The U.S. government and the Federal Deposit Insurance Corporation (FDIC) are auctioning off two failed American financial institutions, Silicon Valley Bank (SVB) and Signature Bank (SNBY), this week, with bids due by March 17. However, sources familiar with the matter said the qualifications to purchase the banks are stringent, and reportedly, the purchasers cannot deal with crypto businesses anymore.
Last week, the second- and third-largest bank failures in America occurred within 48 hours of each other, and the two financial institutions are being sold this week. Unnamed sources familiar with the matter told Reuters that the FDIC is accepting bids for Silicon Valley Bank (SVB) and Signature Bank (SNBY), with final offers due on Friday, March 17, 2023. The FDIC already attempted to auction off SVB last weekend, but no deals materialized, and the U.S. government proposed a bailout plan for the depositors of both banks.
Sources disclosed that the FDIC is using the investment bank Piper Sandler Companies to manage the auctions of both banks. The sources added that the FDIC hopes to sell both SVB and SNBY in their entirety, but partial offers on specific bank branches and verticals will be considered. To purchase the two financial institutions, strict rules apply, as only an existing chartered bank can submit an offer. Reuters contributors David French and Pete Schroeder were told that the scheme was designed to give traditional lenders “an advantage” over private equity companies.
The reporters were also informed that bidders must not cater to cryptocurrency firms if they are to acquire SVB and SNBY. “Any buyer of Signature must agree to give up all the crypto business at the bank, the two sources added,” the report by French and Schroeder details. The Reuters account of the situation, stemming from unnamed sources, contradicts the statement made by the New York State Department of Financial Services.
The New York regulator insisted that the recent bank shutdowns had “nothing to do with crypto.” The regulator made this statement after Signature Bank board member and former member of the U.S. House of Representatives from Massachusetts Barney Frank said he suspected the shutdown was an “anti-crypto” message. If the rules concerning purchasing SVB and SNBY are true, then it seems Frank’s suspicions may be warranted.
Do you think the FDIC’s alleged decision to restrict bidders from dealing with cryptocurrency businesses is justified, or do you believe it unfairly disadvantages potential buyers? Share your thoughts in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)'s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.
The U.S. government and the Federal Deposit Insurance Corporation (FDIC) are auctioning off two failed American financial institutions, Silicon Valley Bank (SVB) and Signature Bank (SNBY), this week, with bids due by March 17. However, sources familiar with the matter said the qualifications to purchase the banks are stringent, and reportedly, the purchasers cannot deal with crypto businesses anymore.
Last week, the second- and third-largest bank failures in America occurred within 48 hours of each other, and the two financial institutions are being sold this week. Unnamed sources familiar with the matter told Reuters that the FDIC is accepting bids for Silicon Valley Bank (SVB) and Signature Bank (SNBY), with final offers due on Friday, March 17, 2023. The FDIC already attempted to auction off SVB last weekend, but no deals materialized, and the U.S. government proposed a bailout plan for the depositors of both banks.
Sources disclosed that the FDIC is using the investment bank Piper Sandler Companies to manage the auctions of both banks. The sources added that the FDIC hopes to sell both SVB and SNBY in their entirety, but partial offers on specific bank branches and verticals will be considered. To purchase the two financial institutions, strict rules apply, as only an existing chartered bank can submit an offer. Reuters contributors David French and Pete Schroeder were told that the scheme was designed to give traditional lenders “an advantage” over private equity companies.
The reporters were also informed that bidders must not cater to cryptocurrency firms if they are to acquire SVB and SNBY. “Any buyer of Signature must agree to give up all the crypto business at the bank, the two sources added,” the report by French and Schroeder details. The Reuters account of the situation, stemming from unnamed sources, contradicts the statement made by the New York State Department of Financial Services.
The New York regulator insisted that the recent bank shutdowns had “nothing to do with crypto.” The regulator made this statement after Signature Bank board member and former member of the U.S. House of Representatives from Massachusetts Barney Frank said he suspected the shutdown was an “anti-crypto” message. If the rules concerning purchasing SVB and SNBY are true, then it seems Frank’s suspicions may be warranted.
Do you think the FDIC’s alleged decision to restrict bidders from dealing with cryptocurrency businesses is justified, or do you believe it unfairly disadvantages potential buyers? Share your thoughts in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)'s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.
Credit Suisse has experienced a loss of confidence in the financial institution’s health following a significant drop in its shares’ value this week. Over the past five days, Credit Suisse shares have fallen 24.34% against the U.S. dollar, eroding trust amid fears about the global banking system. On Wednesday at around 9 p.m. (ET), Credit Suisse announced that it was strengthening its liquidity by borrowing 50 billion Swiss francs ($54 billion) from the Swiss National Bank (SNB). As concerns about the world’s banking system continue to spread, bailout measures are starting to emerge in the U.S. and abroad.
Credit Suisse’s stock hit a record low on Wednesday after the Saudi National Bank declined to assist the Zürich, Switzerland-based bank. The bank’s troubles have fueled fears of bank contagion after three major U.S. banks collapsed last week. Some market strategists predict that Credit Suisse will be the next to fail, and the actual value of Credit Suisse’s share price has been called into question. After a tumultuous day on Wednesday, Swiss officials announced that they were working to stabilize the financial institution. Both the Swiss National Bank and FINMA issued statements of support.
JUST IN: Swiss National Bank will bail out Credit Suisse if needed.
— Sasha Hodder (@sashahodler) March 15, 2023
Shortly after 9 p.m. Eastern Time, Credit Suisse issued a press release announcing that it had taken “decisive action to pre-emptively strengthen liquidity.” Credit Suisse stated that it intended to exercise the bank’s option to borrow up to CHF 50 billion from the Swiss National Bank (SNB) under a Covered Loan Facility, as well as a short-term liquidity facility, both of which would be fully collateralized by high-quality assets. The company also announced public tender offers for U.S. dollar-denominated senior debt securities and euro-denominated senior debt securities, with an expiration date of March 22, 2023, subject to terms and conditions.
“These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders,” the bank’s CEO Ulrich Koerner said in a statement. “We thank the SNB and FINMA as we execute our strategic transformation. My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs.”
Credit Suisse get a $54,700,000,000 bailout.
This is more than the GDP of the majority of the world's countries and should keep them going for a few more days.
— David Kurten (@davidkurten) March 16, 2023
The SNB bailout of Credit Suisse marks the second major bank bailout in less than a week, following the bailout of Silicon Valley Bank (SVB) and Signature Bank (SNBY) by the U.S. Federal Reserve, Treasury, and Federal Deposit Insurance Corporation (FDIC). However, U.S. politicians are emphasizing that these emergency measures are not comparable to the bank bailouts of 2008.
During the Great Recession, bank bailouts were widespread, starting with Bear Stearns’ injection of capital in March 2008 in the U.S. and then spreading abroad. In the U.K., the Royal Bank of Scotland and Lloyds TSB received government assistance in October 2008, while in Iceland, the government nationalized the country’s three largest banks that same month.
At that time, other countries, including Germany, France, and Switzerland, implemented various bailout measures during the 2008 financial crisis. The U.S. allowed the troubled investment bank Lehman Brothers to fail, but decided to bail out Fannie Mae, Freddie Mac, and AIG in 2008. Credit Suisse was one of the few banks that managed to survive the impact of the 2008 economic crisis without a bailout from the Swiss central bank.
While many banks sought bailouts during the Great Recession, Credit Suisse raised capital from the Qatar Investment Authority and other sources by selling convertible securities and initiating a public share offering. Although the current macroeconomic environment is not exactly the same as in 2008, some experts predict that this economic downturn could be worse. This time around, Credit Suisse’s hand was forced, and the bank had to borrow 50 billion Swiss francs or possibly face the same fate as SVB and SNBY.
What do you think will be the long-term impact of Credit Suisse’s bailout on the global banking system? Share your thoughts in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, pichetw / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale
Grayscale Investments' CEO explains that the U.S. Securities and Exchange Commission (SEC) could potentially violate the Administrative Procedure Act by not approving a spot bitcoin exchange-traded fund (ETF). SEC Approving Spot Bitcoin ETF Is 'a Matter of When and Not ... read more.
Credit Suisse has experienced a loss of confidence in the financial institution’s health following a significant drop in its shares’ value this week. Over the past five days, Credit Suisse shares have fallen 24.34% against the U.S. dollar, eroding trust amid fears about the global banking system. On Wednesday at around 9 p.m. (ET), Credit Suisse announced that it was strengthening its liquidity by borrowing 50 billion Swiss francs ($54 billion) from the Swiss National Bank (SNB). As concerns about the world’s banking system continue to spread, bailout measures are starting to emerge in the U.S. and abroad.
Credit Suisse’s stock hit a record low on Wednesday after the Saudi National Bank declined to assist the Zürich, Switzerland-based bank. The bank’s troubles have fueled fears of bank contagion after three major U.S. banks collapsed last week. Some market strategists predict that Credit Suisse will be the next to fail, and the actual value of Credit Suisse’s share price has been called into question. After a tumultuous day on Wednesday, Swiss officials announced that they were working to stabilize the financial institution. Both the Swiss National Bank and FINMA issued statements of support.
JUST IN: Swiss National Bank will bail out Credit Suisse if needed.
— Sasha Hodder (@sashahodler) March 15, 2023
Shortly after 9 p.m. Eastern Time, Credit Suisse issued a press release announcing that it had taken “decisive action to pre-emptively strengthen liquidity.” Credit Suisse stated that it intended to exercise the bank’s option to borrow up to CHF 50 billion from the Swiss National Bank (SNB) under a Covered Loan Facility, as well as a short-term liquidity facility, both of which would be fully collateralized by high-quality assets. The company also announced public tender offers for U.S. dollar-denominated senior debt securities and euro-denominated senior debt securities, with an expiration date of March 22, 2023, subject to terms and conditions.
“These measures demonstrate decisive action to strengthen Credit Suisse as we continue our strategic transformation to deliver value to our clients and other stakeholders,” the bank’s CEO Ulrich Koerner said in a statement. “We thank the SNB and FINMA as we execute our strategic transformation. My team and I are resolved to move forward rapidly to deliver a simpler and more focused bank built around client needs.”
Credit Suisse get a $54,700,000,000 bailout.
This is more than the GDP of the majority of the world's countries and should keep them going for a few more days.
— David Kurten (@davidkurten) March 16, 2023
The SNB bailout of Credit Suisse marks the second major bank bailout in less than a week, following the bailout of Silicon Valley Bank (SVB) and Signature Bank (SNBY) by the U.S. Federal Reserve, Treasury, and Federal Deposit Insurance Corporation (FDIC). However, U.S. politicians are emphasizing that these emergency measures are not comparable to the bank bailouts of 2008.
During the Great Recession, bank bailouts were widespread, starting with Bear Stearns’ injection of capital in March 2008 in the U.S. and then spreading abroad. In the U.K., the Royal Bank of Scotland and Lloyds TSB received government assistance in October 2008, while in Iceland, the government nationalized the country’s three largest banks that same month.
At that time, other countries, including Germany, France, and Switzerland, implemented various bailout measures during the 2008 financial crisis. The U.S. allowed the troubled investment bank Lehman Brothers to fail, but decided to bail out Fannie Mae, Freddie Mac, and AIG in 2008. Credit Suisse was one of the few banks that managed to survive the impact of the 2008 economic crisis without a bailout from the Swiss central bank.
While many banks sought bailouts during the Great Recession, Credit Suisse raised capital from the Qatar Investment Authority and other sources by selling convertible securities and initiating a public share offering. Although the current macroeconomic environment is not exactly the same as in 2008, some experts predict that this economic downturn could be worse. This time around, Credit Suisse’s hand was forced, and the bank had to borrow 50 billion Swiss francs or possibly face the same fate as SVB and SNBY.
What do you think will be the long-term impact of Credit Suisse’s bailout on the global banking system? Share your thoughts in the comments section below.
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
Image Credits: Shutterstock, Pixabay, Wiki Commons, pichetw / Shutterstock.com
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
SEC Risks Violating Admin Procedure Act by Rejecting Spot Bitcoin ETFs, Says Grayscale
Grayscale Investments' CEO explains that the U.S. Securities and Exchange Commission (SEC) could potentially violate the Administrative Procedure Act by not approving a spot bitcoin exchange-traded fund (ETF). SEC Approving Spot Bitcoin ETF Is 'a Matter of When and Not ... read more.
PRESS RELEASE. dappOS, project currently enrolled in Binance Labs Season 5, is positioned to virtualize the public chain and help users manage the operating protocols of numerous dApps. Through SDK, virtual wallet, and dApps, integration platform, dappOS not only enables one-click multi-chain deployment for developers, but also helps users easily access any dApps. The protocol was built with the idea of creating a channel between users and cryptographic infrastructure (public chains and cross-chain bridges, etc.).
Overall, dappOS is a combination of Web 2.0’s APP Store and operating system. It integrates many dApps and has its own wallet function, cross-chain function, payment function, etc. dApps deployed on one chain can acquire users from other public chains with significantly less costs, and for dApps deployed on multiple chains, they can easily copy their advantages from chain A to chain B. It also provides users with faster and simpler operations, increasing the range of options and experiences, for example, ETH users can experience dApps from other chains with lower gas fees.
The main functions of dappOS
The technical solution of dappOS V1 includes dappOS Account based on Account Abstraction (AA) and dappOS Network.
dappOS Account is a contract wallet based on Account Abstraction. It can realize Gas payment and provide the basis for automating the execution of complex workflows that can be combined. It also has a login method that is more in line with Web2 users’ habits without the need for mnemonic phrase.
Supported permission management methods will include
— Third-party wallets (e.g. MetaMask)
— Device to device resets
— Email login via ZK and DKIM
— Traditional mnemonic methods
There is no centralized hosting involved in dappOS Account.
The dappOS Network is used to solve the problem of automated execution of operations, through the services provided by the network, users can easily manage the account abstractions distributed across different chains, and can confirm public chain interactions of any complexity by providing a signature. V1 already supports the automation of complex workflows consisting of tasks like cross-chain execution of funds and contract interactions.
The consensus mechanism of dappOS is implemented through nodes, which consists of 2 types
— Super nodes: responsible for delegating orders to server nodes, rewards and punishments.
— Service nodes: responsible for receiving orders from the super nodes and executing them.
When a user submits a request or task, the super node will assign it and the server node will give the result back to the user after completion. If the service node does not execute as expected, the super node will use the funds staked by the service node to compensate the user after reaching an agreement.
To improve speed and optimize rates, dappOS Network allows various types of third-party service nodes to join the network to compete. Meanwhile, security is ensured by over-collateralization of service nodes, and the process is executed first before consensus is reached to judge whether the execution is successful so that user’s waiting time can be shortened.
Super nodes use DPOS consensus mechanism, and the number will be stabilized at 20 when the main network is online. Super nodes require staking platform coins, and for each transaction, the service node will distribute the fee revenue to the super node in the form of platform coins.
dappOS solutions
To B: For dApps developers and dappOS JS SDK of teams
No need to re-deploy the contract to attract traffic, integration of SDK in the front-end will make it as convenient for A-chain users to use B-chain dApps. For example, dApps deployed on non-Ethereum chain can easily attract users from ETH after integration, eliminating the need to guide users across chains, purchase Gas, and set up wallets. At the same time, it helps dApps deployed on multiple chains erase the boundaries of users between each chain and replicate their advantages in chain A to chain B.
To C: Applet platform
dappOS will launch a program platform for mobile-end, based on which dApps users can have an experience similar to Web2’s. Compared with the traditional wallet + browser model, dappOS’s platforms have the advantages as followings:
Account aspect
– Removal of mnemonic phrase
– Unified accounts
To better understand the role dappOS plays, let’s compare the differences before and after clients use it.
dappOS simplifies numerous operation steps into a few steps and saves time for users. Official announcements said that the current trial version only supports limited types of coins and public chains, and will be add more later.
Currently, several top dApps, including Benqi, GMX, Kyberswap, Perpetual, QuickSwap have been testing their products on dappOS. We are cooperating with 50+ communities, and managing to achieve million-dollar transaction volume and TVL on a day-to-day basis.
Learn more about dappOS:
Website Twitter Telegram Discord Audits
This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
Bitcoin.com is the premier source for everything crypto-related. Contact the Media team on ads@bitcoin.com to talk about press releases, sponsored posts, podcasts and other options.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Oman to Incorporate Real Estate Tokenization in Virtual Assets Regulatory Framework
Real estate tokenization is set to be incorporated into Oman Capital Markets Authority (OCMA)'s virtual asset regulatory framework. According to an advisor with the authority, the tokenizing of real estate will open investment opportunities for local and foreign investors. Real ... read more.
Source From : News