The price of bitcoin, the world’s largest cryptocurrency, went above $24,000 on Monday after two banks failed last week and broader concerns about the U.S. banking system emerged.
The price jump occurred after Silicon Valley Bank and Signature Bank closed. The latter, a New York regional bank, was a major crypto-lending institution.
However, late Sunday, the U.S. Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. announced it would backstop all Silicon Valley Bank and Signature Bank depositors — both insured and uninsured — and make funding available to other banks to prevent more failures.
Ethereum, the second-biggest cryptocurrency, was up to about $1,700, a 15% increase.
The overall crypto market was up about 14% on the day, according to TechCrunch.
The uncertainty led to a trading halt on several bank stocks on Monday following U.S. history’s second- and third-largest bank failures. Only Washington Mutual’s collapse in 2008 ahead of the great recession was bigger.
The $42 billion run on Silicon Valley Bank on Thursday led regulators to close the financial institution on Friday. Many crypto firms had significant assets in SVB, sending the crypto market into disarray until the Biden administration stepped in, with President Biden declaring the banking system “safe” on Monday.
“Americans can rest assured that our banking system is safe,” Biden said in a statement at the White House. “Your deposits are safe. Let me also assure you we will not stop at this; we’ll do whatever is needed.”
Biden added that he was calling on Congress and regulators to enhance rules for banks and financial institutions.
Despite bank stocks broadly dipping on Monday, the Dow Jones Industrial Average, Nasdaq and the S&P 500 were all up slightly midday following Biden’s statements.
Cooperman previously warned that stocks could plunge 22% in 2023, and predicted dismal returns for years to come.
You've probably heard time and again that it's important to have a rainy-day fund set up "just in case" something unexpected were to happen. But we're now at a time when having an emergency fund is…
The Fed's aggressive interest rate hikes have eroded the value of bank assets such as government bonds and mortgage-backed securities.
The past year hasn't been easy for most people, and if you have money invested in the stock market, you've probably watched your portfolio sink to some degree. It can be tempting, then, to stop investing altogether until the market stabilizes — especially as a recession is looking more likely. Nobody knows for certain what the future holds for the stock market, but more experts are betting on a recession.
With inflation high and the market flailing, it can be challenging to figure out the best things to do with your money. "During economic downturns, it can be tempting to sell off your investment and…
If you plan to deposit $10,000 or more into your checking account, there are a few things you should consider first. By law, banks have to report deposits that exceed a certain amount. See: Do You…
Credit Suisse’s fate is sealed, as Swiss rival UBS acquired the bank for 3 billion francs ($3.2 billion) in a historic deal that has shaken the financial sector. Credit Suisse (CS) (CH:CSGN) asked staff to return to work as usual this morning, but employees greeted the news that the 167-year-old bank will cease to exist with a mix of anger, surprise, tears and, in some cases, resignation that it had to happen, according to conversations with around a dozen staff at the bank. “Everyone is stunned by the speed of the downfall,” said another senior investment banker.
The company focuses on providing financing to middle-market businesses. Ares Capital's portfolio currently includes 466 companies. Like all BDCs registered as regulated investment companies, Ares Capital returns at least 90% of its taxable income to shareholders to avoid paying federal taxes.
The Zacks Earnings ESP is a great way to find potential earnings surprises. Why investors should take advantage now.
Broyhill Asset Management, a boutique investment firm, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. The portfolio gained 1.3% net of fees and expenses in 2022 compared to a -18% return for the MSCI World Index. The portfolio compounded at 12.3% annually net of fees and expenses, since […]
This healthcare REIT definitely faces some major challenges. But its dividend doesn't appear to be in imminent jeopardy.
ExxonMobil (NYSE: XOM), Chevron (NYSE: CVX), Occidental Petroleum (NYSE: OXY), and Devon Energy (NYSE: DVN) are all benefiting from rising oil prices. This video will answer which one of these energy stocks is the best one to buy now.
Another rate hike? A pause? Here's what some financial heavyweights see the Fed doing with interest rates as fears of a banking crisis grow.
"Charles Schwab remains a safe port in a storm, driven by its conservative balance sheet, strong liquidity position, and diversified base" of clients.
First Republic stock is down more than 60% since a consortium of banks moved to shore up its liquidity by depositing $30 billion.
Musk again sounded a warning about the impact of the banking sector's troubles on the world's largest economy in the wake of the SVB fiasco.
Buffett has explained how to calm bank panics, warned that government guarantees distort markets, and underlined the vast fallout from small mistakes.
If you're looking to squeeze extra money out of your budget, you might be surprised by just how many unnecessary items are hiding out in your everyday expenses. Read: Here's How Much Americans Have in…
The pressure continues to mount around First Republic Bank. The San Francisco-based bank is at the center of the crisis of confidence, currently rocking the banking sector, since the sudden collapse of Silicon Valley Bank, after bad bets on interest rates. For investors worried about what they don't know, First Republic Bank, which has a portfolio of municipal bonds, presents a similar profile to SVB.
If you let the winter slip away without keeping the financial promises you made around the holidays, don't worry: Spring is the season of rebirth. $2,000 Quarter? Check Your Pockets Before You Use…