Fed’s Powell vs Inflation vs Markets

Fed’s Powell vs Inflation vs Markets

Fed Chairman Jerome Powell at yesterday’s press conference. Photo: Alex Wong/Getty Images On Wednesday afternoon, the Federal Reserve did more than raise interest rates for the ninth consecutive time in the face of a banking crisis. He also claimed that his plans for the year remain more or less intact and that nearly all of … Read more

Bank stocks tumble after Fed hikes rates

Bank stocks tumble after Fed hikes rates

Financial stocks fell on Wednesday after the Federal Reserve raised interest rates by an expected quarter point and signaled that it was not too worried that the collapse of several banks this month would reverberate on the rest of the sector and the economy. KBW Nasdaq Commercial Banks Index and SPDR S&P Regional Banking ETF … Read more

House prices fell in February, ending a decade of consecutive year-over-year increases

House prices fell in February, ending a decade of consecutive year-over-year increases

washington d.c. CNN — The median U.S. home price was lower in February than it was in February 2022, ending more than a decade of year-over-year increases, the longest never registered, according to a National Association of Realtors report released Tuesday. The median price for existing homes was $363,000 in February, down 0.2% from a … Read more

SVB’s collapse was ‘Lehman moment for technology’: Goldman Sachs

SVB’s collapse was ‘Lehman moment for technology’: Goldman Sachs

An employee gets into his car after arriving for work at a closed Silicon Valley Bank (SVB) headquarters on March 10, 2023 in Santa Clara, California. Justin Sullivan | Getty Images News | Getty Images The Silicon Valley Bank collapse was a “Lehman moment” for the tech industry, according to a prominent Goldman Sachs trader. … Read more

Treasury Secretary Yellen says government could support more deposits if needed

Treasury Secretary Yellen says government could support more deposits if needed

United States Treasury Secretary Janet Yellen testifies before the Senate Finance Committee on the proposed 2024 budget request, on Capitol Hill in Washington, DC, March 16, 2023. Andrew Caballero – Reynolds | AFP | Getty Images Treasury Secretary Janet Yellen said on Tuesday the government was ready to provide new deposit guarantees if the banking … Read more

European CoCos banks under pressure after Credit Suisse sale to UBS triggers historic loss on specialty bonds

European CoCos banks under pressure after Credit Suisse sale to UBS triggers historic loss on specialty bonds

Posted: March 20, 2023 3:14 PM ET Risky debt issued by several European banks in response to the 2008 global financial crisis was under heavy pressure in New York trading on Monday after regulators orchestrated a sale from Credit Suisse to UBS, triggering a historic writedown in specialty bonds the process. Debt issued by Barclays … Read more

JPMorgan CEO Jamie Dimon leads efforts to craft new rescue plan for First Republic Bank

JPMorgan CEO Jamie Dimon leads efforts to craft new rescue plan for First Republic Bank

Discussions, though preliminary, have focused on how the industry could arrange an investment that would increase the bank’s capital, according to people familiar with the matter. Among the options on the table, people said, is investment in the First Republic by the banks themselves. Eleven major banks banded together last week to deposit $30 billion … Read more

US stocks gain, but First Republic Bank slips

US stocks gain, but First Republic Bank slips

As of 4 p.m. ET, the Dow Jones Industrial Average added about 380 points, or 1.2%, and the S&P 500 rose 0.9%. The technology-focused Nasdaq Composite climbed 0.4%. The indices fell on Friday but have been relatively insulated from the banking crisis so far. Authorities sought to stem a dangerous decline in confidence in the … Read more

Senator Elizabeth Warren calls for an independent inquiry into the Fed and banking regulation

Senator Elizabeth Warren calls for an independent inquiry into the Fed and banking regulation

Posted: March 19, 2023 7:05 PM ET Senator Elizabeth Warren is calling for an independent investigation into the Federal Reserve and “the entire regulatory system” after the worst banking sector crisis in more than a decade. Speaking on ABC News’ “This Week” on Sunday, the Massachusetts Democrat said the chaos of the past two weeks … Read more

The Fed raised concerns about SVB’s risk management in 2019

The Fed raised concerns about SVB’s risk management in 2019

WASHINGTON — The Federal Reserve raised concerns about risk management at Silicon Valley Bank at least four years before its failure earlier this month, documents show. In January 2019, the Fed issued a warning to SVB SIVB -60.41% on its risk management systems, according to a presentation released last year to employees of SVB’s venture … Read more