In an emergency Sunday night intervention to prevent global financial contagion, the Swiss Federal Council exercises emergency powers to force UBS’s acquisition of Credit Suisse without shareholder approval, marking the collapse of one of 30 ‘globally systemically important banks’ …
Credit SuisseUBSFINMASwiss Federal CouncilSwiss National Bank+3 morebanking-collapseregulatory-capturetoo-big-to-failsystemic-riskfinma+2 more
California regulators close Silicon Valley Bank and appoint the FDIC as receiver after a catastrophic bank run, marking the third-largest bank failure in U.S. history and the largest since the 2008 financial crisis. SVB, the 16th largest U.S. bank with $212 billion in assets, collapses due to …
Silicon Valley BankGreg BeckerFDICFederal ReserveCalifornia DFPI+2 morebanking-collapseregulatory-capturederegulationdodd-franksystemic-risk+3 more
Voyager Digital Holdings and affiliates file Chapter 11 bankruptcy in the Southern District of New York after the collapse of crypto hedge fund Three Arrows Capital (3AC), which triggered a domino effect through the interconnected and unregulated crypto lending market. Voyager, like Celsius, …
Voyager DigitalThree Arrows CapitalSecurities and Exchange Commission (SEC)BlockFiCelsius Network+2 morecrypto-fraudregulatory-voidbankruptcysystemic-riskshadow-banking+3 more
A court in the British Virgin Islands ordered the liquidation of Three Arrows Capital (3AC), a Singapore-based cryptocurrency hedge fund that managed $10 billion in assets just months earlier, after the firm lost over $3 billion and defaulted on hundreds of millions in loans to crypto lenders. …
Three Arrows CapitalKyle DaviesSu ZhuMonetary Authority of SingaporeDubai Financial Services Authority+4 morecryptoregulatory-capturefraudhedge-fund-collapsesystemic-risk+3 more
Terraform Labs, led by Do Kwon, temporarily halted the Terra blockchain on May 13, 2022, after a catastrophic four-day collapse that wiped out nearly $45 billion in market capitalization and devastated hundreds of thousands of retail investors globally. LUNA, which traded at $119 in April and $87 on …
Do KwonTerraform LabsSecurities and Exchange Commission (SEC)CFTCPaul Engelmayer+2 morecryptoregulatory-capturefraudstablecoinsystemic-risk+4 more
TerraUSD (UST), the fourth-largest stablecoin with $18 billion market capitalization, began losing its dollar peg on May 7-9, 2022, triggering a catastrophic “death spiral” that would destroy $40 billion in value within days and crash the broader crypto market. The algorithmic …
Do KwonTerraform LabsSecurities and Exchange Commission (SEC)CFTCJanet Yellen+3 morecryptoregulatory-capturefraudstablecoinsystemic-risk+3 more
The Commodity Futures Trading Commission ordered Tether Holdings Limited to pay a $41 million civil penalty for making untrue and misleading statements about the reserves backing its USDT stablecoin, the world’s largest stablecoin with over $69 billion in circulation. The CFTC found that from …
Tether Holdings LimitedCFTCDawn StumpBitfinexSecurities and Exchange Commission (SEC)cryptoregulatory-capturefraudstablecoinsystemic-risk+3 more
President Trump signs the Economic Growth, Regulatory Relief, and Consumer Protection Act (S.2155), dramatically weakening post-2008 financial regulations by raising the asset threshold for ‘systemically important financial institution’ (SIFI) designation from $50 billion to $250 …
Donald TrumpGreg BeckerSilicon Valley BankMike CrapoMark Warner+3 morederegulationbankingdodd-frankregulatory-capturelobbying+2 more
The U.S. housing bubble reaches its peak in mid-2006, with national home prices having risen 124 percent since 1997. Subprime mortgage originations hit $600 billion, representing 23 percent of all mortgage originations, up from 8 percent in 2003. The bubble’s apex represents the culmination of …
Countrywide FinancialNew Century FinancialWashington MutualAmeriquestFederal Reserve+1 morehousing-bubblepredatory-lendingsubprime-mortgagessystemic-riskhousing
On September 23, 1998, Federal Reserve Bank of New York President William McDonough orchestrated a $3.6 billion bailout of hedge fund Long-Term Capital Management (LTCM) by convincing 14 major banks and brokerage firms to inject capital in exchange for 90% ownership of the failing fund. Founded by …
William McDonoughAlan GreenspanJohn MeriwetherLong-Term Capital ManagementFederal Reserve Bank of New Yorkfinancial-crimeregulatory-capturefederal reservebailoutsystemic-risk+3 more
The Russian government under Premier Sergei Kiriyenko announced a sovereign debt default, devaluation of the ruble, and a 90-day moratorium on commercial external debt payments, marking the climax of Russia’s most serious economic crisis since the 1991 Soviet collapse. Three days after …
Boris YeltsinSergei KiriyenkoInternational Monetary FundCentral Bank of RussiaRussian Governmentrussiafinancial-crisissovereign-defaultshock-therapyimf+4 more
CFTC Chair Brooksley Born issued a concept release seeking public comment on regulating the $29 trillion over-the-counter derivatives market, warning of systemic risks from unregulated trading. Within hours, Treasury Secretary Robert Rubin, Federal Reserve Chairman Alan Greenspan, and SEC Chairman …
Brooksley BornRobert RubinLawrence SummersAlan GreenspanArthur Levittderivativescftcregulatory-capturefinancial-crisissystemic-risk+2 more