svb

ChainCatcher news, former FOX business reporter Eleanor Terrett posted on X: "Federal Reserve Governor Michelle Bowman expressed hope for an independent review of the bank failures in March 2023 (SVB, Silvergate, Signature), although she did not directly name these banks."

According to ChainCatcher news, citing sources from The Wall Street Journal, SVB's venture capital arm SVB Capital may be sold for between $250 million and $500 million, with SkyBridge Capital and Atlas Merchant Capital fiercely competing with Vector Capital in the final stages of bidding. Sources indicate that the final sale is not guaranteed and still requires review by the creditors' committee. A decision regarding the sale is expected to be submitted to the court in the coming weeks.It is worth noting that SVB Capital is not included in SVB's overall bankruptcy protection proceedings. SVB stated that despite being put up for sale, the division will continue its "normal operations."

ChainCatcher news, U.S. Treasury senior official Nellie Liang told House lawmakers that the failures of Silicon Valley Bank (SVB) and Signature Bank should not be attributed to the crypto industry, "I don't think crypto played a direct role in these two failures."Additionally, during the two-day congressional hearing, lawmakers showed little interest in crypto issues. Regulators and lawmakers were primarily concerned with problems in bank management, as well as potential regulatory failures by the Federal Reserve and FDIC. Discussions about potential new regulatory legislation focused on issues related to bank capital and liquidity buffers, rather than bills involving crypto regulation. (CoinDesk)

ChainCatcher news, according to testimony related to the U.S. Senate hearing, Martin Gruenberg, chairman of the Federal Deposit Insurance Corporation (FDIC), stated that an investigation is underway into the actions of the leaders of Signature Bank and SVB Bank, holding them accountable for the banks' failures, and detailing their mismanagement and the risks of dangerous business concentration. (CoinDesk)

ChainCatcher news, according to a report by Fortune citing informed sources, Coinbase had offered Circle approximately $3 billion in instant credit lines after the bankruptcy of SVB to ensure the full liquidity of USDC reserves and to guarantee that the stablecoin could be redeemed for dollars on the Monday morning following SVB's bankruptcy. Coinbase initially planned to disclose this credit line, but the crisis was quickly resolved. Circle declined to comment on the matter but did not deny it either.Earlier reports indicated that Circle announced it had $3.3 billion in deposits at Silicon Valley Bank, which, although a small portion of its total assets of $40 billion, led to USDC briefly de-pegging to below $0.90 due to panic. (Fortune)

ChainCatcher news, according to sources from Reuters, the Federal Deposit Insurance Corporation (FDIC) has asked banks interested in acquiring Silicon Valley Bank and Signature Bank to submit bids by March 17.Sources said that the FDIC has hired investment bank Piper Sandler Companies for the auction, and only bidders holding existing bank licenses will be allowed to review the banks' financial conditions before submitting bids. The FDIC's goal is to sell both SVB and Signature, and any buyer of Signature must agree to relinquish all of the bank's cryptocurrency business. (source link)

ChainCatcher message, cryptocurrency market maker GSR stated to its clients and community that due to its proactive risk management approach, GSR has minimal remaining risk exposure to Signature and has no direct risk exposure to Silicon Valley Bank and Silvergate. (source link)

ChainCatcher message, Animoca Brands has released a shareholder information announcement, explaining to its shareholders that the company does not have banking relationships with Silvergate Bank or Silicon Valley Bank, and that it maintains multiple banking relationships globally, currently closely monitoring its cash balances. (Source link)

ChainCatcher news, Michael Barr, the Vice Chairman of the Federal Reserve responsible for bank supervision, issued a statement on Monday announcing a thorough investigation into the rapid collapse of Silicon Valley Bank (SVB), with a six-week investigation period, and results to be published on May 1.It is reported that Barr previously served as a U.S. Treasury official and briefly worked as an advisor for Ripple. Earlier on Monday, President Biden stated that he would call on Congress and federal regulators to strengthen oversight of the banking industry. (CoinDesk)

ChainCatcher News, the Federal Deposit Insurance Corporation (FDIC) announced that all deposits of Silicon Valley Bank (SVB) will be transferred to a bridge bank. Checks for Silicon Valley Bank (SVB) customers will be cleared, and loans will be paid.It is reported that the bridge bank has resumed normal operating hours, and the FDIC has appointed Tim Mayopoulos as the CEO of Silicon Valley Bank. (Jin Shi)

ChainCatcher news, Nic Carter, founder of the digital asset company Castle Island Ventures, stated that the government's willingness to support Silicon Valley Bank and Signature Bank means a return to a liquidity-providing model rather than tightening. Historically, loose monetary policy has proven to be a "blessing" for cryptocurrencies and other speculative asset classes, but this instability once again highlights the fragility of stablecoins, as unusual financial conditions may lead them to fall below their fixed value.Additionally, Carter mentioned, "Bitcoin liquidity and overall crypto liquidity will be somewhat impaired because Silvergate's SEN and Signature's Signet were key for crypto companies to obtain fiat currency over the weekend. Now, crypto companies have few options, and liquidity in the industry will be constrained until new banks step in." He hopes that banks will intervene to fill the gap left by SEN. (CNBC)

ChainCatcher news, Circle co-founder and CEO Jeremy Allaire tweeted that the deposits Circle has at SVB are 100% safe and will open for business tomorrow. The USDC reserves are also 100% safe, and Circle will complete the transfer of the remaining SVB cash to BNY Mellon, with USDC liquidity operations resuming when the bank opens tomorrow morning.Jeremy Allaire also stated that after the closure of Signature Bank, it will not be possible to process the minting and redemption of USDC through SigNet, and Circle will rely on Bank of New York Mellon for settlement. Additionally, Circle plans to introduce a new trading bank partner with automatic minting and redemption capabilities as soon as tomorrow, committed to establishing robust and automated USDC settlement and reserve operations with the highest quality and transparency. (Source link)

ChainCatcher news, the stock price of SVB Financial Group, the parent company of Silicon Valley Bank, plummeted over 60% on Thursday, and further declined nearly 20% in after-hours trading. This was due to reports that several funds, including the Founders Fund led by Silicon Valley "venture capital godfather" Peter Thiel, advised clients to withdraw their investments from the bank.Additionally, it was reported that several venture capital firms, including Coatue, also advised their portfolio companies to consider withdrawing from Silicon Valley Bank.Previously, SVB lowered its earnings expectations after hours on Wednesday and disclosed significant losses from the sale of securities and stock issuance. (Source link)