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close video Silicon Valley Bank fall: Former Fed official says he would have pressed harder for a private sector solution

Former Federal Reserve Vice Chair Randal Quarles gives his take on the Fed’s reaction to collapse of the Silicon Valley Bank on ‘Kudlow.’

The Biden administration is gearing up to investigate the collapse of Silicon Valley Bank, which was the 16th-largest bank in the United States before it went under after a run on the bank last week.

The Justice Department is in the early stages of investigating SVB's failure, Fox News has confirmed. The news was first reported by the Wall Street Journal, which said the Securities and Exchange Commission is also investigating.

These inquiries may or may not lead to charges or allegations of wrongdoing and are typical of the government's response after a big company reports massive, unexpected losses.

SVB suffered $1.8 billion in losses last week as it faced a liquidity crisis caused by bad investments in bonds. The bank's share price fell 60% last week and the Federal Deposit Insurance Corporation (FDIC) stepped in Friday to take over the bank's operations as depositors panicked and rushed to withdraw their money. Ticker Security Last Change Change % SIVB SVB FINANCIAL GROUP 106.04 -161.79 -60.41%

The government probes will look into stock sales that SVB Financial's officers made days before the bank collapsed, according to the Journal. The Justice Department's investigation reportedly involves federal fraud prosecutors based in Washington and San Francisco. 

SVB COLLAPSE: MOODY'S FLAGS SIX OTHER BANKS WITH CONCERNING CREDIT RATINGS

An FDIC sign is posted on a window at a Silicon Valley Bank branch in Wellesley, Mass., on Saturday, March 11, 2023. (AP Photo/Peter Morgan / AP Newsroom)

A spokesperson for the SEC would not confirm the investigation but referred to SEC Chair Gary Gensler's Sunday statement, which said, "we at the SEC are particularly focused on monitoring for market stability and identifying and prosecuting any form of misconduct that might threaten investors, capital formation, or the markets more broadly. Without speaking to any individual entity or person, we will investigate and bring enforcement actions if we find violations of the federal securities laws."

SVB's collapse was the second-largest bank failure in U.S. history and the largest since Washington Mutual went under in 2008. As of last year, the bank held $209 billion in assets and $175.4 billion in deposits, according to the FDIC. 

SILICON VALLEY BANK COMMITTED ‘ONE OF THE MOST ELEMENTARY ERRORS IN BANKING,' LARRY SUMMERS SAYS

The Justice Department, led by U.S. Attorney General Merrick Garland, is reportedly investigating Silicon Valley Bank’s collapse. ((Photo by Drew Angerer/Getty Images) / Getty Images)

Prior to its failure, SVB mainly serviced tech startups and their investors. As the tech industry grew, so too did SVB's deposits, increasing 86% in 2021 to $189 billion.

But concerns over the bank's health prompted a run on deposits last week. On Thursday, customers attempted to withdraw $42 billion — nearly a quarter of the bank's total deposits — which the bank simply did not have available. SVB had tied up most of its funds in treasury bonds and other long-term investments, which have declined in value as the Federal Reserve has raised interest rates to combat inflation in the past year.

SILICON VALLEY BANK COLLAPSE: HERE'S WHO BENEFITTED FROM THEIR EXECUTIVE, PAC DONATIONS

Igor Fayermark, right, from the Federal Deposit Insurance Corporation (FDIC), exits Silicon Valley Bank’s headquarters in Santa Clara, California, on Monday, March 13, 2023. (AP Photo/Benjamin Fanjoy / AP Images)

Securities filings show that SVB CEO Greg Becker and CFO Daniel Beck each sold shares in their bank the week before it collapsed. The Journal reported that Becker exercised options on 12.451 shares on Feb. 27 and sold them for $2.3 million.

Beck sold a little more than $575,000 worth of shares on Feb. 17, which was roughly one-third of his total stake in the company.

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However, both sales were scheduled 30 days in advance under 10b5-1 plans, which allow insiders to schedule share sales to allay suspicion of illegal trading. "The SEC recently tightened rules for the plans, which include a 90-day waiting period before sales can be executed. The new rules went into effect on Feb. 27, the same day the executives sold," the Journal reported. 

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UK

Gallagher brothers share a high-five and hug as Oasis reunite on stage after 16 years

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Gallagher brothers share a high-five and hug as Oasis reunite on stage after 16 years

Oasis have reunited on stage for the first time in almost 16 years – with brothers Liam and Noel Gallagher sharing a high five and the briefest of hugs as they closed a performance that for fans was more than worth the wait.

After the split in 2009, for many years Noel said he would never go back – and for a long time, as the brothers exchanged insults through separate interviews (and on social media, for Liam), it seemed pretty unlikely to ever happen.

But now, here they are. As they walked out on stage at Cardiff’s Principality Stadium, all eyes were on the Gallaghers for a sense of their relationship – dare we say it, friendship? – now after all these years.

There was no reference to their fall-out or making up, but the gestures were there – lifting hands together as they walked out for the first time.

The headline "OASIS REUNITED" was shown on stage at the gig. Pic: PA
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The headline “OASIS REUNITED” was shown on stage at the gig. Pic: PA

Fans at the Oasis gig. Pic: PA
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Fans at the Oasis gig. Pic: PA

Headlines and tweets of speculation and then confirmation of the reunion filled the screens as the show started. “This is happening,” said one, repeatedly.

In the end, it was all about the music.

Liam has received criticism in the past for his voice not being what it once was during his solo or Beady Eye performances, but back on stage with his brother tonight he delivered exactly what fans would have hoped for – a raw, steely-eyed performance, snarling vocals, and the swagger that makes him arguably the greatest frontman of his day.

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This was Oasis sounding almost as good as they ever have.

Fans sang along and held up their phones to film as Oasis performed. Pic: PA
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Fans sang along and held up their phones to film as Oasis performed. Pic: PA

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Oasis: ‘It’s good to be back’

They opened with Hello, because of course, “it’s good to be back”. And then Acquiesce, and those lyrics: “Because we need each other/ We believe in one another.”

The song is said to be about friendship in the wider sense, rather than their brotherly bond and sibling rivalry, but you can’t help but feel like it means something here.

Over two hours, they played favourite after favourite – including Morning Glory, Some Might Say, Cigarettes & Alcohol, Supersonic and Roll With It.

Liam Gallagher as Oasis takes to the stage in Cardiff. Pic: PA
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Liam Gallagher as Oasis takes to the stage in Cardiff. Pic: PA

In the mid-section, Liam takes his break for Noel to sing Talk Tonight, Half The World Away and Little By Little; the tempo slows but there is by no means a lull, with the fans singing all his words back to him.

Liam returns for hits including Stand By Me, Slide Away, Whatever and Live Forever, before sending the crowd wild (or even wilder) with Rock And Roll Star.

Noel Gallagher performing on stage. Pic: PA
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Noel Gallagher performing on stage. Pic: PA

An Oasis fan is pointing at the stage during the gig. Pic: PA
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An Oasis fan is pointing at the stage during the gig. Pic: PA

When the reunion announcement was made last summer, it quickly became overshadowed by the controversy of dynamic pricing causing prices to rocket. As he has done on X before, Liam addressed the issue on stage with a joke.

“Was it worth the £4,000 you paid for the ticket?” he shouted at one point. “Yeah,” the crowd shouts back; seemingly all is forgiven.

After Rock And Roll Star, the dream that very quickly became a reality for this band, Noel introduced the rest of the group, calling Bonehead a “legend”.

Paul 'Bonehead' Arthurs of Oasis. Pic: PA
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Paul ‘Bonehead’ Arthurs of Oasis. Pic: PA

Liam Gallagher carried a tambourine in his mouth during the concert. Pic: PA
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Liam Gallagher carried a tambourine in his mouth during the concert. Pic: PA

Then he acknowledges all their young fans, some who maybe weren’t even born when they split. “This one is for all the people in their 20s who’ve never seen us before, who’ve kept this shit going,” he says before the encore starts with The Masterplan.

Noel follows with Don’t Look Back In Anger, and the screens fill with Manchester bees in reference to the arena bombing and how the song became the sound of hope and defiance for the city afterwards.

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‘I’d have paid £10,000 to see them’

Two fans sat on their friends' shoulders as Oasis performed. Pic: PA
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Two fans sat on their friends’ shoulders as Oasis performed. Pic: PA

During Wonderwall, there’s a nice touch as Liam sings to the crowd: “There are many things I would like to say to you, but I don’t speak Welsh.”

It is at the end of Champagne Supernova, which closes the set, that it happens; Noel puts down his guitar, and they come together for a high-five and a back-slap, a blink-and-you’d miss it hug.

Read more:
What you need to know about the Oasis tour
Liam Gallagher hits out at council after fans branded ‘rowdy’

“Right then, beautiful people, this is it,” Liam had told the crowd as he introduced the song just a few minutes earlier. “Nice one for putting up with us over the years.”

From the roar of the audience, it’s safe to say most people here would agree it’s been worth it.

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Politics

Sweden’s justice minister says to ‘turn up the pressure’ on crypto seizures

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Sweden’s justice minister says to ‘turn up the pressure’ on crypto seizures

Sweden’s justice minister says to ‘turn up the pressure’ on crypto seizures

Gunnar Strömmer reportedly said that Swedish authorities had confiscated more than $8.3 million worth of criminal profits since a law related to seizures was passed in 2024.

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US

At least 13 people confirmed dead and more than 20 missing from girls camp in Texas flooding

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At least 13 people confirmed dead and more than 20 missing from girls camp in Texas flooding

13 people have been killed in the US state of Texas after heavy rain caused flash flooding, according to local media reports.

Officials have also said more than 20 are missing from a girls’ camp in Texas.

As much as 10 inches (25 centimetres) of heavy rain fell in just a few hours overnight in central Kerr County, causing flash flooding of the Guadalupe River.

Judge Rob Kelly, the chief elected official in the county, confirmed fatalities from the flooding and dozens of water rescues so far.

A flood watch issued on Thursday afternoon estimated isolated amounts up to seven inches (17 centimetres) of rising water.

This breaking news story is being updated and more details will be published shortly.

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