35 Burst results for "First Republic Bank"
CoinDesk Podcast Network
A highlight from MARKETS DAILY: Crypto Update | Crypto Market Remains Tepid as Broader Economy Holds Its Breath
"This episode of Markets Daily is sponsored by Kraken. It's Tuesday, August 8th, 2023, and this is Markets Daily from Coindesk. George Kaloudis here again with your daily news roundup. On today's show, we're talking Bitcoin, the macro economy, the latest headlines and more. And just a reminder, Coindesk is a news source and does not provide financial advice. Bitcoin and Ether remained little changed over the past 24 hours, another sign of just how tepid the market is. Even the entry of payment giant PayPal into the stablecoin market failed to move the needle in any meaningful way. Both Bitcoin and Ether haven't moved much in price on the day and have had low trading volumes over the past few weeks. Yet another day of Bitcoin and Ether, the stablecoins. Bitcoin is currently trading at $29 ,482, while Ether is trading at $1 ,840 per token, according to the Coindesk market index. And shifting to the traditional markets and the broader economy, there are lots of things happening in the world economy. For one, the world's largest export economy in China has seen its export volume drop big time. Compared with those of a year earlier, China's exports to the U .S. and European Union plunged by more than 20 percent each last month. 20 percent. Geopolitical tensions between the U .S. and China have led to manufacturers from the West reducing their dependence on China. Not to mention, Covid induced supply chain scares have led to companies rationalizing their supply chain strategy. What's more, as the rest of the world faces inflation head on, the latest data shows that China actually could be in for some deflation for an economy that is predicated on explosive growth. If deflation takes hold in China, we could expect some serious stimulus packages. In that vein, China will release monthly inflation data tomorrow. Sticking with China, a headline from the Wall Street Journal reads, Country Garden, China's largest surviving developer, sinks into debt crisis. Country Garden Holdings, a property developer that has been lauded by China's authorities as a model for others, missed interest payments on two U .S. dollar bonds this week, marking a new stage of distress for the country's real estate market. So China is looking at falling exports, a potential deflation crisis and a deteriorating real estate market. Doesn't look so great for one of the world's largest economies. Moving stateside, last week, the U .S.'s credit rating was downgraded by rating agency Fitch. The downgrade was not matched by other rating agencies, else we'd be in a pretty scary place. But another ratings agency, Moody's, did cut the credit ratings of 10 U .S. regional banks. The moves suggest that Moody's believes, as do many, that the U .S. banking sector remains vulnerable. Higher interest rates and a potential recession in 2024 are the biggest threats to the banking industry at large. And lastly, moving underground, oil. Oil prices have ticked up over the last month and are at the highest level in three months. This comes as oil producers in Saudi Arabia and Russia have extended voluntary supply cuts recently as we approach a period of expected oil deficits. There is speculation that crude oil prices will move up as demand increases this summer and supply doesn't follow suit. Cartel economies with artificially controlled supply are fascinating. In any event, there is a lot going on in our macro economy, despite it being the sleepy part of summer. And there's plenty to keep our eyes on going forward. Moving on to the price of things with the indexes in the U .S., the Dow Jones Industrial Average is flat. The S &P 500 is down 0 .2 percent and the Nasdaq Composite lost 0 .6 percent. In Europe, the regional stock 600 and London's FTSE 100 decreased 0 .5 percent. Germany's Stacks, meanwhile, fell 1 .2 percent. In Asia, Hong Kong's Hang Seng Index is down 1 .8 percent. Shanghai Composite lost 0 .3 percent. And Japan's Nikkei 225 added 0 .4 percent. In commodities markets, Brent Crude, that's the international benchmark for oil, is down 1 .9 percent, trading at 84 dollars and 21 cents. Gold is down three quarters of a percentage point, trading at 1960 dollars per troy ounce. And First Republic Bank is trading slightly down at 32 cents per share. Today's traditional market coverage draws from The Wall Street Journal and MarketWatch.
Markets Daily Crypto Roundup
A highlight from Crypto Update | Crypto Market Remains Tepid as Broader Economy Holds Its Breath
"This episode of Markets Daily is sponsored by Kraken. It's Tuesday, August 8th, 2023, and this is Markets Daily from Coindesk. George Kaloudis here again with your daily news roundup. On today's show, we're talking Bitcoin, the macro economy, the latest headlines and more. And just a reminder, Coindesk is a news source and does not provide financial advice. Bitcoin and Ether remained little changed over the past 24 hours, another sign of just how tepid the market is. Even the entry of payment giant PayPal into the stablecoin market failed to move the needle in any meaningful way. Both Bitcoin and Ether haven't moved much in price on the day and have had low trading volumes over the past few weeks. Yet another day of Bitcoin and Ether, the stablecoins. Bitcoin is currently trading at $29 ,482, while Ether is trading at $1 ,840 per token, according to the Coindesk market index. And shifting to the traditional markets and the broader economy, there are lots of things happening in the world economy. For one, the world's largest export economy in China has seen its export volume drop big time. Compared with those of a year earlier, China's exports to the U .S. and European Union plunged by more than 20 percent each last month. 20 percent. Geopolitical tensions between the U .S. and China have led to manufacturers from the West reducing their dependence on China. Not to mention, Covid induced supply chain scares have led to companies rationalizing their supply chain strategy. What's more, as the rest of the world faces inflation head on, the latest data shows that China actually could be in for some deflation for an economy that is predicated on explosive growth. If deflation takes hold in China, we could expect some serious stimulus packages. In that vein, China will release monthly inflation data tomorrow. Sticking with China, a headline from the Wall Street Journal reads, Country Garden, China's largest surviving developer, sinks into debt crisis. Country Garden Holdings, a property developer that has been lauded by China's authorities as a model for others, missed interest payments on two U .S. dollar bonds this week, marking a new stage of distress for the country's real estate market. So China is looking at falling exports, a potential deflation crisis and a deteriorating real estate market. Doesn't look so great for one of the world's largest economies. Moving stateside, last week, the U .S.'s credit rating was downgraded by rating agency Fitch. The downgrade was not matched by other rating agencies, else we'd be in a pretty scary place. But another ratings agency, Moody's, did cut the credit ratings of 10 U .S. regional banks. The moves suggest that Moody's believes, as do many, that the U .S. banking sector remains vulnerable. Higher interest rates and a potential recession in 2024 are the biggest threats to the banking industry at large. And lastly, moving underground, oil. Oil prices have ticked up over the last month and are at the highest level in three months. This comes as oil producers in Saudi Arabia and Russia have extended voluntary supply cuts recently as we approach a period of expected oil deficits. There is speculation that crude oil prices will move up as demand increases this summer and supply doesn't follow suit. Cartel economies with artificially controlled supply are fascinating. In any event, there is a lot going on in our macro economy, despite it being the sleepy part of summer. And there's plenty to keep our eyes on going forward. Moving on to the price of things with the indexes in the U .S., the Dow Jones Industrial Average is flat. The S &P 500 is down 0 .2 percent and the Nasdaq Composite lost 0 .6 percent. In Europe, the regional stock 600 and London's FTSE 100 decreased 0 .5 percent. Germany's Stacks, meanwhile, fell 1 .2 percent. In Asia, Hong Kong's Hang Seng Index is down 1 .8 percent. Shanghai Composite lost 0 .3 percent. And Japan's Nikkei 225 added 0 .4 percent. In commodities markets, Brent Crude, that's the international benchmark for oil, is down 1 .9 percent, trading at 84 dollars and 21 cents. Gold is down three quarters of a percentage point, trading at 1960 dollars per troy ounce. And First Republic Bank is trading slightly down at 32 cents per share. Today's traditional market coverage draws from The Wall Street Journal and MarketWatch.
The Bitboy Crypto Podcast
A highlight from Behind Closed Vaults (The PREDATORY Nature Of Mega Banks)
"The best time to get a great deal on a Jeep SUV is now during the Summer of Jeep event. Visit jeep .com or your local Jeep brand dealer to find the perfect Jeep SUV for you. Hurry in and make this the Summer of Jeep. Right now during the Summer of Jeep, purchasing at 10 % below MSRP on the 2023 Jeep Compass Limited 4x4 or Renegade Latitude 4x4. Not compatible with lease offers or with any other consumer incentive offers. Contact dealer for details. Residency restrictions apply. Take retail delivery by 731 -23. Jeep is a registered trademark. Doesn't it seem to you that banking is becoming progressively worse and it's really happened in the last few years? Well, it's because it has. And this is just the beginning. Do you know how they say the larger banks are too big to fail? Well, unfortunately, for small town USA, the regional banks are too small to succeed. All of the money is systematically leaving smaller regional banks. It's going to larger ones, and it's all by design. This is the beginning of a seismic shift for the future of the banking sector, and it's time to take a dive into the mega bank monopoly. Let's get it! Welcome to BitBoy Crypto! My name is Ben. In this video, we're going to zoom in on the idea that our own government is encouraging the largest banks in America to engulf the smaller banks in a coordinated effort to centralize control. Understand that in today's financial climate, being a smaller bank is like bringing a slingshot to a shootout. We all know that money is power, and if my journey in crypto and politics has taught me anything, it's that America cares about one thing, having control. If you think things got bad in the last 20 years, just think about how much more control they'll have 20 years from now. And narrowing down who gets to control all the money is a great place to start. Now, before we get down into the nitty gritty, I want to keep it real with you. It's complicated as all this is about to get. I want to start off with a very basic concept so you can see firsthand how bad the situation already is. Let's take a quick look at this chart of the largest banks in the US. Does anything about this chart seem suspicious to you? Does anything seem wrong here? Look at the drastic difference between the big four and everyone else. Now, I can prove my point with just this chart. It's no secret who the big four banks are in the United States. JP Mortgage Ace, Bank of America, Citibank and Wells Fargo. And Wells Fargo has over a trillion dollars more than US Bank who's in fifth place. These four banks are the main players in the game, and it's most likely going to stay that way because these banks are the main benefactor and the dilemma our own government created. You should know that all of these banks are defined as GSIBs, or Globally Systematically Important Banks. Basically, they're held to a higher standard because of the risk they pose to the system if they were to fail. They get special treatment to avoid another terrible ending to a nonfiction movie. Alternatively, now that things have worsened for smaller regional banks, the Biden administration wants to change small bank standards so they have similar liquidity requirements to the larger ones. This tougher standard gives the smaller banks less wiggle room. When you pair this with high inflation and higher interest, what you'll eventually get is a seismic shift in the banking world because that standard is unattainable for more banks than you would think, and they're going to reach a point where the only way out is to consolidate. This concept is just the tip of the iceberg. Now, remember that first chart? Now, look at this one. This is a chart of deposits by bank size. How in the world are the small banks going to be competitive when they're getting outperformed this badly? It's like a high school team having to play, I don't know, the Georgia Bulldogs or maybe like another college team having to play the Georgia Bulldogs. They're that good. Believe me when I tell you though, banking is Darwinism at its finest. It's survival of the fittest. So, what do large fund investors think about this from an investment standpoint? We'll just ask Bill Negrin from Oakmark. Watch this. At Oakmark, our view has been that the largest banks have a strong competitive advantage versus smaller banks, and that the natural tendency is for the number of banks to shrink and the big to get bigger. They just have advantages when it comes to regulatory requirements, meeting regulatory requirements, mobilization, fraud control. If you're 10 times as big as somebody else, those costs aren't 10 times as large. Now, I want you to ask yourself, would investors on this scale waste their time investing in smaller banks? Of course not. Why would they? He said it himself. The number of banks is going to shrink, and the mega banks will keep adding zeros. To be fair, the US has more banks than all the other G7 countries combined. So, of course, there will be some consolidation, but when and where will it end? The problem is the standards of banking are what caused all the recent bank failures, and those same standards are preventing the smaller banks from getting larger. It's a double -edged sword. And there's no incentive for the government to find a middle ground. What do you think our government would rather do? Help the little man or continue co -signing to consolidation's decentralized control? I feel like you already know that answer. Now, I'm not exaggerating when I say that these banks are light years ahead of their competitors, and they really are too big to fail. Think of the enormity of advantage the big four has over the rest of the game. It's like playing Monopoly against the banker. They always roll doubles and don't play free parking. Instead, landing on Boardwalk and paying luxury tax out the wazoo. Now, why don't you play along with us and become a member of the BitSquad? Be sure to subscribe, smash that like button and ring the bell for notifications. Also, big thanks to Stake for sponsoring this video. They're our No. 1 sponsor. Check out bitboycrypto .com slash stake. Okay, let's look at the banking failures in recent history. You know, Silvergate, First Republic, Silicon Valley. And now look at that through the lens of how small businesses were forced to shut their doors because they couldn't compete with Walmart. It's the same thing. Look at it through the lens of cell phone companies. Yeah, there are smaller ones out there, but let's be honest. The majority go with either Verizon, T -Mobile or AT &T. It's not supposed to get boiled down to three like cell phones. It's for advantageous your everyday American to have multiple banking options because it forces the banks to be competitive with each other and actually have customer service. Stifling that competition leads to higher rates and less choices for customers, not to mention it sets the standard for anti -capitalism. It will also hinder innovation because smaller banks are more likely to offer innovative products and services to stand out in the crowd. With less banks to choose from, you won't be able to take your money and go down the street, shop for a better rate on a car loan. Unethical banking practices will only get worse because where are you going to go? Who are you going to go to? Do you think the bigger banks have any sense of sportsmanship for the smaller banks? Absolutely not. They don't want competition. This is a win for them. They want to crush them. It's all greed. Back before the sell -offs, the mega banks circled over Silicon Valley and First Republic like vultures. Did you know that JP Morgan's profits in Q2 this year jumped 67 %? Why? Because they bought out First Republic Bank, and in the process, they kept as many of their customers as they could, and not to mention interest rates are higher. One bank loss is another bank's gain. According to the Wall Street Journal, the 25 biggest US banks gained $120 billion in deposits in the days after Silicon Valley Bank collapsed. All the banks below that level lost $108 billion over the same time span. Some people like Jamie Dimon will tell you the worst is over. He's wrong. It's yet to come. Think about this. If the small banks have no choice but to keep consolidating the predatory practices the banks already pull on us, well, they're just going to multiply. Think about how much control your bank already has over you today. Hidden fees, higher rates and bidding over backwards just to get a small loan is one thing. But what about the headache you have to go through just to spend your own money? A bank shouldn't be able to tell you what you can or cannot spend your hard -earned money on. But they do this every single day. Don't even get me started. I can't even go to a normal bank. I really can't. They won't take me. And I'm not alone. Ask Drew about the time his bank didn't want him to take his own money out to buy a house. Ask AJ about the time his debit card got shut off with no warning. Ask Nick about the time they shut down his bank account for no reason at all. When he asked for an explanation, they told him they didn't have to tell him why. I can go on and on and on. Those are just people I know. And I'm sure you've got a personal nightmare story of your own. But the point I'm making here is it already feels like we have very little control in the institutions that were put there to protect our money. They don't respect us as humans. And it's all about the algorithms designed to facilitate the transfer of control. Unfortunately, the smaller banks are going to be forced to continue consolidating, giving all the money, all the power, all the control to the chosen elite. Obvious side note. Of course, they hate crypto. It's the only thing that gives the power back to the people. That's why they're pushing so hard to eliminate it. It scares them. You want to know what scares me more than anything? Regardless, if it's one bank, four banks or whatever with all the control, America's debt is at $32 .6 trillion and counting. Maybe not in my lifetime, but there has to come a moment where we stop kicking the can down the road, when you stop spreading risk around and centralized control. We enter a situation where there's a single point of failure, which would make this 10 times worse if it all comes crashing down. We don't even need a debt ceiling crisis to ruin the US credit system. We're already centralizing all the risk into four players. So how did it get this way? And why did these consolidations happen? Well, I'm sure you remember the 2008 banking crisis that ended in a bailout. Since the government and the FDIC don't want to take another den of that magnitude, they raised the standards for liquidity and put harsh restrictions on what banks can or cannot invest in. Some of you would know this as the Volcker Rule, which was part of the Dodd -Frank Wall Street Reform Bill. You can thank our old friend the banking broad Elizabeth Warren for that one. This rule is why banks can no longer invest in anything that is deemed too risky. Sure, it prevents them from getting wrecked, but it also prevents them from using money to make money. And, of course, who suffers the most? The average Joe. You and me. So what are the banks doing now that they can't take risks on? To answer this, I want you to think back to the days when interest rates were much lower. Remember when money was cheap? It was easy to go to the bank and get a loan if you wanted to go buy a house. Why do you think so many people under 30 don't own homes now? Because they can't. That flexibility is gone. Anyway, back when interest rates were low and money was cheap, there was a lot of extra liquidity moving around the banking system. Because of that, you would see a lot of big investors and venture capitalist money moving into riskier startups and starting new businesses, and, of course, they'll get the money to do that from easier to get banking loans. When the conditions were like this, you would see a lot of uninsured deposits at the bank. Remember, since the banks can't take risk, they had to take safer long -term investments with their money. For the most part, they went heavy into government bonds and mortgage -backed securities, the kind of investments that are long -term and low risk. This move they were forced into making is part of what took them down. When the banks bought those safer securities, they essentially made a bet that the interest rates wouldn't go higher. And unfortunately, we all know what happened last year. Of course, myself, himself, Jerome Powell and the gang spent the entirety of 2022 hiking interest rates to fight against inflation. They spent the entire year creating more problems to combat a problem they created. It was a perfect storm in the worst way for your everyday American. Between higher rates and a tight money supply, people had no choice but to withdraw money out of the banks. And when banks start to see money flying out by the boatload, they get to a point where they have to sell those safer securities they bought with their excess money. The problem was because the rates were higher, the bonds they were forced to sell were sold at a loss. Because Trump rolled back some of the Dodd -Frank rules, some banks didn't have to report unrealized losses. But when unrealized losses become real losses, it became a much different story between taking those losses, bad management and making terrible risk assessments. That's when the dominoes started to fall. That's when banks like First Republic and Silicon Valley had no choice but to sell stocks and borrow large quantities of money from other banks. This caused their investor and customer base to lose confidence and try to pull their money out as fast as possible, especially those uninsured deposits who have more than 250 grand because the rest is uninsured. This right here is a main reason why so many people are siding with the big four banks because even if the FDIC insurance rate of 250K is the same for small and large banks, it would take catastrophic circumstances for large banks to fail, not to mention the government wouldn't let it happen anyways. People know that big banks won't fail, and they're not about to put their life savings into a circumstance where they can only get a quarter million back if the bottom falls out. And trust me, the interest rates, well, they're not quite done hiking yet. This cycle will repeat itself as many times as it has to. By now, you're thinking, is there some sort of plan? What are the regulators going to do? Watch this. This clip here really sums it all up. The regionals are problematic because they keep losing their deposits and have to keep reducing their balance sheet. So for the regionals, I don't think earnings have bottomed. And I wouldn't even think about buying them until I thought that they had. You know, you could traffic a little bit in the larger banks, but the problem is that Michael Barr, who's vice chair of financial services, just said that he's going to raise capital requirements for the large banks by 20%, which would take our ways down by 100 to 200 basis points. There's an irony in this, by the way. All the problems that happened in the banks were in the mid cap banks. The large banks, because of all the regulatory changes, were fine. So what do the regulators do? They go fight the last war and they're raising capital requirements of the large banks. Why? I mean, there's absolutely no reason for it, but that's what they're doing. Do the regulators do anything at all to help out the smaller banks? Of course not. In fact, they intend to raise capital requirements by 20 % for the larger banks, a surefire way to ensure the failure of everyone that's beneath them. It's as if they want to consolidate the power. Imagine that. The man from the previous clip, well, that's Steve Eisman. He's famous on Wall Street. If you've ever seen the movie The Big Short, his character was played by Steve Carell. And, yes, he really did answer his phone in that meeting. Prime losses will stop at 5%. Zero. Excuse me. I have to take this. He must be from Bank of America. All jokes aside here, what he just said in that clip is directly in line with the narrative of the regional banks failing and the larger banks taking over. I agree with him on that. Of all people, this guy knows dumpster fire when he sees one. I agree with him. The smaller banks have no choice but to keep reducing their balance sheets, and that's why they haven't hit their bottom. My opinion differs from him though when he says that there's absolutely no reason for the regulator's large bank reaction to the problems with the smaller banks. I have to disagree. The reason is right in front of our faces. The regulators are raising capital requirements for the larger banks to encourage them to keep getting bigger, and that consequently makes it that much harder for smaller banks to grow. On the flip side, the Treasury Secretary herself, Janet Fellen Yellen, aka the Tweety Bird Monster, will tell you that they're not encouraging this type of activity. Another classic example of watch what they do, not what they say. Now, this clip is my favorite. Check it out. So what is your plan to keep large depositors from moving their funds out of community banks into the big banks? We have seen the mergers of banks over the past decade. I'm concerned you're about to accelerate that by encouraging anyone who has a large deposit in a community bank to say, we're not going to make you whole. But if you go to one of our preferred banks, we will make you whole at that point. That's certainly not something that we're encouraging. That is happening right now. That is happening because depositors are concerned about the bank failures that have happened and whether or not other banks could also fail. No, it's happening because you're fully insured no matter what the amount is. If you're in a big bank, you're not fully insured if you're in a community bank. Well, in all my years of watching Janet no tell and yell and lie to Americans about how she's protecting them, I've never once seen her stumble and fumble over words like she did in this clip. The best part is 30 seconds after getting put in the political equivalent of a stone -cold stunner, she says that her judgment is that the banking system is safe and sound and depositors should have confidence. Hysterical. Then when asked why some banks get special treatment and why others don't, she said that she didn't know and it's up for the FDIC to decide. The links people like Janet yell and go to protect depositors all while simultaneously hurting depositors is astounding. Reminds me of Gary Gensler. And in that lies a part of the problem. Getting a straight answer from a politician is like asking your mom for $5 and she tells you to ask your dad and he tells you to ask your mom and you never get the $5. Lack of accountability in our government has a lot to do with the fact that it's so easy for a three -letter agency to point the finger at another three -letter agency to pass the buck. With this, they all maintain a level of plausible deniability and get to go home and tell their families they're making a difference. What a joke. It's a joke. But wait, this is our money. This is our freedom. It's not a joke. And what's anybody going to do about it? Look, it's as simple as this. Politicians and regulators need to wake up and get it through their heads that small town America needs smaller banks. Where are we supposed to go to get loans of the banks that used to support small businesses? Have their hands tied. And Jamie Dimon has the key. We need that competition for competitive rates, and we need small banks to keep innovating to earn their market share. At this point, with the way things are going for the regional banks to survive, they'll be forced to tighten lending standards, make fewer loans, slowing down the economy for everybody. And now, with Biden's knee -jerk push to heighten capital requirements on small banks, politicians cannot sit there with a straight face and say they're not encouraging the consolidations. I'm also not saying this great consolidation will happen overnight, take years, maybe even decades, let the right people get elected and care enough to prevent it. Don't get me wrong. I'm not saying small banks shouldn't have regulations. Of course they do. Just the right kinds of regulations that involve common sense. Banks should be transparent. They should take stress tests. They still need enough wiggle room to be competitive as well as profitable. Sad part is it would take nothing short of a miracle for the public's faith to be restored in smaller banks. Obviously, everyone wants their money to be safe, so don't blame anyone personally for jumping ship to a bigger bank if they have to or if you're allowed to. But when this happens in droves and the government is backing it, you have to play the tape out and see how slippery this slope really is. So, at this point, other than voting in the polls and with our wallets, there's only so much we can do to hold on to the little bit of control we have left. And we have to make the most of it that we can. First of all, you have to be aware that the landscape is changing. With that, you need to do your part and self -educate yourself and become self -reliant. I don't say it lightly. And if you made it this far in this video, you obviously care about your financial future, but you need to keep going. If you're someone who's struggling or even someone who's just trying to level up, you need to plan out every minute of your day so you can make time to be studying at least three to four hours a day minimum. If you're someone that's got a lot of moving parts, there's no shame in hiring a financial advisor or someone that can help you be more active with your wealth management. Understand that at the end of the day, the big banks don't care about you or your self -interest. It's only about the bottom line for them. So that's why you need to learn as much as you can and take the time to figure out what works for you. With that, don't make the mistakes, the same mistakes the banks are making. Don't put all your eggs in one basket and expose yourself to the risk of having a single point of failure. You cannot stress how important it is for you to diversify. Split everything up so if one vertical fails, you're still well above water. Consider buying gold, buying stocks, holding cash, buying digital assets like Bitcoin, or even ammunition. If diplomacy fails, water and ammunition will become currency. It's clear I've been hanging out with Drew too much, but, hey, he's right. He's also kind of scary, but I like him. He's a good guy. At the end of the day, your financial future is up to you. So I wish you the best on your journey and your never -ending pursuit of financial education. That's all I got. Be blessed. BitBoy out.
Markets Daily Crypto Roundup
A highlight from Crypto Update | Crypto Traders Short Volatility; PayPal Announces U.S. Dollar Pegged Stablecoin
"This episode of Markets Daily is sponsored by Kraken. It's Monday, August 7th, 2023, and this is Markets Daily from Coindesk. George Kaloudis here again with your daily news roundup. On today's show, we're talking Bitcoin, the latest headlines and more. And just a reminder, Coindesk is a news source and does not provide financial advice. Bitcoin and Ether are still rock solid. Both have proved remarkably non -volatile in otherwise volatile times. They're basically stablecoins. Bitcoin hasn't risen more than 4 % in a single day since June 21st. The lack of volatility has, of course, sparked market chatter about an impending volatility explosion in Bitcoin. But to that, traders, analysts and market participants remain unconvinced that volatility to the upside will come from anything except the approval of the Spot Bitcoin ETF. And so, yet again, we turn our eyes and ears to the institutions and the Spot Bitcoin ETF for some potential price movement. On the topic of institutions, MicroStrategy, the public company that holds 152 ,000 Bitcoin on its balance sheet, is nearly back in the black with its Bitcoin bet after racking up a paper loss of roughly $1 billion. That is genuinely impressive, given MicroStrategy was buying Bitcoin through the height of the bull market when Bitcoin was around $69 ,000. There were, of course, back then, silly articles and suggestions that MicroStrategy would have to sell its Bitcoin into the open market as the price of Bitcoin fell from its all -time highs, leading to a death spiral in price. But that fear seems to be overblown, at least for now. It's a sleepy, sleepy summer in the markets at the moment. Today's crypto market coverage comes courtesy of Coindesk Markets analyst Lilo Ledesma, and I'm cargoed with Bolle. Bitcoin is currently trading at $29 ,019, while Ether is trading at $1 ,827 per token, according to the Coindesk Market Index. And shifting to the traditional markets in the U .S., the Dow Jones Industrial Average is down 0 .1%, the S &P 500 Law 0 .6%, and the Nasdaq Composite decreased 0 .9%. In Europe, the Regional Stocks 600 added 0 .6%, and London's FTSE 100 in Germany's DAX increased 0 .5%. In Asia, Hong Kong's Hang Seng Index is flat, the Shanghai Composite is down 0 .6%, and Japan's Nikkei 225 increased 0 .2%. In commodities markets, Brent crude, the international benchmark for oil, is up 0 .4%, trading at $85 .80. Gold, meanwhile, is flat at $1 ,975 per troy ounce. First Republic Bank versus trouble is also flat, trading at $0 .33. Today's traditional market coverage draws for MarketWatch. Stay tuned for after the break when we'll take a look at some stablecoin news. Back in a minute. Meet the all -new Kraken Pro, the powerful, customizable, beautiful way to trade crypto. It's Kraken's most powerful trading platform ever, packed with trading features like advanced order management and analytics tools, all in a redesigned, modular trading interface. So head to pro .kraken .com and trade like a pro. Not investment advice. Some crypto products and markets are unregulated. The unpredictable nature of the crypto assets market can lead to loss of funds and profits, may be subject to capital gains tax. And welcome back. Here are some headlines for you. PayPal to issue dollar pegged crypto stablecoin based on Ethereum. Global payments giant PayPal is launching its own U .S. dollar pegged stablecoin, PayPal USD or PYUSD. The Ethereum based token will soon be available to PayPal users in the U .S. and marks the first time a major financial company is issuing its own stablecoin. Users can transfer PYUSD between PayPal and supported external wallets, fund goods and services purchases, or convert any of PayPal supported cryptocurrencies to and from PYUSD. PYUSD will first be made available on PayPal's popular payments app Venmo. Meanwhile, PayPal said it would provide a tested reports of the funds backing the stablecoin in an effort to thwart concerns about unbacked tokens. Elsewhere, WorldCoins Nairobi warehouse raided by Kenyan police, according to local reports. Kenyan police raided the Nairobi warehouse of identity and cryptocurrency protocol WorldCoin on Saturday, confiscating documents and machines. This comes after Kenya's Ministry of the Interior suspended the project's operations in the country last week. The raid was reportedly conducted under the supervision of the Office of the Data Protection Commissioner, who said Tools for Humanity, the parent company of WorldCoin, failed to disclose its true intentions during registration of its operations. Moving on to our last update on CRV. Curve recouped 73 % of hacked funds, bolstering CRV sentiment. Curve Finance, which recently suffered an exploit, has recouped some 73 % of funds stolen during that hack. The hack saw the platform lose over $73 million worth of various tokens, causing contagion effects in the broader ecosystem. Over the past week, all $22 million in Ether and Ether derivatives stolen from lending protocol Alchemax -Fi, which is part of curve, were returned. Still though, over $18 million in stolen funds are still remaining. And on Sunday night, Curve opened up a bounty to the public. The protocol itself added, quote, if the exploiter chooses to return the funds in full, we will not pursue this any further, end quote. So unless something drastic happens, this will likely be the end of this particular CRV saga. Today's stories come courtesy of Coindesk's Shari Amalwa, Amitash Singh, and Aliza Gritski. And that's our show for today. Thank you for listening. For those of you still with us, we'd love to hear what you think. You can email podcasts at coindesk .com with the subject line markets daily. I'm George Kaloudis and this episode was produced and edited by Eleanor Paul with executive production by Jared Schwartz. And just a reminder, Coindesk is a news source and does not provide investment advice. I'll see y 'all tomorrow.
CoinDesk Podcast Network
A highlight from MARKETS DAILY: Crypto Update | Crypto Traders Short Volatility; PayPal Announces U.S. Dollar Pegged Stablecoin
"This episode of Markets Daily is sponsored by Kraken. It's Monday, August 7th, 2023, and this is Markets Daily from Coindesk. George Kaloudis here again with your daily news roundup. On today's show, we're talking Bitcoin, the latest headlines and more. And just a reminder, Coindesk is a news source and does not provide financial advice. Bitcoin and Ether are still rock solid. Both have proved remarkably non -volatile in otherwise volatile times. They're basically stablecoins. Bitcoin hasn't risen more than 4 % in a single day since June 21st. The lack of volatility has, of course, sparked market chatter about an impending volatility explosion in Bitcoin. But to that, traders, analysts and market participants remain unconvinced that volatility to the upside will come from anything except the approval of the Spot Bitcoin ETF. And so, yet again, we turn our eyes and ears to the institutions and the Spot Bitcoin ETF for some potential price movement. On the topic of institutions, MicroStrategy, the public company that holds 152 ,000 Bitcoin on its balance sheet, is nearly back in the black with its Bitcoin bet after racking up a paper loss of roughly $1 billion. That is genuinely impressive, given MicroStrategy was buying Bitcoin through the height of the bull market when Bitcoin was around $69 ,000. There were, of course, back then, silly articles and suggestions that MicroStrategy would have to sell its Bitcoin into the open market as the price of Bitcoin fell from its all -time highs, leading to a death spiral in price. But that fear seems to be overblown, at least for now. It's a sleepy, sleepy summer in the markets at the moment. Today's crypto market coverage comes courtesy of Coindesk Markets analyst Lilo Ledesma, and I'm cargoed with Bolle. Bitcoin is currently trading at $29 ,019, while Ether is trading at $1 ,827 per token, according to the Coindesk Market Index. And shifting to the traditional markets in the U .S., the Dow Jones Industrial Average is down 0 .1%, the S &P 500 Law 0 .6%, and the Nasdaq Composite decreased 0 .9%. In Europe, the Regional Stocks 600 added 0 .6%, and London's FTSE 100 in Germany's DAX increased 0 .5%. In Asia, Hong Kong's Hang Seng Index is flat, the Shanghai Composite is down 0 .6%, and Japan's Nikkei 225 increased 0 .2%. In commodities markets, Brent crude, the international benchmark for oil, is up 0 .4%, trading at $85 .80. Gold, meanwhile, is flat at $1 ,975 per troy ounce. First Republic Bank versus trouble is also flat, trading at $0 .33. Today's traditional market coverage draws for MarketWatch. Stay tuned for after the break when we'll take a look at some stablecoin news. Back in a minute. Meet the all -new Kraken Pro, the powerful, customizable, beautiful way to trade crypto. It's Kraken's most powerful trading platform ever, packed with trading features like advanced order management and analytics tools, all in a redesigned, modular trading interface. So head to pro .kraken .com and trade like a pro. Not investment advice. Some crypto products and markets are unregulated. The unpredictable nature of the crypto assets market can lead to loss of funds and profits, may be subject to capital gains tax. And welcome back. Here are some headlines for you. PayPal to issue dollar pegged crypto stablecoin based on Ethereum. Global payments giant PayPal is launching its own U .S. dollar pegged stablecoin, PayPal USD or PYUSD. The Ethereum based token will soon be available to PayPal users in the U .S. and marks the first time a major financial company is issuing its own stablecoin. Users can transfer PYUSD between PayPal and supported external wallets, fund goods and services purchases, or convert any of PayPal supported cryptocurrencies to and from PYUSD. PYUSD will first be made available on PayPal's popular payments app Venmo. Meanwhile, PayPal said it would provide a tested reports of the funds backing the stablecoin in an effort to thwart concerns about unbacked tokens. Elsewhere, WorldCoins Nairobi warehouse raided by Kenyan police, according to local reports. Kenyan police raided the Nairobi warehouse of identity and cryptocurrency protocol WorldCoin on Saturday, confiscating documents and machines. This comes after Kenya's Ministry of the Interior suspended the project's operations in the country last week. The raid was reportedly conducted under the supervision of the Office of the Data Protection Commissioner, who said Tools for Humanity, the parent company of WorldCoin, failed to disclose its true intentions during registration of its operations. Moving on to our last update on CRV. Curve recouped 73 % of hacked funds, bolstering CRV sentiment. Curve Finance, which recently suffered an exploit, has recouped some 73 % of funds stolen during that hack. The hack saw the platform lose over $73 million worth of various tokens, causing contagion effects in the broader ecosystem. Over the past week, all $22 million in Ether and Ether derivatives stolen from lending protocol Alchemax -Fi, which is part of curve, were returned. Still though, over $18 million in stolen funds are still remaining. And on Sunday night, Curve opened up a bounty to the public. The protocol itself added, quote, if the exploiter chooses to return the funds in full, we will not pursue this any further, end quote. So unless something drastic happens, this will likely be the end of this particular CRV saga. Today's stories come courtesy of Coindesk's Shari Amalwa, Amitash Singh, and Aliza Gritski. And that's our show for today. Thank you for listening. For those of you still with us, we'd love to hear what you think. You can email podcasts at coindesk .com with the subject line markets daily. I'm George Kaloudis and this episode was produced and edited by Eleanor Paul with executive production by Jared Schwartz. And just a reminder, Coindesk is a news source and does not provide investment advice. I'll see y 'all tomorrow.
Markets Daily Crypto Roundup
A highlight from Crypto Update | Markets Steady and Binance Could Face U.S. Department of Justice Fraud Charges
"This episode of Markets Daily is sponsored by Kraken. It's Thursday, August 3rd, 2023, and this is Markets Daily from Coindesk. George Knud is here again for your daily news roundup. On today's show, we're talking Bitcoin, the latest headlines and more. And just a reminder, Coindesk is a news source and does not provide financial advice. Bitcoin and Ether have slipped in the last 24 hours, but they still remain range -bound. If you're just looking at price charts and nothing else, the last month has been a snooze fest for the big cryptocurrencies. With all that is happening in the macro economy, with a not -recession looming, and in the world of DeFi, which in the words of Coindesk's Dan Coon died and we didn't even notice with the behavior around the Curve financial hack, it is quite honestly surprising that the market has done basically nothing for the last month. Still, though, there is some news in the world of the Spot Bitcoin ETF. ETF analysts at Bloomberg Intelligence raised their estimates for the launch of a U .S. Spot Bitcoin exchange -traded fund, or ETF, to 65 percent from 50 percent. The analysts said the SEC's seeming approval of Coinbase's Bitcoin trading platform is one positive indication, and another is SEC Chairman Gary Gensler downplaying his role in a recent interview. The potential approval of the many Spot Bitcoin ETFs is a bullish event waiting on the sidelines. For now, though, the market crickets continue. Bitcoin is currently trading at $29 ,110, while Ether is trading at $1 ,833 per token, according to the Coindesk Market Index. And shifting to the traditional markets, in the U .S., the Dow Industrial Average lost 0 .8 percent, the S &P 500 fell 1 percent, and the NASDAQ Composite decreased 1 .5 percent. In Europe, the regional Stoxx 600 and Mundensfutze 100 lost 0 .9 percent, and Germany's DAX fell 1 .1 percent. In Asia, Hong Kong's Hang Seng Index decreased 0 .5 percent, the Shanghai Composite increased 0 .6 percent, and Japan's Nikkei 225 lost 1 .7 percent. In commodities markets, Brent crude, that's the international benchmark for oil, fell to .65. $83 Gold, meanwhile, fell to $1 ,969 per troy ounce, and First Republic Bank, our regional banking crisis indicator, is basically flat at 32 cents. Today's traditional market coverage draws from MarketWatch. Stay tuned for after the break when we'll take a look at some quick headlines. Back in a minute. Meet the all new Kraken Pro, the powerful, customizable, beautiful way to trade crypto. It's Kraken's most powerful trading platform ever, packed with trading features like advanced order management and analytics tools, all in a redesigned modular trading interface. So head to pro .kraken .com and trade like a pro. Not investment advice, some crypto products and markets are unregulated. The unpredictable nature of the crypto assets market can lead to loss of funds and profits, maybe subject to capital gains tax.
CoinDesk Podcast Network
A highlight from MARKETS DAILY: Crypto Update | Markets Steady and Binance Could Face U.S. Department of Justice Fraud Charges
"This episode of Markets Daily is sponsored by Kraken. It's Thursday, August 3rd, 2023, and this is Markets Daily from Coindesk. George Knud is here again for your daily news roundup. On today's show, we're talking Bitcoin, the latest headlines and more. And just a reminder, Coindesk is a news source and does not provide financial advice. Bitcoin and Ether have slipped in the last 24 hours, but they still remain range -bound. If you're just looking at price charts and nothing else, the last month has been a snooze fest for the big cryptocurrencies. With all that is happening in the macro economy, with a not -recession looming, and in the world of DeFi, which in the words of Coindesk's Dan Coon died and we didn't even notice with the behavior around the Curve financial hack, it is quite honestly surprising that the market has done basically nothing for the last month. Still, though, there is some news in the world of the Spot Bitcoin ETF. ETF analysts at Bloomberg Intelligence raised their estimates for the launch of a U .S. Spot Bitcoin exchange -traded fund, or ETF, to 65 percent from 50 percent. The analysts said the SEC's seeming approval of Coinbase's Bitcoin trading platform is one positive indication, and another is SEC Chairman Gary Gensler downplaying his role in a recent interview. The potential approval of the many Spot Bitcoin ETFs is a bullish event waiting on the sidelines. For now, though, the market crickets continue. Bitcoin is currently trading at $29 ,110, while Ether is trading at $1 ,833 per token, according to the Coindesk Market Index. And shifting to the traditional markets, in the U .S., the Dow Industrial Average lost 0 .8 percent, the S &P 500 fell 1 percent, and the NASDAQ Composite decreased 1 .5 percent. In Europe, the regional Stoxx 600 and Mundensfutze 100 lost 0 .9 percent, and Germany's DAX fell 1 .1 percent. In Asia, Hong Kong's Hang Seng Index decreased 0 .5 percent, the Shanghai Composite increased 0 .6 percent, and Japan's Nikkei 225 lost 1 .7 percent. In commodities markets, Brent crude, that's the international benchmark for oil, fell to .65. $83 Gold, meanwhile, fell to $1 ,969 per troy ounce, and First Republic Bank, our regional banking crisis indicator, is basically flat at 32 cents. Today's traditional market coverage draws from MarketWatch. Stay tuned for after the break when we'll take a look at some quick headlines. Back in a minute. Meet the all new Kraken Pro, the powerful, customizable, beautiful way to trade crypto. It's Kraken's most powerful trading platform ever, packed with trading features like advanced order management and analytics tools, all in a redesigned modular trading interface. So head to pro .kraken .com and trade like a pro. Not investment advice, some crypto products and markets are unregulated. The unpredictable nature of the crypto assets market can lead to loss of funds and profits, maybe subject to capital gains tax.
The Breakdown
Crypto Chaos Fallout: Big Market Makers Pulling Out
"This week has seen a lot of interesting fallouts and consequences of last year's crypto chaos. For example, SPF resurfaced with the request to the judge in his case to throw out 7 of the charges he's accused of. I'm reminded of the line from dodgeball. It's a bold move cotton. Let's see how it works out for him. On top of that, one of 2020 twos last institutional hanging chads in DCG is in a murky situation as it goes into mediation around genesis debt payments that come do this month. Then there are the reports that big market makers like Jane street and jump are pulling away from the crypto markets after finding themselves facing intense above the surface and likely behind the scenes political pressure. We will be discussing all of this this week, but today is inflation day and so we're going to take a quick detour into the macro. Now to give a sense of where we are. Last week at the FOMC meeting, we got what some folks described as a hawkish pause. Obviously the headliner was that the fed raised rates, it raised them another 25 basis points, and this happened even in the face of the collapse of first republic bank, which was seized on the Monday of FOMC week. Now, for those who have been paying attention, it wasn't all that surprising, given what Powell and the fed's posture has been. They have said since the beginning of this tightening cycle that they had the tools to deal with problems that arise from tightening quickly. They basically said that they could handle financial stability and the fight against inflation at the same time and that the interest rate wasn't really their tool when it came to financial stability. Indeed, what we saw around the time of Silicon Valley bank is that the fed in addition to using its existing tools created a new tool in the bank term funding program. The idea of the BTF P remember was to give banks whose loans were underwater, the chance to borrow against the full value of those loans if they were held to maturity rather than having to sell them at a loss to provide for liquidity when customers tried to withdraw.
AP News Radio
Banks report tougher credit standards in wake of failures
"Banks are reporting tougher credit standards in the wake of recent bank failures, a report by the Federal Reserve shows about half of bank surveyed raised standards for business and consumer loans after the collapse of Silicon Valley bank, signature bank, and first republic bank, a majority of banks planned to tighten credit as the year goes on. It could slow the economy and increase the risk of a recession. The standards include demanding higher credit scores, charging higher interest rates, or requiring more collateral, a reduction in lending could force businesses to pull back on expansion plans and reduce hiring and could limit sales of cars and homes. The survey was done before
Thinking Crypto News & Interviews
"first republic bank" Discussed on Thinking Crypto News & Interviews
"For the good, yeah. Yeah, right? Like our polygon or whatever, man. Not Pepe coin, man. Come on. Yeah. I sense stickers to my family with this coin. You know, interesting enough. So lunar crush is like a social analytics platform. Put out various sweets. They basically aggregate data across all social media, YouTube, Twitter, Reddit, and see who is talking about what coins or stocks or things like that. And one of the tweets was 7 points or 9% of all social posts across all cryptocurrencies are related to Pepe. For reference, Bitcoin has 8.4 percent and eth has 5.86%. So that's wild. That is well. And I issued a warning on one of my recent episodes. I was like, guys, look, and it's what do you say earlier Vanessa, if you have money to lose? By all means, you know, God bless. But if you're looking at this as, hey, this is a big part of my crypto portfolio. Just get ready to be wrecked. And you know, these things don't end well. I know some people have made money off of Dogecoin and shiba. But these things are very much pumping dump and you gotta be careful. Yeah, you know, ultimately I do think that this isn't necessarily help the crypto narrative from the outside, right? Because it is, it's another meme coin no one takes a serious. It's going to go down. People are going to lose money, and that's what the headlines are going to highlight. So it's just interesting to see it. Yeah. There's just one guy, I forgot his last name, but his first name is Gabriel. Have you seen these videos on Twitter? Rants, he goes on these meme over the top outlandish rants about different crypto stuff. No, I haven't. I have to check them out.
The Hugh Hewitt Show: Highly Concentrated
Stock Market Plummets, Midsize Lenders Hit the Hardest
"The Dow was down 367 1%. The S&P was down 48 1%. The NASDAQ down a 132 down 1%. I do not know why Amazon went up a percent and a half, except I think tech is back as sort of the reserve currency of America. If you don't buy gold and you don't buy real estate, you buy big tech because they're so big and they have big moats and tall walls and so people maybe that's why. But it's shaky. Shares of a number of midsize lenders report The Wall Street Journal fell sharply Tuesday following the collapse of first republic bank. Banks that took a hit following the march collapse of Silicon Valley bank fell the most Los Angeles based pack west dropped 28%. Phoenix western alliance fell 15%, metropolitan bank, in New York, declined 20%,
The Charlie Kirk Show
Another 2008... Or Worse?
"From The New York Times here. Government regulator seized and sold off the first republic bank on Monday, making it the first, the third bank to fail this year after Silicon Valley bank and signature bank collapsed in March. These banks held a total of $532 billion in assets. That's more than the $526 billion when adjusted for inflation, held by the 25 banks that collapsed in the collapse in the 2008 at the height of the global financial crisis. And so that really begs the question reporting further. Are we living through a financial crisis that the kind of the new strategy is just kind of ignore it? Like, oh yeah, we're not in a recession. It's fine. Look, the Treasury Department is very nervous right now, and they should be very nervous. They're trying to downplay this. System is fully intact. Everything is perfectly fine. Because they are just a couple percentage points of human behavior changing away from legitimate bank runs. Even JPMorgan should be nervous at this point. But they're not Jamie Dimon is projecting strength. Oh, everything's fine. It's a great opportunity. The implosion in 2008 was of wamu, as well as Lehman Brothers and bear Stearns. This is more than Washington mutual bear Stearns and Lehman Brothers. I hope you guys understand that.
The Charlie Kirk Show
Media Hides Major Bank Run Threat
"Media is probably getting calls from the Treasury Department right now. I guarantee you the big uglies, CNN, even the people running the Apple news desk, NBC. I can almost guarantee you the Treasury Department's PR side, the communications director. They are working the phones saying, hey, can you just downplay the bank story? It's okay if you cover it. Just don't lead with it. And apparently it's working. I mean, they do mention it on the front page of The Wall Street Journal, but what catches your attention here. Front page of The Wall Street Journal is some freak wearing a cat uniform at the Met Gala, a Jared Leto, Leto, next set, Anne Hathaway, and Salma Hayek. So it's working. The lead should be. Not some Doja Cat thing. Again, I've joked around for a while that we're living through The Hunger Games. This is confirmation that The Hunger Games were awfully prophetic. Again, they do cover it, but it's as if your eyes go away from it. First republic sees sold to JPMorgan on page of The New York Times, B one, so it's buried because the front page of The New York Times, they're leading with Ukraine. Anyway, they do cover the bank issue, but you could tell it's not the emphasis. Somebody is lobbying. Somebody is working the ropes of these media companies. And there's a reason for it. We're on the precipice of a major bank run institutional and institutional bank run. Now, you know this, I hope you know this. The money in your bank account is not actually there. The money in your bank account is just a promise. It's a promissory note. It is a fractional reserve banking system. It works as long as everybody doesn't go and withdraw their money all at once. So the fall of first republic bank should be a lot bigger on the wall street journal than the eye candy distraction smoke screen, Doja Cat person. But somebody at the Treasury Department and quite honestly, you can't blame them. Is trying to just kind of tamper this down. You can cover it here or there, but do not engage in panic.
Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"first republic bank" Discussed on Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"Now the Bitcoin bull also points out the likelihood of a U.S. sovereign default recently hit all time highs, potentially strengthening his side of the bet. He shares a chart showing the price of credit default swaps on the U.S. one year bonds, skyrocketing as of late, quoting him here, had to work out the legal details, but looks for a bet, update soon. Meanwhile, markets also put the probability of the U.S. sovereign default at all time highs, and that's just the debt ceiling driven explicit default doesn't include all of the routes too monetizing debt as outlined here in this chart and analysts at Morgan Stanley capital international analysts have warned that the effects of the U.S. default on its debt could potentially be catastrophic, quitting them here. The consequences of a potential default by the U.S. government extend beyond the immediate impact on holders of treasuries, major market dislocation, and a sharp slowdown in economic activity, could both be realistic, possibilities. So there you have it and for Bitcoin price at the current rate to hit that $1 million target, that means we're about 3000% away from that $1 million call. So do you agree or disagree what Bellagio that we have a 10% chance still of hitting a $1 million by June 17th? Let me know your honest thoughts in the comments right down below. Now let's discuss the latest with crypto haze. That's right, the one and only the X bitmex CEO and founder. He's also predicting a $1 million price on the back of the collapse of first republic bank. That's right. The crypto billionaire tells us 400,000 Twitter followers that first republic bank won't likely be the last financial institution to collapse per each, according to Hayes and other regional bank will likely face liquidity issues in the coming days as the fed gears up to raise their interest rates, quoting him here, seems like the feds still wants the hike a quarter percent at its meeting this week. They still don't get it, or maybe they do and they're just hoping and praying that the market is stupid.
Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"first republic bank" Discussed on Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"Respect for the bank and lost faith in them, having their funds. So that's what happens. Last week, the chief investment officer, JPMorgan asked that management said that the crisis is in the country's banking industry. And it's not done claiming victims. Bob Michel said in a Bloomberg interview that it would be naive to think that the banking crisis was over and warned that more pain could come, especially to regional banks if they're unable to receive government support, quoting him here. Well, I think we have both a banking problem and a first republic problem and I think it's something naive to say that this is just limited to the first republic. If you step back and think about it, this should have never happened, this happened in the most heavily regulated capitalized industry on the planet, banking, and the regional banking system, I think, is quite vital to the United States. So I think it is a crisis. I think the regional banks are heavily dependent on the FDIC. There are heavily dependent on the fed home loan bank to get additional cash. We don't know how they are going to operate. When those two programs expire, so there you have it. Never trust the banks and only keep in the banquet. You're willing and affording to lose because at the end of the day, your money might not be there when you need it most. So keep that in mind. And with that being shared fam, now let's discuss this historic bull run, which is already underway, according to crypto analysts, that's right. He's doubling down on a contrarian prediction, the Bitcoin is only weeks away from a massive parabolic surge well into the 6 figure price range for send it this analyst tells us 110,000 Twitter followers that the double exponential moving average is crossing above the weekly median high and low as historically been a very reliable indicator for the beginning of the Bitcoin bull runs. Now the D EMA is a variation of the regular EMA designed to lessen the noise and
Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"first republic bank" Discussed on Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"And quoting max AI is the most powerful deflationary force in history, employment, and the bond market will collapse. No amount of money printing will offset this deflationary tsunami, all paper money will collapse Bitcoin will skyrocket to infinity, but no humans will be around to spend it. Now, I sure hope that's not the case, and that humans do stick around for a while, but it is very scary, even contemplating AI technology, what it means for the future of humanity, but with all that being shared, now let's dive into the latest profits of micro strategy, the first publicly traded company to put Bitcoin on its balance sheet. Here we go. Check it. Business intelligence platform, MST R has reiterated its commitment to its Bitcoin investment strategy after turning its first quarterly profit all the way since 2020. Michael saylor founded the firm back when it was in green in the first quarter of 2023. What a profit of 94 million, which was largely attributed to the one time income tax benefit of 453 million in addition to the tax benefit, the firm cashed in a 121.9 million in revenue, up 2.2% from the same time last year and Feng Li, the firm's CEO explained that it may 1st statement that micro strategies conviction in Bitcoin investment strategy is that strong as ever, quitting him here, the conviction in our Bitcoin strategy remains strong as the digital asset environment continues to mature, we remain disciplined on costs while investing in growth, and we will continue to execute our dual strategy of growing our business intelligence software business and acquiring Bitcoin for the future, Lee also stressed that its core business is not impacted by the short term price fluctuations of the king crypto. That's right. And also sailor who serves as micro strategy's chairman, attributed the successful quarter to sharp execution in the firm's core business model, and is Bitcoin investment thesis, which he described as the right strategy, adding the following. So ultimately, it's not easy to see what better strategy there might be. And so we are strong proponents of a Bitcoin strategy. And as you can see from this chart, simply acquiring and holding Bitcoin in a prudent fashion is a pretty good way to outperform the market. That's right. The Bitcoin advocate predicted
Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"first republic bank" Discussed on Crypto News Alerts | Daily Bitcoin (BTC) & Cryptocurrency News
"Under 1.2 trillion with only 37 billion in volume at a past 24 hours, Bitcoin dominance back on the rise at 46.9%, and they either dominance also back on the rise at 19% even and checking out the top 100 crypto gainers in the past 24 hours. We have block stacks up four and a half percent training above 71 cents, followed by FXS up almost 4% trading at $7 and 85 cents. Followed by chronos up almost 4% trading just above 7.2 cents and checking out the top 100 crypto gainers for the past week. We can see Pepe, leading the pack up 16.1%. We have hex up almost 10% and block stacks up four and a half percent. And checking out the crypto green inferior index. We're currently rated at 55 and greed. Yesterday was a 63. Last week, a 53 neutral and last month, a 63 in greed, so there you have it. How many of you are currently bullish on the king crypto? Let me know in the comments right down below. And now let's dive into today's Bitcoin technical analysis and check out the charts and what's poppin, a lot of Bitcoin miners just came online, Bitcoin hash rate, or the total computing power, the Bitcoin blockchain, just soared to 439 extra hashes per second. Let's go, moreover, the number of transactions, the Bitcoin blockchain processed in one day, exceeded 682,000 as over 300,000 ordinals inscribed on the Bitcoin blockchain, new record highs, the fundamentals, have never been stronger. These milestones demonstrate the network strength and stability as well as the increasing adoption of Bitcoin for various use cases, all while the banking sector in the United States continues to go kaput, the Bitcoin hash rate, a measure of the computational power dedicated to securing the blockchain, reached an all time high signifying increased confidence in the network security, the hash rate is a crucial indicator of the network's health as a higher hash rate means more miners are participating, thus making the network more resistant to attacks and quitting max Kaiser, the Bitcoin price follows the hash rate. Ultimately, meaning the price is a lagging indicator, now the surge in
Thinking Crypto News & Interviews
"first republic bank" Discussed on Thinking Crypto News & Interviews
"The <Speech_Male> technology we will be <Speech_Male> running in different apps <Speech_Male> and different web three apps, <Speech_Male> you will be using <Speech_Male> it. And <Speech_Male> those who <Speech_Male> want to <Speech_Male> dabble in collectibles <Speech_Male> <Speech_Male> and <Speech_Male> continually <Speech_Male> analog <Speech_Male> <Speech_Male> collectible <Speech_Male> <Speech_Male> economy, <Speech_Male> you know, will do that <Speech_Male> in the NFT phase <Speech_Male> because NFTs are <Speech_Male> going to be tied to real estate <Speech_Male> artwork, <Speech_Male> cars, different things. <Speech_Male> And people are <Speech_Male> going to lend and borrow <Speech_Male> against them. <Speech_Male> People will <Speech_Male> sell them and exchange <Speech_Male> them. <Speech_Male> And of course, <Speech_Male> NFTs from <Speech_Male> certain brands and companies <Speech_Male> will unlock <Speech_Male> special perks <Speech_Male> and benefits. <Speech_Male> So this <Speech_Male> is really, really <Speech_Male> great to see. <Speech_Male> And I'm bullish <Speech_Male> on NFTs, guys, <Speech_Male> 'cause remember <Speech_Male> these NFTs <Speech_Male> are minted on <Speech_Male> blockchains. <Speech_Male> It provides and <Speech_Male> gives more utility <Speech_Male> to these <Speech_Male> blockchains. And if you're <Speech_Male> holding the tokens <Speech_Male> of said blockchains, <Speech_Male> <Speech_Male> you know, <Speech_Male> those tokens <Speech_Male> are going to <Speech_Male> benefit in value <Speech_Male> growth <Speech_Male> because of the <Speech_Male> building and adoption <Speech_Male> on the network. <Silence> Now, <Speech_Male> the <Speech_Male> digital currency <Speech_Male> group in Gemini <Speech_Male> drama <Speech_Male> continues. <Speech_Male> So DCG <Speech_Male> risk defaulting <Speech_Male> on $630 million <Speech_Male> in debt <Speech_Male> obligations <Speech_Male> Gemini says <Speech_Male> genesis <Speech_Male> has initiated <Speech_Male> a 30 day mediation <Speech_Male> process with <Speech_Male> DCG UCC <Speech_Male> creditor <Speech_Male> committee and Gemini <Speech_Male> to reach a final <Speech_Male> solution as soon as <Speech_Male> possible. <Speech_Male> Hopefully they can get this thing <Speech_Male> resolved, man. This is <Speech_Male> one of those <Speech_Male> things that happened last <Speech_Male> year. We <Speech_Male> just bad, right? <Speech_Male> Add <Speech_Male> this to the list with FTX, <Speech_Male> Celsius, Tara <Speech_Male> Luna and so forth. <Speech_Male> So <Speech_Male> the mediation <Speech_Male> is focused on <Speech_Male> DCG economic <Speech_Male> contribution <Speech_Male> to the bankruptcies <Speech_Male> as state for the <Speech_Male> benefits of all creditors, <Speech_Male> including <Speech_Male> earn users, <Speech_Male> the exchanges, <Speech_Male> former lending program <Speech_Male> that halted <Speech_Male> operations in November, <Speech_Male> earn <Speech_Male> was eventually forced <Speech_Male> to close following <Speech_Male> DCG subsidiary <Speech_Male> genesis <Speech_Male> global capital's <Speech_Male> allergic failure <Speech_Male> or alleged failure <Speech_Male> to <Speech_Male> return more than $900 million <Speech_Male> <Speech_Male> in assets <Speech_Male> owned. The <Speech_Male> proposed <Speech_Male> mediation provides <Speech_Male> for two meetings <Speech_Male> before May 8th, <Speech_Male> an important <Speech_Male> date as DCG <Speech_Male> owes the genesis <Speech_Male> bankruptcy estate <Speech_Male> $630 million <Speech_Male> <Speech_Male> on May 9th through <Silence> <Speech_Male> to May <Speech_Male> 11th. <Speech_Male> So once <Speech_Male> again, <Speech_Male> hopefully they can <Speech_Male> get this fixed and <Speech_Male> Gemini earned users <Speech_Male> can get their money back <Speech_Male> because this is a bad <Speech_Male> situation. <Speech_Male> Now finally, I <Speech_Male> want to end it here <Speech_Male> on <Speech_Male> note about corium. <Speech_Male> Many of you <Speech_Male> may recall I went <Speech_Male> to the corium <Speech_Male> mainnet launch event <Speech_Male> in LA <Speech_Male> back in <Speech_Male> March, I believe it <Speech_Male> was or was it <Speech_Male> in February, <Speech_Male> boy, time is flying. <Speech_Male> Well, <Speech_Male> they're doing a <Speech_Male> great initiative <Speech_Male> here where <Speech_Male> they have some <Speech_Male> developer grants <Speech_Male> and <Speech_Male> you can register for a <Speech_Male> hackathon <Speech_Male> first place is <Speech_Male> $75,000 <Speech_Male> in core <Speech_Male> token, second <Speech_Male> place is $25,000 <Speech_Male> in core tokens. <Speech_Male> And they <Speech_Male> have some important dates <Speech_Male> here like tomorrow is <Speech_Male> the first workshop <Speech_Male> may 8th is <Speech_Male> the second workshop <Speech_Male> in May 11th. <Speech_Male> There's a third <Speech_Male> workshop. So <Speech_Male> if you're a developer, <Speech_Male> if you're looking to do some <Speech_Male> cool things and <Speech_Male> build <Speech_Male> with corium and <Speech_Male> their blockchain, you can <Speech_Male> definitely check <Speech_Male> it out. <Speech_Male> <Speech_Male> If you want to know what <Speech_Male> it is, it's a third generation <Speech_Male> layer one <Speech_Male> blockchain. <Speech_Male> And <Speech_Male> they <Speech_Male> just got listed on poloniex. <Speech_Male> It looks like, <Speech_Male> so you can <Speech_Male> check that token out. <Speech_Male> Anyway, <Speech_Male> guys, that's the news. <Speech_Male> Let me know what you think. <Speech_Male> Leave your thoughts and comments <Speech_Male> below. Hit the thumbs <Speech_Male> up button, share this <Speech_Male> video, and I'll talk to <Speech_Male> you all <SpeakerChange> <Speech_Music_Male> later.
Thinking Crypto News & Interviews
"first republic bank" Discussed on Thinking Crypto News & Interviews
"So Google Cloud is working with polygon labs to help developers make it easier to build launch and grow their web three products and decentralized applications on the Ethereum based layer two blockchain. Under the new partnership, Google Cloud will bring its blockchain node engine detect giants fully managed node hosting service to poly to the polygon ecosystem, which will help developers focus on building the protocol. While retaining complete control over the nodes or where nodes are deployed, the company said in a statement and issued during consensus wedding 23 in August, Texas. Excuse me, Austin, Texas. Great news guys. And once again, I am very very bullish on this project as a layer two scaling solution for Ethereum and they are getting massive partnerships. Now, Jack Dorsey's block looks to disrupt Bitcoin mining. Block planes to create custom silicon for Bitcoin mining hardware to bring decentralization to the industry. Now, you know, we all know Jack Dorsey is a big time Bitcoin bull. He's looking to do a lot of building and expansion of the Bitcoin ecosystem.
Thinking Crypto News & Interviews
"first republic bank" Discussed on Thinking Crypto News & Interviews
"Ripple and grayscale vote come out with big wins and you have coinbase suing the SEC now, it might put pressure on Congress to move because the SEC is looking very bad right now from an optics standpoint. And if they take some big L's, it's not going to look good, right? So they may try to get ahead of this to help reduce the impact of those losses to the SEC. So we'll see where it goes, but my gut says next year, but this is a move in the right direction. I like what I'm seeing here and what I'm hearing, hopefully they can get things moving and this makes it from the House to the Senate and so on and so forth. So let's be optimistic. Fingers crossed and let's see what's happening. Now congressman Warren Davidson and here Mike flood out of Nebraska today sent a letter to the president of the United States and The White House chief of council of economic advisers calling them out for what they call inconsistencies and flip flopping on their handling of digital assets and how they should be regulated. Here's an excerpt from that Congress plays a critical role in a regulatory framework for digital assets, which are not up to the discretion of unelected bureaucrats. Hello, Gary gensler. Who really or who retain inconsistent viewpoints? So this is home Warren Davidson. Here's what Mike had to say, we need a regulatory framework that attracts investments here in America and encourages private sector entrepreneurs to deliver digital asset technology here at home. I strongly urge the council of economic advisers to avoid antagonizing innovation and to adopt a new approach that supports investment in our digital future. So great to see they're going in the offensive, sending letters, calling people out. This is what we need to see. We got to go in the fight and I'm glad these gentlemen are doing this. And on the other side, there are bills being prepped to be pushed through. Now we got some news here to Google Cloud is going to help accelerate polygons grow that we are new agreement. The tech giant will be a strategic cloud partner or provider for polygon protocols. Folks, I'm very bullish on polygon. I hope I continue to accumulate it. That's not financial advice. Do your own research, but real world partnerships, right? There are a lot of big brands building on polygon, Starbucks, Nike, the list goes on and on and here Google is going to help develop this protocol.
Thinking Crypto News & Interviews
"first republic bank" Discussed on Thinking Crypto News & Interviews
"When I say dangerous, I don't mean like to your health or something, but rather to your wealth. So be careful, don't lose your money, don't buy into pumps. And I'm staying away from this, but I'm letting you guys know what's happening. And it's a meme coin. It has no utility. It's just sheer speculation and crowdsourcing. It goes back to the Reddit GameStop crowd and so forth. That's what's happening here. I'm not saying, I'm not telling you what to do. As far as don't go invest in it and so forth. There are people who have made money off of me and coins, but I'm telling you the percentage of people who have lost money vastly outweighs the amount that have made money on meme coins. So please be careful, guys. And here, even blockchain backer who does some great crypto and analysis, he tweeted out the Pepe memecoin chart where he shows with the Fibonacci model on top of the chart, it is about to dump big time. He said all day today has been meme coin mania with people Yolo ing into Pepe. Twitter has been very mean coin centric. It's amazing to see the technical behavior indicating the top is already in crash retraced to the 7 O two re accumulation than the 4.236 extension. So he's absolutely right here. If you look at it on the charts, so be careful, folks, don't go crazy and put a whole bunch of money into this. It's about to roll over. This is once again why you need to understand the charts and what's happening here, be very careful. And once again, I'm not touching this with a ten foot pole. I have no room in my portfolio for meme coins. I'm looking for utility and real world usage and adoption. That is what I'm looking for. Now, let's talk about crypto regulations. So representative Patrick mchenry, the one of the congressmen and the chairman of the House
Thinking Crypto News & Interviews
"first republic bank" Discussed on Thinking Crypto News & Interviews
"And interviews. If you are new here, please hit that subscribe button as well as a thumbs up button and leave a comment below. If you're listening on a podcast platform such as Spotify, apple or Google. Please leave a 5 star rating and review, it supports the podcast and it doesn't cost you anything. This content is brought to you by uphold, which makes crypto investing easy. I've been a user of uphold since 2017 and one of my go to exchanges. They have ten plus million users, 250 plus cryptocurrencies, and are available in a 150 countries.
CoinDesk Podcast Network
"first republic bank" Discussed on CoinDesk Podcast Network
"Live anymore. We're not at consensus. We're not in the flesh. This is terrible. What happened? We got rugged we were having such a good time. We were like in person with fans. We had a alpaca visit us. Here we are, trapped in these boxes again. They will escape. Why do we have to get put back in the boxes? I feel so trapped. I need to be out. Like the Al-Qaeda. What we did. Give us three days IRL and they put us right back in these boxes. Oh man, control control control. Just kidding, we love it. It's so fun. It was so fun. All right, I'm just thinking about how soft the alpaca was still. It was truly one of many highlights of my consensus. Maybe not the highlight, but one of 7. Anyway, I'm Zach seward. We got Jensen assie and Wendy O on the show today, and we do have some business to attend to. The hash is all about getting you up to speed on what's going on in the crypto news cycle. So let's do this thing. My turn. All right, JPMorgan bought almost all of first republic's assets. After that bank fell now, rewind a little bit. Remember this banking crisis that the U.S. financial system was going through, spooked a lot of people. We saw Silicon Valley bank fail. We saw signature bank, be taken over by regulators. Now we're seeing something similar from first republic, which also found itself in Dire Straits after the fed rapidly raised interest rates, and they had a bunch of bad stuff on their books. So we're going to talk about this. Jamie Dimon says, hey, this chapter of the banking crisis is over. We've stepped in. We've got this thing, got it under control, don't worry, everybody. But I don't know. I don't know if everybody is fully on that page just yet. There could be more shoes to fall. But Jamie Dimon says, no, there's only so many banks, maybe three that we're doing this shady business. And we're going to be A-okay. So anyway, I'm going to talk this straight to Jen. What do you think? Do you think this phase of the banking crisis is indeed over or do you think more stuff is about to happen? No, imagine I said yes, I think it's over. I think the two of you would just limp best me. It's worrying. That Jamie Dimon is saying, you know, this is all over. It's all under control now with and with no other information to back that statement up and I was reading this story. I just thought about, you know, how we're calling for more proof of reserves, more transparency when it comes to crypto and crypto exchanges and it's becoming more and more prevalent that we should be calling for the same thing in the traditional financial sector. I think that the banks and customers would really benefit from this. Wendy, I'm going to toss it off to you. I have more thoughts, but I saw you making there we go. We have the tinfoil
CoinDesk Podcast Network
First Republic Bank Seized and Sold to JPMorgan Chase
"JPMorgan bought almost all of first republic's assets. After that bank fell now, rewind a little bit. Remember this banking crisis that the U.S. financial system was going through, spooked a lot of people. We saw Silicon Valley bank fail. We saw signature bank, be taken over by regulators. Now we're seeing something similar from first republic, which also found itself in Dire Straits after the fed rapidly raised interest rates, and they had a bunch of bad stuff on their books. So we're going to talk about this. Jamie Dimon says, hey, this chapter of the banking crisis is over. We've stepped in. We've got this thing, got it under control, don't worry, everybody. But I don't know. I don't know if everybody is fully on that page just yet. There could be more shoes to fall. But Jamie Dimon says, no, there's only so many banks, maybe three that we're doing this shady business. And we're going to be A-okay. So anyway, I'm going to talk this straight to Jen. What do you think? Do you think this phase of the banking crisis is indeed over or do you think more stuff is about to happen? No, imagine I said yes, I think it's over. I think the two of you would just limp best me. It's worrying. That Jamie Dimon is saying, you know, this is all over. It's all under control now with and with no other information to back that statement up and I was reading this story. I just thought about, you know, how we're calling for more proof of reserves, more transparency when it comes to crypto and crypto exchanges and it's becoming more and more prevalent that we should be calling for the same thing in the traditional financial sector. I think that the banks and customers would really benefit from this.
The Breakdown
First Republic's Failure Shows the Limits of Fed Bank Programs
"So heading into the weekend, chatter was plentiful, but solid information was sparse, regarding the resolution of first republic bank. First republic has been in the headlines for months. Their stock has lost 90% of its value this year with a huge amount of that drop happening in the week following the shutdown of Silicon Valley bank. Obviously after SVB, investors looked everywhere for where they thought the next banking domino might come from, and specifically they were looking for these mark to market losses on long-term asset portfolios, right? They were looking to find other banks that might have the same sort of duration mismatch, and interest rate risk that ended up doing in SVB, and first republic was pretty high on the list of contenders. Now, first republic, unlike signature, for example, was allowed to take advantage of federal liquidity programs like the bank term funding program, but it is still been, let's say, wobbly at best ever since. Now, all during last week, there were rumors that first republic would be seized and sold by the FDIC. And yet on Friday, no announcement had been made to that effect, and even late on Sunday, no announcement had been made to that effect. last week had centered around the impossible position that government agencies had found themselves in. You'll remember that a consortium of 11 large banks had already provided a $30 billion liquidity injection in the form of a term deposit that would remain locked in place until July. That deposit was just meant to buy time for first republic, which is now shed 100 billion in uninsured deposits over the last few months, with very few now remaining other than the 30 billion provided by that bank consortium. Having already provided funds that group was now in a position where they might need to bear a loss if the FDIC was required to seize first republic and no additional deposit insurance was approved. And it kind of seemed like the Biden administration wasn't keen to come in and bail out first republic in quite the way that people were expecting. And neither didn't appear to be a massive rush to bring the saga to a conclusion. Instead, it felt kind of like a game of chicken.
AP News Radio
FDIC recommends overhauling US insurance deposit system
"The federal deposit insurance corporation is recommending an overhaul of the U.S. insurance deposit system. I Norman hall. The FDIC says there should be a rethinking of its decades old policy of ensuring up to $250,000 in bank deposits. Instead, an overhaul would allow regulators to cover higher amounts on a targeted basis. The proposed change appears to open Lake knowledge that the FDIC is looking for ways to calm both depositors and markets as the organization contends with the third U.S. bank failure this year. First republic bank became the second largest failure in history money when regulators seized it and JPMorgan Chase stepped up as a buyer. Norman hall, Washington
AP News Radio
First Republic Bank seized, sold to JPMorgan Chase
"Failed bank first republic was seized by the government Monday and sold to JPMorgan Chase. First republic is the third midsize bank to fail in two months and JPMorgan Chase CEO Jamie Dimon says it won't be the last. There may be no smaller one, but it's pretty much resolves them all. But this part of the crisis is over. That does not down the road. There are rates going way up, real estate, recession. That's a whole different issue, but for now it was just take a deep breath. JPMorgan Chase CFO Jeremy barnum says first republic clients can bank as usual at branches. Feel confident that their deposits are backed by the strength and security of JPMorgan Chase. Following the failure of Silicon Valley and signature bank, customers rushed withdraw money from first republic creating a run on the bank. The FDIC estimated its deposit insurance fund paid for by banks would take a $13 billion hit. Julie Walker, New York
AP News Radio
Regulators seize First Republic Bank, sell to JPMorgan Chase
"Regulators say JPMorgan Chase will take over the assets of struggling first republic bank. The federal deposit insurance corporation announced early Monday that California regulators had seized control of first republic bank and sold it to JPMorgan Chase Bank. Their locations will reopen today as JPMorgan Chase Bank branches, the company will assume all of first republic's deposits and substantially all of the bank assets, regulators worked late into the night Sunday after a midday deadline for bids passed, San Francisco based first republic has been seen as the most likely to fail since the collapses of Silicon Valley bank and signature bank in early March, due in part to its high amount of uninsured deposits in exposure to low interest rate loans, depositors pulled more than $100 billion out of the bank during the crisis. I am Jennifer King
Marketplace Minute
"first republic bank" Discussed on Marketplace Minute
"On the tools and weapons podcast hosted by Microsoft vice chair and president Brad Smith, global leaders discuss the promise and the peril of the digital age, from environmental sustainability to cybersecurity, to the need to develop AI and a principled and ethical way so that it serves all humanity. Guests like businessmen strive matsuya, journalist Kara Swisher, and Microsoft CEO Satya Nadella. Share lessons from their past to reframe some of society's toughest challenges and seek new solutions. Find tools and weapons wherever you like to listen. The country's second largest bank failure just happened. I'm nova safa with a marketplace minute. Regulators have seized first republic bank and have entered into an agreement to sell substantially all of its assets and deposits to JPMorgan Chase. First republic's branches are scheduled to open for business today. The bank was the latest regional financial institution to struggle with depositors pulling funds. The bank borrowed heavily to cover those outflows. It was Silicon Valley banks collapse in early March, which touched off a handful of bank failures. Now the Federal Reserve is out with its report on what went wrong. Among other things, the fed false changes Congress made to lighten regulatory oversight, the report also faults the fed's own bank supervisors, saying they were slow to act as problems emerged at Silicon Valley bank. A surprise declined in manufacturing activity in the world's second largest economy, China's government says business activity in April retreated into contraction territory. With a marketplace minute. I'm John Ali espinal, host of financially inclined. A new podcast from marketplace. Each week, I'll help you understand the basics of personal finance so you can make the most of your life. So a budget I like to say it's an ugly word for a beautiful thing. Do you have enough money to buy new or used, which will definitely tell you what kind of car you should buy. You are literally going to learn the language of investing. When should I use a debit card and when should I use a credit card? Listen to financially inclined wherever you get your podcasts.
The Crypto Overnighter
"first republic bank" Discussed on The Crypto Overnighter
"To buy its debt. In other words, it deflationary recession is coming. Now people like Myers believes that it will force the fed to return to a quantitative easing policy. Quote, when the debt ceiling is lifted and credit contraction leads to economic crisis, they will have to print money on a massive scale. And everybody who's listening to the show knows Bitcoin made out like a bandit during the last round of stimulus. The view of some is that a blow to the dollar's credibility would boost Bitcoin's price. The government has already hit its $31.4 trillion debt ceiling in January of 2023. Theoretically, that means it can not generate any more capital until the U.S. Senate passes the bill to raise the ceiling. Theoretically. Watches of U.S. politics knows that it is unlikely to pass the Senate. And even if it did, President Biden has vowed to veto the bill. This standoff could result in the U.S. government defaulting on its debt in June. Doing so means negative consequences for the U.S. dollar. That's according to Jeff John Roberts. He's the crypto editor of fortune. Quote, if Republicans decide to go the kamikaze route during the current debt ceiling standoff, it will deliver another major hit to the dollar's credibility. And a further boost to Bitcoin. Former US Treasury secretary Lawrence summers downplayed the fears of a potential debt default saying the odds of it happening stand under 2%. Quote, I think the odds that we will default in the sense of insolvency and over some interval people who hold bonds who will not be able to get paid are assuming the balance of a major war certainly under 2% over the next decade. Presenting a similar outlook, analyst ted-talks macro says extending the debt ceiling would ensure that the fed continues contracting its balance sheet by continuing to close off the tap to all that easy Fiat money. Which points to lower liquidity. That in turn means more downside pressure for Bitcoin. Quote, one caveat to the liquidity downturn sideways for the rest of 2023 would be the fed winding up or slowing the pace QT. This impact of the debt ceiling on the price of Bitcoin is uncertain. Some analysts believe that it could lead to a rally. Others are calling for a sell off. Ultimately, the market will decide. And that brings us to our cover story for tonight. Google Cloud and polygon announced a multiyear partnership to boost the development of Ethereum scaling protocols, tools, and infrastructure. The partnership will provide polygon with Google Cloud's framework and developer tools. This will help simplify developer integration, which makes it easier to build, launch and grow web three products and decentralized applications on polygon. Google Cloud's partnership with polygon is expected to advance polygon's zero knowledge development. Testing of polygons zero knowledge proofs on Google Cloud reportedly means faster and cheaper transactions compared to the existing infrastructure available. The polygon ZK EVM beta is an Ethereum virtual machine scaling solution. It was launched to mainnet and march of 2023, powering reduced transaction costs and increased throughput of smart contract deployments. Google Cloud's blockchain node engine will be used by the polygon ecosystem. It will assist with time intensive processes and constantly overheads of acquiring, maintaining and operating dedicated blockchain notes. This specific immigration works toward removing the need for polygon developers to configure and run polygon notes. The partnership provides capital resources to the polygon ecosystem developers and companies that are building web three products and apps. Certain early stage polygon ventures backed startups will get certain benefits. They will be able to receive newly launched web three specific bonuses from the Google for startups cloud program. The initiative includes collaboration with a whole host of web three firms, including alchemy, nansen and salana. Google Cloud announced its plans to assist web three startups and projects to build and scale faster and more securely. This new offering expands on the existing initiative called Google for startups cloud program. It includes additional web three specific benefits. According to the official press release, eligible web three technology projects and startups from pre seed to series a can apply for the Google for startups cloud program. Projects can also opt in to Google Cloud's web three specific benefits. These benefits include up to $200,000 over two years in Google Cloud credits and technical and collaboration support. Quote, our goal is to enable web three builders to focus on what really matters. Speed to market and innovation. This means giving startups the ability to build on our managed serverless platform at no cost, as well as the resources and community to be successful. Furthermore, access to grants from aptos, CeeLo, flow, the H bar foundation near and the Solana foundation will also be available. Each of the founding partners will be offering exclusive grants of up to $1 million. That's funding to help accelerate web three startup growth and resources to support development. The program will offer access of up to $3 million in investments from the polygon ventures ecosystem fund. Priority review from the ventures team and all the other polygon venture benefits. Some other perks by Google Cloud include priority review for the base ecosystem fund and access to testnet as well as a discount on nansen products and engagement fees. Credits for alchemy and priority access to alchemy university. Google Cloud has been fooling around with web three since 2018. That's when it added datasets for Bitcoin. Since then, they have forged partnerships with several industry leaders, including coinbase. It partnered with B and B chain last year to offer web three startup infrastructure, the cryptocurrency market is expected to react positively to the news of the Google Cloud and polygon partnership. Because Google Cloud is one of the world's leading cloud computing providers. And its partnership with polygon is a major vote of confidence in the Ethereum scaling protocol and cryptocurrency as a whole. And that's going to do it for us tonight. I want to thank you my listeners because when you stop listening, I will stop talking. If you enjoyed tonight show, then please like follow subscribe. Leave a rating or a review. And in the meantime, we'll see you tomorrow night.
The Breakdown
First Republic Is a Zombie Bank
"Today is a macro show because all week, people have been watching first republic and asking whether it's the next banking domino. On Monday, first republic disclosed more problems than anticipated in its quarterly report. Block works Jack Farley summed it up in a tweet. First republic banks deposits fell by 40 percent in 22 days. If not for the $30 billion rescue package from big banks, the decline would have been 50 7%. First republic reports that their outflows have stabilized, FRC also expects to reduce headcount by 20 to 25%. Keep in mind FRC is the most high profile and dramatic instance of deposit flight to occur at a bank other than the banks that got taken over by the FDIC. So let's give a few more details. First republic was one of the banks that was subjected to a severe bank run in mid March. U.S. depositors had become jittery about midsize regional banks and first republic fit the bill. One of the ways that first republic had their situation stabilized as compared to signature or SVB, was that a consortium of mega banks provided them with a deposit of $30 billion to shore up their liquidity. The deposit was placed for an initial term of 120 days. First republic's quarterly results showed that the banks deposits had plunged by 41% around $100 billion before accounting for the liquidity lifeline, which is a much worse outflow that had been forecast. The bank added that it had cut as much as a quarter of its workforce, reduced outstanding loan balances, and curbed other non-essential activities. An analyst with web bush securities said, quote, first republic is an idiosyncratic situation in terms of the magnitude of the stress that it's under.
Marketplace Minute
"first republic bank" Discussed on Marketplace Minute
"Hey guys, this is Kenan Thompson. I have a problem with you. Yes, you. None of y'all told me that auto trader has millions of new and used cars that I can shop from home. I thought we were friends. I put smiles on your face. But I'm not smiling. No one told me that with auto trader, a dealer can deliver cars to my home or that I could shop by price on auto trader. Number one, consider this friendship that you just learned we had officially over finally, it's easy. Auto trader. First republic bank may need more help. I'm novice with a marketplace minute. The San Francisco based bank still faces questions about its viability despite $30 billion in deposits from bigger banks. The Wall Street Journal says first republic customers have withdrawn $70 billion from their accounts, and there are discussions among banks, CEOs, about offering more help. President Biden has issued the first veto of his presidency he blocked a measure that would ban federal retirement fund managers from considering environmental, social and governance issues when making investment decisions. In Los Angeles, workers at the nation's second largest school district begin a three day strike today, the district and the union representing teachers aides and other support personnel have failed to reach agreement on better wages and increased staffing. Later today, Federal Reserve policymakers begin two days of meetings, the big question, will they keep raising interest rates or pause because of the banking crisis? I'm nova safa with a marketplace minute.
CoinDesk Podcast Network
"first republic bank" Discussed on CoinDesk Podcast Network
"A crisis is actually enough at this point to catalyze a crisis response from the federal government, which then makes it so that it turns into a real crisis because the federal government has intervened in order to bail them out. So that honestly is a terrifying dynamic to me because effectively you're talking about bailout by influence or whining. And if that's our metric for what it takes to get federal government banking intervention at this point then we are done. Zach, I appreciate we've dominated this conversation. Let's kick it over to you for some thoughts. I've been enjoying it. I don't have a ton to add. I mean, I think for like the crypto degens out there, QE equals buy now because Bitcoin going up. Is that right? Is that sort of the general expectation Bitcoin thrived in a period of quantitative easing when money was cheap and people were looking to park it somewhere. So I think for the crypto Twitter set, maybe it's just as simple as that, but I don't know. Adam, what do you think? I mean, Bitcoin is a cork, right? Like Bitcoin literally floats with whatever the monetary policy environment is. So if the tide is going out, then it's bad for Bitcoin. And if the tide is coming in, then it's good for Bitcoin. And I think that irrespective of whether we call this quantitative easing or not. The idea that the Central Bank is going to tighten liquidity provisioning by actually selling some of their balance sheet back into the market. That's a dead letter at this point. That is not going to happen. I think we've seen something like $500 billion worth of inflows so far over the last month. That $300 billion number, that was a week. And that was not even the last half of this week as all of these crises have continued to just sort of boil under the surface and soft form. So yeah, it's wild. Zack? Money is wild. We will talk about it. I'm sure next week. That's it for the show. That's it for the week.
CoinDesk Podcast Network
"first republic bank" Discussed on CoinDesk Podcast Network
"David and sausage into you. Yeah. And to remind people who might have missed it or forgotten at this point, there was also the infamous Twitter DM exchange with a reporter, I believe, from motherboard at vice, where bankman freed essentially admitted that the entire effective altruism thing was designed to distract people. And also in the news in the past couple of days to add to this, we learned that Bateman frieden, I didn't see specifics about what the line items were, how much of this was salary and how much might have been other things, but he was paid $2.2 billion by FTX and that's come out in the bankruptcy process, which remember, again, you have to keep these numbers in mind to remember exactly how insane the behavior was. The entire market cap of FTX at its peak and correct me if I'm missing this, but I believe it was $10 billion. That was the enterprise value total of FTX. And so not only did he get paid this 2.2 billion that was like a quarter of the entire value of the supposed company, but he had also taken loans of multiple billions of dollars. So this was all just rampant extraction from the company going on right under the noses of a board that didn't exist because the venture capitalists decided that this guy didn't need any oversight. So, you know, when you start talking, there's just so much bad behavior going on everywhere. But anyway, Adam, stop me before I kill again. Wow. I mean, the thing that I'm most curious about at this point, honestly, is like we are hearing so many allegations. I really, really, really want to watch this go to court. I really, really want to see this before a jury with evidence presented in ways that it can actually be validated or not, because as it stands right now, I don't know what to believe about all of this stuff. All I know is that there is a gigantic mess there with some degree of what appears to be fraud. But outside of that, everything is just kind of like he said, she said, between the new management and the old management. So again, that October case date, man. I'm really, really looking forward to that and thinking that that's going to be that's going to be full of fireworks. But I think we can hit the gym. I'm getting in shape. I'm getting ready. Exactly. Exactly. Okay, let's go to our last story for today. So finally, the U.S. Federal Reserve's balance sheet expanded by some $297 billion in less than a week. Some are saying that this is a new form of quantitative easing, but other market observers have been a little more specific about how quantitative easing works and say that it's not. The distinction for some seems to be around whether or not the purpose is to stimulate the economy as opposed to keeping troubled banks afloat. But personally, I don't find those arguments persuasive. Money is fungible. And when you allow banks that have taken losses that are not yet recognized to then pull liquidity back from those losses by having a bank lending facility like the fed open that will give you face value, even if the market value is significantly lower, that feels like that's unlocking liquidity to me, which is basically what quantitative easing does. David, I know you and I a lot of times don't agree on economic issues. I'll kick this over to you. What do you think here? No, I totally agree with you on this one. And I was a little surprised to see you taking this taking this story on to even associate your name with it because I think that the distinction between QE and a bailout and a backstop and like free loan money is just totally academic. The fact that you're basically getting I mean, you're getting QE after the fact, essentially here. I mean, you're getting your assets fought up by the fed. Now, to be fair, the loans are only one year duration. So that is a genuine limitation on the liquidity being provided here. Adam will let you jump in if you want to correct me on that one. Well, I mean, I'll just say that right now the term is one year for now. The fed doesn't have any economic motivations. The fed's motivation is stability. So if we get a year from now and these things are still underwater, what are the chances that the fed lets the banking system go under because they don't want to extend for another year. They're going to kick the can. That's the entire game here, but back to you. I do not like that, but you are correct. But at least there's a fig leaf, okay? Let's put it that way. And at least there's some signal of restraint. I mean, obviously we saw these venture capitalists acting like absolute infants over the weekend last weekend. Demanding their treats and they got them. And that will probably continue to happen. That's just how the system works now. And I'm sure somebody smarter than me can explain how that ultimately devolves to the American taxpayer, shouldering risk from billionaires. And perhaps we have that person here with us today. I'm not going to explain that part, but I will say that one of the things I think that we did not know going into the weekends that we now know coming out of the weekend. This is not an original thought for myself, but it's one that struck me is that enough people who have allowed enough voice, yelling that there will be
Marketplace Minute
"first republic bank" Discussed on Marketplace Minute
"Hey guys, this is Kenan Thompson. I have a problem with you. Yes, you. None of y'all told me that auto trader has millions of new and used cars that I can shop from home. I thought we were friends. I put smiles on your face. But I'm not smiling. No one told me that with auto trader, a dealer can deliver cars to my home or that I could shop by price on auto trader. Number one, consider this friendship that you just learned we had officially over finally, it's easy. Auto trader. This is the marketplace minute. I'm Justin Ho. Stocks were in a much better mood on Thursday. The Dow gained almost one in two tens percent, the S&P rose one and three quarters percent, and the NASDAQ added two and a half percent. A group of big U.S. banks is pulling together $30 billion to deposit it first republic bank. Investors worry that the bank could fail after the collapse of Silicon Valley bank and signature bank. The move would help ensure first republic bank has enough cash on hand to pay its depositors. Home builders started more construction projects in February than the month before. That's according to the commerce department. Apartment construction projects rose over 24%. That's because demand for rental housing as stayed strong. And the number of people signing up for unemployment benefits fell last week to a 192,000. That's according to the Labor Department. The number of continuing claims fell too. I'm Justin Howe, with the marketplace minute.