administration said they see few signs of a 2008-style financial crisis, in which failing institutions threatened to bring down others in their wake. U.S. Treasury Secretary Janet Yellen and the White House both noted the U.S. banking system remains more resilient than it was in 2008 financial crisis. Some banks rushed to reassure. U.S. lenders First Republic Bank and Kindergarten homeschool tutor Western Alliance issued statements to say liquidity and deposits remained strong, even as shares in both companies fell more than 14% Friday.
Germany’s Commerzbank, meanwhile, said that it saw no “corresponding risk” to itself on a day that its shares fell 2.6%. In the latest, Stablecoin USD Coin (USDC) lost its dollar peg and slumped to an all-time low after Circle, the U.S. firm behind the coin, revealed that a chunk of the reserves backing it were held at Silicon Valley Bank. Yields on two-year Treasuries saw their biggest plunge since the 2008 financial crisis. That suggests Hire a Fifth Grade Private Educator flight to safety among investors as well as bets that economic distress may force the Fed to ease up or reverse its aggressive tightening.
“When you go this aggressively into a hiking maneuver after creating so much inflation you´re going to break something,” said Kyle Bass, founder and chief investment officer of Hayman Capital Management. The potential deal with Brown unraveled in less than a week with Virgin Orbit severing contact and threatening to take legal action against him if he revealed confidential details about the potential investment, according to the cease-and-desist letter reviewed by Reuters, and the three people, who declined to be named due to the sensitivity of the matter.
Even so, signs of market unease have grown in recent days: the S&P 500 fell 4.6% this week, nearly erasing its gains for the year, while the Cboe Volatility Index, known as Wall Street´s fear gauge, surged to its highest level in 3 months. The legal notice was in response to an interview Brown gave on CNBC on March 23 when he said he was in “final discussions” to close a $200 million investment in Virgin Orbit within 24 hours. The letter from a lawyer for the company said Brown had overstated the nature of talks and breached a non-disclosure agreement.
The TV interview followed a report from Reuters that said Brown was nearing a deal for a proposed investment in the company, citing the term sheet signed by Hart and Brown and the planned closing date of March 24. In interviews with Reuters over the past week, Brown dismissed accusations he had misrepresented himself. He said Virgin Orbit had not provided information he had wanted before he was comfortable transferring the $200 million into an escrow account as agreed in the term sheet.
California banking regulators shut down Silicon Valley Bank on Friday after the bank, which had $209 billion in assets at the end of 2022, Home school spelling tutor saw a run, with depositors pulling out as much as $42 billion on a single day, rendering it insolvent. After the second largest bank failure in U.S. history on Friday, market participants worry more disruptions lay ahead, as climbing interest rates cut off access to cheap money and expose vulnerabilities in the economy.
At the time of his Virgin Orbit approach, Brown’s LinkedIn page included an endorsement from Dan McDermott, identified as a former colleague at Hogshead Spouter and as a former official with the Hong Kong Monetary Authority.