Billionaire investor Bill Ackman said Friday that Bank of America BAC will buy Signature Bank SBNY on Monday, as bigger systemic banks continue in their efforts to rescue distressed smaller banks.
The CEO of Pershing Square Capital Management has recently campaignedfor an unlimited systemwide guarantee on deposits, in contrast to Treasury Secretary Janet Yellen, who reaffirmed the $250,000 insurance cap this week.
Until a full deposit insurance isachieved, the cost of capital for smaller banks will rise, forcing them to merge or be bought by bigger institutions, in Ackman's view.
I am hearing that Bank of America is going to buy Signature Bank on Monday. Unless and until we can protect uninsured deposits, the cost of capital is going to rise for smaller banks pushing them to merge or be acquired by the SIBs. I dont think this is good for America,Ackman wrote on Twitter.
Benzinga has contacted Bank of America for comment on Ackman's remarks.
Read next:Elon Musk Reacts As Bill Ackman Flags First Republic's Risk Spreading To Largest Banks: '…Astounding'
Goldman SachsAnalyst Remains Optimistic: The hedge fund manager also said Twitter that First Republic Bank FRC 's "default risk is now being spread to our largest banks and added that spreading the risk of financial contagion to achieve a false sense of confidence in FRB is bad policy.
Bank of America participatedin the consortium of large banks injecting a total of $30 billion into First Republic Bank this week.
Ackman downplayed the efficacy of the $30-billion capital infusion into FRB and stated that "half measures don't work when there is a crisis of confidence."
According to Goldman Sachs equity analyst Ryan Nash, the plan to inject capital into FRBwill allow the firm to manage short-term deposit withdrawals in an orderly fashion, although earnings will likely be negatively impacted.
Bank of America BAC , Citigroup C , JP Morgan Chase & Co. JPM , and Wells Fargo WFC were the main contributors to the FRC deposit injection, each providing $5 billion.
Goldman Sachs GS and Morgan Stanley MS each contributed $2.5 billion, while Bank of New York Mellon Corp BK , State Street Corp STT , PNC Financial Services Group Inc PNC ,
Truist Financial Corp TFC , and UBS Group AG UBS each chipped $1 billion.Each bank provided 3% of its tangible common equity (TCE), Nash said in the note.
BankingStocks Continue Selloff:Friday was another bloodbath for banking stocks. FRC plunged 32%, WFC fell 4%, BAC was down 3.8%, JPM fell 3.7%, MS lost3.4%, GS tumbled3.3%, and C retreated by 3%.
S&P 500 financial companies: price performance on March 17, 2023. Chart: TradingView
The Financial Select Sector SPDR FundXLF lost 3% on Friday, underperforming versus all other sectors, and hitting the lowest level since mid-October 2022.
The SPDR S&P Regional Banking ETF (NYSE:KRE) fell 6% on Friday and has now shed 30% of its value in the last two weeks. KRE is trading at levels not seen since the COVID-19 vaccine was discovered in November 2020.
KRE weekly price chart and RSI. Chart: TradingView
Virginia Giuffre, who accused Prince Andrew of sexual assault, has died aged 41.
In a statement to Sky’s US partner network NBC News on Friday, her family said she took her own life in the Perth suburb of Neergabby, Australia, where she had been living for several years.
“It is with utterly broken hearts that we announce that Virginia passed away last night at her farm in Western Australia,” her family said.
“She lost her life to suicide, after being a lifelong victim of sexual abuse and sex trafficking.
“Virginia was a fierce warrior in the fight against sexual abuse and sex trafficking. She was the light that lifted so many survivors.
“In the end, the toll of abuse is so heavy that it became unbearable for Virginia to handle its weight.”
Image: Pic: AP
Police said emergency services received reports of an unresponsive woman at a property in Neergabby on Friday night.
“Police and St John Western Australia attended and provided emergency first aid. Sadly, the 41-year-old woman was declared deceased at the scene,” a police spokeswoman said.
“The death is being investigated by Major Crime detectives; early indication is the death is not suspicious.”
Sexual assault claims
Image: Prince Andrew has denied all claims of wrongdoing. File pic: Reuters
Ms Giuffre sued the Duke of York for sexual abuse in August 2021, saying Andrew had sex with her when she was 17 and had been trafficked by his friend, the billionaire paedophile Jeffrey Epstein.
The duke has repeatedly denied the claims, and he has not been charged with any criminal offences.
In March 2022, it was announced Ms Giuffre and Andrew had reached an out-of-court settlement – believed to include a “substantial donation to Ms Giuffre’s charity in support of victims’ rights”.
She stuck by her version of events until the end
Of the many dozens of victims of Jeffrey Epstein, it was Virginia Giuffre who became the most high-profile.
She was among the loudest and most compelling voices, urging criminal charges to be brought against Epstein, waving her right to anonymity in 2015.
She told how he and Ghislaine Maxwell groomed her and “passed around like a platter of fruit” to be used by rich and powerful men.
But her name and face became known around the world after she accused Prince Andrew of sexually abusing her when she was 17 years old.
The picture of her together with the prince and Maxwell at the top of a staircase, his hand around her waist, is the defining image of the whole scandal.
Prince Andrew said he had no memory of the occasion. But Giuffre stuck by her version of events until the end.
‘An incredible champion’
Sigrid McCawley, Ms Giuffre’s attorney, said in a statement that she “was much more than a client to me; she was a dear friend and an incredible champion for other victims”.
“Her courage pushed me to fight harder, and her strength was awe-inspiring,” she said. “The world has lost an amazing human being today.”
“Rest in peace, my sweet angel,” she added.
Follow The World
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
Dini von Mueffling, Ms Giuffre’s representative, also said that “Virginia was one of the most extraordinary human beings I have ever had the honour to know”.
“Deeply loving, wise, and funny, she was a beacon to other survivors and victims,” she added. “She adored her children and many animals.
“She was always more concerned with me than with herself. I will miss her beyond words.
“It was the privilege of a lifetime to represent her.”
Ms Giuffre said at the end of March she had four days to live after a car accident, posting on social media that “I’ve gone into kidney renal failure”. She was discharged from hospital eight days later.
Raised mainly in Florida, she said she was abused by a family friend early in life, which led to her living on the streets at times as a teenager.
She said that in 2000, she met Ghislaine Maxwell, a British socialite who was convicted in 2021 on federal sex trafficking and conspiracy charges and was sentenced to 20 years in prison.
Image: Ghislaine Maxwell and Jeffrey Epstein. Pic: US Department of Justice
Ms Giuffre said Maxwell then introduced her to Epstein and hired her as his masseuse, and said she was sex trafficked and sexually abused by him and associates around the world.
‘A survivor’
After meeting her husband in 2002, while taking massage training in Thailand at what she said was Epstein’s behest, she moved to Australia and had a family.
She founded the sex trafficking victims’ advocacy charity SOAR in 2015, and is quoted on its website as saying: “I do this for victims everywhere.
“I am no longer the young and vulnerable girl who could be bullied. I am now a survivor, and nobody can ever take that away from me.”
:: Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.
United States Senator Cynthia Lummis suggests the crypto industry may be celebrating too soon over the US Federal Reserve softening its crypto guidance for banks.
“The Fed withdrawing crypto guidance is just noise, not real progress,” Lummis said in an April 25 X post. Lummis called the Fed’s April 24 announcement — withdrawing its 2022 supervisory letter that had discouraged banks from engaging with crypto and stablecoin activities — “just lip service.”
Lummis’ tone was different from the rest of the crypto industry
Lummis, a pro-crypto advocate known for introducing the Bitcoin (BTC) Strategic Reserve Bill in July 2024, pointed out several flaws in the Fed’s announcement, even as Strategy founder Michael Saylor and crypto entrepreneur Anthony Pompliano suggested it was a step forward for banks and crypto.
She argued that the Fed continues to “illegally flout the law on master accounts” and still relies on reputational risk in its bank supervision practices. It comes as the Federal Insurance Deposit Corporation (FDIC) is working on a rule to stop examiners from considering reputational risk when reviewing a bank’s operations, according to a recent Bloomberg report.
Lummis also highlighted the Fed’s policy statement in Section 9(13), which hasn’t been withdrawn, stating that Bitcoin and digital assets are considered “unsafe and unsound.”
She also reiterated many of the same staff behind Operation Chokepoint 2.0 are still involved in crypto policy today.
“We are NOT fooled. The Fed assassinated companies within the industry and hurt American interests by stifling innovation and shuttering businesses. This fight is far from over.”
“I will continue to hold the Fed accountable until the digital asset industry gets more than a life jacket, Chair Powell — they need a fair shake,” Lummis said.
However, many crypto executives praised the Fed’s announcement as a positive development for the industry. Saylor said in an April 25 X post that the Fed’s move means that “banks are now free to begin supporting Bitcoin.”
Anastasija Plotnikova, co-founder and CEO of blockchain regulatory firm Fideum, said the Fed’s decision “is a significant development, as it will simplify the path to institutional adoption.”
Despite being a vast and inhospitable planet today, scientists believe Mars, the Red Planet, used to look much like Earth, the Blue Planet. Over the last four years, NASA’s Perseverance rover has wandered across an area of Mars where researchers believe a powerful river once poured into a crater, forming a sizable delta. According to computer models, ancient Mars most likely had frequent snowfall and rain, which shaped the enormous networks of lakes and river basins. In the Journal of Geophysical Research: Planets, a recent study found that the distribution of these land characteristics is more consistent with precipitation models than with only the consequences of melting ice caps.
Investigating Early Martian Climate Through Modeling
The researchers published their findings April 21 in the Journal of Geophysical Research: Planets. According to the research by geologists at the University of Colorado in Boulder, our planetary neighbour, on average 140 million miles away in space, was warm and wet billions of years ago. This challenges a long-held belief that early Mars was mostly cold and icy. However, there’s a vital mystery buried in the story: It’s unclear where Mars’ water could have come from, and most climate models predict the world exhibits surface temperatures that are far too cold to sustain liquid water, raising questions about how those visible geological features could have formed.
“It’s very hard to make any kind of conclusive statement,” Amanda Steckel, a postdoctoral researcher at the California Institute of Technology’s Division of Geological and Planetary Sciences, said in a statement. “But we see these valleys beginning at a large range of elevations. It’s hard to explain that with just ice,” she further added in the official blog posted by University of Colorado.
Through computer simulations, Steckel and her team explored what Mars might have looked like during the Noachian epoch, when water may have drastically shaped the planet’s surface, some 4 billion years ago. Initially created for Earth, their model was modified to simulate how Mars’ landscape changed near the equator, where expansive channel networks extend from the highlands and drain into ancient lakes, possibly even an ocean. NASA’s Perseverance rover is currently exploring one of these sites, Jezero Crater, where a once-powerful river poured into the basin.
Comparing Climate Models and Implications for Planetary History
The group explored two major simulation models, the ice-melt model and the wet and warm model for how precipitation might have created the valleys on Mars: one in which the planet was warm and humid, and another in which ice briefly melted at the edge of a huge ice cap, signifying a cold, arid climate. With valley roots showing up in radically diverse places, each scenario produced a very different Mars.
Their goal was to determine whether ancient Mars may have had a more Earth-like climate, at least for a while. While more evidence is needed and answers to questions, such as how the planet stayed warm enough for rain or snow, are part of an ongoing investigation. Still, Hynek said the study offers valuable clues, not just about Mars, but about the early history of Earth as well.