Fed Announces Steps to Limit Fallout of Two Bank Closures |
U.S. regulators shut down (NYT) New York–based Signature Bank yesterday, their second bank closure since Friday. To contain the fallout of the closures, authorities announced that they will fully guarantee deposits at both banks at no cost to U.S. taxpayers. Under normal circumstances, the Federal Deposit Insurance Corporation (FDIC) would only guarantee insured deposits of up to $250,000. Silicon Valley Bank, which closed first, was the country’s largest bank to fail (CNBC) since the global financial crisis of 2008.
President Joe Biden is due to give a speech about the bank failures this morning. In an effort to protect deposits, the Federal Reserve is offering eligible banks (Bloomberg) new one-year loans at favorable rates and easier access to its main direct lending facility.
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“The outline of the US government’s response to the failure of Silicon Valley Bank is now clear, and the US didn’t mess around. Clearly there was real concern about deposit flight and funding driven contagion,” CFR’s Brad Setser tweets.
“The collapse of Silicon Valley Bank, the largest bank failure since the Great Financial Crisis, is something of a test run and proving ground for the post-2008 rulebook,” Grid News’s Matthew Zeitlin writes. “Since the immediate post-financial crisis period, the political environment shifted such that medium-sized banks like Silicon Valley Bank won a reprieve from some of the new rules and restrictions precisely because they argued that their size and activities did not pose a risk to the whole financial system.”
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China Keeps Central Bank Governor Amid Leadership Shake-Up |
Lawmakers voted to retain (WSJ) central bank chief Yi Gang amid an overhaul of China’s financial regulatory system. Chinese President Xi Jinping announced the restructuring during a meeting of China’s legislature last week and said he would remove some central bank functions.
North Korea: Pyongyang said it launched two cruise missiles (Japan Times) from a submarine as the United States and South Korea prepared to begin large-scale military drills today. South Korea’s military said it had detected a missile launch.
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Indian Government Tells Supreme Court It Opposes Same-Sex Marriage |
India’s government has argued that the state has a legitimate interest in reserving legal marriage rights for heterosexual couples alone, according to a court filing seen by Reuters. The Supreme Court is currently hearing challenges to India’s ban on same-sex marriages.
This Backgrounder compares countries’ laws on marriage equality.
Afghanistan/Pakistan: Weapons and night-vision goggles that belonged to U.S. coalition forces in Afghanistan are now being used in attacks against Pakistani law enforcement by Tehrik-e-Taliban Pakistan, also known as the Pakistani Taliban, Nikkei reported.
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Middle East and North Africa |
Yemen’s Warring Sides Hold Talks Following Warming of Saudi-Iran Ties |
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Tropical Storm Freddy Kills at Least Seventeen |
Freddy, believed to be the longest-lasting tropical cyclone, hit Mozambique twice this month (Reuters) before heading for Malawi.
DRC: A delegation from the UN Security Council concluded a three-day visit (AFP) to the Democratic Republic of Congo (DRC) yesterday, where it called for a negotiated end to a security crisis involving the March 23 Movement (M23) rebel group. A cease-fire planned to take effect last week fell through, and shelling on Saturday killed five people.
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French Senate Advances Macron’s Pension Reform Plan |
Unions have held mass demonstrations (AFP) in recent weeks to protest the reform pushed by French President Emmanuel Macron. A committee will now produce a final draft of the plan, which will need to pass new votes in both houses of Parliament to become law.
United Kingdom: The BBC suspended and then reinstated (WaPo) its highest-paid presenter, Gary Lineker, after he criticized the country’s asylum policy on Twitter.
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Nicaragua Severs Diplomatic Ties With Vatican |
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Asian Actors Make History at Academy Awards |
A record four Asian actors were nominated (CNBC) for the film awards. Michelle Yeoh became the first Asian woman to win best actress for her role in Everything Everywhere All at Once. |
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COVID-19 Pandemic Enters Third Year |
The World Health Organization says the pandemic it declared on March 11, 2020, is not yet over (AP). While many countries have relaxed pandemic restrictions, COVID-19 is still killing 900 to 1000 people per day worldwide.
For Think Global Health, Christopher Troeger, Katherine Leach-Kemon, and CFR’s Thomas J. Bollyky write that the United States has consistently underperformed in its response to the pandemic compared to its peers.
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Council on Foreign Relations |
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