Wall Street Today | US Says All SVB Deposits Safe, Creates New Backstop for Banks
MACRO
Fed Rate Outlook Overshadowed as SVB Collides With Jobs Report
A hard job just got harder for the Federal Reserve after the biggest US bank failure since 2008 overshadowed another strong payroll report.
Officials weighing if February’s jobs data boosted the case for a half-point rate hike this month must now also consider if the collapse of Silicon Valley Bank gives grounds for caution that they cannot ignore. “The market and banking sector turmoil will be a strong argument in favor of 25 basis points,” said Stephen Stanley, chief US economist for Santander US Capital Markets.
SECTORS
US Says All SVB Deposits Safe, Creates New Backstop for Banks
US financial regulators moved on Sunday to protect depositors’ funds following the collapse of $SVB Financial (SIVB.US)$ and set up a new financial backstop, seeking to stem fears that households and businesses would flee smaller lenders.
The Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. jointly announced the efforts Sunday aimed at strengthening confidence in the banking system after SVB’s failure spurred concern about spillover effects.
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Oil Advances as US Seeks to Calm Markets After Banking Turmoil
Oil climbed at the start of the week as US regulators moved to assure depositors their money is safe following trouble in the banking sector, easing concerns about the turmoil rippling across markets. West Texas Intermediate rose for a second day toward $77 a barrel.
The Oscar Box Office Bump Is Shrinking
The winner of the best picture award at Sunday's Oscars may not get a box office bump for taking home the night's biggest prize.
It's part of Hollywood's evolution. The Covid pandemic and the rise of streaming have fundamentally altered the industry. The result has been a smaller bump in box office at the time of nominations and a significant surge in streaming demand.
COMPANY
Regulators Close Signature Bank, Say Depositors of Silicon Valley, Signature to Be Made Whole
After a dramatic few days in the banking industry, regulators stepped forward Sunday to restore faith in the banking system and said that depositors of now-defunct Silicon Valley Bank would be made whole as will depositors of $Signature Bank (SBNY.US)$, which also was closed.
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SVB Financial CEO Sold $3.6M in Shares Prior to Bank's Collapse
Prior to shares falling, several SVB Financial Group insiders sold shares of the stock, a move that is now drawing attention from investors and on social media.
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American Express and 4 More Companies That Raised Their Stock Dividends This Week
$American Express (AXP.US)$, $Oracle (ORCL.US)$, and $Johnson Controls (JCI.US)$ were among the large U.S. companies that declared dividend increases this week. It was a fairly light week for such announcements, with earnings season having slowed down.
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FAA Clears Boeing To Resume Deliveries Of 787 Dreamliners After Weekslong Pause
$Boeing (BA.US)$ can resume deliveries of its 787 Dreamliners as early as next week, the Federal Aviation Administration said.
Boeing said it completed the work on the wide-body jetliners required in order to resume deliveries, which were halted Feb. 23 after a data-analysis error was detected. The company’s shares rose on the news that the issue was resolved and were trading higher late in the session.
Source: Bloomberg, CNBC, Benzinga
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Nord : I smell a bailout!
Ixy The Cat : FDIC can only cover a small fraction of customer deposits. So there will be some losses.
joeyboulevard : @AmyNic
joeyboulevard : I thought Goldman Sachs agreed to buyout at $94/share
727727727 Ixy The Cat : US government just said they'll cover everything. Total joke. Who still thinks the US is a free market capitalist state? Any time a company goes out of business, the government makes everybody whole... no negative consequences for utterly failing at business. Insiders liquidate their stock and pay themselves bonuses right before it imploded. They should be broke and go to jail. Properly insured depositors should be made whole, risk takers took their risk and lost. Boohoo. I have less faith in the banking industry when there is no incentive to run your bank well.
Ixy The Cat 727727727 : They are gonna screw the customer. The term is "bail in". Look it up.
Ixy The Cat : From CNBC:
Veteran bank analyst Dick Bove said American banks have lost credibility with average investors due to what he described as “accounting tricks,” he told CNBC’s “Squawk Box Asia.”
“The accounting of banking in the United States is garbage,” he said. Banks are using “accounting gimmickry to avoid indicating what the true equity is in these banks,” he added.
Bove further noted that the problems around Silicon Valley Bank’s collapse was led by Federal Direct Loans.
“They have $110 billion of investments in U.S. government-backed securities, the treasuries, the mortgage-backed securities,” he said. “It isn’t the loans that created the problem, it is the U.S.-backed securities that created the problem.”
Ixy The Cat joeyboulevard : Anyone's guess what the true value is in the midst of this fire sale.
joeyboulevard Ixy The Cat : so do you see bouncing or floor falling out from us?
Ixy The Cat joeyboulevard : A lot of banks have liquidity issues. Toxic car loans, high consumer debt levels and risks of default in a high inflation environment is bad for banks bottomlines. So I'm bearish on US banks. Only have a bit of JPMORGAN in my portfolio, but we know it isn't a bank but a criminal organization, lol
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