Asia markets, Silicon Valley Bank, crypto

21 minutes ago

Silicon Valley Bank’s China Venture Says Balance Sheet ‘Independent’

The Chinese joint venture of shuttered bank Silicon Valley Bank said its operations have been “independent and stable” amid the collapse of its US parent last week

SPD Silicon Valley Bank is a 50-50 joint venture between Silicon Valley Bank and Shanghai Pudong Development Bank.

The bank said in a statement on its website that it has “always operated in a stable manner in accordance with Chinese laws and regulations with a standard governance framework and an independent balance sheet.”

“As China’s first technology bank, SPD Silicon Valley is committed to serving Chinese science and technology enterprises and always follows Chinese regulations for stable operation,” the bank added.

Laws and rules

— Lim Hui Jie

33 minutes ago

Biden tweets that regulators reached a ‘solution’ that protects the US financial system

President Joe Biden tweeted that US regulators have reached a “resolution” regarding matters related to Silicon Valley Bank and Signature Bank.

“The American people and American businesses can have confidence that their bank deposits will be there when they need them,” he said in a Twitter thread.

“I am firmly committed to holding those responsible for this mess fully accountable and to continuing our efforts to strengthen oversight and regulation of major banks so we are not in this position again,” Biden wrote in a tweet.

– Jihye Lee

51 minutes ago

Silicon Valley Bank fallout unlikely to affect growth outlook in Asia: Goldman Sachs

Goldman Sachs’ Asia-Pacific chief economist Andrew Tilton said the region’s economic outlook is unlikely to be affected by the fallout from the collapse of Silicon Valley Bank.

“To the extent that this is resolved relatively quickly by regulators and does not spread to additional entities beyond those that have been noted so far, then it is less likely that we will see a significant impact on Asia’s growth outlook,” Tilton told CNBC’s . “Squawk Box Asia.”

He reiterated the company’s forecast for China’s economy, stressing that it will be mostly driven by the reopening following its zero-Covid policy.

“We continue to expect growth of 5.5% for China this year, mainly driven by the reopening and probably less sensitive to this particular issue,” Tilton said.

– Jihye Lee

An hour ago

Dick Bove says depositors have lost faith in US banks

Veteran banking analyst Dick Bove said U.S. banks have lost credibility with average investors because of what he described as “accounting tricks,” he told CNBC’s “Squawk Box Asia.”

“The track record in the US is rubbish,” he said. Banks use “accounting gimmicks to avoid stating what the true equity is in these banks,” he added.

Bove further noted that the problems surrounding the collapse of Silicon Valley Bank were led by Federal Direct Loans.

“They have $110 billion in investments in U.S. government-backed securities, government bonds, mortgage-backed securities,” he said. “It’s not the loans that created the problem, it’s the US-backed securities that created the problem.”

– Jihye Lee

2 hours ago

Regulatory backstop for SVB failure aimed at protecting economy, officials say

Treasury Secretary Janet Yellen, Federal Reserve Chairman Jerome Powell and FDIC Chairman Martin J. Gruenberg issued a joint statement Sunday evening explaining their rationale for devising a plan to stop depositors and protect financial institutions with money at Silicon Valley Bank.

“We are taking decisive steps to protect the American economy by strengthening public confidence in our banking system,” the statement said. “This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a way that promotes strong and sustainable economic growth.”

Silicon Valley Bank filed for bankruptcy on Friday, marking the biggest bank failure since the financial crisis of 2008. This then raised concerns about other banks facing similar risks.

“The U.S. banking system remains resilient and on a solid foundation, in large part because of reforms enacted after the financial crisis that ensured better safeguards for the banking sector,” the officials said in a statement.

“These reforms combined with today’s actions demonstrate our commitment to take the necessary steps to ensure depositors’ savings remain safe,” they added.

— Fred Imbert

2 hours ago

Cryptocurrencies jump with stock futures, even after Signature Bank shutdown

Crypto rose with stocks as US regulators unveiled a plan to ensure depositors at Silicon Valley Bank would get their money after the bank’s spectacular collapse on Friday.

Bitcoin and ether each jumped about 7% after 6:30 p.m. ET, according to Coin Metrics.

The moves came even as New York’s Signature Bank was shut down by the New York State Department of Financial Services on Sunday, according to a joint statement from the Treasury Department, the Federal Reserve and the FDIC.

Signature Bank was another famous crypto-friendly institution and the second largest next to Silvergate, which announced its impending liquidation last week.

Its closure raises fears among crypto investors and entrepreneurs that the industry will be removed from the US banking system, leaving it without “on-ramps” that allow fiat money to flow into crypto assets. Silvergate and Signature helped solve this problem by creating easy banking and payment platforms for crypto businesses.

Wall Street analysts had maintained buy ratings on Signature Bank on Friday, despite the bad news about its peers earlier in the week.

– Tanaya Machel

3 hours ago

Futures jump after regulators announce backstop for SVB depositors

Futures extended their gains just before 6:30 p.m. ET after U.S. regulators unveiled a plan to stem the damage from the collapse of Silicon Valley Bank.

Dow futures were last higher by 297 points, or 0.9%. S&P 500 futures rose 1.1% and Nasdaq Composite futures rose 1.2%.

– Tanaya Machel

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