contagion

German Chancellor Olaf Scholz's assurance that "there is no reason to be concerned" fails to assure the financial market sending many European bank shares tumbling as the week comes to a close. City Index analyst Fiona Cincotta says that the decision of central banks to continue hiking rates this week has made…

Some people affected by the bank’s collapse will be in much more precarious situations than some of the monied investors and tech insiders tweeting through the crisis. California lawmaker Scott Wiener, a member of the state’s senate, tweeted over the weekend that an unnamed payroll processing company based in San Francisco whose customers employ “tens of thousands” of workers had banked with SVB. The average salary of those workers is around $48,000, he said, and they work in businesses including pizza places, taco…

As of late Thursday night and Friday morning, the fallout from the shutdown of Silicon Valley Bank in the US had reached the shores of the UK and Europe. Yesterday afternoon, the Bank of England sought a court order to place Silicon Valley Bank UK Limited — the UK arm of the US institution — into an insolvency procedure. In a statement, the BoE said: “SVB UK has a limited presence in the UK and no critical functions supporting the financial system. In the interim, the firm will stop making payments or accepting…

Cryptocurrency Outlook for 2023: The year 2022 has been atrocious for crypto, will it continue in 2023? Cryptocurrency Outlook for 2023: Last year was a game-changer for the cryptocurrency market. The landmine events that took place in 2022 brought attention to the (not-so) hidden flaws of the crypto industry. From the initial Terra Luna collapse to Bitcoin (BTC) and Ethereum (ETH) losing 64% and 68% of their value simultaneously. Nobody imagined the crypto market cap to reach a low of US$727.58 billion after hitting…

Coinbase announced its second round of layoffs in less than a year on Tuesday.Photo: rarrarorro (Shutterstock)Coinbase announced on Tuesday that it would lay off 20% of its employees—950 people out of an estimated 4,700—in an effort to significantly reduce its operating expenses. It’s the company’s second large round of layoffs in less than a year. In June, Coinbase laid off 1,100 employees. The company made the move to “weather the downtowns” in the crypto market over the next two financial quarters. In a blog post,…

Insurers are denying or limiting coverage to clients with exposure to bankrupt crypto exchange FTX, leaving digital currency traders and exchanges uninsured for any losses from hacks, theft or lawsuits, several market participants said. Insurers were already reluctant to underwrite asset and directors and officers (D&O) protection policies for crypto companies because of scant market regulation and the volatile prices of Bitcoin and other cryptocurrencies. Now, the collapse of FTX last month has amplified concerns.…

Cryptocurrencies were mostly lower as the risk of further contagion continues to weigh on investor sentiment. Cryptocurrencies were mostly lower as the risk of further contagion continues to weigh on investor sentiment a month after Sam Bankman-Fried's FTX exchange sought bankruptcy protection. Bitcoin dropped as much as 1.4% to $16,882 on Monday before paring losses. Ether sank modestly as well, while altcoins like Avalanche and Dogecoin posted more significant declines. The insolvency of one of crypto's most…

Bitcoin pushed higher alongside other major tokens Tuesday but concerns about contagion from the collapse of FTX continue to loom large. Bitcoin pushed higher alongside other major tokens Tuesday but concerns about contagion from the collapse of FTX continue to loom large.The largest digital coin rose as much as 2% and was trading at about $16,490 as of 7:20 a.m. in London. Second-ranked Ether also posted gains, while meme token Dogecoin surged 10% at one point. bitcoin The crypto lender unraveled in the wake of the…

To ensure Genesis wasn’t hamstrung by the loss, its parent company, Digital Currency Group (DCG), bailed it out. But in the aftermath, Genesis cut 20 percent of its workforce to reduce costs and Michael Moro, its longtime CEO, stepped down.Genesis again found itself on the wrong side of a collapse earlier this month; when FTX filed for bankruptcy on November 11, the firm lost $175 million stored with the exchange. Again, DCG intervened, providing a cash injection of $140 million.But despite multiple DCG bailouts, Genesis…

The collapse of crypto exchange FTX has raised questions about how close the bank was to the empire of Sam Bankman-Fried. The price of Silvergate’s stock has been cut in half this month and is now down nearly 90% over the past year.  Silvergate has issued multiple statements and preannounced some results to reassure investors of its stability. It said it had capital to handle withdrawals and had no loans outstanding to FTX or Mr. Bankman-Fried. The bank disclosed…