‘Treated Risk Management Like A Total Afterthought’: Tina Smith Raises Concern About SVB Failure

During a Senate Banking Committee hearing prior to the Congressional recess, Sen. Tina Smith (D-MN) questioned witnesses about the recent failures of Silicon Valley Bank & Signature Bank.

Is The Banking Crisis Finally Over?

A look at the takeover of First Republic Bank by the FDIC and its subsequent sale to JP Morgan. 

We explore the impact of this crisis on other regional banks such as PacWest and Western Alliance, and discuss whether or not the banking crisis is finally over, as JP Morgan CEO Jamie Dimon claims.

Why First Republic Bank Was Seized and Sold to JPMorgan Chase

First Republic Bank was seized by the FDIC early Monday and a deal was struck to sell the bulk of its operations to JPMorgan Chase, a move that regulators hope will stabilize the industry and cut down on customer panic. This comes after First Republic lost $100 billion in deposits following the collapse of Silicon Valley Bank.

Why the World Should Care About Credit Suisse’s Downfall

Switzerland’s secret bank accounts and political neutrality turned the small Alpine nation into a financial giant. Now the demise of Credit Suisse, one of its two big banks, has shaken global finance and created a megabank in UBS that comes with new and potentially bigger risks. 

Bloomberg journalists trace the history of Swiss banking and how the ramifications of the Credit Suisse crisis extend far beyond the country’s borders.

Jamie Dimon Warns Banking Crisis 'Is Not Yet Over!'

Jamie Dimon, the chief executive of JPMorgan Chase, warned that the banking crisis 'not yet over' in an annual letter to shareholders just weeks after the collapse of three US banks. He said he didn't expect the turmoil to lead to a global crisis like in 2008, noting that it involved "involved fewer players and fewer issues". But he warned the impact would linger.

Dr. Doom: This 'time bomb' will trigger next financial collapse

From CNN Money –

“Nouriel Roubini, who has been dubbed "Dr. Doom" for his dark predictions, warned in an Op-Ed in The Guardian on Monday about the existence of a "liquidity time bomb" that he fears will eventually "trigger a bust and a collapse."

The New York University economist joins a growing number of observers who are worried about the issue. Liquidity is the lifeblood of financial markets. It measures how easy it is for investors to quickly sell stocks and bonds. When investors get fearful but can't sell their stocks, it causes even more panic.”

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Data Agency Warns of Next Potential Systemic Shock

From American Banker –

“The U.S. financial system may be on the verge of another systemic crash, according to a provocative new report issued this week by the Office of Financial Research.

The report posited that certain stock market conditions resemble the climate just before crises hit in 1929, 2000 and 2007. While some metrics like price-to-earnings ratio are within normal bounds, other indicators suggest that markets are overvalued and headed for a correction for which the financial system may not be adequately prepared.”

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Next crisis for banks could come via online innovators

From The Irish Times

“Several books about business have been written over the years with the title Blown to Bits. They have explored a common theme: how the internet threatens many established businesses. One of the best examples was written all of 15 years ago by a couple of very smart guys from the Boston Consulting Group. Today, their thesis is commonplace: “The most stable of industries, the most focused of business models and the strongest of brands can be blown to bits by new information technology”.

Many of these futurologists’ predictions came to pass. The list of businesses disrupted or obliterated is a long one.

The music business was one of the first affected: today, turning previous business practices on their head, money is made mostly from touring and live performances rather than sales of records, digital or otherwise.”

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