking system at large. A crucial yet overlooked aspect of SVB's collapse was the $285 million in fees charged for prematurely ending emergency financing from the Federal Home Loan Bank (FHLB) system. This fee, necessary to retire billions in financing obtained by SVB in a desperate bid to survive a run on deposits, is the largest of its kind for any bank failure since before the 2008 financial crisis. This situation highlights the significant role of FHLBs in providing emergency lending, even to banks that eventually fail, and brings into focus the ongoing debate in Washington about reforming this Depression-era system initially designed to finance mortgage lending.

 Kudlow panelists Kevin OLeary, Kevin Hassett and John Carney discuss inflation, bank failures and credit card delinquencies.

Almost a year after the mini banking crisis in the US, it is worth revisiting the episode. Was it just a tempest in a teacup? Was there really a systemic threat, or was it just a problem with a few banks? Should the interventions by the US Federal Reserve and Treasury worry or comfort us? Recall that three mid-size US banks suddenly failed around March 2023. The most prominent was Silicon Valley Bank (SVB), which became the second-largest bank failure in US history (after Washington Mutual in 2008).

The U.S. government overrode industry objections and approved a plan to saddle the biggest banks with much of the tab for refilling the nation’s bedrock deposit-insurance fund.

The prudential regulator will bolster liquidity rules for mutual banks and credit unions to better align them with requirements on the major and regional lenders and avoid a Silicon Valley Bank-style collapse creating contagion for the broader financial system.

SVB) shows, sometimes even supervisors are unaware of the risks a bank is taking, or are unable to stop it when they see it. Moreover, capital regulation will often fail to limit a bank’s pursuit of tail risks that earn profits in good times, because those earnings will add to its capital and allow it to take still more risks—at least until the bad times come. Finally, insofar as more capital gives bank management a longer leash, higher capital requirements may come with an offsetting cost.

Stablecoin issuer Circle is discontinuing support for consumer Circle Mint accounts.

The major banks have survived APRA’s stress tests underscoring the strength of the banking system in a hard landing scenario of 10 per cent unemployment, high inflation, and a one-third decline in house prices.

Clear Finance Technology Corp., the lender co-founded by Canadian television personality Michele Romanow, secured a new round of funding, giving it room to mount a potential turnaround after a slowdown in the tech-startup industry battered its business.

WASHINGTON (Reuters) — The leadership of Silicon Valley Bank and its government supervisors failed to quickly recognize risks looming in the firm before its March failure, according to a report from the Federal Reserve's inspector general.

Foreign investors sold the largest amount of Japanese stocks since March last week amid signs of risk aversion. 

The venture capital industry appears to be gearing up for portfolio rebalancing in 2024, with investors positioning themselves to increase exposure to digital assets in the next bull market. Blockchain Capital, for instance, closed two new funds this week, with $580 million in capital to be deployed in crypto gaming and decentralized finance projects. 

SVB Financial Group, the former parent company of Silicon Valley Bank is getting closer to a deal that will see the institution sell its venture capital arm SVB Capital.

Dollar-pegged stablecoins are not immune to dropping their pegs, but some such as Circle’s USD Coin (USDC) and MakerDAO’s Dai (DAI), have been more prone to depegging than others, according to analysts at S&P Global.

By Pete Schroeder

Investing.com -- U.S. stock futures edge up as traders look ahead to key economic data and new company results this week. Elsewhere, Google reportedly eyes plans to sell its mapping data to companies building renewable energy products, while Mark Zuckerberg, Elon Musk and other tech industry leaders are invited to Washington for a forum discussing the possible pitfalls of generative artificial intelligence.