Latest from Olie D'Albertanson

• Mar 16, 2023

  The threat of “moral hazard” post-SVB collapse

  

  Part of the government’s rescue actions amid the collapse of Silicon Valley Bank and Signature Bank was the establishment of a new Fed emergency lending program for banks in crisis. According to analyst Joseph Wang, the program could incentivize riskier behavior at banks. Credit Suisse, one of the world’s largest banks, has been extended a lifeline by the Swiss central bank. And, Biden administration has proposed stricter standards to regulate so-called “forever chemicals” in drinking water.

  Read MoreSaveShareDownload
• Mar 16, 2023

  Credit Suisse thrown a lifeline

  

  From the BBC World Service: Credit Suisse shares have bounced back after a $54bn vote of confidence from Switzerland’s central bank. But how will volatility in the banking sector affect an interest rate decision due today from the European Central Bank? Plus, in the Netherlands a farmers’ protest party has emerged as the big winner in provincial elections. They’ve been campaigning against government plans to buy livestock farms with the aim of cutting ammonia and nitrogen oxide emissions.

  Read MoreSaveShareDownload
• Mar 15, 2023

  Why are people skittish on banks even if they hold “safe” assets?

  

  One of the many questions around the two recent U.S. bank failures is why depositors became so spooked even when their bank held supposedly-safe assets like Treasury bonds. The answer, says Susan Schmidt, is largely because of those bonds’ decreased value because of higher interest rates. Credit Suisse, one of the world’s largest financial institutions, saw its stock nosedive this morning after it revealed it had been audited for shoddy accounting practices. And, a look at why sustainable versions of popular products are finding a growing niche in the market. 

  Read MoreSaveShareDownload
• Mar 15, 2023

  World Bank chief nominee underscores climate change fight

  

  Ajay Banga, the former CEO of Mastercard and U.S. nominee for the World Bank presidency, is on a global “listening tour” to garner support for his bid. While speaking with global business and government leaders, one thing he underscored was the importance of the fight against climate change in the upcoming years. Mortgage rates have been down in recent days amid unease about the financial sector following the collapse of two U.S. banks. And, a look at how hip-hop was shaped by economic pain in 1970s New York City. 

  Read MoreSaveShareDownload
• Mar 15, 2023

  Despite Credit Suisse rumblings, Europe says its banks are resilient

  

  From the BBC World Service: The European Union’s banking regulator says it doesn’t see “any threat to financial stability of European Banks”, following the collapse of SVB. We ask an economics professor at a French business school why European banks are less likely to fail. We spoke to him before Credit Suisse’s shares collapsed after a major shareholder said it would not continue to invest. Also, the UK Government will be hoping for less turmoil as it prepares to announce its budget; the last one led to the pound reaching record lows and cost the then Prime Minister her job. Plus, we report from Beirut where the Lebanese currency is in freefall.

  Read MoreSaveShareDownload
• Mar 14, 2023

  Inflation is still high. But will the Fed raise rates next week?

  

  The SVB banking mess complicates the Federal Reserve’s path forward on interest rates — there are concerns about higher rates putting stress on the financial system, but the latest Consumer Price Index shows that inflation is still too high. Jeffrey Cleveland of Payden & Rygel has more. The banking crisis has prompted questions around whether regulators failed to detect — or act upon — red flags in either of the failed banks, explains Wharton professor Peter Conti-Brown. And, last week’s jobs report showed that women are becoming increasingly involved in the labor force after a pandemic-era dip.

  Read MoreSaveShareDownload
• Mar 14, 2023

  Who will pay the bill for these bank failures?

  

  Since the government takeover of the failed Silicon Valley and Signature banks, questions have been swirling about where the money is coming from to ensure depositors’ money. We look at the agencies involved and how costs may eventually be passed on to consumers, despite officials’ assurances to the contrary. Amid the SVB crisis, there’s also been a reckoning about the rules and oversight that govern small and medium-sized financial institutions. And, schools in parts of Maine are seeing an unexpected drop in funding because of higher property values in surrounding communities. 

  Read MoreSaveShareDownload
• Mar 14, 2023

  HSBC boss after SVB acquisition: You can bank on us

  

  From the BBC World Service: With global markets still reeling from the failure of Silicon Valley bank, we hear from the CEO of HSBC who bought the UK arm for £1 on Monday. BBC Beijing correspondent Stephen McDonnell reports from China where the doors to foreign visitors will open from next week. Plus, is there hidden Nazi gold in a Dutch town? The BBC’s Anna Holligan has been to find out.

  Read MoreSaveShareDownload
• Mar 13, 2023

  Biden: SVB deposits and banking system “safe”

  

  President Biden, in remarks delivered Monday morning, said that the U.S. banking system is “safe” and that depositors at the failed Silicon Valley and Signature banks would have full access to their deposits. The president’s messaging comes amid a wider campaign by federal officials to tame potential panic over this weekend’s banking debacle, according to Marketplace’s Sabri Ben-Achour. And, we got in touch with economist Julia Coronado to discuss how higher interest rates — which have come after a sustained period of near-zero rates — could have contributed to the crisis. 

  Read MoreSaveShareDownload
• Mar 13, 2023

  Three days later, what’s come of the SVB takeover?

  

  Since the collapse — and subsequent government takeover — of Silicon Valley Bank on Friday, the fallout on the wider financial system has led to a new federal lending program and the shutdown of Signature Bank. We talk with Karen Petrou, managing partner at Federal Financial Analytics, about what steps regulators have taken in the wake of the debacle — and what they may have missed in the leadup to the chaos. And, a word from the UK’s top financial official on HSBC’s acquisition of SVB’s operations in that country.

  Read MoreSaveShareDownload