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Daily Dispatches
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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Pam and Russ Martens: Silicon Valley Bank was a Wall Street IPO pipeline in drag as a U.S.-insured bank
Submitted by admin on Mon, 2023-03-13 11:12 Section: Daily DispatchesBy Pam and Russ Martens
Wall Street on Parade
Monday, March 13, 2023
If you want to genuinely understand why Silicon Valley Bank (SVB) failed and why Jerome Powell’s Fed led the effort yesterday to make sure $150 billion of the bank’s uninsured depositors’ money would be treated as FDIC insured and available today, you need to take a look at how the bank defined itself right up until it blew up on Friday.
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U.S. bails out Silicon Valley and Signature Bank and their uninsured depositors
Submitted by admin on Sun, 2023-03-12 19:17 Section: Daily DispatchesWho was worried about bail-ins?
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SVB, Signature Bank Depositors to Get All Their Money as Fed Moves to Stem Crisis
By Nick Timiraos
The Wall Street Journal
Sunday, March 11, 2023
U.S. regulators took control of a second bank on Sunday and raced to roll out emergency measures to stem potential spillovers from Friday's swift collapse of Silicon Valley Bank, backstopping uninsured depositors and making more funding available to the banking system.
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