Banking crisis reinforces need for ringfencing as government’s consultation comes to an end May 8, 2023 Experts have warned that the recent banking stresses demonstrate the importance of the ringfencing regime as the government’s consultation comes to an end. Treasury ministers are keen to push forward with changes to how banks are forced to separate their retail and commercial activities with, for instance, investment banking operations – reducing the number of [...]
Banking crisis: Ex-BoE’s Paul Tucker calls for regulatory overhaul to battle bank runs May 8, 2023 Banks should be required to keep enough collateral with the central bank to cover all of their short-term deposits, an ex-Bank of England wonk has said. Speaking to the Financial Times, former Bank of England Deputy Governor Paul Tucker said “it would mean that, subject to a bank being fundamentally insolvent, central banks could 100 [...]
Pound Sterling rises to highest level in almost a year as US dollar set for second straight week of decline May 5, 2023 Sterling rose to its highest level in almost a year, as the dollar was broadly softer against other major currencies on Friday. The pound continues to recover, while the banking sector woes added to talk of U.S. rate cuts later this year, ahead of the much-anticipated monthly U.S. jobs report just after midday (GMT). The dollar [...]
Banking shares: Regulators ‘increasingly attentive’ to role of short-sellers in possible 2008 repeat May 5, 2023 U.S. federal and state officials are assessing whether “market manipulation” caused the recent volatility in banking shares, a source familiar with the matter said on Thursday, as the White House vowed to monitor “short-selling pressures on healthy banks.” Shares of regional banks resumed their slide this week after the collapse of First Republic Bank, the third [...]
Post-Brexit powers mean regulators need greater oversight, City figures warn May 5, 2023 Ex-ministers and City figures have warned that the government is not doing enough to improve the scrutiny of regulators after Brexit, in a sign that past rows about protecting the independence of the UK’s top financial regulators could resurface in the coming months. Following Brexit, UK financial regulators, such as the Prudential Regulation Authority (PRA) and [...]
TSB Bank demand Facebook and Whatsapp take responsibility for fraud on their platforms May 5, 2023 TSB Bank have demanded that Meta-owned companies, such as Facebook and Whatsapp, take greater responsibility for fraud carried out on their platforms as the government launches its new fraud crackdown. Launched earlier this week, the government’s fraud strategy laid out a series of proposals to stop online scammers, but it dropped plans to make tech [...]
European Central Bank hikes interest rates for seventh time in a row and Lagarde signals more rises May 4, 2023 The European Central Bank (ECB) today hiked interest rates for the seventh time in a row and slowed the pace of its aggressive campaign to tame inflation, though its chief Christine Lagarde signalled more rises are coming. She and the rest of the governing council sent borrowing costs among the 20 countries using the euro [...]
Regional banks in US continue slide as crisis deepens May 4, 2023 Shares in regional banks fell further today as the crisis among regional banks in the US continues. Western Alliance was one of the worst hit, trading nearly 40 per cent lower. It vehemently denied a report from the Financial Times that it was considering a sale of all or parts of its business. The Arizona-based [...]
Brits yank record £4.8bn from banks after Credit Suisse and SVB failures May 4, 2023 Brits yanked a record amount of cash out of banks in March, sparked by concerns over the health of the global financial system following the collapse of Silicon Valley Bank (SVB) and Credit Suisse, official figures out today reveal. Household deposits at UK banks shrunk £4.8bn in March, the highest monthly fall since the Bank [...]
Pacwest explores potential sale as US banking turmoil looks set to roll on May 4, 2023 After its share price tanked 50 per cent yesterday, Pacwest confirmed late last night that it was exploring "all options to maximise shareholder value" following reports that it was looking at a potential sale.