#fed

Silvergate, a banking partner of the bankrupt entities FTX and Alameda, will pay fines totaling $63 million to the Federal Reserve and the California Department of Financial Protection and Innovation (DFPI). Of this sum, $43 million will be paid to the Fed and $20 million to the DFPI. Additionally, the SEC seeks to impose another $50 million in penalties on the company.

Senator Mike Lee has proposed a bill called the "Abolish Act," which seeks to dismantle the Federal Reserve System as a government entity. This legislation also aims to repeal the foundational Federal Reserve Act of 1913, which established the Fed.

Jerome Powell's narrative at the press conference was relatively neutral, but his remarks towards the end swayed the market mood negatively.

The US Federal Reserve intends to sue popular cryptocurrency magazine Bitcoin Magazine for selling merchandise parodying the recently launched FedNow payment system.

According to the Federal Reserve's investigation, Silvergate Bank faced significant challenges due to its exposure to high-risk cryptocurrency deposits and ineffective upper-level management. A significant portion of the bank's deposits were sourced from crypto companies, which lacked traditional insurance and failed to generate substantial interest income.

Fed Chair Jerome Powell recently spoke at the Economic Club of Washington, highlighting the influx of positive inflation data and the unlikely prospect of the economy experiencing a "hard landing."

The hacker group LockBit, which recently claimed to have breached the U.S. Federal Reserve and stolen over 30 TB of secret documents, only managed to release confidential data from Evolve Bank & Trust. This included information about file domains, virtual machines, and more.

The likelihood is high, at 99%, that the interest rate will stay the same. This is because the Federal Reserve is still gauging the effect of the current rate on the economy. Following the decision, there will be a press conference by Jerome Powell 30 minutes later. Given the potential for market shifts from his remarks, traders are advised to hold off on transactions.

Today, the Federal Reserve Bank of Philadelphia held its seventh annual fintech conference. A significant takeaway was Deputy Chair Michael Barr's pronounced concerns about the risks stablecoins, devoid of federal oversight, might pose to financial stability. On the topic of CBDCs, Barr remarked that decisions remain on the distant horizon.