The Federal Deposit Insurance Corporation (FDIC) said on Monday it would backstop a deal for small regional lender First Citizens BancShares (FCNCA) to assume Silicon Valley Bank's deposits of $56bn (with 17 branches) and assets of $110bn including loans of $72bn as part of the deal. Shares of other regional banks under the microscope, including First Republic Bank, Comerica and Ke圜orp also rallied. The move by First Citizens sent its shares skyrocketing 54%. There are buyers out there, at a price, and hence a floor to the turmoil in the sector triggered by the back-to-back failures of SVB and Signature Bank. Meanwhile, US equities finished mixed, with bank stocks jumping after First Citizens BancShares bought a big chunk of the assets and deposits of collapsed Silicon Valley Bank. Earlier, HK fell sharply on concerns that China’s post-lockdown rebound was much slower than expected, with profits in Jan-Feb at Chinese industrial groups down 23% compared to a year earlier, the biggest drop since mid-2020. It's still down 23% for the month, but at least it's not had to be rescued. (Lending and staking had already been declared more or less illegal last year by the SEC.)Įuropean markets closed higher on Monday, with Deutsche Bank, the target of short sellers on Friday, up 6% at the close. In February, US banking regulators suggested US banks should be careful around crypto deposits (which may have killed off crypto-friendly Silvergate Bank) and only last week, the US Securities and Exchange Commission (SEC) issued a notice to Coinbase, the largest US crypto exchange, that it might be illegal because it lists crypto tokens that the SEC deems to be securities - though notably not Bitcoin. ► This year, several US agencies have been cracking down on crypto. If they figure it out on their own, it's fine.” - Samuel Lim, Binance's chief compliance officer through January 2022 and who is also a defendant (allegedly, in an internal memo) We cannot teach users how to circumvent the controls. users but in reality we should get them through other creative means. They also explained on their website how regular US retail clients could also use VPNs to mask their location to Binance (as big traders already did so they could connect directly to Binance's trading systems.) Binance says it blocks anyone who is a resident of the US and "anyone who is identified as a US citizen regardless of where they live in the world." “On the surface we cannot be seen to have U.S. ► Binance, on CZ's instructions, allegedly also directed employees to use virtual private networks (VPNs) to "spoof" their locations while also directing important customers like big, high-frequency trading firms to set up shell companies in places such as Jersey, BVI and the Netherlands to avoid restrictions, under their "VIP Handling" policy. ► The lawsuit alleges that Binance operated a derivatives trading operation in the US, offering trades for cryptocurrencies including bitcoin (BTC), ether (ETH), litecoin (LTC), tether (USDT) and Binance USD (BUSD), which the CFTC refers to as commodities (not securities.) It is illegal to let US customers trade on any derivatives exchanges that have not been registered with the CFTC whether at home or abroad, which is why some of the bigger exchanges have "separate" US-only platforms (Binance US, FTX.us) for US customers to trade a more limited set of products, mostly just as cash transactions, i.e. Image credit: Satheesh Sankaran via Pixabay
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |