Category: Financial stability

Silicon Valley Bank Sold

Silicon Valley Bank Sold

https://www.linkedin.com/posts/rod-dubitsky-0aa94118_why-first-citizens-got-a-165-billion-discount-activity-7046165834418810881–n5i?utm_source=share&utm_medium=member_android

Bailouts Continue

Bailouts Continue

https://www.linkedin.com/posts/rod-dubitsky-0aa94118_first-republic-rescue-may-rely-on-us-backing-activity-7044077812265185280-GQP1?utm_source=share&utm_medium=member_android

Swiss National Bank to give Credit Suisse financial support ‘if necessary’ – The Washington Post

Swiss National Bank to give Credit Suisse financial support ‘if necessary’ – The Washington Post

Breaking: Swiss National Bank offers support to Credit Suisse Potentially good news though troubling that such an announcement was necessary. I would note that Credit Suisse’s assets are about equal to the GDP of Switzerland. Not apples to apples but rather an indication of potential limits to SNB support for CS. https://www.washingtonpost.com/business/2023/03/15/svb-banking-credit-suisse-stocks/

America’s credit rating could get downgraded even if a default is avoided, Fitch Ratings warns – CNN

America’s credit rating could get downgraded even if a default is avoided, Fitch Ratings warns – CNN

A stark warning from Fitch. Though there is no risk of something replacing the dollar as the world’s reserve currency, that is a necessary but not sufficient condition to avoid fallout from the US debt ceiling debate. https://www.cnn.com/2023/03/06/economy/us-credit-rating-fitch/index.html

Crypto crashes

Crypto crashes

China regulation of crypto crushes the market. And with the Colonial Pipeline attack highlighting the role of crypto in ransonware, further regulatory risk will hang over the market. As a $2T market, crypto can’t be dismissed, but those who think crypto is the best hedge against fiat currencies may have second thoughts. And as I’ve …

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On eve of bankruptcy, U.S. firms shower execs with bonuses | Article [AMP] | Reuters

On eve of bankruptcy, U.S. firms shower execs with bonuses | Article [AMP] | Reuters

Bonus before bankruptcy or BBB. Where is the governance? Hopefully some of the bonuses will be subject to clawback. The beauty of the “heads I win, tails you lose” C-Suite. When company does well bonus is well deserved, when company does poorly they need to retain management to execute “visionary” turnaround. And when board is …

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