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
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
A tumultuous week in U.S. financial markets ended on an uncertain note on Friday after a massive injection of $30 billion in deposits from major banks into First Republic Bank failed to calm investors. Last week, the sudden collapse of three US banks – Silvergate Capital, Signature Bank SBNY and Silicon Valley Bank – began … Read more
Silicon Valley Bank executives went to Goldman Sachs Group Inc. GS -3.09% end of February looking for advice: they needed to fundraise, but weren’t sure how to do it. Soaring interest rates had weighed heavily on the bank. Deposits and the value of the bank’s bond portfolio had fallen sharply. Moody’s Investors Service was preparing … Read more
WASHINGTON — The Federal Reserve is overhauling a number of its own rules for midsize banks following the collapse of two lenders, potentially expanding restrictions that currently only apply to Wall Street’s biggest firms. A series of stricter capital and liquidity requirements are being considered, along with measures to strengthen the annual “stress tests” that … Read more
WASHINGTON — The Justice Department and the Securities and Exchange Commission are investigating the collapse of Silicon Valley Bank, people familiar with the matter say, after the California lender was taken over by regulators last week amid a historic race on its deposits. The separate investigations are in their preliminary stages and cannot lead to … Read more
The new funding gives the bank, which was under pressure following the collapse of SVB Financial Corp. SIVB -60.41% last week, $70 billion of idle cash. That doesn’t include money First Republic can borrow through a new Fed lending facility designed to help banks deal with withdrawals. “First Republic’s capital and liquidity positions are very … Read more
Bank of the First Republic FRC -14.84% came under renewed pressure amid Friday’s collapse of Silicon Valley Bank as investors tried to determine which other banks might face similar risks. First Republic shares fell 52% in early trading before recovering to near the previous day’s closing level, only to end the day down 15%. Investors … Read more
SANTA CLARA, Calif. — Silicon Valley Bank collapsed Friday in the second-largest bank failure in U.S. history after a run on deposits doomed the tech-focused lender’s plans to lift new capital. The Federal Deposit Insurance Corp. said it took control of the bank through a new entity it created, Deposit Insurance National Bank of Santa … Read more
