Headline

Four Days That Shook The US Banking System

Published

1 year 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

GWR: Ghanian Student Sets New Record For Hugging 1,123 Trees In One Hour

Published

28 mins ago

April 26, 2024

Editor

A 29-year-old Ghanaian environmental activist and forestry student, Abubakar Tahiru, has etched his name in the Guinness Book of World Records by hugging 1,123 trees in one hour.

The Guinness World Record announced this on Friday, adding that Tahiru’s accomplishment not only makes him the record holder but also the first person to ever hold this title as he “easily surpassed the minimum requirement of 700.”

The event was said to have taken place at the Tuskegee National Forest in Alabama, USA, where he embraced nearly 19 trees per minute.

According to GWR, Tahiru grew up in a farming community in Tepa, Ghana, where he developed a keen interest in nature and its conservation.

After completing his undergraduate degree specialising in forestry at one of Ghana’s top universities, he moved to Alabama last year to begin his master’s degree in forestry at Auburn University.

Describing the challenge, GWR disclosed that a successful tree hug is defined as both arms wrapped around a tree in a close embrace. No tree may be hugged more than once, and no damage can be caused to any tree, or else the attempt is disqualified.

It further stated that Tahiru attempted this challenge while he was fasting during Ramadan, preventing him from drinking water despite the strenuous activity.

He also had to move quickly between trees while ensuring that each hug met the required standards.

Speaking with GWR, Tahiru said, “Not being able to drink water throughout the attempt posed a significant challenge, especially given the physical exertion required.

“However, this also proved to be helpful in a way, as there was no need to pause for water breaks, allowing me to continue the attempt uninterrupted from start to finish.

“Achieving this world record feels incredibly rewarding.”

Headline

LIST: 25 Countries Where TikTok Is Banned

Published

1 hour ago

April 26, 2024

Editor

United States President Joe Biden recently signed a bill that could potentially result in the ban of TikTok in the US if its Chinese-owned parent company, ByteDance, fails to sell it within a year.

US lawmakers are concerned about the potential national security risks associated with the app, particularly if the Chinese government were to gain access to the data it collects.

Many countries have taken action to limit or ban TikTok, citing worries about privacy, security, or ethical issues.

Different approaches have been taken by various countries, with some implementing comprehensive restrictions and others focusing on particular features of the app or a partial ban on government devices.

Here is a list of countries that have implemented various forms of restrictions:

Countries with a complete ban

China

TikTok’s international version is not accessible within China. Instead, users are required to download Douyin, the Chinese counterpart of TikTok, which is subject to strict content control by the Chinese Communist Party.

Senegal

Senegal implemented a complete ban on the application following allegations that an opposition candidate had utilised the platform to disseminate “hateful and subversive messages.” The Senegalese government has declined to restore the app until a system is created that enables them to delete individual accounts.

Somalia

The Somali government officially outlawed TikTok, Telegram, and 1XBet, an online betting platform, in August 2023.

North Korea

Access to the internet is heavily restricted for the majority of North Korean citizens. While a select few websites and apps are allowed for the privileged elite, TikTok is not included in this list.

Afghanistan

In April 2022, the Taliban government decided to ban TikTok, citing concerns about its influence on young people.

India

India banned TikTok in 2020, including on personal devices, following a border clash between China and India in 2020. The ban was prompted by concerns about data theft and the government’s claim that certain apps were stealing. Many creators migrated to YouTube Shorts and Instagram Reels.

Iran

TikTok, along with other globally popular social media platforms like X and Facebook, has been banned by the Islamic Republic.

Uzbekistan

Since July 2021, TikTok has been inaccessible in Uzbekistan due to the authorities’ claim that the app does not adhere to the country’s personal data protection laws.

Countries with a partial ban on TikTok

Indonesia

In October 2023, Indonesia took action against TikTok Shop, a feature of the app that enables creators to sell products to their followers, due to its violation of the country’s e-commerce laws.

Kyrgyzstan

In August 2023, the small country, which was once part of the Soviet Union, decided to ban TikTok. The government justified this action by stating that the application harmed the growth and well-being of children.

Russia

There are limitations on the content that Russians can access on TikTok, resulting in a primary focus on videos created by Russian users. Recent reports indicate that the Russian government is planning to prohibit the use of TikTok, to promote the adoption of local social media platforms among its citizens.

Countries with bans on government-owned devices

In April 2023, the Australian government decided to ban TikTok on their devices. However, it remains accessible on devices owned by the general public.

Austria

In May 2023, TikTok was banned on all devices used by government employees in Austria.

Canada

On February 28, Canada banned the use of TikTok on all devices provided by the government because of concerns regarding privacy and security.

Denmark

In March 2023, Denmark’s Ministry of Defence decided to ban the use of the app on its employees’ work phones. Additionally, the country’s main public service broadcaster implemented specific protocols, requiring journalists to obtain special approval before using the app for reporting purposes. This action was taken in response to a warning from Denmark’s Centre for Cybersecurity.

Estonia

In March 2023, the use of TikTok on the work phones of state officials in Estonia was banned.

European Union

Employees of the European Parliament, European Commission, and E.U. Council are no longer allowed to have TikTok on their work phones, as the three main institutions of the E.U. implemented a ban.

France

In March of 2023, France banned the use of Twitter, Instagram, and TikTok on government employees’ mobile devices.

United Kingdom

In March 2023, the U.K. banned all government employees from using TikTok on government-provided mobile devices.

United States

The US military and US Congress have both taken action to block access to TikTok on all of their personnel’s devices.

Nearly half of the states have outright banned the app on state-owned devices, and in March 2023, the federal government followed suit.

Ireland

In April 2023, the Irish government implemented a ban on TikTok for use on government devices.

Belgium

The Belgian government announced in March 2024 the ban of the app on all government devices. TikTok remains accessible on devices not associated with government entities.

Taiwan

In December 2022, Taiwan implemented a ban on the usage of Chinese-made software, including TikTok, on all government devices. This decision came after a warning from the FBI.

Latvia

The Latvian Foreign Ministry banned the app from official company phones in March 2023.

Malta

In Malta, government-provided cell phones have restricted access to TikTok and other non-government applications.

Headline

Group Of Top Male Footballers ‘Planning To Come Out As Gay Next Month

Published

21 hours ago

April 25, 2024

Editor

A group of top male footballers ‘are planning to come out as gay on May 17.

German outlet Preussische Allgemeine Zeitung claims a group of professionals across the country will declare publicly their sexual orientation.

The date in question is of particular reference as it is the International Day Against Homophobia.

It is believed that all of the clubs the reported players are aware of the planned proposals.

However, Preussische Allgemeine Zeitung adds that some players still have reservations about revealing their homosexuality and could still make a U-turn in doing so.

Marcus Urban is a former footballer in Germany who came out as gay in 2007, 16 years after quitting the sport. Urban, now 52, is the co-founder of Diversero, a global community for diversity, and hopes next month’s plans do come to fruition.

‘I think they are respected and celebrated for that. Not by everyone, that’s clear. But hate speech cannot be a criterion for a life,

‘May 17 is an offer,’ he told the Editorial Network Germany (RND). ‘A date that you could use as a guide and get together as a group.

‘There is controversy there. Do I still want to wait until the world of football becomes the way I want it to be? Why should I wait? An interesting dynamic has come into play, you can see that people’s minds are starting to move and are thinking about whether it really makes sense to continue to hide and deny themselves.

Urban went on to reveal that there are gay couples playing in the Bundesliga too – declaring it would be ‘liberating’ if they came out.

‘There are also gay Bundesliga couples who are in hiding,’ he continued.

‘That would be so liberating. What’s wrong with it.’