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Tech beats banks.

Asian equities face declines after a tech-driven rally on Wall Street failed to ease the malaise hanging over the banking sector. Stock futures pointed to declines in Hong Kong, while those for Japan were little changed. US traders piled into top tech companies to push the Nasdaq 100 close to the threshold of a bull market. But banking stocks missed out on the rally, with a gauge of US financial heavyweights sinking to the lowest since November 2020 — even after Treasury Secretary Janet Yellen told lawmakers the US would be prepared for further steps to protect deposits if needed. Short-dated Treasuries saw outsized moves for an 11th straight day.

Powell’s own guide to recessions shows rate cuts are coming

A recession is certain and so are rate cuts this year. That’s the message from the bond market metric Federal Reserve Chair Jerome Powell highlighted a year ago as the best guide to tip-off economic troubles in the US. (Bloomberg Markets | Mar 23) see also Fed opts for hike-and-see in gamble that crisis will stay contained (Bloomberg Markets | Mar 23)

Commercial property risks rise up bank investors’ worry list

Commercial property loans are joining deposit flight and bond portfolios as the biggest perceived risk for US banks as rattled investors fret about lenders’ strength following the collapses of Silicon Valley Bank and Signature Bank. Strains in the $5.6tn market for commercial real estate loans have deepened in recent months and fears mount that a further retreat from real estate lending could lead to a wider credit crunch. (Financial Times | Mar 23)

Yellen says Treasury isn't considering 'blanket' bank deposit guarantees

Treasury Secretary Janet Yellen said she wasn’t considering ways to guarantee all bank deposits, as some lawmakers and banks explore overhauling deposit insurance. At a Senate hearing Wednesday, Ms. Yellen was asked if the Treasury was looking at taking steps to expand deposit insurance without Congressional authorization. (The Wall Street Journal | Mar 22)

Wall Street regulator proposes scrapping paper forms

The Securities and Exchange Commission on Wednesday voted unanimously in favor of a proposal to replace some paper-based forms with digitized disclosures to modernize how broker-dealers, stock exchanges, clearing agencies and others report their activities to the government. (Reuters | Mar 22)

Fund managers' biggest fear is now a systemic credit crunch

A systemic credit event has replaced stubborn inflation as the key risk to markets for increasingly pessimistic investors, according to Bank of America Corp.’s latest global survey of fund managers. The most likely source of a credit event is US shadow banking, followed by US corporate debt and developed-market real estate. (Bloomberg Markets | Mar 21)

Banks, financial industry buffeted by rising ransomware attacks

Ransomware gangs didn’t come out with any big new innovations last year, but “what 2022 lacked in innovation it made up for in volume,” according to a report by a financial services group. In its annual outlook on cyber threats, the Financial Services Information Sharing and Analysis Center, or FS-ISAC, reported that ransomware remained the biggest concern.

— Bloomberg Business | Cybersecurity

China-backed espionage is getting harder to spot

Suspected China-linked hacking groups are continuing to build on a new tactic targeting internet-facing security tools as a way of stealthily breaking into some of the most data-rich organizations, researchers at Google-owned Mandiant warn. Researchers say they've uncovered a new bug targeting software security company Fortinet, which makes firewalls, antivirus programs, and similar tools. The Wall Street Journal first reported on the new bugs.

— Axios

FTC seeks comments on cloud companies' impact on financial services and other key industries

The business practices of "a small handful of cloud service providers" are under scrutiny at the Federal Trade Commission, including the firms' market power, impact on competition and potential cybersecurity risks, according to a request for information the commission issued Wednesday.

— FTC

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In 1930, Bank of United States was the largest commercial bank in the US by deposits and by customers. Photo: Bettmann Archive | Getty Images

SVB lessons in the forgotten history of the Bank of the United States

The recent closure of Silicon Valley Bank has some intriguing parallels with a failure more than 90 years ago. In 1930, the collapse of the curiously named Bank of United States – which was not a governmental entity – is widely believed to have been a major catalyst in turning the 1929 recession into the far more serious Great Depression.

— Financial Times (opinion)

What the Fed’s next move means for mortgages, loans, and credit cards

The bar Americans have to clear to get approved for loans and credit cards will likely rise along with interest rates, partly as a result of the fallout from the collapse of Silicon Valley Bank. Lending standards will toughen regardless of central bank’s move, analysts say.

— The Wall Street Journal

Nick Leeson, former rogue trader, reemerges as a private spy

Nick Leeson, the former derivatives trader who brought down Barings Bank, has joined a corporate intelligence firm run by ex-Black Cube operative Seth Freedman. Leeson, 56, will investigate financial misconduct with the London-based Red Mist Market Enforcement Unit to help investors seek compensation in court when regulators are unable to help, he said in an interview.

— Bloomberg Markets | City of London