Headline

Four Days That Shook The US Banking System

Published

2 years ago

March 13, 2023

The United States banking system has been gripped in recent days by a series of convulsions that has seen the collapse of three banks and authorities undertaking extraordinary measures to reassure depositors.

It all began Wednesday night with a liquidation announcement from the small regional Silvergate Bank, a favourite among the cryptocurrency crowd.

The California business was swept up in several crypto mishaps, particularly the implosion of exchange platform FTX, before facing a wave of sudden withdrawals.

Later that same night, medium-sized institution Silicon Valley Bank announced it was facing a huge run of unexpected withdrawals.

SVB, a key lender to start-ups across the United States since the 1980s and the country’s 16th-largest bank by assets, had been hit by the tech sector slowdown as cash-hungry companies rushed to get their hands on their money.

SVB — along with other banks — was also dealing with the effects of the Federal Reserve’s policy U-turn as the US central bank has moved aggressively over the last year to counter inflation by hiking interest rates.

Banks typically borrow money under short-term instruments while loaning using long-term vehicles.

Ordinarily, this dynamic is beneficial because interest rates on long-term instruments are higher than those on short-term bonds.

But because of the volatility unleashed by the Fed’s policy pivot, there has been an “inversion” of the bond yield curve.

– Run on deposits –

The extent of SVB’s trouble emerged in a presentation last Wednesday.

While the bank emphasized the strength of its balance sheet and the relatively low proportion of its loans compared to its deposits, it also announced a capital increase of $2.25 billion and revealed that after an emergency sale of a portfolio of financial securities worth $21 billion it still came out with a loss of $1.8 billion.

The announcement spooked investors and clients, and sparked a run on deposits.

On Thursday alone, the SVB saw an estimated $42 billion of withdrawal orders.

It was not able to honour all those requests, and posted a negative cash position of nearly $1 billion by the end of the day.

On the stock market, the SVB tanked by 60 per cent.

Trading was halted on Friday before the Federal Deposit Insurance Corporation (FDIC) took over the bank and said it would protect insured deposits — those up to $250,000 per client.

But the FDIC’s guarantee only covered about four percent of the bank’s deposits, with most accounts well over that limit and clients left uncertain as to whether they would be able to recover their money in full.

The biggest US banks are considered stable, in part because of strict requirements enacted after the 2008 financial crisis.

But other mid-sized and regional institutions have been pressured by worries of a similar run on deposits to that suffered by SVB.

Shares in the New York Signature Bank, California PacWest and the Arizona-based Western Alliance all dropped 20 percent on the day.

– Averting panic –

With SVB’s future, and billions in deposits up in the air, officials from the Fed, the FDIC and the Treasury raced to craft a solution, hoping to avert a potential financial panic before financial markets opened in Asia.

To stop one bank’s failure from spreading into a systemic banking crisis, the three federal agencies announced on Sunday that SVB depositors would have access to “all of their money” starting Monday, March 13, and that American taxpayers will not have to foot the bill.

The same statement revealed that Signature Bank, the 21st-largest in the country, was automatically closed on Sunday and that its customers would benefit from the same measures as those at Silicon Valley Bank.

In a potentially major development, the Fed announced it would make extra funding available to banks to help them meet the needs of depositors, which would include withdrawals.

On Monday, President Joe Biden praised the “immediate action” by regulators while trying to offer reassurances.

“The bottom line is this: Americans can rest assured that our banking system is safe. Your deposits are safe,” Biden said.
AFP

Headline

Again, Russia Claims Another Village In Ukraine’s Region

Published

23 hours ago

August 25, 2025

Editor

The Russian army Monday claimed to have captured another village in Ukraine’s Dnipropetrovsk region, moving deeper into Ukrainian territory as peace efforts stall.

Russian forces are slowly but steadily gaining ground in costly battles for largely devastated areas in eastern and central Ukraine, normally with few inhabitants or intact buildings left.

Russia’s defence ministry said its forces had seized the settlement of Zaporizke in the region, which Russian troops recently advanced into for the first time in the three-and-a-half-year offensive.

Kyiv denies that Russian troops have gained a foothold in the Dnipropetrovsk region, an important industrial hub.

After another push by US President Donald Trump to broker a Ukraine-Russia summit, hopes for peace dimmed when Russia last week ruled out any immediate meeting between presidents Vladimir Putin and Volodymyr Zelensky.

The central region of Dnipropetrovsk has previously been largely spared from fighting that has ravaged swathes of eastern and southern Ukraine, until Russia said its forces broke through in July.

Dnipropetrovsk is not one of the five Ukrainian regions — Donetsk, Kherson, Lugansk, Zaporizhzhia and Crimea — that Moscow has publicly claimed as Russian territory.

Ukraine said Russia had launched over 100 drones Monday, killing a 37-year old civilian driver and wounding two people in the northeastern Sumy region.

Moscow said Kyiv had launched about two dozen drones targeting western Russia

Headline

US Comedian Reggie Carroll Shot Dead In Mississippi

Published

23 hours ago

August 25, 2025

Editor

A United States comedian, Reginald “Reggie” Carroll, has been shot dead in Southaven, Mississippi.

The 52-year-old Carroll, widely known as the Knockout King of Comedy, was reportedly killed on Wednesday, August 20, 2025, after sustaining multiple gunshot wounds.

The Southaven Police Department confirmed the incident in a Facebook statement on Saturday.

“Southaven officers located one male victim suffering from gunshot wounds.

“The officers and medical personnel provided life saving techniques but the individual succumbed to his injuries,” the statement partly read.

The victim was later identified as Carroll, a Baltimore native.

Police said one suspect was arrested and charged with his murder.

“One male is in custody and has been charged with the murder of Reginald Carroll.

“Our thoughts are with the family of Mr. Carroll.

“Thank you to the community for their patience and understanding,” the department added.

The police further assured that there was no ongoing threat to residents, describing the case as “an isolated shooting.”

Carroll, who built his career in stand-up comedy, gained national recognition touring with Katt Williams and headlining his own showcase, Knockout Kings of Comedy.

He also featured in the 2000 edition of Showtime at the Apollo, appeared on the UPN sitcom The Parkers alongside Mo’Nique and Countess Vaughn, and starred in the 2022 television film Rent & Go.

In 2023, he produced the stand-up special Knockout Kings of Comedy.

The Southaven Police Department disclosed that an investigation into his death is ongoing.

Headline

US Defends New Social Media Vetting For Nigerian Visa Applicants

Published

23 hours ago

August 25, 2025

Editor

The U.S. Mission in Nigeria on Monday reaffirmed that the safety and security of the United States remain the cornerstone of its visa application and decision-making process.

The US said this following its directive last week that mandates Nigerians to disclose all social media usernames and handles used over the past five years as part of the visa application process.

US Mission said Nigerian visa applicants must provide a comprehensive list of their social media profiles on the DS-160 visa application form, and warned that omitting the information could lead to visa denials.

Reacting to the development, the Federal Government said US citizens intending to visit Nigeria will be subjected to the same measures.

“The best we can do is to carry out reciprocal action. Some people from the US might want to apply for a visa, and we will adopt the same measures,” spokesman of the Ministry of Foreign Affairs, Kimiebi Ebienfa, said last Monday.

However, in a statement released Monday on X, the US Mission said prospective visa applicants undergo careful vetting to maintain a safe and welcoming environment in the US.

It said, “The safety and security of the United States is at the heart of every #USVisa application and decision process.

“That’s why prospective applicants undergo careful screening to ensure a safe and welcoming environment for all.”

The Mission added, “These measures help protect American citizens and communities while supporting secure and responsible travel.”