Tag: American economy
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What happens during a ‘credit crunch’ and how to prepare for it
A credit crisis is a sharp tightening of credit conditions at banks. Loans are harder to get and more expensive. The banking crisis caused by the failures of Silicon Valley Bank and Signature Bank is likely to lead small and medium-sized institutions to prioritize healthy balance sheets. The prospect of a recession caused banks to […]
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House lawmakers hold first hearing on bank failures
The House Financial Services Committee has announced that the first hearing on the bankruptcies of SVB and Signature Bank will take place on March 29. Martin J. Gruenberg, chairman of the board of directors of the FDIC, and Michael S. Barr, vice chairman for oversight of the board of directors of the Federal Reserve, will […]
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Is my money safe? Here are the ins and outs of FDIC insurance
The federal government this week helped clients of Silicon Valley Bank and Signature Bank get their money back even if their deposits were uninsured. If other institutions fail in the future, customers may need to turn to FDIC insurance, Treasury Secretary Janet Yellen said this week. Importantly, FDIC insurance has limits. Here’s how to make […]
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Demand for mortgages is rising despite volatile interest rates
Demand for mortgages increased for the second week in a row, despite some volatility in mortgage rates. Total application volume rose 6.5% last week compared to the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. The average contract rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) fell from […]
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SVB crisis may prompt BOJ to postpone changes: Ex-board member
Japan’s central bank could delay changes to its monetary policy in light of the turmoil the Silicon Valley Bank crisis caused in financial markets, Nomura Research Institute economist Takahide Kiuchi, who served on the Bank’s policy board from 2012 to 2017, told IPS. the Bank of Japan sat, against CNBC. And any change in his […]
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Bill Ackman says the US did the right thing by protecting SVB depositors
Billionaire investor Bill Ackman said the US government’s intervention to protect depositors after the Silicon Valley Bank implosion is “not a bailout” and helps restore confidence in the banking system. In a tweet, the CEO of Pershing Square said the fallout from the SVB on Monday indicated the government was doing the “right thing”. But […]
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Goldman Sachs no longer expects the Fed to raise rates in March
“In light of the stress in the banking system, we no longer expect the FOMC to hike rates at its next meeting on March 22,” Goldman economist Jan Hatzius said in a Sunday note. The company expects the latest measures to “provide significant liquidity to banks facing deposit outflows” and boost depositor confidence. Goldman Sachs […]
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investors await key jobs data
US Treasury yields fell Friday as investors awaited key jobs data that could affect future interest rate decisions from the Federal Reserve. At 4:28 am ET, the 10-year Treasury was trading at 3.8354% after falling nearly nine basis points. The yield on the 2-year Treasury fell more than seven basis points to 4.8285%. Yields and […]
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House hearing focuses on CFPB over junk charges
Signage at the Consumer Financial Protection Bureau (CFPB) headquarters in Washington, DC Andrew Kelly | Reuters WASHINGTON — Lawmakers on Thursday discussed ways to reform the country’s main consumer protection agency or stop funding altogether as the regulator focuses on illegal “junk fees” imposed on consumers. A subcommittee of the House Financial Services Committee is […]