Updating this from earlier:
US Federal Reserve & Treasury discussing an Emergency authority to backstop bank deposits
This is good news, but it has a dark underside. In effect the consideration of the Fed’s emergency lending authority is for “unusual and exigent” circumstances. This is a clear signal, if ever there was one, that the US Federal Reserve and Treasury view the spillovers from SVB’s collapse as a sign of systemic risk in markets.
Yen is extending its gains:
Background ICYMI:
ICYMI, the story over the weekend and into Monday morning here in Asia:
- More SVB - Federal Reserve examining steps to make funding easier as 'backstop' for banks
First Republic assures clients of continued strength of capital, liquidity, operations
Adam and Justin had eyes on developments all weekend (read from the bottom up for the chronology:
- Bitcoin isn't waiting for the bailout announcement as it takes off in 7% rally
- US government to make 'material' announcement on Silicon Valley Bank today - report
- Yellen: SVB collapse 'clearly a concern'
- SVB collapse: What's next?
- Fed in talks to create a fund to backstop deposits if more banks fail - report
