SiliconValleyBank
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The decision by federal regulators to back #SiliconValleyBank saved $USDC issuer Circle and Sequoia Capital more than $4 billion, according to a Bloomberg report.
According to a document released by the Federal Deposit Insurance Corporation (FDIC) to the media house, two of the largest crypto-industry companies caught in the crisis at the defunct Silicon Valley Bank saved more than $4 billion.
According to a document released by the Federal Deposit Insurance Corporation (FDIC) to the media house, two of the largest crypto-industry companies caught in the crisis at the defunct Silicon Valley Bank saved more than $4 billion.
Americans have withdrawn close to $500,000,000,000 from their banks in the last 3 months
New numbers from the Federal Deposit Insurance Corporation (FDIC) show Americans are pulling their money at a pace not seen in yearly four decades.
According to the FDIC’s newly-released quarterly report, depositors took a total of $472 billion out of their accounts in the first quarter of this year – shattering a 39 year record.
“The quarterly decline is the largest reduction reported in the QBP since data collection began in 1984.
This was the fourth consecutive quarter that the industry reported lower levels of total deposits.”
The “primary driver” of deposit flight came from uninsured deposits, says the FDIC, as people moved to protect capital that is above the $250,000 FDIC insured maximum.
Case in point – the amount of insured deposits held by banks actually increased during the quarter as people diversified their risk.
The mass exodus follows the failures of Signature Bank, #SiliconValleyBank and First Republic, which were triggered in large part by the Federal Reserve’s aggressive interest rate hikes.
As depositors leave the banking system, money market funds have witnessed massive weekly cash inflows.
As the first quarter came to a close, assets held by money market mutual funds surged to $5.6 trillion according to Crane data, representing a record high.
According to the FDIC’s newly-released quarterly report, depositors took a total of $472 billion out of their accounts in the first quarter of this year – shattering a 39 year record.
“The quarterly decline is the largest reduction reported in the QBP since data collection began in 1984.
This was the fourth consecutive quarter that the industry reported lower levels of total deposits.”
The “primary driver” of deposit flight came from uninsured deposits, says the FDIC, as people moved to protect capital that is above the $250,000 FDIC insured maximum.
Case in point – the amount of insured deposits held by banks actually increased during the quarter as people diversified their risk.
The mass exodus follows the failures of Signature Bank, #SiliconValleyBank and First Republic, which were triggered in large part by the Federal Reserve’s aggressive interest rate hikes.
As depositors leave the banking system, money market funds have witnessed massive weekly cash inflows.
As the first quarter came to a close, assets held by money market mutual funds surged to $5.6 trillion according to Crane data, representing a record high.
$30,000,000,000 Exits US Banking System in One Week As Deposit Flight Grows
New numbers from the Federal Reserve show the amount of money people are pulling out of their bank accounts is once again on the rise.
According to stats compiled by the Federal Reserve Economic Data (FRED) system, depositors yanked $30 billion out of American bank accounts from May 10th through May 17th.
That represents an increase of more than $4 billion over the previous week.
The US banking system now has a total of $17.15 trillion in deposits, compared to $18.03 trillion one year ago.
The deposit flight follows the failures of three large regional banks – Signature Bank, #SiliconValleyBank and First Republic.
The Los-Angeles based PacWest, which has been in the spotlight as the latest bank trying to keep afloat, is selling $2.6 billion in real estate construction loans in a bid to improve its balance sheet.
According to a Federal Reserve report, more than 700 American banks are considered to be facing “significant safety and soundness risk” due to unrealized losses that exceed 50% of their capital.
In the report, the Fed calls out its own interest rate hikes as the core reason those banks are now in a precarious position.
According to CME Group’s FedWatch tool at time of publishing, 35.8% of traders think the Fed will again raise rates next month.
#bitcoin
According to stats compiled by the Federal Reserve Economic Data (FRED) system, depositors yanked $30 billion out of American bank accounts from May 10th through May 17th.
That represents an increase of more than $4 billion over the previous week.
The US banking system now has a total of $17.15 trillion in deposits, compared to $18.03 trillion one year ago.
The deposit flight follows the failures of three large regional banks – Signature Bank, #SiliconValleyBank and First Republic.
The Los-Angeles based PacWest, which has been in the spotlight as the latest bank trying to keep afloat, is selling $2.6 billion in real estate construction loans in a bid to improve its balance sheet.
According to a Federal Reserve report, more than 700 American banks are considered to be facing “significant safety and soundness risk” due to unrealized losses that exceed 50% of their capital.
In the report, the Fed calls out its own interest rate hikes as the core reason those banks are now in a precarious position.
According to CME Group’s FedWatch tool at time of publishing, 35.8% of traders think the Fed will again raise rates next month.
#bitcoin
Effect of banking #crisis on #Crypto
The Bloomberg report highlights how impactful the collapse of #SiliconValleyBank could have been for several companies, particularly #Circle , which had $3.3 billion in the bank.
SVB's collapse shook investor confidence in Circle's $USDC
Since the incident, USDC's circulating supply fell to $28.18 billion. It did so from a high of more than $44 billion.
The Bloomberg report highlights how impactful the collapse of #SiliconValleyBank could have been for several companies, particularly #Circle , which had $3.3 billion in the bank.
SVB's collapse shook investor confidence in Circle's $USDC
Since the incident, USDC's circulating supply fell to $28.18 billion. It did so from a high of more than $44 billion.
