Connect with us

Published

on

close video Banking crisis is absolutely stabilizing: Sonenshine

Barron’s markets reporter Jacob Sonenshine discusses whether the banking sector is on the brink of a 2008-style bailout on “Varney & Co.”

Mid-sized regional banks and their community banking counterparts around the country are calling on the Federal Deposit Insurance Corporation (FDIC) to insure all bank deposits to prevent bank runs like those that toppled Silicon Valley Bank and Signature Bank.

The FDIC ordinarily insures deposits up to a cap of $250,000 per depositor, which leaves balances in excess of that being vulnerable in the event of a bank failure. In response to the recent collapse of Silicon Valley Bank and Signature Bank, federal regulators granted systemic risk exceptions and guaranteed all deposits at those banks – including those that would typically be uninsured.

However, the Treasury Department has signaled that regulators aren’t planning to backstop uninsured deposits at banks that aren’t granted systemic risk exceptions. The uncertainty created by the bank failures along with federal regulators’ response has prompted some customers of mid-sized and community banks to withdraw funds from smaller banks and move them to larger, systemically important banks considered "too big to fail" – a dynamic that could worsen if additional banks fail.

JAMIE DIMON LEADING EFFORTS FOR NEW FIRST REPUBLIC BANK RESCUE PLAN

Mid-sized regional and community banks are calling on the Federal Deposit Insurance Corporation to raise its threshold for deposit insurance more than $250,000 for all institutions after regulators granted two exceptions. (Celal Gunes / Anadolu Agency via Getty Images / File / Getty Images)

That has led mid-sized and community banks to urge regulators to take a more evenhanded approach to the issue by guaranteeing all uninsured deposits regardless of the banking institution for the next two years.

Anne Balcer, senior executive vice president and chief of government relations and public policy at the Independent Community Bankers of America (ICBA), told FOX Business that regulators should take a "prudent approach to any changes in FDIC insurance."

"It may make sense for Congress to look at the insurance limit cap and revisit raising it based on metrics demonstrating increasing deposit balances since the previous increase, but the tone coming from Treasury of picking winners and losers defies logic and is largely inappropriate," Balcer added. "If the FDIC decides to provide unlimited deposit insurance for some institutions, even on a limited basis, they cannot discriminate and leave others out, particularly those that have been operating on a safe and sound basis, such as the nation’s community banks."

FDIC EXTENDS BID WINDOW FOR SILICON VALLEY BANK ENTITIES

Treasury Secretary Janet Yellen testified that federal regulators aren’t planning to backstop uninsured deposits at banks that aren’t deemed systemically important. (AP Photo / Jacquelyn Martin / File / AP Newsroom)

The Mid-Size Bank Coalition of America (MBCA) sent a letter to the Treasury Department, FDIC, the comptroller of the currency, and the Federal Reserve to urge regulators to lift the deposit insurance cap for all institutions for two years, according to a report by Bloomberg.

"Doing so will immediately halt the exodus from smaller banks, stabilize the banking sector and greatly reduce the chances of more bank failures," the MBCA letter reportedly said.

Treasury Secretary Janet Yellen said in congressional testimony last week that uninsured deposits will only be backstopped by the government "if a majority of the FDIC board, a supermajority of the Fed board, and I in consultation with the president, determine that the failure to protect uninsured depositors would create systemic risk and significant economic and financial consequences."

NEW YORK BANKCORP SHARES SOAR ON SIGNATURE DEAL

Federal regulators granted a systemic risk exception to backstop all of Silicon Valley Bank’s deposits, including uninsured deposits above the FDIC threshold. (AP Photo / Benjamin Fanjoy / File / AP Newsroom)

Sen. James Lankford, R-Okla., noted that could make smaller banks a less attractive destination for depositors with funds above the $250,000 threshold.

He said it sounded as though Yellen is "encouraging anyone who has a large deposit at 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.’" 

Yellen responded by saying, "That’s certainly not something that we’re encouraging."

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Congress will hold an oversight hearing next week in the wake of the bank failures. The House Financial Services Committee will hear from Martin Gruenberg, the chairman of the FDIC’s board of directors, and Michael Barr, the Federal Reserve Board of Governors vice chair for supervision, in a hearing scheduled for March 29.

Continue Reading

UK

Girl, 12, who died after being found unresponsive at psychiatric unit failed on multiple levels, inquest finds

Published

on

By

Girl, 12, who died after being found unresponsive at psychiatric unit failed on multiple levels, inquest finds

A 12-year-old girl who died after an incident of self-harm was failed on multiple levels, an inquest jury has found.

Warning: This story contains references to self-harm and suicide

Mia Lucas, who died in January 2024, was found unresponsive at an NHS children’s psychiatric unit after developing a rare neurological disorder that had been left undiagnosed.

The jury at Sheffield Coroner’s Court heard the girl was found at the Becton Centre, part of Sheffield Children’s NHS Foundation Trust.

She had been placed there after being sectioned while suffering an “acute psychotic episode” during an assessment at the Queen’s Medical Centre (QMC) in Nottingham.

On Thursday, the jury found that the failure to undertake a lumbar puncture at QMC before her transfer to the Becton Centre “possibly contributed to Mia’s death”.

A lumbar puncture involves a needle being inserted into your lower back to find out if symptoms are caused by a brain or spine condition.

Mia Lucas.
Pic: Family handout/PA
Image:
Mia Lucas.
Pic: Family handout/PA

The jury also said there was a failure at the Becton Centre to respond adequately to Mia’s risk of self-harm.

Professor Marta Cohen told the jury Mia’s cause of death was “compression of the neck” but she had now added that this was caused by “acute psychosis”, which was caused by “autoimmune encephalitis”, an inflammation of the brain that can cause extreme psychiatric symptoms and is treatable.

The autoimmune encephalitis diagnosis emerged during the nine-day inquest after a pathologist revealed she had received new post-mortem results.

The revelation prompted shock in the courtroom and tears from Mia’s family members in the public gallery.

The condition was described as “complex and rare”, according to consultant paediatric neurologist Mike Taylor.

He added that there was a low level of suspicion Mia had it, while being assessed at QMC, and told the court that experts had to consider the very severe treatment side effects, which included death.

Mia’s mother, Chloe Hayes, told Sky News she was unhappy at how the Becton Centre had supervised her daughter.

Mia Lucas (right), with her mother Chloe. Pic: Family handout/PA
Image:
Mia Lucas (right), with her mother Chloe. Pic: Family handout/PA

“All they had to do was watch her. I actually never got told the truth about the attempts that Mia made [to self-harm] until after she died,” she said.

“If I’d have known the truth I wouldn’t have left Mia there. And I think she had so much to live for. I don’t think she knew what she was doing.”

In a statement, Mrs Hayes added that she wanted people to know her daughter’s extreme behaviour was only evident in the final few weeks of her life.

“For the other 12 years, she was a beautiful soul who loved life and loved her family, and that’s how we want her to be remembered,” she said, describing Mia as a “happy, fun, friendly girl who had so much to live for.”

NHS Trusts apologise for Mia’s death

In a statement, Dr Manjeet Shehmar, medical director at Nottingham University Hospitals NHS Trust, offered “heartfelt condolences to Mia’s family for the loss of their daughter”.

She continued: “We accept the coroner’s outcome in court today and apologise to Mia’s family for not identifying autoimmune encephalitis while she was in our care. While this is an incredibly rare condition and initial tests were negative, we recognise that further testing may have had an impact on her future, for which we are truly sorry.”

Dr Shehmar said that in future cases of suspected possible autoimmune encephalitis, a lumbar puncture will be performed.

The trust will also “strengthen training and guidance for staff internally and review current published evidence of acute psychotic episodes in children and young people”.

More from Sky News:
Man arrested over Manchester synagogue attack

Starmer insists Labour ‘kept to our manifesto’

Pic: Family handout/PA
Image:
Pic: Family handout/PA

Dr Jeff Perring, executive medical director at Sheffield Children’s NHS Foundation Trust, said: “Our thoughts are with Mia’s family and everyone who is grieving her loss in such tragic circumstances.

“We are deeply sorry for Mia’s death and recognise the profound impact this has had on those who loved her.”

The trust has carried out a thorough review of Mia’s care and made “significant changes” at the Becton Centre, he added.

“We will continue to work with children, young people, their families and carers to listen to, learn and take action from their experiences.

“The inquest has been important to understand fully the circumstances surrounding Mia’s death. We will now carefully reflect on the evidence heard and the coroner’s conclusions to ensure we continue to provide safe and compassionate care.”

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. Alternatively, you can call Mind’s support line on 0300 102 1234, or NHS on 111.

Continue Reading

UK

Man arrested at Manchester airport in connection with attack at Heaton Park synagogue

Published

on

By

Man arrested at Manchester airport in connection with attack at Heaton Park synagogue

A man has been arrested at an airport as part of the investigation into the terrorist attack at a Manchester synagogue.

The 31-year-old was detained at Manchester Airport on suspicion of the commission, preparation and instigation of acts of terrorism after arriving on an inbound flight, police said.

It brings the total number of people arrested in connection with the incident at Heaton Park Hebrew Congregation Synagogue to seven.

Jihad al Shamie launched the attack at the synagogue in Crumpsall on 2 October, driving his car at worshippers gathering on the Jewish holy day of Yom Kippur, before attacking others with a knife and trying to storm inside.

Please use Chrome browser for a more accessible video player

Manchester synagogue terrorist: what we know now

Armed police shot al Shamie after he ran towards officers “aggressively” while carrying a knife and what police feared was an explosive device – later identified as a fake.

Worshippers Melvin Cravitz, 66, and Adrian Daulby, 53, were killed, with Mr Daulby being described as a “quiet hero” who leapt from his seat to block the doors of the synagogue as it came under attack.

Adrian Daulby, left, and Melvin Cravitz. Pics: Family handout/Greater Manchester Police
Image:
Adrian Daulby, left, and Melvin Cravitz. Pics: Family handout/Greater Manchester Police

He died from a single gunshot wound to the chest fired by an armed police officer, while father-of-three Mr Cravitz died from multiple knife wounds inflicted by al Shamie, an inquest at Manchester Coroner’s Court heard in October.

The inquests into the deaths of both men have been adjourned until February next year.

Three other men were treated in hospital for serious injuries. Two have since been released, police said on Thursday.

The deadly attack rocked the local community. Pic: PA
Image:
The deadly attack rocked the local community. Pic: PA

An inquest into the death of al Shamie, a Syrian-born UK citizen, heard he was identified by his fingerprints and evidence, including his car, phone and inquiries with his immediate family in the aftermath of the attack.

At the hearing in October, Judge Alexia Durran, the chief coroner of England and Wales, said her provisional findings were that al Shamie died of gunshot wounds.

The Independent Office for Police Conduct found no misconduct in the police response.

Please use Chrome browser for a more accessible video player

Synagogue attacker died of gunshot wounds

Read more from Sky News:
Father calls for unity
King visits synagogue

In a statement on Thursday, Assistant Chief Constable Rob Potts, from Counter Terrorism Policing North West, said: “The loved ones of Mr Daulby and Mr Cravitz have been updated on this development, as have those who were seriously injured in the attack.

“Our investigation is continuing, and I would once again appeal for anyone with information that they think could assist our enquiries to please come forward.”

Police also said a 30-year-old man arrested on 9 October on suspicion of failing to disclose information contrary to S38B of the Terrorism Act 2000 remains on bail.

Continue Reading

UK

Budget 2025 is a big risk for Labour’s election plans

Published

on

By

Budget 2025 is a big risk for Labour's election plans

Day two after a budget is always an important moment.

This is when the nerds and boffins of Britain’s fiscal thinktanks assemble to deliver their snap verdict on the chancellor’s decisions.

The moment is more important than ever when, as was certainly the case this time, the budget is a big one.

So what did the Institute for Fiscal Studies (IFS) and the Resolution Foundation make of this year’s budget?

Well, as you’d probably expect, they both fell short of distilling it into a single soundbite, but in broad terms, they both sounded somewhat positive.

Money latest: Budget blow to holidays

Yes, there were plenty of big provisos. The head of the IFS, Helen Miller, said Labour have broken their manifesto pledge not to raise National Insurance.

More on Budget 2025

The Resolution Foundation argued that if only the chancellor had raised the basic rate of income tax instead of freezing personal allowances, it would have made the tax rise considerably fairer and more progressive.

Please use Chrome browser for a more accessible video player

Treasury minister vs Ed Conway

And that’s before one gets into the criticism of some of the other bits and pieces from the red book – the structure of the EV tax, for instance (why doesn’t it try to penalise congestion?), or of the mansion tax (why not just overhaul council tax altogether?).

But for the most part, these closely-followed institutions seemed pretty supportive of this year’s budget – more so, certainly, than they were last year.

Primarily, that’s because while the last budget left only a very thin bit of headroom against Rachel Reeves’s fiscal rules, this one was far more cautious, doubling that fiscal insurance policy to just over £21bn.

Please use Chrome browser for a more accessible video player

Beth Rigby challenges Sir Keir Starmer over the budget

Yet that headroom is dependent on a couple of important factors. First, that the government will hold to its promises to keep spending growth constrained towards the end of the decade. Second, that it will be able to raise all the tax revenues it’s promising in that year.

That, in turn, gets to a deeper issue with the budget. Most of the tough stuff has been put off to the final year of the forecast – namely 2029.

That year, the government will face a squeeze at the very same moment that Britons are all asked to pay more in taxes.

And, critically, that’s the very year Labour is due to face a general election. Does it really plan to fight an election off the back of a contracting economy?

Consider, too, that for all the government’s promises to get living standards growing this parliament, they are currently only forecast to rise at the slowest rate since the 1950s – save for the pandemic and energy price shock period. The economic backdrop, in other words, is hardly rosy.

Still, for the time being, the chancellor has managed to put together a budget that has bolstered her position both in her party and in her job.

Markets remain relatively sanguine – much more so than after Rachel Reeves’s first budget last year – with bond yields lower today than before the event (albeit a little higher than yesterday).

Read more:
Budget takes UK into uncharted territory to allow spending spree
Main budget announcements at a glance
Reeves reveals £26bn of tax rises
Cash ISA limit slashed – but some are exempt

However, this was a complex budget. And, as with all bits of complex engineering, there remains a distinct possibility of large chunks of the budget failing to work.

But since so much of it isn’t due to kick in for a few years, it may take quite a while before we find out which bits work and which, if any, don’t.

Continue Reading

Trending