To safeguard all depositors at #SVB in Santa Clara, California, the Federal Deposit Insurance Corporation (FDIC) has taken action. All deposits, both insured and uninsured, and nearly all assets have been moved to a brand-new, fully functional "bridge bank" run by the FDIC.

This morning, the brand-new #SiliconValley Bank, N.A., will reopen and resume regular banking operations, including online banking. Customers of Silicon Valley Bank, N.A. will automatically include depositors and borrowers. and have check writing, ATM, and debit card access to their money. The transfer of all deposits was completed under the systemic risk exception allowed on March 12, 2023.

Tim Mayopoulos was appointed CEO of Silicon Valley Bank, N.A. by the FDIC. He previously held the positions of president of Blend Laboratories, Inc. and president and CEO of the Federal National Mortgage Association. This will enhance recoveries for creditors and the Deposit Insurance Fund, safeguard depositors, and maintain the value of Silicon Valley Bank's assets and operations (DIF).

The purpose of the bridge bank structure is to "bridge" the time between a bank's failure and the point at which the #FDIC can stabilize the organization and put an orderly resolution in place. Senior management has been fired, and holders of some unsecured debt will not be protected. A special assessment on banks will be used to recoup any losses to the DIF from supporting uninsured depositors, as required by law.

All Qualified Financial Contracts of the defunct bank were also transferred to the bridge bank by the receiver for Silicon Valley Bank. By taking this step, depositors will be guaranteed complete access to their funds and be shielded from any damages resulting from Silicon Valley Bank's bankruptcy.

There has been a lot of speculation about the future of #SiliconValley the tech hub of the world, and its potential acquisition by #ElonMusk the billionaire entrepreneur behind companies like Tesla and SpaceX. Many experts believe that Musk is gearing up to purchase Silicon Valley and create a digital bank that will revolutionize the financial industry.

Musk has always been known for his ambitious projects, and this latest rumor has sent shockwaves through the tech industry. According to sources, Musk has been quietly investing in the real estate market in Silicon Valley, and he has already purchased several key properties in the area. While there has been no official confirmation from Musk or any of his companies, many industry insiders believe that this is all part of Musk's plan to create a digital bank.

So, what would a digital bank run by Elon Musk look like? Many experts believe that it would be a game-changer in the financial industry, much like Musk's other ventures. The bank would be entirely online, with no physical branches, and it would use cutting-edge technology to provide customers with a seamless and secure banking experience.

One of the biggest advantages of a digital bank is the ability to offer lower fees and better rates than traditional banks. By eliminating the need for physical branches and streamlining their operations, digital banks can pass on these cost savings to their customers. This could be a huge selling point for Musk's bank, especially if it is able to offer competitive rates on loans and savings accounts.

Another advantage of a digital bank is the ability to provide customers with real-time data and insights into their finances. With the help of artificial intelligence and machine learning, Musk's bank could provide customers with personalized financial advice and recommendations based on their spending habits and financial goals. This would be a significant departure from the one-size-fits-all approach of traditional banks.

Of course, there are also challenges that come with creating a digital bank. One of the biggest challenges is building trust with customers, especially when it comes to security and data privacy. Musk would need to ensure that his bank is secure and that customers' data is protected at all times. He would also need to navigate the complex regulatory landscape of the financial industry, which can be a daunting task even for established banks.

Despite these challenges, many experts believe that Musk's digital bank could be a game-changer in the financial industry. With his track record of innovation and disruption, Musk has the potential to create a bank that could challenge the dominance of traditional banks and provide customers with a new, more convenient way to manage their finances.

In conclusion, the rumors about Elon Musk purchasing Silicon Valley and creating a digital bank have generated a lot of excitement in the tech and finance industries. While there has been no official confirmation from Musk or any of his companies, many experts believe that this is a real possibility. If Musk is able to successfully create a digital bank that is secure, convenient, and offers competitive rates, it could revolutionize the way we think about banking. Only time will tell if Musk's vision will become a reality, but one thing is for sure - the financial industry is due for a shake-up, and Musk may be just the person to do it.

The bitcoin market has grown as a result of #SiliconValley Bank, the largest banking crisis since 2008. When the business revealed its cash were retained in the bank, #Circle and its stablecoin USDC were negatively impacted. To secure their assets, panicked cryptocurrency investors and communities sell tokens, which triggers unfortunate outcomes.

On March 11, when USDC and related stablecoins were being dumped in the crypto market, a USDC user who exchanged 2 million USDC into #USDT on the chain was accidentally blocked by an MEV because no slippage was set.

After paying $45 in gas fees and $39,000 in MEV bribes, the bot generated a net profit of $2.045 million. As a result, the user traded 2.08 million USDC but only received 0.05 USDT.

Investors started exchanging their USDC tokens for other #Stablecoins like USDT in order to reduce losses. This is due to the stablecoin maintained by Circle losing its $1 peg today. In the last 24 hours, there has been a significant increase in the amount of stablecoins burned on controlled exchanges (CEX) and converted into other safer assets.

Investigations conducted on-chain revealed that this user had put the funds in a liquidity pool (LP), a popular bitcoin passive income model. The user may have exchanged his LP tokens for USDT for a 6% slippage. Drawn and burned on centralized exchanges (CEX) rose in the previous 24 hours as users sought to convert to other safer assets, but the user made the wrong choice.

Slippage is the difference between the transaction price and the actual conversion the trader actually received. Trades outside of this range can go ignored by setting slippage in the range of 0.5–10%. This user lost money on the trade because they made the fatal error of trading a lot of assets without allowing for slippage. The previous episode shows how a human error can cause irreparable financial damage.

The lowest price today is $0.88, while #USDC is currently trading at $0.91.

In recent news, data by CryptoQuant revealed a correlation between the collapse of Silicon Valley Bank (SVB) and the price action of Bitcoin.

On March 8, SVB announced a $1.8 billion loss on its bond portfolio, which caused panic among investors and a subsequent sell-off. The bank’s holding company, SVB Financial Group, experienced a crash in its stock price, and many customers began to withdraw their money, with a total of $42 billion attempted withdrawals.

The day after SVB’s announcement, Bitcoin price started trending downwards as traders began assessing the impact of the bank run and financial fallout. Bitcoin’s price drop continued until March 12 when a joint statement by the Treasury, Federal Reserve, and FDIC was released, providing a bailout to depositors and a program to protect other depository institutions. This statement injected more liquidity into the financial system, resulting in a positive impact on Bitcoin’s price.

On March 12, Bitcoin went on a tear from approximately $20k to over $26k in the next few days. Bitcoin eventually recorded a 9-month high of over $28k. The chart below shows the correlation between Bitcoin’s price action and the events at SVB.

This news highlights the interconnectedness of the traditional financial system and the crypto market. It also shows that Bitcoin’s price is affected by external factors beyond its control, such as the performance of traditional financial institutions. As Bitcoin continues to gain mainstream acceptance and become more intertwined with traditional finance, investors must be aware of potential external events that could affect the cryptocurrency’s price.

#Bitcoin #BTC #SVB #SiliconValley #azcoinnews

This article was republished from azcoinnews.com

One of the biggest bank failures in U.S. history occurred on Friday as federal regulators shut down Silicon Valley Bank (SBV), a major lender to the technology industry. 

The news sent shockwaves throughout the industry, with SBV's attempts to raise $1.75 billion earlier in the week proving unsuccessful after it suffered nearly $2 billion in losses on its bond portfolio primarily consisting of U.S. Treasuries. On Friday, the FDIC took over as receiver for SVB, and its shares were halted as prices continued to plummet, causing a decline in the broader market, particularly in the bank and financial shares.

Silicon Valley Bank (SVB) experienced a collapse after its customers withdrew deposits exceeding the $250,000 limit guaranteed by the Federal Deposit Insurance Corp (FDIC), leading to a downward spiral of SVB's shares. The event caused concerns that other lenders might have incurred similar losses, leading to a decline in shares of banks and financial companies as SVB tried to prevent collapse.

According to the reports, SVB suffered losses of almost $2 billion from the sale of U.S. bonds purchased before the Federal Reserve started raising interest rates a year ago. Higher yields caused bond prices to decrease, which isn't certain whether other large banks may also experience similar losses.

In an attempt to recover from the loss of about $1.8 billion from the sale of a $21 billion portfolio of U.S. Treasuries, SVB announced a stock sale on Wednesday. The bank executives stated in an investor letter that they had sold almost all the bank's liquid assets.

The Federal Reserve's year-long efforts to raise interest rates have allowed many banks to increase their loan charges, thereby enhancing their profits. However, Silicon Valley Bank's collapse highlights the potential negative impact of higher rates, such as significant losses from the sale of Treasuries, as their prices have plummeted.

#SVB #SiliconValley #crypto2023 #coingabbar

The British affiliate of #SiliconValley Bank distributed between 15 and 20 million pounds in incentives to management and personnel.

The British affiliate of Silicon Valley Bank gave out between 15 and 20 million pounds in incentives to management and workers (approximately 18.26 million to 24.35 million pounds). One million dollars (USD). It is thought the incentives were supplied to fulfill "previously negotiated payments" to "retain core staff". Prior to this, Sources who claimed that HSBC UK #Bank had paid £1 for the UK division of Silicon Valley Bank.

Despite the alleged claims that the incentives would not have been paid this week if SVB UK had not been acquired in a solvent manner, the payments were made. The shares held by the senior executives and other employees of the company were said to have lost all value as SVB UK was so close to filing for bankruptcy.

Another insider with knowledge of the matter asserted that the incentive payments were evidence of HSBC's confidence in SVB UK's talent pool and that they were intended to fulfill previously agreed-upon payments in an effort to retain key personnel. #SVB UK said earlier on March 17 that it was pleased to be joining #HSBC after 14 years of promoting and advancing the creative economy in the UK. A tweet was used to make this announcement.

The bank hopes that the bonuses will aid in attempts to retain employees and hire new ones. In a highly competitive job market, attracting and retaining top talent depends on providing alluring incentives and benefits. It is anticipated that this move by Silicon Valley Bank's UK branch will increase its appeal as an employer to financial professionals, enabling it to maintain its market leadership.