Popcorn week for the banks
British tech firms left on the brink after Silicon Valley Bank collapses in biggest failure since 2008 crash: Jeremy Hunt warns of 'serious risk' to UK businesses but promises help (and won't rule out bailout) after crisis talks with PM and Bank of England
Silicon Valley Bank's UK arm became insolvent on Sunday night after US failure
There are fears over largest failure of a US bank since the 2008 financial crisis
Chancellor Jeremy Hunt admits to a 'serious risk' to top British tech firms
But he promises help after late-night crisis talks with PM and Bank of England
https://www.dailymail.co.uk/news/article-11849995/Fears-existential-threat-British-tech-firms-collapse-Silicon-Valley-Bank.html
Chancellor in crisis talks on tech bank meltdown: Ministers and officials scramble to find a buyer as Silicon Valley Bank's UK arm is shut down
Collapse of SVB's US parent largest bank failure since the 2008 financial crisis
British arm set for insolvency unless there are significant new developments
Officials at BoE scrambling to find buyer in order to minimise disruption
https://www.thisismoney.co.uk/money/markets/article-11847803/Chancellor-crisis-talks-Silicon-Valley-Bank-meltdown.html?ico=mol_desktop_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html&_ga=2.26196029.1810299238.1678614088-1501235730.1678614088&_gl=1a33c8p_gaMTUwMTIzNTczMC4xNjc4NjE0MDg4_ga_XE0XLFFF16*MTY3ODYxNDA4Ny4xLjEuMTY3ODYxNDM3MC4wLjAuMA..
Rishi Sunak hails Britain's alliances as 'greatest source of strength' as he boards plane at
Stansted on way to America to meet Joe Biden - with PM preparing to unveil new foreign policy review that will 'address China's threat to Taiwan'
Rishi Sunak flying to San Diego, California, for talks with US President Joe Biden
Pair will be joined by Australia's Anthony Albanese to discuss submarine deal
https://www.dailymail.co.uk/news/article-11850077/Rishi-Sunak-hails-Britains-alliances-greatest-source-strength-heads-America.html
UK will test frightening 'Armageddon alarm' within weeks which will see thousands of people's phones flash and set off alarms
Millions will see their phone vibrate and sound an alarm as a warning of danger
The system is designed to warn people if there is a 'danger to life' nearby
https://www.dailymail.co.uk/news/article-11849317/UK-test-frightening-Armageddon-alarm-weeks.html
California wine industry faces financial crisis - with majority of vineyards locked out of their accounts amid SVB collapse
California wine industry faces crisis following the closure of Silicon Valley Bank the primary
financial institution for wineries in the region for nearly 30 years
A new bank, the National Bank of Santa Clara, has been created but it will only insure accounts up to $250,000
Impacts on wineries are significant, including the inability to make payroll, pay bills, process credit card payments, and continue with development projects
https://www.dailymail.co.uk/news/article-11847169/California-wine-industry-faces-financial-crisis-majority-vineyards-locked-accounts.html
'The government has 48 HOURS to fix a-soon-to-be-irreversible mistake': Billionaire investor Bill Ackman warns more banks will collapse and tens of thousands of jobs will be lost if SVB isn't bailed out - as CEO moans about feds taking control
Billionaire hedge fund manager Bill Ackman is predicting an economic meltdown following the collapse of Silicon Valley Bank
Ackman is urging the US government to take action to protect all of the bank's depositors fearing there could be a ripple effect across other smaller banks
Greg Becker, the CEO of SVB Financial Group, sent a video message to the bank's employees, acknowledging the bank's 'incredibly difficult' last 48 hours
https://www.dailymail.co.uk/news/article-11849813/Billionaire-investor-Bill-Ackman-warns-banks-collapse-tens-thousands-jobs-lost.html
Contagion spreads: Desperate customers line up outside First Republic Bank to take their money out - after SVB bank collapsed and sent shockwaves through market
First Republic Bank customers lined up to withdraw their money Saturday
This comes a day after the collapse of Silicon Valley Bank on Friday
Both banks are associated with California's wine and tech industries
https://www.dailymail.co.uk/news/article-11849049/Customers-line-outside-Republic-Bank-money-SVB-bank-collapsed.html
GO WOKE GO BROKE
While Silicon Valley Bank collapsed, top executive pushed ‘woke’ programs
A head of risk management at Silicon Valley Bank spent considerable time spearheading multiple “woke” LGBTQ+ programs, including a “safe space” for coming out stories, as the firm catapulted toward collapse.
Jay Ersapah, the boss of Financial Risk Management at SVB’s UK branch, launched initiatives such as the company’s first month-long Pride campaign and a new blog emphasizing mental health awareness for LGBTQ+ youth.
“The phrase ‘you can’t be what you can’t see’ resonates with me,’” Ersapah was quoted as saying on the company website.
https://nypost.com/2023/03/11/silicon-valley-bank-pushed-woke-programs-ahead-of-collapse/
Etsy sellers hit by Silicon Valley Bank collapse, payments delayed
The Silicon Valley Bank collapse is hitting moms and other small business owners who sell online on Etsy.
The Brooklyn-based commerce site notified shop owners that the deposits they were expecting Friday would be delayed “because of the recent developments regarding Silicon Valley Bank, who Etsy uses to facilitate disbursements to some sellers.”
The news led some shop owners to “freak out” and others to contemplate putting their storefronts on pause.
“They’re saying they’re going to try to pay us on Monday, but they’re not sure. So they’re just holding our funds and not paying us and that’s a little scary. Like I’m freaking out,” one Etsy seller vented on TikTok.
https://nypost.com/2023/03/11/etsy-sellers-hit-by-silicon-valley-bank-collapse/
Roku warns it has $487M held in deposits with Silicon Valley Bank
Streaming devices maker Roku said Friday it had about $487 million, or 26% of its cash and cash equivalents, held in deposits with SVB Financial Group, which has been closed down by California banking regulators.
Roku in a regulatory filing also said its deposits with SVB were largely uninsured, sending its shares down 10% in extended trading.
SVB was shuttered by banking regulators on Friday in a bid to protect depositors following a dive in the value of its investment holdings and a rush of withdrawal requests starting just two days ago.
Regulators appointed the Federal Deposit Insurance Corp. as receiver, which said that insured depositors will regain access to their deposits no later than Monday.
https://nypost.com/2023/03/10/roku-warns-487m-held-in-deposits-with-silicon-valley-bank/
Bankers This Week
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