SVB collapse latest: Silicon Valley Bank stock sales under scrutiny as Credit Suisse failure predicted

North Carolina Democrat Congressman Jeff Jackson has been widely praised for posting this two and half minute video to Twitter and TikTok clearly laying out the Silicon Valley Bank situation.

The historic failure of Silicon Valley Bank is likely the result of a host of compounded factors that have nothing to do with so-called “wokeness,” from Donald Trump-era cuts to regulations that were put in place during the last financial crisis to the bank’s untenable concentration in an explosion of venture capital firms and tech startups as it careened into reality, rising interest rates and panic.

Former Vice President Mike Pence has joined the choir of conservative voices trying to pin the Silicon Valley Bank collapse on Democrats while Democrats try to do the same to them.

In an editorial for The Daily Mail, Mr Pence takes aim at Joe Biden and the Democrats, claiming that “just like 2008,” the party has “increased spending by over $10 trillion” that “fueled record inflation, inevitably requiring the FED to raise interest rates.”

He laid some of the blame on the bank, which collapsed on Friday, and laced his criticisms with conservative media buzzwords.

Graig Graziosi reports on the former vice president’s commentary.

The market rally continues in New York with the Dow Jones Industrial average up 419 points (1.32 per cent) as of 10.45am ET.

The S&P 500 is up 1.9 per cent and the Nasdaq Composite has climbed 2.2 per cent.

After yesterday’s brutal pummeling of the share price of a number of regional banks, many have shown signs of recovery today with no signs of further bank runs since the federal government said it would effectively guarantee customer deposits.

Statement from President Joe Biden on February CPI Report

Today’s report shows annual inflation is down by a third from this summer at a time when the unemployment rate remains near a 50-year low. That is the slowest annual increase since September 2021. I will continue working to lower costs for hard-working Americans so they have a little more breathing room at the end of the month.

On that front, I am pleased at today’s announcement that, in line with my call, Novo Nordisk will be lowering their insulin prices by 75 percent, following Eli Lilley’s action. This builds on the important progress we made last year when I signed a law to cap insulin at $35 for seniors. I urge all other manufacturers to follow suit and Republicans in Congress to join us and cap insulin at $35 for all Americans.

As I’ve long said, and as challenges in the banking sector remind us, there will be setbacks along the way in our transition to steady and stable growth. But we face these challenges from a position of strength. More than 12 million jobs have been created since I took office and the share of working age adults in jobs or looking for work is the highest it has been in 15 years. We will continue to make progress in our fight to build an economy from the bottom up and middle out, not top down.

At the same time, I will do everything in my power to prevent us from going backwards on the progress we’ve made – including by standing up to Congressional Republicans who threaten economic catastrophe over the debt limit in order to secure tax cuts for the wealthy and large corporations and reckless cuts to critical programs that American seniors and families count on.

Facebook parent Meta is slashing another 10,000 jobs and will not fill 5,000 open positions as the social media pioneer cuts costs.

The company said on Tuesday it will reduce the size of its recruiting team and make further cuts in its tech groups in late April, and then its business groups in late May.

“This will be tough and there’s no way around that,” said CEO Mark Zuckerberg. “It will mean saying goodbye to talented and passionate colleagues who have been part of our success.”

Andrew Griffin has the full details.

A Wall Street expert has revealed which bank he believes will fail next, following the Silicon Valley Bank (SVB) collapse.

SVB folded on Friday after failing to raise new capital after it sold government bonds at heavy losses to reimburse customers withdrawing their cash.

Now Robert Kiyosaki, who accurately predicted the 2008 Lehman Brothers’ collapse, warned that Credit Suisse could be at risk as the volatile bond market crashes, with rising interest causing bonds to fall in price.

Several experts said the tools already announced, including a deposit guarantee at the two failed banks and a new Federal Reserve facility that can provide banks with liquidity on attractive terms, should address market concerns for now.

Silicon Valley Bank failed days after announcing it had to raise capital to offset losses brought on by rapid interest rate increases, and its extremely high level of uninsured deposits were quick to flee.

The experts said the measures announced Sunday are squarely aimed at both issues, giving banks easy access to emergency funds and sending a message that bank deposits, even uninsured ones, are safe.

Some dramatic steps, such as raising the $250,000 ceiling for FDIC deposit insurance, would require new laws from Congress, an uncertain prospect in a divided government where policymakers are already feuding over next steps.

“The Fed and Treasury have kind of shot their bazooka for now,” said Mark Sobel, a former senior US Treasury official who is US chairman of the London-based OMFIF financial think tank. “I think it’s a question of the market steadying out.”

Shares in US regional banks are rebounding after Monday’s sell-off, with First Republic up sharply in early Tuesday trading indicating concerns over the bank’s future may be easing.

The stock traded 52 per cent higher in premarket trading. Shares of other regional banks also surged before the opening bell, with PacWest jumping 44 per cent, KeyCorp up 16 per cent, and Zions Bancorp up 21 per cent.

After the opening bell in New York, the Dow Jones Industrial Average jumped more than 250 points and by 9.40am was up 328 points of more than 1.03 per cent.