#financial-system

#financial-system

The World Bank said on Tuesday that the global economy remained in a precarious state and warned of sluggish growth this year and next as rising interest rates slow consumer spending and business investment, and threaten the stability of the financial system.The bank's tepid forecasts in its latest Global Economic Prospects report highlight the predicament that global policymakers face as they try to corral stubborn inflation by raising interest rates while grappling with the aftermath of the pandemic and continuing supply chain disruptions stemming from the war in Ukraine.

If Congress does not address the debt ceiling by June 5, the US Treasury Department will not have enough funds to pay all of the nation's obligations in full and on time, Treasury Secretary Janet Yellen said Friday.Based on the most recent available data, we now estimate that Treasury will have insufficient resources to satisfy the government's obligations if Congress has not raised or suspended the debt limit by June 5, she wrote in a letter to House Speaker Kevin McCarthy and other congressional leaders.

Entrepreneur Balaji Srinivasan explained the rationale for his bet that bitcoin (BTC) could reach $1 million in price by June 17 of this year, during CoinDesk's Consensus 2023 conference.Srinivasan, the former chief technology officer of crypto Coinbase who is credited by many for predicting the effects of COVID-19 earlier than most, predicted stupendously bullish prospects for bitcoin in response to the devaluing of the U.S. dollar with prospects of it reaching $1 million 90 days from March 17.


"Could it be that it takes 900 days or even 90 months?

Editor's Note: This is excerpted from a story that originally ran on March 22, 2023.Banking has been top of mind for many people in the wake of some surprise bank failures and moves by US regulators to boost confidence in the financial system.But the Federal Reserve's decision on Wednesday to increase its key interest rate for the ninth time since March last year brought welcome news for savers seeking higher yields on their money.

French people are angry that the government is lifting the retirement age, and doing so without a parliamentary vote.French workers angry that the pension age is being increased blocked access to a terminal at the Charles de Gaulle airport in Paris on a day of nationwide protests.The demonstrations on Thursday forced some travellers to get there on foot.

The company logo is seen at the global headquarters of Swiss bank Credit Suisse in Zurich, Switzerland.Arnd Wiegmann/Getty Images Shares of Credit Suisse jumped Thursday after saying it would borrow up to $54 billion from Switzerland's central bank, an emergency step intended to prop up investor confidence in the troubled European bank.

Shoppers, retailers and street vendors in Pettah district in in Colombo, Sri Lanka, on Monday, Sept. 12, 2022.Sri Lanka is announcing its gross domestic product (GDP) figures on Sept. 15.(Bloomberg)In May, Sri Lanka defaulted on its overseas debt.Amid political upheaval and human suffering, the Indian Ocean island is still awaiting a $2.9 billion rescue by the International Monetary Fund.

After a monetary-policy year for the ages, 2023 will bring no shortage of challenges.The overwhelming priority of reining in prices will give way to a more nuanced and no less perilous task: Rescuing the sputtering global recovery without being seen to throw in the towel on inflation.While central bankers around the world are loath to acknowledge it, interest-rate cuts may be on the docket.

The Bank of Canada is ready to defend Canadian banks from a global financial meltdown if the current banking crisis in the U.S. and Europe spills into Canada, but the central bank does not think they will have to step in.Speaking on Wednesday at the National Bank Financial Services Conference, Bank of Canada deputy governor Toni Gravelle declared that the bank was "ready to act in the event of severe market-wide stress and provide liquidity support to the financial system."

Is it possible to talk about financial contagion without perpetuating it?Regulators and public officials are anxious to be reassuring, but for Canadians trying to understand how a series of ostensibly unconnected global bank failures could affect them, being like the meme dog in the burning kitchen that turned 10 this year may not be the best plan either.

A Euro symbol at a currency exchange bureau in Moscow, Russia, on Tuesday, Dec. 7, 2021.Russian markets brushed off reports that the U.S. and its allies are considering sanctions targeting the country's banking sector should President Vladimir Putin invade Ukraine.Photographer: Andrey Rudakov/Bloomberg (Bloomberg)Croatia, the European Union's newest member, adopts the euro as its currency on Jan. 1.

African countries' debts totaling more than $20 billion were written off in the past year, Russian President Vladimir Putin said on March 20.Putin also revealed that trade between Russia and Africa had nearly reached $18 billion by the end of the year.According to the Russian leader, the majority of the world is opposed to the West's neo-colonial ideology.

South Korea's financial regulator is developing new tools to regularly monitor crypto risks.The regulator warned that while the impact of the crypto market on the traditional financial system is still low, the risks posed by crypto to the country's financial stability could increase sharply in the future.

Toronto residents could be in for a 5.5 per cent property tax increase as the city unveiled its 2023 budget Tuesday morning.Mayor John Tory said the increase is necessary to help sustain frontline services and make key investments in public safety, transit and emergency services as the city continues to recover from the pandemic.

U.S. Treasury Secretary Janet Yellen and Federal Reserve Vice Chair Lael Brainard have stressed the need for strong crypto regulation.Yellen said the FTX collapse shows the weaknesses of the entire crypto sector while Brainard cautioned that failures from one platform are spilling over into elsewhere.

U.S. Commodity Futures Trading Commission


Explore the policy fallout from the 2022 market crash, the advance of CBDCs and more.U.S. Commodity Futures Trading Commission




Explore the policy fallout from the 2022 market crash, the advance of CBDCs and more.Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium.

Time to add Credit Suisse (CS) to the list of bank failures we've seen so far in 2023.Over the weekend UBS agreed to buy Credit Suisse for what equates to about $3.25 billion of UBS stock complete with the Swiss government helping absorb some of the coming writedowns of CS's loan book.UBS had to step in to save CS after last Wednesday's 50 billion Swiss franc liquidity injection from the Swiss National Bank proved insufficient to buoy the bank's operations once the Saudi National Bank (CS's largest shareholder) said it wouldn't provide any more assistance.

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails The collapse of Silicon Valley Bank UK (SVBUK) could have a significant impact on tech start-ups, it has been warned.The Coalition for a Digital Economy (Coadec), a non-profit campaigning for policies to support digital start-ups, responded to the overnight announcement from the Bank of England that it would apply to put SVBUK into a bank insolvency procedure.

Welcome to Best of Late Night, a rundown of the previous night's highlights that lets you sleep and lets us get paid to watch comedy.Here are the 50 best movies on Netflix right now.On Friday, federal regulars seized control of Silicon Valley Bank, which was the 16th largest bank in the United States before its collapse.

Sign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email UK tech firms are at serious risk from the collapse of the British arm of Silicon Valley Bank, chancellor Jeremy Hunt has warned.Rishi Sunak and the chancellor have held emergency talks with the governor of the Bank of England Andrew Bailey this weekend as the bank goes into insolvency.

U.S. Federal Reserve Governor Christopher Waller has warned that crypto prices could fall to zero at some point.Please don't be surprised and don't expect taxpayers to socialize your losses when that happens, the Fed governor stressed.Crypto Prices Could Go to Zero, Fed Official Warns Federal Reserve Governor Christopher J. Waller warned about the danger of investing in cryptocurrency on Thursday at the Global Interdependence Center Conference on digital money, decentralized finance, and the puzzle of crypto.

Not long after several Wall Street banks collapsed in 2008, a nine-page document circulated on an obscure mailing list, proposing a new kind of financial system that wouldn't rely on any "trusted third party."The paper was the basis for what became the cryptocurrency industry.Using sweeping, idealistic language, its adherents vowed to conduct business in a transparent and egalitarian way, rejecting the high-risk practices of a small number of powerful financial firms that caused the Great Recession.

(AP) Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email The UK arm of collapsed US lender Silicon Valley Bank has been bought by HSBC after the government and Bank of England stepped in to "facilitate" a private sale.

(AP) Get the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email The UK arm of collapsed US lender Silicon Valley Bank has been bought by HSBC after the government and Bank of England stepped in to "facilitate" a private sale.

Bitcoin touched an eight-month high on Thursday as investors jumped back into risky digital assets, despite renewed vows from regulators and lawmakers to rein in the cryptocurrency sector.Bitcoin traded near $25,000, a 10 percent gain from the day before, even as the stock market wobbled.Wall Street investors appear increasingly convinced that more interest rate increases will be needed to rein in inflation, which has stoked volatility in markets over the past week.

Jim Messina, the former Obama adviser whose career since has involved advising world leaders and lobbying for a cryptocurrency company, claimed on Fox News he's so bullish on bitcoin he would bet you my Porsche on it.Messina served as deputy chief of staff to President Barack Obama during his first term and then campaign manager for his successful re-election campaign.

Shortly after Russia invaded Ukraine, in February, dozens of countries responded with coordinated sanctions against the aggressor.They had three aims: to cripple the Russian economy by limiting the ability of banks to access dollars and the US financial system; to curtail exports of hi-tech goods and services to reduce Russia's ability to fight the war; and to target allies of the Kremlin and businesses.

The Pensions Regulator should be given a duty to consider the impact of the pensions sector on the wider financial system, according to a House of Lords Committee.The Industry and Regulators Committee criticised the use of leveraged liability-driven investment (LDI) strategies by defined benefit (DB) pension funds, which it said played a significant role in the financial turmoil following the mini-budget in September.

In this photo illustration, the FTX logo is seen on a computer on November 10, 2022 in Atlanta, Georgia.Michael M. Santiago/Getty Images Fears that the collapse of FTX will lead to more destruction in the crypto industry are hitting almost every investor in the United States, from individuals to major Wall Street firms, with many wondering if another cryptocurrency trading platform called Genesis will fall next.