ANALYSIS-Silicon Valley Bank apos;s Fall Widens Systemic Cracks As Cheap...
Caught last July, Infamous Mexican drug baron Rafael Caro Quintero - who ordered the kidnap and murder of a US drug enforcement agent in 1985 - was cuffed eight years after fleeing jail and unleashing a vicious turf war with rival drug lords. Data from S&P Global Market Intelligence and ORTEX, who use different methodologies, have similar numbers showing SVB, First Republic and Signature with relatively low overall short levels before the crisis.
But while many guests at the star-studded Academy Awards hit the ball out of the park when it came to their ensemble choices for the evening, there are - as always - several attendees who totally missed the mark with their outfits. In the latest, Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low after Circle, the U.S. firm behind the coin, revealed that a chunk of the reserves backing it were held at Silicon Valley Bank.
"When you go this aggressively into a hiking maneuver after creating so much inflation you´re going to break something," said Kyle Bass, founder and chief investment officer of Hayman Capital Management. NEW YORK, March 12 (Reuters) - Cracks are appearing in the global financial system as the decade-long era of cheap money ends, with some investors worrying the shock collapse of Silicon Valley Bank signals world markets may be on the cusp of a reckoning. California banking regulators shut down Silicon Valley Bank on Friday after the bank, which had $209 billion in assets at the end of 2022, saw a run, with depositors pulling out as much as $42 billion on a single day, rendering it insolvent.
Rippling, a human resources management firm that handles, among other assets, payrolls for other institutions, announced it was unable to immediately pay its clients' employees due to the market turmoil. Yields on two-year Treasuries saw their biggest plunge since the 2008 financial crisis. That suggests a flight to safety among investors as well as bets that economic distress may force the Fed to ease up or education reverse its aggressive tightening. The ripple effect has already hit similar institutions, such as New York's Signature Bank, which saw its share price plummet 23 percent before trading was halted when the news of SVB's demise came in. After the second largest bank failure in U.S.
history on Friday, market participants worry more disruptions lay ahead, xxxadultfind.com as climbing interest rates cut off access to cheap money and expose vulnerabilities in the economy. While many guests at the star-studded Oscars hit the ball out of the park when it came to their ensemble choices for the evening, there are - as always - several attendees who totally missed the mark with their outfits. Shorts represented only about 5% of SVB's stock float as of March 1, according to data tracker S3 Partners, with First Republic at around 3% and Signature at 6%.
That compares to an average of about 4.65% across all stocks, per S3. administration said they see few signs of a 2008-style financial crisis, in which failing institutions threatened to bring down others in their wake.
