By Hanna Ziady, CNN Silicon Valley Bank collapsed with astounding speed on Friday. Investors are now on edge about whether its demise could spark a broader banking meltdown. The US federal government has stepped in to guarantee customer deposits, but SVB’s downfall continues to reverberate across global financial markets. The government has also shut down
Continue Reading By Anna Cooban, CNN Investors dumped European bank stocks for a third straight day Monday, despite dramatic moves over the weekend by the US and UK governments to shore up confidence in the financial system following Friday’s collapse of Silicon Valley Bank. Europe’s benchmark Stoxx Europe 600 Banks index, which tracks 42 big EU and
Continue Reading By Parija Kavilanz, CNN Business Kraft Heinz has succeeded in getting its ready-to-eat packaged Lunchables into school lunch programs starting this fall, in a major new initiative. But the company had to reformulate the ingredients to ensure the products meet federal guidelines first. This would mark the first time Lunchables are directly entering schools, the
Continue Reading By Ramishah Maruf and Allison Morrow, CNN This week, the go-to bank for US tech startups came rapidly unglued, leaving its high-powered customers and investors in limbo. Silicon Valley Bank, facing a sudden bank run and capital crisis, collapsed Friday morning and was taken over by federal regulators. It was the largest failure of a
Continue Reading By Laura He, CNN China’s Andon Health, a maker of medical devices, says it has full access to funds parked at Silicon Valley Bank, after the US government intervened to backstop all the deposits at the failed lender. The Tianjin-based company, which manufactures consumer health devices and supplied Covid test kits to the United States
Continue Reading By Anna Cooban, CNN Investors dumped European bank stocks for a third straight day Monday, despite dramatic moves over the weekend by the US and UK governments to shore up confidence in the financial system following Friday’s collapse of Silicon Valley Bank. Europe’s benchmark Stoxx Europe 600 Banks index, which tracks 42 big EU and
Continue Reading By Nicole Goodkind, CNN Understanding the economy is a complicated task, and even the experts are struggling to answer seemingly simple questions like “Are we on the brink of a recession?” or “Why isn’t inflation falling faster?” Many have resorted to the use of metaphor to convey the current complexity of the economy. It’s a
Continue Reading By Allison Morrow, CNN Wall Street’s confidence in regional banks remained shaky Monday, despite emergency measures from the Biden administration to protect customer deposits. First Republic shares fell more than 60% and were briefly halted for volatility. Western Alliance Bancorp’s stock also fell 47%, and PacWest Bancorp fell more than 20%. The SPDR S&P Regional
Continue Reading By Matt Egan, CNN Sheila Bair, a top banking regulator during the 2008 financial crisis, says the stunning implosion of Silicon Valley Bank is exactly why the Federal Reserve needs to halt its war on inflation. “The Fed needs to hit pause and assess the full impact of its actions so far before raising short
Continue Reading By Hanna Ziady, CNN Silicon Valley Bank collapsed with astounding speed on Friday. Investors are now on edge about whether its demise could spark a broader banking meltdown. The US federal government has stepped in to guarantee customer deposits, but SVB’s downfall continues to reverberate across global financial markets. The government has also shut down
Continue Reading By Laura He, CNN China’s new premier has tried to reassure the private sector in his debut press conference, as concerns grew about the country’s future policy direction with the introduction of a new cabinet loyal to leader Xi Jinping. Li Qiang, a long-time aide to Xi, officially succeeded Li Keqiang as premier over the
Continue Reading By Laura He, CNN China’s new premier has tried to reassure the private sector in his debut press conference, as concerns grew about the country’s future policy direction with the introduction of a new cabinet loyal to leader Xi Jinping. Li Qiang, a long-time aide to Xi, officially succeeded Li Keqiang as premier over the
Continue Reading By Michelle Toh, Rob North and Olesya Dmitracova, CNN HSBC has scooped up the UK arm of failed Silicon Valley Bank, securing the deposits of thousands of British tech firms that hold money at the lender. Had a buyer not been found, SVB UK would have been placed into insolvency by the Bank of England
Continue Reading By Michelle Toh and Anna Cooban, CNN US stock futures were holding steady Monday after an extraordinary move by US financial regulators to restore confidence in the country’s banking system. S&P 500 futures gave up their overnight gains to trade flat and Nasdaq futures were 0.32% higher Monday morning. Dow futures, which rose in early
Continue Reading By Laura He, CNN The collapse of Silicon Valley Bank (SVB), which courted Chinese start-ups, has caused widespread concern in China, where a string of founders and companies rushed to appease investors by saying their exposure was insignificant or nonexistent. SVB, which worked with nearly half of all venture-backed tech and healthcare companies in the
Continue Reading By Oliver Darcy, CNN Andrew Ross Sorkin woke up early Monday morning, long before the crack of dawn, after managing to sneak in a handful of hours of sleep. The New York Times columnist had been up late into the night working on his DealBook newsletter. And now he needed to rise for a special
Continue Reading By David Goldman, CNN In an extraordinary action to restore confidence in America’s banking system, the Biden administration on Sunday guaranteed that customers of the failed Silicon Valley Bank will have access to all their money starting Monday. In a related action, the government shut down Signature Bank, a regional bank that was teetering on
Continue Reading By David Goldman, CNN Silicon Valley Bank failed in rapid, stunning fashion Friday. This week, the tech and banking sector are growing skittish about the next shoe to drop. What took place Friday was an old-fashioned bank run: Customers yanked $42 billion from Silicon Valley Bank on Thursday, leaving the bank with $1 billion in
Continue Reading By Ramishah Maruf, CNN The US Federal Deposit Insurance Corporation offered Silicon Valley Bank employees 45 days of employment and 1.5 times their salary, reports say. An FDIC official did not comment on the details to CNN, but said it is standard practice and one of the first steps the independent government agency takes after
Continue Reading By Nicole Goodkind, CNN Silicon Valley Bank’s collapse last week sent tingles of panic down investors’ spines as it highlighted a larger problem across the banking sector: The widening gap between the value large lenders place on the bonds they hold and what they’re actually worth on the market. SVB’s downfall was tied, in part,
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