SINGAPORE — The banking system here has "insignificant exposures" to failed banks in the United States, and remains "sound and resilient", said the Monetary Authority of Singapore (MAS) on Monday (March 13).
Mace doesn’t support a bailout for Silicon Valley Bank
Rep. Nancy Mace(R-S.C.) on Sunday said she doesn’t support a bailing out of Silicon Valley Bank, which has rocked the tech sector with its abrupt collapse late last week.
“As a member of Congress, do you think they should get bailed out by the federal government?” CNN’s Kaitlan Collinsasked Mace on “State of the Union.”
“It’s still very early to see — or say what the ramifications are going to be. That was a unique bank that mostly served startups in Silicon Valley. And those customers have been hit by inflation. They have been hit by interest rates. They are low on cash. There was also a panic run by some of the larger companies last week,” Mace responded.
“The CEO sold himself millions of dollars of stock and gave his employees, I read this morning, bonuses right before the government took over the bank. You know, we cannot keep bailing out private companies, because there’s no consequences to their actions. People, when they make mistakes or break the law, have to be held accountable in this country.”
Collins pressed the congresswoman to confirm that she doesn’t support a bailout.
“Not at this time. I would — It’s still very early. I don’t even think it’s been 48 hours. But at this time, I would not support a bailout,” Mace said.
Regulatorsshut down the Silicon Valley Bank on Friday, marking the second-largest bank collapse in U.S. history, after the 2008 financial crisis.
Customers pulled their funds from the bank from the institution after executives said they’d raise up to $1.75 billion in capital. California regulators stepped in.
Treasury Secretary Janet Yellenon Sunday said the federal government won’t bail out the bank.
Yellen: Working to Address SVB Collapse, but Not Looking at Bailout
WASHINGTON (Reuters) -U.S. Treasury Secretary Janet Yellen on Sunday said she was working closely with banking regulators to respond to the collapse of Silicon Valley Bank and protect depositors, but a major bailout was not being considered.
Yellen told the CBS News "Face the Nation" show that she had been working with regulators to "design appropriate policies to address the situation," the largest bank collapse since the 2008 financial crisis, but declined to give further details.
"Let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out...and the reforms that have been put in place means we are not going to do that again," Yellen told CBS.
"But we are concerned about depositors and are focused on trying to meet their needs," Yellen said.
California banking regulators on Friday closed SVB, appointing the Federal Deposit Insurance Corporation (FDIC) as receiver to protect depositors at the startup-focused lender.
The collapse of the startup-focused bank has raised concerns about runs on regional banks, and the ability of small businesses that banked with SVB to pay their employees.
Yellen met on Friday with officials from the FDIC and the Office of the Comptroller of the Currency to address the bank's collapse, and she and White House officials expressed confidence in the ability of banking regulators to respond.
On Sunday, she sought to reassure Americans that the U.S. banking system was safe, better capitalized and more resilient than during the 2008 global financial crisis, given new controls and capital requirements put in place after 2008 and tests during the early days of the COVID-19 pandemic.
"Americans can have confidence in the safety and soundness of our bank system," Yellen said, adding that regulators wanted to ensure that the crisis did not spread to other banks.
"We want to make sure that the troubles that exist at one bank don't create contagion to others that are sound," she said.
Asked if the U.S. government would consider the acquisition of SVB by a foreign bank, Yellen said: "So this is really a decision for the FDIC, as it decides on what the best course is to resolve this firm. And I'm sure they're considering a wide range of available options. That would include acquisitions.
The FDIC stepped in Friday to protect the deposits of up to $250,000, but deposits over that amount - which accounted for 85% of SVB accounts - are at risk.
Asked if depositors should be paid back in full, Yellen declined to comment on the details. "We're very aware of the problems that depositors will have. Many of them are small businesses, that employ people across the country. Of course this is a significant concern."
More than 3,500 CEOs and founders representing some 220,000 workers have signed a petition appealing directly to Yellen and others to backstop depositors and warning that more than 100,000 jobs could be at risk.
Venture investors have advised startups to seek alternatives to gain short-term liquidity.
US banks sitting on unrealized losses of $620 billion
New York (CNN) — Silicon Valley Bank’s collapse last week sent tingles of panic down investors’ spines as it highlighted a larger problem across the banking sector: The widening gap between the value large lenders place on the bonds they hold and what they’re actually worth on the market.
SVB’s downfallwas tied, in part, to the plunge in the value of bonds it acquired during boom times, when it had a lot of customer deposits coming in and needed somewhere to park the cash.
But SVB isn’t the only institution with that issue. US banks were sitting on $620 billion in unrealized losses (assets that have decreased in price but haven’t been sold yet) at the end of 2022, according to the FDIC.
What’s happening: Back when interest rates were near zero, US banks scooped up lots of Treasuries and bonds. Now, as the Federal Reserve hikes rates to fight inflation, those bonds have declined in value.
When interest rates rise, newly issued bonds start paying higher rates to investors, which makes the older bonds with lower rates less attractive and less valuable.
The result is that most banks have some amount of unrealized losses on their books.
“The current interest rate environment has had dramatic effects on the profitability and risk profile of banks’ funding and investment strategies,” said FDIC Chairman Martin Gruenberg in prepared remarks at the Institute of International Bankers last week.
“Unrealized losses weaken a bank’s future ability to meet unexpected liquidity needs,” he added.
In other words, banks might find they have less cash on hand than they thought — especially when they need it — because their securities are worth less than they expected.
“Many institutions — from central banks, commercial banks and pension funds — sit on assets that are worth significantly less than reported in their financial statements,” said Jens Hagendorff, a finance professor at King’s College London. “The resulting losses will be large and need to be financed somehow. The scale of the problem is starting to cause concern.”
Still, there’s no need to panic yet, say analysts.
“[Falling bond prices are] only really a problem in a situation where your balance sheet is sinking quite quickly… [and you] have to sell assets that you wouldn’t ordinarily have to sell,” said Luc Plouvier, senior portfolio manager at Van Lanschot Kempen, a Dutch wealth management firm.
Most large US banks are in good financial condition and won’t find themselves in a situation where they’re forced to realize bond losses, said Gruenberg.
Shares of larger banks stabilized Friday after plunging to their worst day in nearly three years on Thursday.
Temasek claims it has no "direct exposure" to SVB yo
Guess it's gone with the wind for Temasek, to the tune of 45 million bucks.
LELONG AH LELONG!
I wonder if our local banks have significant exposure to SVB 🤔
HOLY SHIT 😨
Mace doesn’t support a bailout for Silicon Valley Bank
Rep. Nancy Mace (R-S.C.) on Sunday said she doesn’t support a bailing out of Silicon Valley Bank, which has rocked the tech sector with its abrupt collapse late last week.
“As a member of Congress, do you think they should get bailed out by the federal government?” CNN’s Kaitlan Collins asked Mace on “State of the Union.”
“It’s still very early to see — or say what the ramifications are going to be. That was a unique bank that mostly served startups in Silicon Valley. And those customers have been hit by inflation. They have been hit by interest rates. They are low on cash. There was also a panic run by some of the larger companies last week,” Mace responded.
“The CEO sold himself millions of dollars of stock and gave his employees, I read this morning, bonuses right before the government took over the bank. You know, we cannot keep bailing out private companies, because there’s no consequences to their actions. People, when they make mistakes or break the law, have to be held accountable in this country.”
Collins pressed the congresswoman to confirm that she doesn’t support a bailout.
“Not at this time. I would — It’s still very early. I don’t even think it’s been 48 hours. But at this time, I would not support a bailout,” Mace said.
Regulators shut down the Silicon Valley Bank on Friday, marking the second-largest bank collapse in U.S. history, after the 2008 financial crisis.
Customers pulled their funds from the bank from the institution after executives said they’d raise up to $1.75 billion in capital. California regulators stepped in.
Treasury Secretary Janet Yellen on Sunday said the federal government won’t bail out the bank.
https://thehill.com/homenews/sunday-talk-shows/3896094-mace-doesnt-support-a-bailout-for-silicon-valley-bank/
Temasek ah Temasek, come I clap for you
Keyword: INDIAN
😡😡😡
$45 million is but chump change to Temasick lah, let's just treat this as an honest mistake and move on
10% GST INCOMING!!!!!!
The investment was made in 2015, which means the goddess of gamblers placed the failed "contrarian" bet herself? Very nice indeed. ;)
FUCK WHORE JINX AND TEMASICK!!!
WLWLSMDWL