News

Credit Suisse said it had identified “material weaknesses” in its internal controls over financial reporting, the latest blow to a bank battling to revive its fortunes. In its annual report on Tuesday, Credit Suisse said “management did not design and maintain an effective risk assessment process to identify and analyse the risk of material misstatements

US inflation is expected to remain hot enough to further complicate the path forward for the Federal Reserve as it contends with three bank failures and broader concerns about financial stability. The consumer price index is forecast to have risen 6 per cent year on year in February, according to a consensus estimate compiled by

Jeremy Hunt will use Wednesday’s Budget to lift pension allowances for higher earners in an effort to discourage early retirement and get them to extend their careers into later life. The UK chancellor is set to increase the £40,000 cap on tax-free annual pension contributions — frozen for the past nine years — to £60,000.

Academia isn’t exactly famous for churning out timely papers of practical value. But occasionally a gem emerges from the scholastic grind at the perfect moment. One such effort has landed in FTAV’s SVB-bloated inbox today. The abstract from five researchers at the University of Southern California, Northwestern University, Columbia University, Stanford University and NBER (our

Craig Coben is a former global head of equity capital markets at Bank of America and now a managing director at Seda Experts, an expert witness firm specialising in financial services. Bankocalypse postponed? While equity and unsecured creditors will lose their money and top management will lose their jobs, Silicon Valley Bank’s demise shows that

TikTok has been accused of mishandling allegations of sexual misconduct and harassment against a senior manager in London, highlighting longstanding concerns about the working culture at the fast-growing social media platform. Steve Ware, former head of TikTok’s UK ecommerce studio operations, made inappropriate sexual comments and advances to young female staff members and clients, including

The writer is managing partner and head of research at Axiom Alternative Investments Of all the ways a bank can die, the route pursued by Silicon Valley Bank on the way to implosion appears to have been one of the most reckless. Banks exist to take and manage liquidity, interest rate and credit risks. It

After years of hiding from public sight, a hard-partying Englishman alleged to be central to the Wirecard fraud is about to be forced into the limelight by a criminal case in Singapore. James Henry O’Sullivan’s name is already familiar from the trial of former Wirecard executives taking place on the other side of the world.

Shares of Japan’s biggest banks dropped sharply on Tuesday as global markets reacted to a US banking sector sell-off and uncertainty over interest rates in the wake of the collapse of Silicon Valley Bank. Traders in Tokyo said they were expecting a second day of massive equity market support from the Bank of Japan to

Large US banks are being inundated with requests from customers trying to transfer funds from smaller lenders, as the failure of Silicon Valley Bank results in what executives say is the biggest movement of deposits in more than a decade. JPMorgan Chase, Citigroup and other large financial institutions are trying to accommodate customers wanting to

China will resume the issuance of tourist visas to foreigners, as the government removes one of the final remnants of its three-year closure under zero-Covid. The Chinese embassy in Washington said that in addition to processing new visas from Wednesday, existing visas from before March 2020, when it closed its borders due to the pandemic,

Just hours after Wall Street opened for trading on Friday morning, US regulators had seized control of Silicon Valley Bank, which had imploded under the strain of depositors pulling out their money en masse. What at first seemed like the failure of a one-of-its-kind lender with deep ties to the technology industry quickly appeared as

Venture capital firms are working on a long-shot plan to preserve parts of Silicon Valley Bank so it can keep serving clients in the technology sector, according to people briefed on the effort. Since late last week a group of more than a dozen VC firms have been in talks about how to enable SVB

Ken Griffin, founder of Citadel hedge fund, says the US central bank’s rescue package for Silicon Valley Bank shows that American capitalism is “breaking down before our eyes”. Griffin told the Financial Times that US taxpayers should not have to bail out institutional investors, following the decision by the US Federal Reserve to intervene to

How could regulators have missed the risks at Silicon Valley Bank? That is the question many shocked investors were asking on Monday. After all, the fact that SVB was sitting on a massive, unhedged portfolio of long-term Treasuries was no secret; last year, JPMorgan circulated shocking calculations to its clients (which were recirculated this week)

Commercial banks were supposed to be big beneficiaries of rising interest rates, but that assumed they managed their balance sheets sensibly. Silicon Valley Bank did not. As a result, the Californian lender to start-ups on Friday became the second-largest bank collapse in US history. Signature Bank, the third-biggest collapse, followed within hours. Authorities on both

As a planned $2.25bn capital raise at California-based Silicon Valley Bank started to unravel on Thursday, nervous venture capitalists and start-up founders began to bombard executives at the lender’s British arm with questions about the safety of their funds. They received soothing answers. “The entirety of your founders’ deposits are safe with SVB,” Michael Kruse,

As Silicon Valley Bank was gripped in a crisis last Thursday, General Catalyst boss Hemant Taneja gathered a group of fellow venture capitalists in a last-ditch attempt to avert disaster.  Over the previous few days, some VC funds had leaned on portfolio companies to retreat from the tech scene’s favourite bank, with Peter Thiel’s Founders

Shares in First Republic and several other US regional banks plunged on Monday as investors worried that regulators had not done enough to stem deposit outflows following the collapse of Silicon Valley Bank. First Republic was down by two-thirds in early afternoon trading in New York, having fallen as much as 75 per cent in

Cryptocurrency prices have soared as investors breathed a sigh of relief that US regulators moved to bolster the US banking system after the collapse of Silicon Valley Bank. Bitcoin and ether, the two most widely-traded coins, have surged by a fifth since their lows on Friday as traders were reassured by promises from US authorities

Within three days, the Federal Deposit Insurance Corporation and state regulators in California and New York took control of Silicon Valley Bank and Signature Bank and guaranteed all their deposits, beyond the usual $250,000 federal insurance limit. The Federal Reserve also announced a new lending facility, backstopped by the US Treasury department, that other banks