Allegra Stratton – The stories you need to know about this evening Continue reading Bloomberg UK – stories to follow today

It looks like US Government will pay out $20bn to fund the discounted value. First Citizens Bank specialize in such discounted takeovers. First Citizens Bank will buy much of Silicon Valley Bank, US regulators said, as they estimated the lender’s collapse would lead to $20bn of losses for a deposit insurance fund paid for by banks. The Raleigh, North Carolina-based lender will take on all $119bn of deposits at SVB, the once high-flying lender to tech start-ups and their investors that failed this month. First Citizens will also take over SVB’s loans and operate its 17 branches, the Federal Deposit … Continue reading SVB takeover is closing in

https://on.ft.com/3JHKJ2C China has released a top chip investor after an eight-month detention as the country battles to bolster its semiconductor industry in the face of Washington’s containment efforts. Chen Datong, head of Yuanhe Puhua (Suzhou) Investment Management, also known as Hua Capital, was released this month as Beijing seeks help from chip experts to navigate tough western sanctions, according to two people with direct knowledge of the matter. Continue reading China releases top chip investor

The Swiss are not helping anyone with these new vehicles designated AT1 Capital Bonds. The AT designation refers to “ABOVE BASLE” implying they are bonds with quasi capital status. The implication is that investors are purchasing vehicles which are low risk for investors, but hold on there is a fundamental disagreement between the market and the regulator. Co-co bonds: the investment banker’s devilish new work of art Luckily, you never really knew the difference between a Co-Co- bond and a cup of sweet chocolaty liquid. So when the Swiss authorities pulled the rug from under the holders of SwF16bn of … Continue reading Co-co bonds: the investment banker’s devilish new work of art

A repeat of 2008 is unlikely, but investors worry (FT) about a potential credit squeeze 6 hours ago 2023-03-24 Traders on the floor of the New York Stock Exchange this week Traders on the floor of the New York Stock Exchange this week. Recent bank failures have largely been due to idiosyncratic exposures and poor management © Michael Nagle/Bloomberg It has been a frantic two weeks. The collapse of Silicon Valley Bank on March 10 sparked a domino effect that toppled another regional US lender, Signature Bank, spooked global markets, and led to the emergency takeover of Credit Suisse by … Continue reading The fallout from the banking turmoil

Government of Ontario 2023 budget A general and significant shift is reflected in increase in Health Care funding, immigration worker support and crime that reflects strains on the system from population growth and shifting demographic. Highlights summarised: Budget documents – Government site Continue reading Govt of Ontario 2023 budget

Pushpin makes the point that the BoE and Fed find themselves on a knife edge for future decisions and which might well introduce and exacerbate inflation which will impact all. I would add there is also the not insignificant point that Banks’ safety could well be made worse if we consider the chain of interest rates —> bond values —> bank balance sheets —> bank capital adequacy. Pushpin Singh is an economist at the CEBR picked up on reaction.life The US Federal Reserve (Fed) raised interest rates by 25 basis points bringing its federal funds rate to a range of 4.75% … Continue reading Fed and BoE increase rates despite banking turmoil

From Nyt breaking news There is no evidence provided to back up those accusations. The members of a House panel questioning Shou Chew, the video app’s C.E.O., appeared unconvinced by his insistence that American user data would be out of reach of the Chinese government. In an often scathing five-hour hearing today, the lawmakers accused TikTok of threatening U.S. national security and harming adolescents. Republican and Democratic lawmakers repeatedly asked Chew if TikTok — which is owned by Chinese internet giant ByteDance and used by 150 million Americans — was spying on Americans on behalf of the Chinese government. Chew … Continue reading Lawmakers lambasted TikTok’s chief executive about the platform’s ties to China.

Unfortunately the Congressional hearing displays the worst of government hearings with 80% targeted at voters and 20% or less aimed at actually gathering evidence from the testifier, in this case TikTok CEO Shou Chew. I see no way for Chew to answer the questions and concerns of the lawmakers in this format. Similarly the lawmakers know this and can go on tirades of invectives designed to justify the hearing and raising the worry about China amongst media present and voters. Chew promotes free speech and ecumenic benefit. The House committee expresses concern about the Chinese Government obtaining copies of American … Continue reading TikTok CEO testifies at Congress – implications for cost and quality