Tag Archives: Banks

Following the collapse of Silvergate bank – one of the two main banks providing financial services to crypto platforms – former clients began pivoting to competitor Signature, only for the latter to be seized by U.S. authorities, citing significant liquidity issues. Significant Crypto Exposure Faced with a public lack of trust in the banking sector, U.S. authorities decided over the weekend to place Signature Bank in receivership, informing its leadership mere hours before...

Companies willing to acquire the troubled Signature Bank will reportedly have to give up its cryptocurrency business. Those interested in purchasing the financial institution or Silicon Valley Bank (SVB) can submit bids by March 17.  Both entities, which acted as main lenders for numerous crypto organizations, revealed operational difficulties earlier this week, prompting American regulators to close them down. The Necessary Condition: Forget About Crypto According to a...

A consortium of 11 major U.S. banks has agreed to invest $30 billion into First Republic Bank – a regional US bank that showed signs of destabilization this week following Silicon Valley Bank (SVB)’s collapse.  The uninsured deposits come from Bank of America, Citigroup, JPMorgan Chase, Wells Fargo, Goldman Sachs, Morgan Stanley, Bank of New York Mellon, PNC Bank, State Street, Truist, and U.S. Bank. As reported by Yahoo Finance, the former four banks each contributed $5...

On March 14, the bank Anchorage Digital announced the layoff of 20% of its workers due to the crypto winter and regulatory uncertainty in the US. According to the official statement, the departure of 75 of its employees (approximately 20% of its team) is necessary to focus its resources on other essential processes. This is the latest development in a series of events that have affected both the banking and the crypto industry as a whole. 2023 has been marked by the closures...

Credit Suisse shares plummeted to another all-time low of just 1.65 CHF ($1.79) on Wednesday after its largest shareholder – Saudi National Bank (SNB) – said it would not be able to purchase more shares of the company. The 30% drop has been coupled with widespread fear that Credit Suisse could be on the brink of default. Another Bank Run? Saudi National Bank is barred from investing more into the struggling bank due to regulatory constraints, SNB chairman Ammar Al Khudairy...

Coinbase is ramping up its expansion effort, with Singapore being the first stop. As part of its ambitious plan, the crypto exchange has announced forging a strategic banking partnership with Standard Chartered in the city-state to provide its users with an option to move funds between any lender and Coinbase. The news comes amidst the crypto industry losing a number of banking on- and off-ramps due to the recent turmoil in the US banking industry. Coinbase-Singapore...

Cardano’s Founder – Charles Hoskinskon – believes the cryptocurrency industry should differentiate itself from the “unstable and volatile” banking sector. Three of America’s leading financial institutions – Silvergate Capital, Silicon Valley Bank, and Signature Bank – were shut down by regulators earlier this month, propelling severe losses for numerous crypto-focused firms. In a recent tweet, Hoskinson opined that crypto should stay away from traditional banking since the...

Both the Securities and Exchange Commission (SEC) and Department of Justice (DOJ) are reportedly investigating the now-collapsed Silicon Valley Bank (SVB) after depositors to the bank were bailed out by regulators on Sunday.  The separate investigations will both examine the stock sales of SVB’s executives moments before the bank collapsed. The agencies’ investigations are still at a preliminary stage and will not necessarily lead to allegations or charges, according to the...

Barney Frank – a board member for Signature Bank and former member of U.S. Congress – believes the government had “no objective reason” to force his company into receivership on Friday. Rather, he interpreted the action as an attempt by regulators to “send a very strong anti-crypto message,” throughout the country.  Why Close Down Signature? In a phone interview with CNBC, Frank said that Signature Bank’s customers withdrew $10 billion from the firm in a bank-run style panic...

While the Fed may have bailed out Silicon Valley Bank (SVB)’s depositors on Monday, the market’s uncertainty surrounding the entire banking sector still loom large.  Trading for multiple banking organizations was halted on Monday due to share price volatility, much like SVB last Friday.  According to Nasdaq Trader, trading for Charles Schwab – a multinational financial services company with $7.8 trillion in assets under management – was halted on the NYSE at 9:49 am EDT on...