Bank regulators approved a backstop ensuring depositors of failed banks SVB and Signature Bank, and SVB depositors will have access to their money today. Here’s what investors need to know today.
1. Regulators Backstop Depositors in Failed Bank SVB
SVB depositors will have access to their money today, according to a joint statement from the Treasury Department, Federal Reserve, and the FDIC. The Fed is creating a new Bank Term Funding Program aimed at safeguarding deposits. The facility will offer loans of up to one year to banks and other financial institutions. Along with the facility, the Fed said it will ease conditions at the discount window, which will be used for the same conditions as the Funding Program.
2. Another Crypto Lender Fails as Signature Bank Shuts Down
Another crypto bank was shut down, as New York regulators closed Signature Bank yesterday, citing “systemic risks.” According to a statement from the FDIC, the Fed, and the Treasury Department, “All depositors of the institution will be made whole. As with the resolution of Silicon Valley Bank no losses will be borne by the taxpayer.”
3. HSBC Buys SVB's U.K. arm for About $1
HSBC will buy SVB’s U.K. arm for about $1. The U.K. Treasury said that customers of SVB U.K. will be able to access their deposits and banking services as normal.
4. Saudi Aramco Posts Record Profits
Saudi Aramco posted record profits of $161 billion for 2022, the largest ever from an oil firm. Profits were up 46% and helped cement its position as the world’s most important oil producer.
5. Meta to Launch New Social Media App
Meta Platforms is reportedly planning to launch a new social media app in its bid to displace Twitter as the world’s “digital town square.” Meta’s app will be based on a similar framework that powers Mastodon, a Twitter-like service that was launched in 2016.