Federal regulators faced more than two hours of intense questioning from lawmakers on Tuesday about what caused the failures of Silicon Valley Bank and Signature Bank, the red flags that went unheeded and the steps that must be taken to avoid future collapses that could rattle the United States financial system. There was bipartisan concern […]
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WASHINGTON — The nation’s top financial regulators will face a grilling from lawmakers on Tuesday over the collapse of Silicon Valley Bank as they push to understand why the firm was allowed to grow so rapidly and build up so much risk that it failed, requiring a government rescue for depositors and sending shock waves […]
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WASHINGTON — The Federal Reserve’s vice chair for supervision blamed Silicon Valley Bank’s demise on poor internal management and excessive risk-taking and detailed the steps that Fed supervisors took to address the snowballing problems that ultimately killed the company, according to prepared remarks ahead of a congressional hearing on Tuesday. The vice chair, Michael Barr, […]
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For a bank, a loss of confidence is a fatal blow. After that occurred at several banks in the United States and Switzerland in the past few weeks, policymakers in the eurozone have been trying to shore up confidence in the region’s banking sector. At a conference in Frankfurt last week, representatives from the European […]
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ROCHESTER, N.Y. — Standing in a warehouse outside downtown Rochester, Jeffrey Medford watered his cannabis crop under industrial lights. He’s among the many growers who’ve transformed the city’s network of defunct factories into sophisticated indoor farms. Mr. Medford, 58, who has grown cannabis for nearly a decade after a career as a carpenter, would typically be […]
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Many of the minors crossed unaccompanied from Latin American countries and may not know when their employment violates the law. A 13-year-old who was burned with caustic chemicals while working for Packers Sanitation Services in Nebraska told investigators the accident occurred during a shift that lasted from 11 p.m. to 5 or 7 a.m., a […]
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China said it would oppose efforts by the United States to force a sale of TikTok, in a public rebuke of the Biden administration’s stance against the app’s Chinese ownership. The comments, made by China’s commerce ministry on Thursday, came hours before TikTok’s chief executive was scheduled to testify before Congress for the first time, […]
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No clear path on helping banks U.S. banking regulators gave investors a lot to chew on yesterday. The Federal Reserve went ahead with a quarter-point increase in interest rates, signaling that, for now, it remained more worried about inflation than banking stability. But while Jerome Powell, the central bank’s chair, and Treasury Secretary Janet Yellen […]
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WASHINGTON — Two of the nation’s top economic policymakers on Wednesday said they were focused on determining how the failure of Silicon Valley Bank had happened and suggested changes to federal regulation and oversight might be needed to prevent future runs on American banks. The discussion of stricter oversight by Jerome H. Powell, the Federal […]
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WASHINGTON — The chief executive of Norfolk Southern told Congress on Wednesday that his company would create programs to provide long-term financial support to residents of East Palestine, Ohio, where one of its trains carrying hazardous materials careened off the tracks seven weeks ago and ignited a fire. Alan H. Shaw, the chief executive, told […]
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The Federal Reserve faces a difficult decision at its meeting that ends this afternoon: Should Fed officials raise interest rates in response to worrisome recent inflation data — and accept the risk of causing further problems for banks? Or should officials pause their rate increases — and accept the risk that inflation will remain high? […]
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David Enrich contributed reporting. The Daily is made by Lisa Tobin, Rachel Quester, Lynsea Garrison, Clare Toeniskoetter, Paige Cowett, Michael Simon Johnson, Brad Fisher, Chris Wood, Jessica Cheung, Stella Tan, Alexandra Leigh Young, Lisa Chow, Eric Krupke, Marc Georges, Luke Vander Ploeg, M.J. Davis Lin, Dan Powell, Dave Shaw, Sydney Harper, Robert Jimison, Mike Benoist, […]
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WASHINGTON — Jerome H. Powell is likely to face more than the typical questions about the Federal Reserve’s latest interest rate decision on Wednesday. The central bank chair will almost certainly be grilled about how and why his institution failed to stop problems at Silicon Valley Bank before it was too late. The collapse of […]
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WASHINGTON — Lawmakers are looking for ways to resolve a major concern that threatens to keep the banking industry in turmoil: The fact that the federal government only insures bank deposits up to $250,000. Some members of Congress are looking for ways to boost that cap, at least temporarily, in order to stop depositors from […]
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Stocks rose for a second day, again led by bank shares, as relief over recent financial rescue measures appeared to take hold, even as the fate of some beleaguered lenders remained a source of uncertainty. Futures for the S&P 500 were up nearly 1 percent in premarket trading on Tuesday, in step with markets in […]
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WASHINGTON — Treasury Secretary Janet L. Yellen expressed confidence in the nation’s banks on Tuesday and said she was committed to keeping them sound, seeking to calm nerves as the U.S. financial system faces its worst turmoil in more than a decade. “The situation is stabilizing,” Ms. Yellen said in prepared remarks to be delivered […]
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Bret Stephens: Hi, Gail. I guess we have to talk about Donald Trump’s potential indictment and arrest, right? But before we go there: You know how I told you that I’d vote for Ron DeSantis over Joe Biden? Well, never mind. Gail Collins: Bret! You’re gonna vote for our big-spending president? Student-loan forgiver? Tax-the-richer? Bret: […]
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WASHINGTON — Silicon Valley Bank’s risky practices were on the Federal Reserve’s radar for more than a year — an awareness that proved insufficient to stop the bank’s demise. The Fed repeatedly warned the bank that it had problems, according to a person familiar with the matter. In 2021, a Fed review of the growing […]
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No limits Last year, Marc Lasry, the owner of the Milwaukee Bucks basketball team, revealed that its star player, Giannis Antetokounmpo, at one time had been putting his money in 50 banks, with no single account holding more than $250,000. Why? Because Antetokounmpo wanted every cent to be insured by the Federal Deposit Insurance Corporation. […]
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The events of the past week have proven that smaller bank oversight, regulation or both should be improved. Clearly, risk-management functions, on-site supervision, and the qualifications and role of boards of directors should be evaluated. The $250,000 limit on deposit insurance should be raised, perhaps substantially to at least $2 million but perhaps as much […]
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In Japan, it’s possible to enjoy a coffee while an owl perches on your head, or to sit at a bar where live penguins stare out at you from behind a plexiglass wall. The country’s exotic animal cafes are popular with locals as well as visitors seeking novelty, cuteness and selfies. Customers can even buy […]
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WASHINGTON — The Justice Department is investigating the surveillance of American citizens, including several journalists who cover the tech industry, by the Chinese company that owns TikTok, according to three people familiar with the matter. The investigation, which began late last year, appears to be tied to the admission in December by the company, ByteDance, […]
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WASHINGTON — President Biden asked Congress on Friday to pass legislation to give financial regulators broad new powers to claw back ill-gotten gains from the executives of failed banks and impose fines for failures. The proposal, a response to the federal rescue of Silicon Valley Bank and Signature Bank last week, would also seek to […]
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SVB Financial Group, the former parent company of Silicon Valley Bank, the lender that was seized by regulators last week after a devastating run on deposits, filed for bankruptcy on Friday. The move would place SVB Financial, which owns other businesses aside from Silicon Valley Bank, into a court-led process, as it auctions off units […]
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WASHINGTON — As U.S. regulators prepared to announce an extraordinary government rescue of depositors at Silicon Valley Bank and Signature Bank on Sunday, officials from the Biden administration pushed to formally spotlight shortcomings in financial regulation that they blamed for the banks’ rapid descent to insolvency, according to several people involved in or close to […]
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WASHINGTON — The Biden administration is preparing to impose some of the first new rules in a generation to restrict or ban an array of toxic chemicals that are widely used in manufacturing, presenting the White House with tough choices between its economic agenda and public health. Many of the substances in question are important […]
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Last weekend, U.S. policymakers went all in on bailing out two medium-size banks: Silicon Valley Bank and Signature Bank. And yes, they were bailouts. I wish the Biden administration weren’t trying to claim otherwise. Yes, stockholders were cleaned out. But legally, deposits are insured only up to $250,000; by choosing to make all depositors whole, […]
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First Republic Bank, a midsize lender whose shares have plunged this week amid broader banking turmoil, is exploring extreme measures including a possible sale, a person familiar with the matter said, indicating that the bank’s moves over the weekend to strengthen its balance sheet may not have been enough to calm investors’ concerns. The bank […]
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In 2016, I started a New York-based creative agency that specialized in branded content. Among creative agencies, the trend at the time was for names that sounded like punk bands and I unfortunately chose The Insurrection. As of last week the only thing that aged worse than the name was my choice of bank: Silicon […]
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Five days after seizing control of Silicon Valley Bank, federal regulators were still in the process of auctioning off its remaining parts, but no single buyer appeared willing to take on everything. SVB collapsed last week after a run on deposits left it insolvent. Federal officials committed to paying out all depositors in full, even if […]
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The Federal Reserve is facing criticism over Silicon Valley Bank’s collapse, with lawmakers and financial regulation experts asking why the regulator failed to catch and stop seemingly obvious risks. That concern is galvanizing a review of how the central bank oversees financial institutions — one that could end in stricter rules for a range of […]
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