Senators Sherrod Brown and Martin Gruenberg, Nellie Liang, and Michael Barr will be present to discuss the liquidity crisis and subsequent downfall of Silicon Valley Bank and Signature Bank, two of the largest bank failures in U.S. history.
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California lawmakers have passed a bill giving the California Energy Commission the power to impose fines of up to $2,500 per violation on oil companies found to be engaging in price gouging. This bill is seen as a victory for consumers, who have long complained of unfair gas prices, and for Governor Gavin Newsom, who has made it a priority to tackle the issue. The bill was passed in an unusually fast process, despite opposition from the powerful oil industry.
Michael Barr, Vice Chair for Supervision at the Federal Reserve, and Martin Gruenberg, Chairman of the Federal Deposit Insurance Corporation (FDIC), are set to testify before the Senate Banking Committee on Tuesday. Barr's testimony details the mismanagement of Silicon Valley Bank (SVB) and Signature Bank, which led to their collapse and the FDIC's appointment to manage them. Gruenberg estimates that SVB's failure will require $18 billion to cover uninsured deposits, while Signature Bank's failure will require $2.5 billion.
Republican senators have proposed a resolution to revoke President Joe Biden's executive action to forgive some federal student loan debt, arguing that it is unfair to those who have made responsible financial decisions. The resolution, led by Sen. Bill Cassidy of Louisiana, has 35 GOP co-sponsors and is currently under review. Opponents of the resolution argue that forgiving student loan debt will help stimulate the economy and provide much needed relief to those struggling to pay off their loans.
The CFTC has filed a complaint against Binance and its CEO Changpeng Zhao, alleging that the world's largest cryptocurrency exchange has violated US trading laws by actively soliciting US customers and subverting its own compliance program. The complaint seeks civil monetary penalties and other relief against Binance, Zhao, and former Chief Compliance Officer Samuel Lim, and could be the first step in a larger regulatory crackdown on the crypto exchange. Binance has stated that it is committed to complying with all applicable laws and regulations, and has implemented measures to ensure compliance with US regulations.
In Israel, nationwide protests and strikes have brought the country to a standstill in response to Prime Minister Benjamin Netanyahu's plans to weaken the judiciary. The proposed reforms have been paused until the next legislative term, and the protests have been seen as a sign of the strength of Israeli democracy and the power of the people to influence their government. The ultimate outcome of the protests remains to be seen, and it is unclear if the reforms will be completely abandoned or modified.
Tens of thousands of Israelis have taken to the streets in protest of Prime Minister Benjamin Netanyahu's dismissal of Defense Minister Yoav Gallant, who had challenged the Israeli leader's judicial overhaul plan. In response, the Histadrut umbrella group has called for a general strike that could paralyze large parts of the Israeli economy, already weakened by the coronavirus pandemic. The move has raised concerns among close allies of Israel, who have expressed their concern over Netanyahu's plan.
The FDIC announced that First Citizens Bank & Trust Company will purchase all of Silicon Valley Bank’s (SVB) deposits and loans that were transferred to a bridge bank in the wake of its collapse. The purchase will help to ensure that customers’ deposits are protected and that the bank’s operations will remain stable. The FDIC also received equity appreciation rights in First Citizens BancShares, Inc., Raleigh, North Carolina, common stock with a potential value of up to $500 million.