![]() Investors continued to search for safer places to keep their cash. The SPDR S&P Regional Banking ETF, which tracks small and midsized bank stocks, fell about 2.4%. If they aren't blinking now, there shouldn't be any doubt about their commitment to tame inflation," said Scott Duba, CIO at Prime Capital Investment Advisors.Ī decline in regional bank stocks weighed markets down. “The Fed just hiked rates two weeks after the biggest bank failures since 2008. Still, the central bank also warned that rate cuts aren't coming this year. Investors were heartened by the Fed's strong hints that its aggressive pace of interest rate hikes would come to an end soon. ![]() Markets had been fickle all day, before settling in the red as investors digested the central bank's quarter-point rate hike and looked for clues about the state of the banking sector meltdown. Stocks fell sharply on Wednesday after the Federal Reserve reaffirmed its dedication to tamping down inflation. Yellen said SVB's plight could mean that stress tests on banks and some of the assumptions that go into modeling the pace at which deposits might flee banks might need to be "updated and rethought." "Now in the world that we live in, although this was a small community and a disproportionate share of Silicon Valley bank deposits, this kind of thing may more readily happen." It's essentially shouting fire in a movie theater," she said. "May depositors were tech firms that work with venture capitalists that also bank. We've never seen deposits flee at this rate," Yellen said Wednesday during a Senate hearing on Financial Services and General Government. "The Silicon Valley Bank situation showed an overwhelmingly rapid run on a bank. (Win McNamee/Getty Images)Ĭalling the rapid collapse of Silicon Valley Bank a "new phenomenon," US Treasury Secretary Janet Yellen said the circumstances that led to it could very well happen again. Secretary of the Treasury Janet Yellen testified before the Senate Appropriations Subcommittee on Financial Services on March 22 in Washington, DC. I think he is a dangerous man to have in this job."Įarlier Wednesday, CNN reported exclusively that Warren, Senator Bernie Sanders and 10 other lawmakers are cranking up the pressure on the Federal Reserve following the collapse of Silicon Valley Bank. "That's the direction he's trying to push this. "What he's trying to do is get 2 million people laid off," she said, suggesting the Fed appears to be angling the economy toward a recession. "I think he's doing a really terrible job." "When the Fed uses language like we're trying to cool the economy or slow down the economy, the translation behind that is, 'we're trying to increase unemployment," Warren told CNN's Jake Tapper.Īsked whether she had ever advised President Biden to fire Powell, Warren declined to answers specifically but reiterated that she believes Powell shouldn't have been reconfirmed. Senator Elizabeth Warren, a longtime critic of the Fed Chair Jerome Powell, spoke out against the central bank's latest rate hike. Senator Elizabeth Warren speaks with reporters on her way to a closed-door lunch meeting with Senate Democrats at the Capitol in Washington, DC on Wednesday. Calls for greater regulatory clarity and scrutiny have escalated since November, when crypto exchange FTX collapsed and set off an investor panic. The development is the latest move by an increasingly aggressive regulatory body to rein in crypto in the wake of multiple bankruptcies and scandals in the digital asset space last year. The company said its platform and services would continue to operate as usual. "If necessary, we welcome the opportunity for Coinbase and the broader crypto community to get clarity in court." "Although we don’t take this development lightly, we are very confident in the way we run our business – the same business we presented to the SEC in order for us to become a public company in 2021," the company said in a statement. The notice from the securities watchdog didn't detail what assets were under scrutiny or what the possible violations consist of. The SEC "Wells notice" is typically a precursor to enforcement action against a company. Coinbase, a publicly traded US crypto exchange, said it received a notice from the Securities and Exchange Commission warning of potential violations.
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