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close video Biden’s borrowing and spending putting financial system in peril: Steve Moore

Chief economist at FreedomWorks Steve Moore says inflation, government borrowing and woke priorities put banks in jeopardy.

Moody's Investors Services, a credit rating system, put several banks on review for a potential downgrade following the collapse of Silicon Valley Bank (SVB).

The Federal Deposit Insurance Corporation (FDIC) announced the closure of Silicon Valley Bank on Friday amid a run on the bank, a move that raised concerns about the potential of future bank collapses.

Following that collapse, Moody's placed First Republic Bank (FRC), Zions (ZION), Western Alliance (WAL), Comerica (CMA), UMB Financial (UMBF) and Intrust Financial on review, meaning the banks are now perceived as more risky investments by lenders.

"Today's rating action reflects First Republic Bank's high reliance on more confidence sensitive uninsured deposit funding, its high amount of unrealized losses in its available-for-sale and held-to-maturity securities portfolios, as well as a low level of capitalization relative to peers," the firm said of the First Republic Bank rating.

SIGNATURE BANK SHUT DOWN IN CONNECTION WITH SILICON VALLEY BANK COLLAPSE

Silicon Valley Bank was shut down on Friday morning by California regulators and was put in control of the U.S. Federal Deposit Insurance Corporation. (Justin Sullivan / Getty Images)

"If it were to face higher-than-anticipated deposit outflows and liquidity backstops proved insufficient, the bank could need to sell assets, thus crystallizing unrealized losses," Moody's said of First Republic.

SENATE BANKING REPUBLICANS WARY OF BIDEN OFFICIALS' HANDLING OF SVB COLLAPSE: ‘ASLEEP AT THE WHEEL’

The firm also stated that the banks have significant amounts of deposits that are above the FDIC's insurance threshold of $250,000.

Following the SVB failure, federal regulators announced on Sunday that New York-based Signature Bank was being shut down to reportedly protect the financial system and consumers. Moody's downgraded the rating of Signature Bank and withdrew future ratings after its collapse.

U.S. Treasure Secretary Janet Yellen. (Alberto Pezzali / AP Newsroom)

Steve Moore, former White House adviser under Trump and chief economist at FreedomWorks, told Fox News' Harris Faulkner that while he does not believe there is an overall crisis, several banks could be in jeopardy following the SVB collapse.

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"I agree with the president that we don't have an overall banking crisis. The system is sound, but I do think you have a lot of major banks that are in some trouble," Moore warned on Monday. "And SVB, the Silicon Valley Bank, may just be the tip of the iceberg here. And I think it's important for people to understand how this potential banking crisis happened. It's not because there aren't enough bank regulators, as Biden is trying to say. It's because of the massive inflation and the trillions and trillions of dollars of borrowing that the federal government has done that has put our financial system in great jeopardy and great peril."

Fox News' Bradford Betz contributed to this report.

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Thames Water rescue plan promises £20.5bn investment

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Thames Water rescue plan promises £20.5bn investment

The group of Thames Water lenders aiming to rescue the company have set out plans for £20.5bn of investment to bolster performance.

The proposals, submitted to the regulator for consideration, include commitments to spending £9.4bn on sewage and water assets over the next five years, up 45% on current levels, to prevent spills and leaks respectively.

Of this, £3.9bn would go towards the worst performing sewage treatment sites following a series of fines against Thames Water, and other major operators, over substandard storm overflow systems.

It said this would be achieved at the 2025-30 bill levels already in place, so no further increases would be needed, but it continued to argue that leniency over poor performance will be needed to effect the turnaround.

The creditors have named their consortium London & Valley Water.

It effectively already owns Thames Water under the terms of a financial restructuring agreed early in the summer but Ofwat is yet to give its verdict on whether the consortium can run the company, averting the prospect of it being placed in a special administration regime.

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Is Thames Water a step closer to nationalisation?

Thames is on the brink of nationalisation because of the scale of its financial troubles, with debts above £17bn.

Without a deal the consortium, which includes investment heavyweights Elliott Management and BlackRock, would be wiped out.

Ofwat, which is to be scrapped under a shake-up of oversight, is looking at the operational plan separately to its proposed capital structure.

The latter is expected to be revealed later this month.

Sky News revealed on Monday that the consortium was to offer an additional £1bn-plus sweetener in a bid to persuade Ofwat and the government to back the rescue.

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Thames Water handed record fine

Mike McTighe, the chairman designate of London & Valley Water, said: “Over the next 10 years the investment we will channel into Thames Water’s network will make it one of the biggest infrastructure projects in the country.

“Our core focus will be on improving performance for customers, maintaining the highest standards of drinking water, reducing pollution and overcoming the many other challenges Thames Water faces.

“This turnaround has the opportunity to transform essential services for 16 million customers, clean up our waterways and rebuild public trust.”

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The government has clearly signalled its preference that a market-based solution is secured for Thames Water, though it has lined up a restructuring firm to advise on planning in the event the proposed rescue deal fails.

A major challenge for the consortium is convincing officials that it has the experience and people behind it to meet the demands of running a water company of Thames Water’s size, serving about a quarter of the country’s population.

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Brianna Ghey’s mother calls for school smartphone ban

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Brianna Ghey's mother calls for school smartphone ban

The mother of murdered teenager Brianna Ghey is calling on the government to introduce a ban on mobile phones in schools – a move she says will not only safeguard children, but also improve their behaviour and engagement in class.

In February 2023, Brianna, 16, was stabbed to death by two 15-year-olds after being lured to a park in Warrington.

In the lead-up to the attack, her killers had spent time on the dark web. At the same time, Brianna was also trapped online, struggling with a phone addiction.

Her mother Esther Ghey’s Phone Free Education campaign is driven by her personal experiences as a parent and the impact Brianna’s phone use had on her education.

Brianna Ghey struggled with a mobile phone addiction, according to her mother
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Brianna Ghey struggled with a mobile phone addiction, according to her mother

“All the arguments that me and Brianna had were down to her phone use,” Esther said.

“But even in school, she had issues and I used to have phone calls from the school saying that Brianna wouldn’t put her phone away.”

Brianna, who was transgender, struggled with an eating disorder and also self-harmed.

Her mother says the constant time she spent online exacerbated those issues, while impacting her behaviour at school, where she had 120 safeguarding logs and 116 behaviour incidents recorded by her teachers.

Esther Ghey said she had calls from her daughter's school saying that 'Brianna wouldn't put her phone away'
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Esther Ghey said she had calls from her daughter’s school saying that ‘Brianna wouldn’t put her phone away’

“It was so difficult as a parent, because I felt in one way that I was failing and then in another way, and this is really difficult for me to speak about, I was so annoyed with Brianna,” she recalled.

“I thought, why can’t you just go to school, get your head down and just focus on your education, because this is important.

“Only now, after two years of being immersed in this world, do I realise that actually, it’s so much harder than that.”

Research by the Children’s Commission has shown that 79% of secondary schools are still allowing pupils to bring their mobile phones into school, and even into classrooms.

Brianna's school introduced a ban on mobile phones in September last year
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Brianna’s school introduced a ban on mobile phones in September last year

How phone ban is working at Brianna’s old school

Esther is campaigning for government guidance on phones to become statutory, with funding also set aside for the equipment to help schools implement the ban, arguing the lack of legislation is “setting children up to fail”.

At Birchwood Community High School in Warrington, where Brianna was a pupil, they introduced a ban on phones last September.

At the beginning of the day, pupils turn off their phones and place them in pouches, which are locked. At the end of the school day, the pouches are then unlocked.

Pupils at Birchwood Community High School in Warrington place their phones in pouches, which are then locked
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Pupils at Birchwood Community High School in Warrington place their phones in pouches, which are then locked

The headteacher, Emma Mills, said introducing these measures has come with several benefits.

“It’s had an impact in all areas of school, and it’s actually had a really positive impact in ways that I didn’t foresee,” said Ms Mills.

“Attendance has improved this year. In terms of behaviour, behaviour has improved. We’ve had no permanent exclusions this year in school, which is actually the first time since I’ve been headteacher in six years, there’s been no permanent exclusion.”

This summer, the school also saw its best-ever GCSE results in the core subjects of Science, maths, and English.

Emma Mills, headteacher at Birchwood Community High School in Warrington
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Emma Mills, headteacher at Birchwood Community High School in Warrington

‘They can live without their phones’

For Ms Mills, another significant change has been the atmosphere in the school.

“They’re not as worried, they’re not as distracted,” Ms Mills said.

“They’ve realised that they can live without their phones. Something else we’ve really noticed is that it’s a bit louder in school at breaks and lunch times. It’s because they’re talking more, they’re interacting more, and they’re communicating more.”

The positive impact of a ban at Brianna’s old school has served as encouragement to Esther, who has written an open letter addressed to Sir Keir Starmer and Education Secretary Bridget Phillipson, asking for government support.

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‘Whole society’ approach needed to stop doomscrolling

Brianna Ghey
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Brianna Ghey

High-profile signatories include the actress Kate Winslet, as well as actor and film producer Stephen Graham.

For Esther, who will deliver the letter to 10 Downing Street next month, the campaign is not just Brianna’s legacy, but also creating societal change.

“I think it’s important that we teach young people to live in the real world,” she said.

“It’s going to impact society at one point and I think this small amount of investment in students now will have a massive impact in the future.”

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Revealed: Huge rise in protests being dealt with by police

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Revealed: Huge rise in protests being dealt with by police

Police across the UK dealt with more than 3,000 protests over three months this summer – more than three times as many as just two years ago.

There were 3,081 protests this June, July, and August across England, Wales, Scotland and Northern Ireland, figures from the National Police Chiefs’ Council have revealed.

Last summer, when riots were raging across the country following the Southport murders, police dealt with 2,942 protests. In 2023, it was 928.

The summer months this year have been dominated by widespread demonstrations, some against the ban on Palestine Action and others against housing asylum seekers in hotels.

Counter-protesters with police as people take part in a Stand Up To Racism rally in Orpington in August. Pic: PA
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Counter-protesters with police as people take part in a Stand Up To Racism rally in Orpington in August. Pic: PA

‘Increasing tension’

Gavin Stephens, chairman of the NPCC, said it was clear that there has been “more community tension and more division”, adding that “we all have a responsibility, policing included, to set the tone”.

“Anybody in a leadership position should think about how we can reduce and defuse tensions and not sow division,” Mr Stephens said.

The senior official said protests this year were a “chronic pressure” for police compared to last year’s disorder, which was acute.

“This is not talking about the volume of protest, and this is not a commentary from policing on people’s right to protest peacefully,” he said.

“We absolutely support that in a democracy, but we do know that there is a climate of increasing tension and polarity in what we’re seeing.”

He is convinced communities will be able to reunite and “reset”, and said claims that the UK is on the verge of civil disobedience are “exaggerated”.

Read more from Sky News:
Protester arrested after climbing clock tower
Rival groups face off outside migrant hotel

It comes as policing leaders are pushing for a major restructuring of forces in England and Wales, hoping to bring more powers to a national level.

They also want to overhaul how funding is calculated for each force.

A government white paper on potential changes to the service is expected to be published in the coming months.

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