In an attempt to combat surging inflation, the Federal Reserve has implemented its fastest interest rate hikes since the 1980s, which has yielded unintended consequences with severe side effects for banks.
The spike in customer withdrawals from American banks saw $78 billion evacuated from bank accounts between July 5 and 12, according to the latest data from the Federal Reserve Economic Data (FRED) system. Under the same circumstances, Silicon Valley Bank and Signature Bank were hit in March by a huge cash drain. Also, First Republic Bank had to solicit tens of billions of dollars from other banks to stay afloat.
The massive cash flights came on the heels of two weeks of relative stability as major banks allocated substantial amounts to third parties to bring in new deposits.
SVB Bank Collapse
On March 1, SVB's value was close to $17 billion, holding about $200 billion in customer deposits. Its clientele, consisting mainly of venture capital firms and the companies they invested in, gave the bank a strong foothold in a profitable market. .....more below
US Army Secretary Dan Driscoll is preparing to leave the Trump administration after what a new report has described as months of tension with Secretary of War Pete Hegseth, potentially triggering another change at the army’s top echelons.
According to the Friday report by The Wall Street Journal, Driscoll is expected to step down before the end of the year and could leave his post earlier. The newspaper cited people familiar with discussions over his departure.
The Journal reported that Driscoll and his family vacated the official residence assigned to the army secretary at Joint Base Myer-Henderson Hall this summer, a move that could indicate he was preparing to leave the position.
The reported departure would come at a time of continuing uncertainty at the top echelons of the army.
Hegseth abruptly removed Army Chief of Staff Gen. Randy George in April, while Trump has not yet nominated a permanent successo....more below
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The Islamic Revolution Guards Corps (IRGC) warns the enemies that any act of aggression against the Islamic Republic will not go unanswered.
In a statement on Thursday, the IRGC issued a “stern warning” to the enemies after US forces launched strikes against the southern Iranian port city of Bandar Abbas.
Following the US military attack on a point on the outskirts of Bandar Abbas Airport with aerial projectiles, the IRGC carried out new strikes targeting the US air base from which the attack originated in the wee hours of Thursday, it added.
“This response is a serious warning to the enemy that they should know the act of aggression will not go unanswered,” the IRGC emphasized.
The elite military force warned of a “more decisive” response if the enemy repeated any act of aggression.
It also said the responsibility for the consequences of any IRGC response lies with the aggressor.
The statement comes after the IRGC Navy on Thursday forced an American tanker to turn back. The tanker ...
