uninsured deposits
-
FDIC: Spending $20 Billion to Handle Bank Failures in Silicon Valley
According to reports, Federal Deposit Insurance Corporation (FDIC) Chairman Martin Glenberg said on March 27th local time that the FDIC spent $20 billion to handle the bank failure
-
Bank of America’s acquisition of Signature Banks: The implications of uninsured deposits on small banks
According to reports, Bill Ackermann, founder of Pershing Square Capital Management, tweeted, “I heard that Bank of America will acquire signature banks on Monday. Unless we can protect uninsured deposits, the cost of capital for small banks will rise, forcing them to merge or be acquired by SIB (System Important Bank). I don’t think this is beneficial for the United States.” Hedge fund giant Akman: Bank of America may acquire Signature Bank on Monday Analysis based on this information:The recent tweet by Bill Ackermann regarding Bank of America’s announcement to acquire the Signature Banks on Monday, has caused a lot of stir in the finance industry. While the acquisition may seem like a positive step for Bank of America, it could create a ripple effect on small banks. Ackermann’s concern is that small banks will bear the cost of capital due to the increased risk that comes with uninsured deposits. Small banks derive a significant portion of their funding from…
-
Mark Cuban’s Views on the Silicon Valley Bank Incident
According to reports, Mark Cuban, the boss of the NBA Dallas Lonely Rangers and the crypto investor, sent a paper on social media to analyze the Silicon Valley Bank incident. He said that the US FDIC’s insurance deposit compensation of US $250000 was too low, and the regulatory agency had never supervised and warned that the bankruptcy of the Silicon Valley Bank would cause many companies to be unable to pay wages. Mark Cuban suggested that the Federal Reserve should immediately purchase all the securities/liabilities owned by banks at a price close to the face value, and these assets should be sufficient to pay most of the deposits. If the Federal Reserve does not do so, people’s trust in the banking system will become a problem. Many banks have more than 50% of the uninsured deposits. This is not a bailout. The Federal Reserve is actually providing cash to end the run. In return, it will obtain long-term assets that…
-
FDIC to sell assets and uninsured deposits of Silicon Valley Bank customers
On March 12, according to people familiar with the matter, the Federal Deposit Insurance Corporation (FDIC) of the United States is selling assets and providin…
