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No more business as usual for the Fed

Jun 29, 2023
Technology that can cause banks to fail overnight could force the Federal Reserve to upgrade its infrastructure, while continuing basic regulation to prevent failures from occurring in the first place.
Silicon Valley Bank's problems wouldn’t have been solved by an instant Fed bailout, said Wharton professor Itamar Drechsler.
Patrick T. Fallon/AFP via Getty Images

How can regional banks manage the industry's troubles?

May 4, 2023
Larger lenders and regulators step in for the good of the overall banking system. But confidence among depositors is key.
Regional banks continue to struggle. News that PacWest is exploring "strategic options," including a sale of the company, sent its stock sliding.
Davd McNew/Getty Images

How will banking change amid wreckage of SVB, First Republic?

May 2, 2023
New regulation and industry consolidation will be key. Loans may be scarcer for new businesses and in low-income and rural communities.
Executives and regulators would like the fallout of the recent bank failures to be limited, but the impact is being felt.
Justin Sullivan/Getty Images

When short sellers bet against banks

Apr 28, 2023
Short sellers have made more than a billion dollars betting that First Republic would tank. Is that good for financial stability?
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After last month's bank failures, big banks' deposits are falling again

Apr 21, 2023
The failures of Silicon Valley Bank and Signature Bank had a lot of depositors worried about their own banks. While many moved their depositors to bigger institutions, bank deposits have been trending downward overall.
Up until the SVB and Signature Bank failures last month, banks had been losing deposits for about a year. Itamar Dreschler of the Wharton School said as the Federal Reserve raised interest rates, banks hadn’t really been doing the same for depositors.
Justin Sullivan/Getty Images

A month after liquidity shock, how's banks' lending business looking?

Apr 6, 2023
A Dallas Fed survey found signs that banks are pulling back on loans. High rates may also be dampening interest among borrowers.
Deposits have been falling, and banks are "nervous about their own liquidity," says Mayra Rodriguez Valladares of MRV Associates.
Kevin Dietsch/Getty Images

SVB’s collapse sends California wineries into a state of uncertainty

Mar 28, 2023
More than 400 California wineries borrowed from Silicon Valley Bank. In the aftermath of its collapse, many are wondering what comes next.
In addition to lending to wineries, SVB helped raise money for basics like bedding and food for area farmworkers, said farmworker advocate Rosaura Segura.
Justin Sullivan/Getty Images

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Could commercial real estate be the next shoe to drop at regional banks?

Mar 27, 2023
Analysts say there's no reason to panic, but the sinking values of commercial properties could make those banks' balance sheets look pretty bad.
 "The banks have $270 billion of commercial real estate loans coming due this year," said Matt Anderson, a managing director at Trepp Inc.
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Are bank supervisors, or bank rules, too lax?

Mar 20, 2023
Do banking rules need tightening? Do supervisors need better training and greater powers? The answer will influence what comes next.
Politicians and lobbyists are debating whether Silicon Valley Bank collapsed due to a regulatory or supervisory failure. Above, Sen. Charles Grassley confers with Sen. John Cornyn during a Finance Committee hearing.
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Behind SVB's collapse were a whole lot of texts on messaging groups

Mar 17, 2023
Chatter among the bank's depositors on social media and texting groups may have exacerbated its demise.
Bank runs of the 1930s happened slowly, because we banked and communicated differently then.
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