International
Central banks to boost flow of US dollars
Central banks have moved globally to keep credit flowing after an unsettled period in the US banking sector and the Credit Suisse merger.
Six central banks, including the Bank of England, announced they would boost the flow of US dollars through the global financial system.
On Sunday the struggling Credit Suisse was taken over by UBS in a Swiss government-backed deal.
The US dollar liquidity “swap line” arrangement will run from Monday.
In a statement the Bank of England, Bank of Japan, Bank of Canada, the European Central Bank, US Federal Reserve and Swiss National Bank launched the co-ordinated action to “enhance the provision of liquidity”.
The announcement said it served as an “important backstop to ease strains in global funding markets” and to lessen the impact on the supply of credit to households and businesses.
Instead of borrowing on the open market, British banks will be able to go direct to the Bank of England, and it will borrow from the US Federal Reserve.
It will work in the same way for banks in the eurozone, Canada, Japan, Switzerland and the US.
Banks will be able to access this funding on a daily basis.
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The arrangement, adopted during the 2008 financial crisis and the Covid pandemic, will start on Monday and continue until “at least through the end of April”, the Bank of England said.
The facility hasn’t been used in the UK since the financial pains at the onset of the pandemic exactly three years ago. This is not as dramatic a move as, for example, the Bank of England had to deploy after the mini-budget last autumn. But it is a clear sign that, although the past week has been dominated by specific issues in identifiable banks, the fall of a former giant such as Credit Suisse might be enough to ignite a more general concern.
The fear is less about the direct impact of problems at Credit Suisse or Silicon Valley Bank, but instead that a set of common factors are affecting some other institutions. For example non-insured deposits pouring out of some institutions and into larger ones at incredible speed, without anyone visiting a branch, thanks to technology, and influenced by social media commentary. There has also been an uncertain response by some regulators.
The bigger picture is, as I have said before, that rapidly rising interest rates were always going to set off some ticking timebombs under some institutions, and in some murky corners of the financial plumbing, where the players had started to become a little too reliant on very low interest rates. This is now happening.
The more calming news is that, for example here, British banks are well capitalised and have significant funding, or as the Bank of England put it on Sunday “safe and sound”. But the fact it has joined forces with its counterparts around the world represents a show of force and an attempt to prevent risks from spilling over.
In particular there is a concern that rising rates on the funds that banks lend to one another could rapidly filter into the economy and have a very real impact.
Global banking stocks slumped following the collapse of Silicon Valley Bank, despite reassurances from President Joe Biden the US would do “whatever is needed” to protect the banking system.
Since SVB’s collapse, the smaller Signature Bank also fell by the wayside and First Republic needed rescuing.
On Sunday, following the takeover of Credit Suisse by its rival UBS, the Bank of England said British banks were “safe and sound” and were well capitalised with significant funding.
International
American man arrested for beating tourist to death at Ireland hotel
American man arrested for beating tourist to death at Ireland hotel
A 30 year old American man whose name was not given by security officials, has been arrested for beating up a 60 year old tourist to death at the Ballyfin Demesne hotel in Laois, Ireland.
The Irish police force commonly known as ‘Garda Síochána’ announced that the incident occurred in the late hours of Tuesday, November 12.
Ballyfin Demesne hotel, is a popular luxury five-star hotel located in Laois, Ireland and special guests such as Kanye West, Kim Kardashian, George Clooney e.t.c had made use of the hotel in times past.
The victim was discovered unconscious in the late hours of Tuesday, November 12 and was then rushed to the hospital were he died due to severe beating inflicted on him by the culprit.
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Independent local councilor James Kelly stated that nearby communities were ‘stunned’ upon learning about the incident at the renowned hotel.
He said, “There would be a lot of staff from the area and they’re totally shocked by what has happened here.
“It’s something we didn’t think we’d be waking up to this morning.”
The police also noted that a senior officer has been assigned to lead the investigation and an incident room has been set up at Portlaoise Garda Station, Ireland.
Furthermore, a family liaison officer will be designated to assist the family of the deceased.
International
FBI raids home of crypto platform Polymarket CEO, after accurate prediction of Trump win
FBI raids home of crypto platform Polymarket CEO, after accurate prediction of Trump win
The Federal Bureau of Investigation on Wednesday carried out a raid at the home of Shayne Coplan, CEO of cryptocurrency prediction outlet Polymarket.
Authorities seized Mr Coplan’s phone during the raid, according to New York Post which first reported the incident.
Mr Coplan, 26, has been running the famous platform for bets throughout the 2024 presidential election in the United States.
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It wasn’t immediately clear why the search was conducted, but Polymarket promptly said it might be due to its activities during the election. Users on the platform had correctly predicted Donald Trump was going to defeat Kamala Harris. The company paid out a substantial amount to winners following the election.
“This is obvious political retribution by the outgoing administration against Polymarket for providing a market that correctly called the 2024 presidential election,” a spokesperson for Polymarket said in a statement from its headquarters in New York. “Polymarket is a fully transparent prediction market that helps everyday people better understand the events that matter most to them, including elections.”
It was unclear whether or not the FBI would be filing charges after the raid.
FBI raids home of crypto platform Polymarket CEO, after accurate prediction of Trump win
International
Two dead, buildings destroyed in American factory explosion
Two dead, buildings destroyed in American factory explosion
Two employees of Givaudan sense colour, a factory known for making colourings for beverages, located in Louisville, Kentucky, United States (US) were killed in an explosion that took place at the company’s facility.
The factory reported that the incident which took place on Tuesday, November 12 in the afternoon have also destroyed buildings around the company.
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Louisville Mayor, Craig Greenberg stated that firefighters managed to rescue and evacuate numerous individuals from the site, including some who sustained life-threatening injuries.
He also confirmed that all employees present at the plant during the explosion have been accounted for.
Earlier reports indicated that at least 11 workers were hospitalized.
The cause of the explosion is still under investigation.
Two dead, buildings destroyed in American factory explosion
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