Fed’s Powell vs Inflation vs Markets

Fed’s Powell vs Inflation vs Markets

Fed Chairman Jerome Powell at yesterday’s press conference. Photo: Alex Wong/Getty Images On Wednesday afternoon, the Federal Reserve did more than raise interest rates for the ninth consecutive time in the face of a banking crisis. He also claimed that his plans for the year remain more or less intact and that nearly all of … Read more

Warren says proposal to lift FDIC insurance cap ‘needs to be on the table right now’

Warren says proposal to lift FDIC insurance cap ‘needs to be on the table right now’

Washington— Massachusetts Sen. Elizabeth Warren said Sunday that a congressional proposal to lift the Federal Deposit Insurance Corporation (FDIC) insurance limit of its current $250,000 limit is an option that “needs to be on the table right now” as lawmakers debate how to respond to the rapid collapse of two banks earlier this month. “I … Read more

Stress testing wouldn’t have saved Silicon Valley Bank

Stress testing wouldn’t have saved Silicon Valley Bank

Donald Trump signs the Economic Growth, Regulatory Relief and Consumer Protection Act at the White House, May 24, 2018. Photo: Andrew Harrer/Bloomberg News Many in Washington blame the collapse of Silicon Valley Bank and the widespread loss of confidence in the banking system on Trump-era changes in which banks are considered “systemically important” and therefore … Read more

Moody’s downgrades six US banks after SVB collapse

Moody’s downgrades six US banks after SVB collapse

Moody’s Investors Service is considering downgrading the credit ratings of six US banks following the second and third largest bank failures in the country’s history. The ratings firm said on Monday that regional banks were “exposed to the risk of uninsured deposit outflows” following the collapse of Silicon Valley Bank, prompting fears that wealthy depositors … Read more

No ‘appetite’: Lawmakers agree to oppose potential Silicon Valley Bank bailout

No ‘appetite’: Lawmakers agree to oppose potential Silicon Valley Bank bailout

In a rare show of consensus, congressional lawmakers from both parties said Sunday they would oppose any potential bailout option for Silicon Valley Bank, which collapsed on Friday in the biggest bank failure since the 2008 financial crisis. Treasury Secretary Janet Yellen ruled out a bailout possibility for the bank’s owners and investors, and members … Read more

Silicon Valley Bank bankruptcy has global repercussions

Silicon Valley Bank bankruptcy has global repercussions

It was called Silicon Valley Bank, but its collapse sends shock waves around the world. From California winemakers to startups across the Atlantic Ocean, companies are scrambling to figure out how to manage their finances after their bank suddenly closed Friday. Collapse spells distress not just for businesses, but for all of their workers whose … Read more