All posts tagged: bailout

Money-Market Fund Assets Top  Trillion Again, Fed’s Bank Bailout Facility Still At 3BN

Money-Market Fund Assets Top $6 Trillion Again, Fed’s Bank Bailout Facility Still At $113BN

Money market funds saw inflows for the third straight week (up $31.1BN) pushing the total assets to $6.03TN – the highest level in a month… Source: Bloomberg In a breakdown for the week to May 8, government funds – which invest primarily in securities such as Treasury bills, repurchase agreements and agency debt – saw assets rise to $4.88 trillion, a $20 billion increase.  Prime funds, which tend to invest in higher-risk assets such as commercial paper, saw assets rise to $1.03 trillion, an $8.6 billion increase. Both Retail and Institutional funds saw inflows (+7.8BN and +23.3BN respectively)… Source: Bloomberg Amid all the chatter about tapering QT, The Fed balance sheet continued to contract (though only $9.1BN)… Source: Bloomberg Additionally, The Fed’s (now expired) bank bailout scheme continues to decline (as the 12-month term loans run off), dropping by a sizable $11.5BN last week – erasing all the arb-driven usage. However, the facility still has a whopping $112.8BN left outstanding filling holes in bank balance sheets somewhere… Source: Bloomberg Finally, bank reserves at The Fed continues …

Has the EU really just found €400B it could spend on defense? – POLITICO

Has the EU really just found €400B it could spend on defense? – POLITICO

As governments increasingly see the need to put the continent on a war footing, the plan would offer a way out for Europe’s policymakers who are desperately trying to find cash down the back of the sofa. They know they have to pay for it; they just don’t want to. Other options could see the ESM shift to respond to Russia’s aggression more broadly, four of the people said, such as by helping to pay for the reconstruction of Ukraine or by providing cheap loans to countries like the Baltic states which may find their borrowing costs rising. Russia’s war in Ukraine — a country harboring EU membership ambitions — is grinding into a third year and Donald Trump’s potential return to the White House risks leaving Europe in the lurch, as he demands all NATO countries to hit the target of 2 percent of gross domestic product spent on defense. But soaring debts in the bloc’s most powerful capitals, messy domestic politics, and tight spending rules enforced by the European Commission are limiting the …

US Banks See Large Deposit Inflows As Bailout Fund Expires, RRP Liquidity Plunges

US Banks See Large Deposit Inflows As Bailout Fund Expires, RRP Liquidity Plunges

With The Fed’s bank bailout facility now expired (and the one-year term loans starting to mature), it is perhaps not surprising that we saw a very large liquidity drain from The Fed’s Reverse Repo facility in the last two days – over $107BN pulled out to fresh cycle lows… Source: Bloomberg Total deposits – on a seasonally-adjusted basis – rose by $54BN last week… Source: Bloomberg On a non-seasonally-adjusted basis – remind us again how actual deposits are seasonally-adjusted – banks saw and even larger $82BN deposit inflow… Source: Bloomberg Excluding foreign bank deposits, domestic banks saw seasonally-adjusted deposits rise $60BN (Large Banks +$59BN, Small Banks +$0.9BN), and non-seasonally-adjusted deposits rose $94BN (Large Banks +$73BN, Small Banks +$21BN)… Source: Bloomberg However, rather oddly, on the other side of the ledger, loan volumes plunged despite the surge in deposits (Large bank loan volumes tumbled $15BN while Small bank loan volumes rose by $0.3BN)…. Source: Bloomberg And finally, as if you needed a reminder after the recent NYCB debacle-and-bailout – the regional bank crisis is still very …

EU mulls emergency aid for collapsing solar producers – POLITICO

EU mulls emergency aid for collapsing solar producers – POLITICO

The talks come as the European Solar Manufacturing Council (ESMC), the body representing photovoltaic producers, this week sent a letter to Brussels appealing for “urgent” measures including a swift, EU-led buyout of their inventories. The group argues that subsidized Chinese mass production of solar modules — which currently sell for half the price of their EU equivalents — paired with an oversupply of panels in the bloc makes it impossible for the bloc’s manufacturers to shift their stocks. “We’re really seeing a wave of bankruptcies” in Europe, said ESMC Secretary General Johan Lindahl, citing recent insolvencies including Dutch panel producer Exasun and Austrian module manufacturer Energetic. Germany is also currently in 11th-hour talks with Meyer Burger after the Swiss solar firm said it would halt production of modules in the country as early as April. “Everything points to the fact that Chinese manufacturers are selling below their production cost,” Lindahl said, and now the result is “very, very worrying … We’re about to lose the industry in Europe.” The EU is hoping to bring 30 …

SEND bailout councils increasingly ‘monitored’ by ministers

SEND bailout councils increasingly ‘monitored’ by ministers

More from this theme Recent articles Cash-strapped councils falling behind on their SEND deficit bailout plans – just months after they were signed off – have now been placed under “enhanced” monitoring by ministers, Schools Week can reveal.  Cambridgeshire and Norfolk signed government “safety valve” agreements in March, where they got £119 million combined in bailouts to help balance their high needs deficits over five and seven years respectively. But by September, both were already off track, which means they must submit revised plans and join the “enhanced monitoring and support (EMS)” scheme. News of a higher tier of intervention in the scheme compounds concerns by campaigners that the bailouts, which come with strict cost-cutting demands and which are not enough to balance budgets. Maxine Webb, an independent councillor in Norfolk, said: “Those of us who warned about the SEND system hinging on the safety valve scheme will rightly be massively worried about the intervention happening so early on in the programme, and its implications.” Cambridgeshire warned last month it was more than £6 million …

Treasury to end oversight of £425m scheme to help banks after RBS bailout | Banking

Treasury to end oversight of £425m scheme to help banks after RBS bailout | Banking

Lenders that received payouts from a £425m pot of public cash set aside after Royal Bank of Scotland was bailed out in 2008 will not be held accountable over delayed projects, after the Treasury refused to extend supervision arrangements beyond the new year. Under so-called state aid rules, which applied when the UK was still a member of the European Union, RBS money was given to smaller challenger banks to spend developing their services for business customers, in an effort to promote competition and offset the market-skewing effects of RBS’s £45bn government bailout in 2008. But the Banking Competition Remedies (BCR) body, which distributed funds and monitors how they are spent, is set to be wound down in February. Data published by the BCR reveals that, of the 24 recipients of the funds, 15 have “deliverables outstanding”, meaning they have yet to deliver the projects they were paid for. In a public warning issued months before its planned liquidation, the BCR said: “No alternative reporting mechanism has been put in place for those awardees with …

Yellen says gov’t concerned about Silicon Valley Bank depositors but dismisses bailout

Yellen says gov’t concerned about Silicon Valley Bank depositors but dismisses bailout

The US Treasury Secretary Janet Yellen said the government is working with banking regulators to design “appropriate policies” to address the fallout of Silicon Valley Bank and is “concerned about depositors,” but she dismissed the idea of a bailout in a potential setback for the startup ecosystem that is reeling from what is the worst bank failure since the 2008 financial crisis. “Well let me be clear that during the financial crisis, there were investors and owners of systemic large banks that were bailed out, and we’re certainly not looking. And the reforms that have been put in place means that we’re not going to do that again. But we are concerned about depositors and are focused on trying to meet their needs,” said Yellen in a CBS interview. The sudden collapse of Silicon Valley Bank has sent shockwaves to the startup ecosystem as countless young firms scramble to find ways to meet the payroll and other operating expenses after the bank was taken over by the regulators on Friday. Garry Tan, the president of …

Does web3 need a venture bailout now that AI has all the hype?

Does web3 need a venture bailout now that AI has all the hype?

Shifting investor priorities, more expensive cash and a dearth of the large deals that were so common during the last startup boom could leave many late-stage web3 companies short on cash. And the clock is ticking. People are already memeing that venture capitalists have pivoted from crypto to AI, hunting, as they’re wont to, for the next big thing. For startups stuck in a now passé category, watching venture dollars flow elsewhere cannot feel great, even if such evolutions in capital flows are normal. The Exchange explores startups, markets and money. Read it every morning on TechCrunch+ or get The Exchange newsletter every Saturday. TechCrunch recently dug into venture capital data to understand how investor interest in web3 companies is faring in 2023. We also sought to glean what we could from similar searches for AI-related startup fundraising. What did we learn? Well, the data indicates that web3 companies’ ability to raise private capital has flatlined to a fraction of its former pace (perhaps by as much as 80% in Q1 2023 if trends hold). …