Whitney McDonald
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Whitney McDonald
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U.S. stocks ended modestly lower on Tuesday, as Treasury yields rose, keeping pressure on the rate-sensitive Nasdaq Composite Index. The Dow Jones Industrial Average DJIA shed about 37 points, or 0.1%, ending near 32,394, while the S&P 500 index SPX fell 0.2% and the Nasdaq COMP closed 0.5% lower, according to preliminary data from FactSet. Stocks fell, but ended off the session lows, as the 2-year Treasury rate BX:TMUBMUSD02Y climbed 10.5 basis points to 4.06%. Bond yields and prices move in the opposite direction. Tuesday also saw a raft of relatively upbeat economic data and increased expectations by traders in fed-funds…
Bloomberg News
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Whitney McDonald
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Bloomberg News
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The collapse of Silicon Valley Bank presents an innovation opportunity for fintechs in treasury management as more bank clients look to multibank strategies to ensure security in their capital. For example, as companies look to diversify their balance sheets for risk management purposes, they’ll need a snapshot of all of their accounts in one place. […]
Whitney McDonald
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Sharon Stone received a standing ovation after she delivered an emotional speech at the Women’s Cancer Research Fund’s (WCRF) An Unforgettable Evening fundraiser. The Oscar-nominated Basic Instinct actress paid tribute to others honored at the event and talked about her health struggles, encouraging those in attendance to support the WCRF.
Fox Business notes that Stone underwent breast reconstruction surgery in 2001 after doctors removed benign tumors, which she later learned were large fibroid tumors requiring more surgery. The 65-year-old actress also opened up about her health challenges in her memoir, The Beauty of Living Twice, including the fact she had one-and-a-half times more breast tissue removed than initially reported. At the WCRF event, she shared a poignant moment about her hairstylist—who did her hair after receiving her first chemotherapy treatment for breast cancer—and then tearfully urged the crowd to donate more money to the cause.
Though she did not provide many details, The Hollywood Reporter highlighted Stone’s confession she’d “just lost half my money to this banking thing.” She was likely referring to the recent collapse of Silicon Valley Bank (SVB) and the subsequent financial market turmoil. The California-based bank, which primarily served tech start-ups, was shut down by regulators on March 10 following a liquidity crisis. The government has since announced plans to ensure customers can access their funds.
Stone also spoke about the recent passing of her brother, Patrick Stone, 57, who died from heart disease: “My brother just died,” she said, “and that doesn’t mean that I’m not here. This is not an easy time for any of us. This is a hard time in the world, but I’m telling you what, I’m not having some politician tell me what I can and cannot do. How I can and cannot live, and what the value of my life is and is not. So stand up. Stand up and say what you’re worth. I dare you. That’s what courage is.”
Steve Huff
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First Republic Bank began to founder after the collapse of Silicon Valley Bank, with its stock dropping from $115 per share on March 8 to around $20 Thursday. Now it looks like First Republic—which like SVB had numerous uninsured depositors—will get by with a little help from its friends.
Here’s more from CNBC:
Bank of America, Wells Fargo, Citigroup and JPMorgan Chase will contribute about $5 billion apiece, while Goldman Sachs and Morgan Stanley will deposit around $2.5 billion, the banks said in a news release. Truist, PNC, U.S. Bancorp, State Street and Bank of New York Mellon will deposit about $1 billion each.
In the same release, the group said the “action by America’s largest banks reflects their confidence in First Republic and in banks of all sizes.” The statement said the depositors were also demonstrating an “overall commitment to helping banks serve their customers and communities.”
While bank stock nosedived Thursday, reports of aid to First Republic managed to push them back up. The deposits, CNBC reports, must remain with the beleaguered bank for up to four months.
According to sources who spoke to the Wall Street Journal, bank execs recently convened with Treasury Secretary Janet Yellen and others in Washington to talk over the plan. The WSJ quoted from a joint statement by the Treasury, Fed, FDIC and Office of the Comptroller of the Currency which said in part that the “show of support by a group of large banks is most welcome, and demonstrates the resilience of the banking system.”
Steve Huff
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Bank of America BAC, Citigroup C, JPMorgan Chase JPM and Wells Fargo WFC said Thursday that they are each making $5 billion in uninsured deposits into First Republic Bank FRC as part of a $30 billion backstop by 11 banks against the ravaged banking landscape of the past week.
However, First Republic stock fell 14.7% in after-hours trading after the bank said it would suspend its dividend to conserve cash. The bank last paid a quarterly dividend of 27 cents a share on Feb. 9 to shareholders of record as of Jan. 26.
It…
All eyes are on Silicon Valley Bank after its spectacular crash, the second-largest in U.S. banking history. The Federal Deposit Insurance Corporation (FDIC) took control of the bank on Friday and moved to replace its CEO, Greg Becker, who had served in the role since 2011.
The FDIC appointed Tim Mayopoulos as CEO of the newly renamed Silicon Valley Bridge Bank on Monday. He got to work quickly, urging clients to bring their money back to the bank during a Zoom call on Wednesday, according to CNBC.
Keep scrolling for more details on the CEOs.
Greg Becker started at Silicon Valley Bank as a loan officer and was with the company for nearly three decades. He’s credited with steering the bank through the 2008 financial crisis and was appointed CEO in 2011, according to Reuters.
Before the bank’s collapse, he was viewed as a “champion of the innovation economy,” as he was referred to in a since-deleted profile on the Silicon Valley Bank website.
RELATED: Kevin O’Leary Rips Into Silicon Valley Bank Amid Collapse: ‘It’s No Better Than Radioactive Waste’
Becker has been scrutinized for reportedly selling $3.6 million in company stock just two weeks before the collapse, per Bloomberg. The sale was made under a trading plan he filed in January.
Becker’s 2022 compensation was $9.9 million, per the Wall Street Journal. SVB’s compensation committee noted in a filing that his 2022 bonus — and that of SVB CFO Daniel Beck — was reduced to hold the executives accountable “for balance sheet pressures stemming from declining deposits and overall market environment.”
Before his departure, Becker apologized to employees in a video message sent Friday. A Fed spokesperson also announced Friday that Becker was no longer on the board of the San Francisco Federal Reserve, per Bloomberg.
Becker has sold SVB stock worth nearly $30 million over the past two years, per CNBC.
RELATED: SVB Insider: Employees Angry With CEO Greg Becker
The FDIC appointed banking veteran Tim Mayopoulos to replace Becker as SVB CEO.
Mayopoulos was Bank of America’s general counsel during the 2008 financial crisis and then served as president and CEO of the Federal National Mortgage Association, or Fannie Mae, per the New York Times.
According to Time, Mayopoulos is a graduate of Cornell University and the New York University School of Law. In the 1990s he was part of the team that investigated Bill and Hillary Clinton’s real estate dealings, and his resume also includes time at Deutsche Bank and Credit Suisse. Before taking on the CEO role at SVB, Mayopoulos was president of Blend, a cloud-based software company for mortgages and consumer banking.
RELATED: Employees Are Hawking Their Silicon Valley Bank Merch on eBay
Mayopoulos sent a memo to clients on his first day as CEO.
“I look forward to getting to know the clients of Silicon Valley Bank,” he wrote Monday, per Insider. “I come to this role with humility. I also come to this role with experience in these kinds of situations.”
Sam Silverman
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U.S. bank stocks ended regular trading with solid gains on Thursday, as banks announced a $30 billion deposit capital infusion for First Republic Bank and as Treasury Secretary Janet Yellen cited the strength of the financial system.
The 11 banks confirmed a report from the Wall Street Journal and others about providing financial support for First Republic Bank FRC.
U.S….
Finance expert and entrepreneur Gene Marks will join us for a special livestream discussion on the impact of the recent bank failures on your personal and business assets. The event will begin at 2:00 PM EST, streaming live on Entrepreneur’s YouTube, LinkedIn and Twitter channels.
Where can I watch?
Watch and stream: YouTube, LinkedIn & Twitter
You can watch on your phone, tablet or computer. Our livestream will be shown in its entirety on YouTube, LinkedIn and Twitter
What time does the livestream start?
Time: 2:00 PM EST
The episode kicks off at 2:00 PM EST.
Why should I watch the livestream?
Gene Marks is an author, CPA, business owner, and national business columnist for The Hill, The Guardian, Entrepreneur, The Philadelphia Inquirer, and other well-known outlets. He will expertly break down the recent bank failures and what they mean for entrepreneurs. In this informative session, you’ll learn about the steps you can take to protect yourself and your business.
Entrepreneur Staff
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LONDON – Startup founders at FinovateEurope were initially worried about the deposits they had with tech bank Silicon Valley Bank, until the HSBC rescue emerged earlier this week, Stephan Paxmann, head of digitalization and innovation at nearly $300 billion Germany-based bank LBBW, told Bank Automation News Tuesday at the event in London. “SVB was a […]
Neil Ainger
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Payroll provider fintech Rippling, formerly a Silicon Valley Bank client, has moved to JPMorgan Chase as SVB collapsed late last week. The San Francisco-based startup already was in the process of onboarding with JPMorgan Chase as an additional partner, according to the fintech’s website. “We completed a long-planned transition to JPMorgan Chase to ensure that […]
Whitney McDonald
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Shares of regional banks posted big gains on Tuesday as they regained their footing after huge losses in the previous session, but volatility continued in the sector following the demise of Silicon Valley Bank, Signature Bank and Silvergate Capital in the past week.
While the rise in some cases is eye-popping, most stocks have yet to recover fully from losses in the past few days. Most stocks are trading well below their levels from a week ago, even with Tuesday’s gains.
Among…
Signature Bank followed in Silicon Valley Bank’s footsteps Sunday when regulators overtook the spiraling financial institution. Today, First Republic Bank is drawing attention as its shares take a dive. At 2:30 p.m. ET Monday, First Republic Bank’s shares sat at $41.46, down 50% from market open. Before last week, all three banks played integral roles […]
Whitney McDonald and Brian Stone
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The run on Silicon Valley Bank (SVB) SIVB— on which nearly half of all venture-backed tech start-ups in the United States depend — is in part a rerun of a familiar story, but it’s more than that. Once again, economic policy and financial regulation has proven inadequate.
The news about the second-biggest bank failure in U.S. history came just days after Federal Reserve Chair Jerome Powell assured Congress that the financial condition of America’s banks was sound. But the timing should not be surprising. Given the large and…
Trading in shares of First Republic Bank and Western Alliance Bancorp ended sharply lower in a tough day of trading for regional banks as fears over bank solvency persisted following the failures of Silicon Valley Bank, Signature Bank and Silvergate Capital.
Stocks were periodically halted or paused for trading amid the bank stock bloodbath, which saw many suffering percentage declines well into the double digits. Typically, bank stocks are stable compared with sectors such as technology, with daily moves above 5% being relatively…
Silicon Valley Bank was taken over by regulators today following a week of abnormality that included a sale of securities on Wednesday, capital raising efforts on Thursday and a stock plummet of nearly 70% this morning. “The California Department of Financial Protection and Innovation (DFPI) announced today that, pursuant to California Financial Code section 592, […]
Whitney McDonald
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