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Daily Dispatches
Signature Bank execs starred in cringey Broadway-style musical video
Submitted by admin on Wed, 2023-03-15 17:18 Section: Daily DispatchesBy Ariel Zilber
New York Post
Tuesday, March 14, 2023
Executives at the doomed Signature Bank produced a Broadway-style musical video to launch the firm in the early 2000s -- and its song branded the bank "the stupidest idea I ever heard" and even quipped that it could "diminish and fail."
Clips of the musical number -- now dripping with irony after regulators stepped in over the weekend and took control of the New York-based firm in a bid to stave off a US banking crisis -- resurfaced online and went viral this week. ...
Swiss government ready to rescue Credit Suisse
Submitted by admin on Wed, 2023-03-15 17:04 Section: Daily DispatchesLooks like the Swiss banking system is strong too.
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Credit Suisse to Get Liquidity Backstop if Needed, Swiss National Bank Says
By Hugo Miller and Bastian Benrath
Bloomberg News
Wednesday, March 15, 2023
Switzerland's central bank and financial regulator said Credit Suisse Group AG will receive a liquidity backstop if needed, in a show of support aimed at restoring confidence in the troubled lender after its shares slumped by a record amount.
Former Wells Fargo executive faces prison, $17 million fine over fake accounts scandal
Submitted by admin on Wed, 2023-03-15 16:48 Section: Daily DispatchesThe U.S. banking system is strong -- strongly corrupt.
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By Chris Prentice and Pete Schroeder
Reuters
via Yahoo Finance, Sunnyvale, California
Wednesday, March 15, 2023
WASHINGTON -- The former head of Wells Fargo's retail bank is facing prison time after pleading guilty to obstructing a bank examination in relation to the sweeping phony accounts scandal that roiled the bank in 2016.
Jim Rickards: The Fed finally broke something, so keep your eye on gold
Submitted by admin on Wed, 2023-03-15 13:30 Section: Daily DispatchesBy James Rickards
Daily Reckoning, Baltimore
Tuesday, March 14, 2023
It's often said that the Fed raises interest rates until something breaks. Well, something has broken.
The collapse of Silicon Valley Bank has really thrown Jay Powell and the Fed for a loop.
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USA Gold: Coins and Bullion Since 1973
Irreverent Aussies nailed today's central banking -- back in 2008
Submitted by admin on Wed, 2023-03-15 13:07 Section: Daily Dispatches1:10p ET Wednesday, March 15, 2023
Dear Friend of GATA and Gold:
With Western central bankers scurrying madly to prevent the toppling of the financial system they have driven insane, this may be a good time to recall the brilliant 3 1/2-minute parody of central banking that was broadcast in 2008 by the weekly television comedy program in Australia, "Newstopia."
Credit Suisse appeals to Swiss central bank for support
Submitted by admin on Wed, 2023-03-15 12:32 Section: Daily DispatchesBy Owen Walker and Stephen Morris
Financial Times
Wednesday, March 15, 2023
Credit Suisse has appealed to the Swiss National Bank for a public show of support after its shares cratered as much as 30%, sparking a broader selloff in European and U.S. bank stocks.
The request for a reassuring statement about Credit Suisse's financial health came after its shares sank as low as SF1.56, having earlier been halted amid a heavy selloff, according to three people with knowledge of the talks.
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Clint Siegner: It turns out that Treasuries aren't risk-free after all
Submitted by admin on Tue, 2023-03-14 19:49 Section: Daily DispatchesBy Clint Siegner
Money Metals News Service, Eagle, Idaho
Monday, March 13, 2023
The high-profile collapse of Silicon Valley Bank last week is a story about bad debt, just not in the way most people think.
Bank executives didn't issue too many loans to poor quality borrowers. They made what they believed to be conservative investments in the safest of all assets. The bad debt turned out to be U.S. Treasuries - an asset class they assumed to be "risk-free."
Accountants gave SVB, Signature Bank clean bill of health just before collapse
Submitted by admin on Tue, 2023-03-14 12:02 Section: Daily DispatchesBy Jonathan Weil and Jean Eaglesham
The Wall Street Journal
Monday, March 13, 2023
Silicon Valley Bank failed just 14 days after KPMG LLP gave the lender a clean bill of health. Signature Bank went down 11 days after the accounting firm signed off on its audit.
What KPMG knew about the two banks' financial situation and what it missed will likely be the subject of regulatory scrutiny and lawsuits.
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Moral hazard is concern as U.S. intervenes to save big banks
Submitted by admin on Mon, 2023-03-13 12:03 Section: Daily DispatchesBy Scott Murdoch and Carolina Mandl
Reuters
Monday, March 13, 2023
U.S. regulators may have stemmed a banking crisis by guaranteeing deposits of collapsed Silicon Valley Bank (SVB), but some experts warn that the move has encouraged bad investor behavior.
Following a weekend of discussions over the future of SVB owner SVB Financial Group, banking regulators unveiled emergency funding plans for the bank.
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U.S. banks have unrealized losses of $620 billion, FDIC says
Submitted by admin on Mon, 2023-03-13 11:54 Section: Daily Dispatches
By Nicole Goodkind
CNN, New York
Sunday, March 12, 2023
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 downfall was 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.
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