SILICON VALLEY BANK RECESSION
What happens when your bank isn't really a bank and your money disappears?
The long-standing promise of bank insurance faces a crisis as online-only lenders with millions in deposits face turmoil, freezing customer accounts and leaving many in the dark about their money's fate. The complex web of blame, bankruptcy, and missing funds has left depositors struggling to recoup their life savings.
Banks ask RBI to ease liquidity rule to keep credit taps open
Indian banks are urging the industry regulator to relax the current liquidity coverage requirements. They believe easing these mandates will free up more funds for lending.
Instabase appoints Deepak Sharma to advisory board to drive expansion in India
Instabase announced appointment of Deepak Sharma to its advisory board to drive expansion plans in India. Sharma, a Mumbai-based digital leader and former President at Kotak Mahindra Bank, brings over two decades of expertise in scaling digital businesses. Anant Bhardwaj, CEO of Instabase, lauded Sharma's insights, highlighting his pivotal role in navigating India's digital landscape.
Jeff Bezos, Mark Zuckerberg lead the way in big tech insider stock sales
Almost a dozen executives and directors at the firms recently boosted their share sales, earning more than $160 million since late 2023 after not cutting their stakes in as long as nine years, according to data compiled by Bloomberg.
Tensions rise in Silicon Valley over sales of startup stocks
Tensions over the shadowy and often enigmatic market of private company stocks have reached a boiling point, just as the buying and selling of such shares has grown bigger than ever. At its center is an age-old debate: Should everyone have access to the riches and risks of investing in Silicon Valley startups?
Banks seek flexible reserve norms as RBI weighs risks
Lenders have asked the RBI to permit the compulsory portion of funds set aside for the maintenance of the Cash Reserve Ratio (CRR) to be made eligible as High Quality Liquid Assets (HQLA) for the purpose of computing Liquidity Coverage Ratio (LCR), sources aware of the developments told ET.
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RBI to revisit LCR framework in bid to shield banks from run
The central bank will issue a draft circular in this regard for comments of all stakeholders. Under the liquidity coverage ratio (LCR) introduced post the global financial crisis, banks are currently required to maintain a stock of high quality liquid assets (HQLA) to cover the expected net cash outflows in the next 30 calendar days.
Silicon Valley’s SPC plans India outpost; Holi spike for quick-commerce
Happy Tuesday! San Francisco-based South Park Commons is working with Flipkart’s cofounder Binny Bansal on its India expansion. Details on this and more in today's ETtech Morning Dispatch.
A year later, what are the lessons from Silicon Valley Bank’s epic collapse?
The collapse of SVB was swift and stunning, triggering days of sheer terror in Silicon Valley. Y Combinator’s Garry Tan warned that the failure could be an “extinction-level event” for tech startups.
Hit it out of the field: From Nadella to Narayen, tech honchos pad up for 2nd season of MLC to take sport to masses in US
Major League Cricket (MLC), co-owned by Satya Nadella, Shantanu Narayen, and Vijay Shekhar Sharma, aims to make cricket mainstream in the US. It is also backed by Indian Premier League (IPL) teams and investors like Mukesh Ambani. MLC’s first season was held in July last year at the Grand Prairie Stadium near Dallas, Texas, and on the Church Street Park ground in Morrisville in North Carolina, generating $2.8 million in ticket sales and attracting more than 70,000 spectators. About 30% of the spectators had flown into Dallas just for the tournament.
Revenue-linked financiers bet big on SaaS companies
Over the past month, revenue-based financiers such as GetVantage and Velocity have set aside a dedicated corpus of Rs 250 crore and Rs 300 crore, respectively, to meet the growing demand for this kind of debt financing in the software-as-a-service (SaaS) industry.
Silicon Valley startups had their worst funding year since 2019
Over the last 12 months, investors poured money into artificial intelligence startups, but the rest of the industry foundered. According to early data released by research firm PitchBook on Thursday, venture capitalists invested $170.6 billion in the US in 2023, over an estimated roughly 15,000 deals. That deal value is down by about 30% from 2022.
India strategically important for us, says NTT Global CEO Abhijit Dubey
Japan’s Nippon Telegraph and Telephone (NTT) Group views India as a strategically important market that houses its second largest employee population outside of Japan and has the potential to be among the company’s top revenue generators, its global CEO Abhijit Dubey told ET in an exclusive interview.
SoftBank takes Indian portfolio firm executives on Silicon Valley AI tour to study tech adoption
SoftBank took its India portfolio companies on an AI tour in Silicon Valley to meet senior officials from AI companies like OpenAI and Anthropic. The discussions focused on implementing AI tools in enterprises, best practices, and recent technology breakthroughs.
Want new generation with a fresh approach to lead Wipro: CEO Thierry Delaporte
Speaking to ET Thierry Delaporte says Wipro is focusing on weeding out unprofitable clients, strengthening teams to win large deals and attracting fresh talent with a new approach to transform profoundly for a long-term impact.
A Silicon Valley supergroup is coming together to create an AI device
The companies of Sam Altman and former Apple designer Jony Ive are teaming up to develop a device that would succeed the smartphone and deliver the benefits of AI in a new form factor.
Fixing oversight culture may be biggest challenge in averting future bank crises
U.S. regulators are facing the challenge of addressing examiners' reluctance to raise red flags in the banking system, a problem that has persisted for years. The postmortems on the failures of First Republic Bank, Silicon Valley Bank, and Signature Bank reveal that regulators identified major problems but acted too slowly.
US Federal Reserve will be mindful of the banking turmoil of March as it meets this week
The regional banking crisis that occurred earlier this year continues to have a lasting impact on the regional banking industry and the economy. The crisis caused a tightening of credit conditions. As a result, credit availability has tightened and loan spreads have widened. Torsten Slok, chief economist at Apollo Global Management, said the banking crisis had "a magnifying effect" on the Fed's tightening but its full impact would come with a lag.
Majority of small businesses believe US is in recession
The survey conducted in July from the National Federation of Independent Business focused mainly on small businesses' views on the state of banking and their credit needs, and also showed small businesses are much less worried about the health of their bank than they were in the immediate aftermath of this spring's bank failures, including that of Silicon Valley Bank.
Silicon Valley Bank subsidiary sold to management team
Healthcare investment firm SVB Securities announced Sunday that its management team would buy out the company from parent Silicon Valley Bank, the California-based lender whose brisk collapse in March shook financial markets.
Stock markets climbing wall of worry, little by little
The retreat of extreme pessimism in the world's biggest economy has been palpable. As of a May survey of economists by Bloomberg, the median probability for a recession within 12 months was around 65%. But now Goldman Sachs Group Inc. chief economist Jan Hatzius, who just cut his odds of a recession within 12 months to 25% from a previous 35%.
What makes gold more attractive for this Akshaya Tritiya than rising odds of a hard landing in US
Despite the highest inflation in 4 decades, slowing growth, and heightened geo-political tensions, gold’s performance in 2022 has disappointed many investors, writes Ravindra V.Rao, CMT, EPAT
Private equity investment into the Indian real estate sector declines amidst rising global recession concerns
“The dip in private equity investment inflows into the Indian real estate sector in Q1 is understandable, given the prevailing geo-political and economic global challenges and uncertainties The reduced global capital available for residential credit and development of office assets, which are mainstream real estate products in India, is another factor that will result in muted investment volumes,” said Diwakar Rana, Managing Director, Capital Markets, Savills India.
Jamie Dimon says banking crisis has increased the odds of a recession
Only a handful of lenders have the problems that toppled Silicon Valley Bank, and when the industry starts reporting quarterly earnings next week, the numbers will probably be good, JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon told CNN in an interview Thursday. Asked if more bank failures might come, he said he didn’t know. “But if there are, I know honestly they’ll be resolved and it will probably be the last of them,” Dimon said. “I think we’re getting near the end of this particular crisis.”
Global dealmaking sinks to lowest level in over a decade
A banking crisis that started in the United States this month with Silicon Valley Bank and spread to Europe with the Swiss government-orchestrated sale of Credit Suisse Group AG to UBS Group AG roiled markets and stopped many deals in their tracks, investment bankers and lawyers said.
Valley National Bancorp bidding for Silicon Valley Bank
The FDIC which now controls the Silicon Valley Bank assets, when asked for a comment on the report said it is not confirming or commenting on names being reported as potential bidders for SVB. Valley National Bancorp did not immediately respond to a request for comment.
Bank failures and rescue test Yellen's decades of experience
US Treasury Secretary Janet Yellen called on the expertise of former Treasury Secretary Hank Paulson to address a banking crisis earlier this month. Yellen used her experience as former Federal Reserve chair and economist to assemble a range of players, including the heads of regulatory bodies, lawmakers and bank executives. Calming Republicans in Congress was also vital, as they were concerned that the actions would lead to increased regulation.
On the brink of another financial crisis: Why people are worried about banks
The sudden collapses of Silicon Valley Bank and Signature Bank - the biggest bank failures since the Great Recession - have put the precariousness of lenders in stark relief. First Republic Bank was forced to seek a lifeline this past week, receiving tens of billions of dollars from other banks. And fears about the stability of the banking system hit Credit Suisse, the battered European giant.
SVB-Signature Bank collapse: Is a ripple effect in Indian bank stocks in the offing?
Global brokerage Macquarie also echoed the view saying that amid all the gloom and doom in global banks, Indian lenders are distinguished with hardly any exposure directly or indirectly to SVB.
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