The US Federal Reserve has lent US banks nearly US$12 billion under a new one-year lending program unveiled on Sunday, as authorities moved to ease stress on the financial system after Silicon Valley Bank’s (SVB) collapse.
The total outstanding amount of all advances under the Bank Term Funding Program reached US$11.9 billion as of Wednesday, the Fed said in a statement on Thursday.
The Fed had unveiled the scheme alongside the US Department of the Treasury and Federal Deposit Insurance Corp on Sunday night, as authorities looked to prevent other banks from running into the liquidity issues that ultimately doomed California’s SVB.
The new liquidity facility made additional funding available “to help assure banks have the ability to meet the needs of all their depositors,” the statement read.
According to data made available on Thursday, the Fed drew an additional US$152 billion in short-term borrowing for banks from its standing loan window, the traditional liquidity backstop for lenders, a dramatic increase against the roughly US$5 billion from the previous week.
And with the seizure of failed SVB and Signature Bank — a second regional-size lender that collapsed at the weekend — an additional US$142.8 billion was poured into the bridge banks created by regulators for the two collapsed entities, pushing the Fed’s balance sheet up by about US$300 billion in the past week.
US authorities moved swiftly to protect depositors at SVB and Signature Bank, as they saw “serious risk of contagion” that could have triggered runs on many banks, US Secretary of the Treasury Janet Yellen told US senators on Thursday.
UNCONVINCING: The US Congress questioned whether the company’s Chinese owners pose a national security risk and how the app might influence young users TikTok chief executive officer Shou Chew (周受資), confronted with an unforgiving, distrustful US Congress, tried to give answers in his testimony on Thursday that avoided offending either the US government or China. However, his evasiveness left Congress unsatisfied, with representatives hungrier than ever to punish TikTok for ties to its parent company ByteDance Ltd (字節跳動), based in Beijing. He did not bring his company any closer to a resolution. Politically, TikTok is in a tougher spot. Its executives had been discussing divesting from ByteDance to resolve US national security concerns, people familiar with the matter told Bloomberg. However, China this week said
Sanofi SA’s drug Dupixent succeeded in a late-stage trial for chronic obstructive pulmonary disease (COPD), raising the odds that the blockbuster would be the first biologic medicine cleared to treat the lung disorder. Dupixent, which is already prescribed for asthma and some skin conditions, showed a 30 percent reduction in the rate at which patients’ COPD worsened compared with those who received a placebo during the stage-three Boreas trial, the company said in a statement yesterday. The positive data could herald a new era of cutting-edge treatments for the life-threatening respiratory affliction and provide another major boost in demand for the French
Huawei Technologies Co (華為) has replaced more than 13,000 parts in its products that were hit by US trade sanctions, the Chinese tech giant’s founder said, according to a speech transcript from last month posted on Friday by a Chinese university. Ren Zhengfei (任正非) said Huawei had over the past three years replaced the 13,000 components with domestic Chinese substitutes, and had redesigned 4,000 circuit boards for its products, the transcript posted by Shanghai Jiao Tong University said. “As of now, our circuit board [production] has stabilized, because we have a supply of domestically produced components,” Ren said. He did not give details
SEMICONDUCTOR EQUIPMENT: The international trade group said the sector would recover from a slump, with spending expected to rise 4.2 percent to US$24.9 billion Taiwan is to retain its position as the top spender on semiconductor front-end equipment and facilities next year, with spending expected to increase 4.2 percent year-on-year to US$24.9 billion, international trade group SEMI said yesterday. The spending forecast matches an expected recovery in global semiconductor equipment and facilities investment next year, it said. International equipment spending is to return to growth next year, SEMI said in a report, forecasting 21 percent growth to US$92 billion. The expansion would manly be driven by robust demand for semiconductors in the automotive and high-performance computing segments, the association said. “This quarter’s SEMI World Fab Forecast update