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STOCK MARKET NEWS: Bank shares, First Republic sink after Silicon Valley Bank backstop,


Rivian, Amazon in talks to end exclusivity part of electric van deal: report

Symbol Price Change %Change
AMZN $90.49 -0.24 -0.27
RIVN $13.90 -0.26 -1.86

Electric-vehicle maker Rivian Automotive Inc and its largest shareholder Amazon.com Inc are in talks to end the exclusivity part of their electric van deal, the Wall Street Journal reported on Monday citing people familiar with the matter.

Online retailer Amazon had placed an order for 100,000 electric delivery vans (EDVs) from the Irvine, California-based EV maker in 2019, as part of the company’s plans to cut carbon emissions. It has taken deliveries and inducted the EDVs into its fleet, with over 10 million packages delivered using the vans.

Amazon informed the EV maker it wanted to buy about 10,000 vans this year, which was at the low end of a range it previously provided Rivian, the report added.

Rivian said it continues to work closely with Amazon. Shares of the EV maker fell around 3% in trading before the bell.

Coinbase says it has about $240M cash balance with Signature Bank

Symbol Price Change %Change
COIN $53.96 0.52 0.97
SIVB $106.04 -,161.79 -60.41

Coinbase Global Inc has about $240 million in corporate cash balance with Signature Bank, the U.S. crypto exchange
said in a tweet on Sunday, hours after the state regulators closed the New York-based lender.

“Due to FDIC’s hold on Signature’s transactions, we’re currently facilitating all client cash transactions with other banking partners,” the tweet added.

The closure comes just two days after California authorities shuttered Silicon Valley Bank, in a collapse that roiled global markets and left billions of dollars of deposits belonging to companies and investors stranded.

The U.S. Treasury Department and other bank regulators said in a joint statement that all depositors of Signature Bank will be made whole, and “no losses will be borne by the taxpayer.”

The Signature failure is the third largest in the U.S. history.

Despite stock selloff, Bitcoin stable

Bitcoin prices recovered somewhat after falling below the $20,000 level last week as Silicon Valley Bank was shutdown by the FDIC.

The emergency plan for the bank, announced Sunday by the Federal Reserve, FDIC and U.S. Treasury Department, firmed up prices.

Breaking News

Stocks sink in Silicon Valley Bank fallout

Symbol Price Change %Change
FRC $28.50 -53.26 -65.14
PACW $7.29 -5.06 -40.97
KEY $11.67 -3.99 -25.48
HBAN $10.82 -2.54 -19.04
BAC $28.14 -2.13 -7.02
JPM $129.91 -3.74 -2.80
SCHW $47.50 -11.20 -19.08

U.S. stocks fell across the board on Monday as investors sold financials following the collapse of Silicon Valley Bank Friday and the closure of Signature Bank over the weekend. Despite the emergency actions of regulators to protect depositors, investors remain skittish.   

Financial Select Sector Spdr Etf.

$

31.80

S&P 500 financial stocks tumbled, while smaller regional banks also saw heavy selling including First Republic, PacWest, KeyCorp, Huntington Bancorp. Larger firms were also under pressure with JPMorgan, BofA and Charles Schwab falling.

Biden hints he will seek stronger regulations on banks

President Biden suggested that he will seek stronger regulations on banks after the sudden collapse of Silicon Valley Bank sent shockwaves through the country, igniting fears of broader damage to the U.S. financial system.

The president did not provide any specific proposals.

“During the Obama-Biden administration, we put into place tough requirements on banks, like Silicon Valley Bank and Signature Bank, including the Dodd-Frank law, to make sure the crisis we saw in 2008 would not happen again,” Biden said during his brief, five-minute speech. 

Congress approved a bipartisan bill in 2018 dismantling parts of those banking rules, a move regarded as a big victory for small and mid-size banks. 

The rollback eased regulation on some big banks, granted consumers the right to free credit freezes and provided relief to smaller banks by softening the Volcker Rule, which prohibited banks from making their own investments with customers’ deposits.

“I am going to ask Congress and the banking regulators to strengthen the rules for banks to make it less likely this bank failure will happen again,” Biden said on Monday.

Biden expresses confidence in US banking system after SVB collapse

President Biden assured Americans on Monday morning that the U.S. banking system remains safe after U.S. regulators seized the assets of Silicon Valley Bank, roiling global financial markets and setting investors on edge.

“You can have confidence that the banking system is safe,” Biden said. “Your deposits will be there when you need them.”

Financial regulators closed Silicon Valley Bank – the 16th largest in the country – on Friday afternoon after a run on the bank, marking the largest U.S. bank failure since the global financial crisis in 2008.

Goldman Sachs pivots on rate hike forecast

Goldman Sachs is changing its outlook for future rates hikes, in the near-term, after the emergency backstop of Silicon Valley Bank threatens the stability of the U.S. economy.

Developing Story

First Republic Bank in crosshairs

Symbol Price Change %Change
FRC $81.76 -14.25 -14.84

First Republic Bank investors are scrambling, with the shares down double-digits, despite the Sunday night emergency backstop for Silicon Valley Bank depositors and the closing of Signature Bank.

Monday morning its executive team attempted to ease fears of a crunch.

Jim Herbert, Founder and Executive Chairman and Mike Roffler, CEO and President of First Republic Bank said, “First Republic’s capital and liquidity positions are very strong, and its capital remains well above the regulatory threshold for well-capitalized banks. As we have done since 1985, we operate with an emphasis on safety and stability at all times, while maintaining a well-diversified deposit base. First Republic continues to fund loans, process transactions and fully serve the needs of clients by delivering exceptional service.”

Inside the Silicon Valley Bank collapse

Fed’s close Signature Bank in SVB sweep

The Federal Reserve, the FDIC and the U.S. Treasury Department wrapped Signature Bank into the backstop emergency plan to stabilize Silicon Valley Bank and its depositors. The bank will close. 

Pfizer to buy Seagen in $43B deal

Pfizer on Monday announced it will acquire biotechnology company Seagen in a deal valued at $43 billion to boost it’s portfolio of cancer treatments.

“Together, Pfizer and Seagen seek to accelerate the next generation of cancer breakthroughs and bring new solutions to patients by combining the power of Seagen’s antibody-drug conjugate (ADC) technology with the scale and strength of Pfizer’s capabilities and expertise,” Pfizer CEO Albert Bourla said in a statement.

The deal, Pfizer’s largest since its $67 billion acquisition of Wyeth in 2009, will add four approved cancer therapies with combined sales of nearly $2 billion in 2022.

“The proposed combination with Pfizer is the right next step for Seagen to further its strategy, and this compelling transaction will deliver significant and immediate value to our stockholders and provide new opportunities for our colleagues as part of a larger science-driven, patient-centric, global company,” Seagen CEO David Epstein said in a statement.

Pfizer has offered $229 in cash per Seagen share, a 32.7% premium to Friday’s closing price.


Reuters contributed to this report

Silicon Valley Bank collapse hits companies such as Camp, Compass Coffee

Kids retailer Camp and coffee company Compass Coffee are among businesses affected by the shutdown of Silicon Valley Bank.

Camp wrote Friday on Instagram that its bank “got shut down by regulators” and that it was offering 40% discounts on products online when customers used a promotional code.

“We’re asking that you RUN, don’t walk to our BANKRUN sale,” the company wrote on Instagram.

Kaufman told FOX Business in an email the company doesn’t “know when we can access our cash.” He said there has been an “outpouring of customer support which will hopefully see us through” the situation. Camp is “hopeful it will be resolved by someone swooping in and restoring balances,” according to Kaufman.

The District of Columbia-based Compass Coffee, meanwhile, faced impact in connection to its payroll, according to an email from CEO Michael Haft that was obtained by FOX Business.

Haft said in the email that Compass Coffee’s payroll provider was “severely impacted” by the collapse of Silicon Valley Bank, with the coffee company learning its payroll “was not processed by the bank as planned” this week. 

Biden ‘pleased’ with Feds’ response on Silicon Valley Bank collapse, set to soon address deposits an

President Biden said on Sunday that he is “pleased” with how the Treasury Department and other agencies responded in the wake of the Silicon Valley Bank collapse
, the second-biggest bank failure in U.S. history.

“At my direction, [Treasury Secretary Janet] Yellen and my National Economic Council Director worked with banking regulators to address problems at Silicon Valley Bank and Signature Bank,” Biden noted on Twitter Sunday night. “I’m pleased they reached a solution that protects workers, small businesses, taxpayers, and our financial system.”

The president also vowed accountability for those responsible, without specifying any particular actions his administration would take.

Biden is expected to speak on the SVB collapse on Monday morning.

Treasury, Federal Reserve, FDIC release joint statement mapping out approach to Silicon Valley Bank

Depositors of the Silicon Valley Bank will have access to all of their money – following the bank’s failure on Friday – at no loss to American taxpayers, the Treasury Department, Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC) said in a joint statement Sunday.

“Today we are taking decisive actions to protect the U.S. economy by strengthening public confidence in our banking system,” the joint statement read. “This step will ensure that the U.S. banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth.” 

The statement said Treasury Secretary Janet Yellen
had approved actions enabling the FDIC to complete its resolution of SVB “in a manner that fully protects depositors.” Depositors will have access to all of their money starting Monday, March 13. The taxpayer will bear no losses associated with the resolution of SVB. 





Read More: STOCK MARKET NEWS: Bank shares, First Republic sink after Silicon Valley Bank backstop,

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