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Bernie Sanders says SVB’s CEO was on the regional Fed board overseeing it, plans bill to ‘end this conflict of interest’




Sen. Bernie Sanders said he plans to introduce a measure that would prevent big bank executives from serving on the boards of the regional Federal Reserve banks they oversee.

“One of the most absurd aspects of the failure of the Silicon Valley bank is that its CEO was a director from the same agency that was responsible for regulation: the San Francisco Fed,” the Vermont senator said Twitter Saturday. “I will be introduce an account End this conflict of interest by banning big bank CEOs from serving on Fed boards.”

Greg Becker, former president and chief executive officer of Silicon Valley Bank, was a director on the board of the San Francisco Fed before the bank collapsed last week. Lawmakers are investigating why the San Francisco Fed failed to address the lender’s problems before its collapse.

The Fed did not immediately respond to a request for comment on Saturday.

Unlike the Fed board in Washington, which is made up of officials appointed by the president and confirmed by the Senate, the Fed’s 12 regional banks are headed by presidents elected by private boards. These directors are composed of business and community leaders as well as bank directors.

The Dodd-Frank Act of 2010 amended the law to bar bank executives who serve on regional Fed boards — known as Class A directors — from participating in the selection of those bank presidents. The change was intended to prevent banks in regional Fed districts from choosing the official tasked with overseeing their day-to-day operations.


TikTok wants to distance from China but the government’s getting involved




China and US flags can be seen near a TikTok logo in this illustrative image taken on July 16, 2020.

Florence Lo | Reuters

BEIJING — China says it would “strongly oppose” a forced sale of TikTok, highlighting the government’s involvement in the social media giant, which is trying hard to distance itself from authorities in Beijing.

The Commerce Ministry said on Thursday that TikTok was in the process of being sold or spun off from its Beijing-based parent company ByteDance Chinese Technology Exports Law — Requiring export permits for certain technologies due to national security concerns. ByteDance also owns Douyin, the Chinese version of TikTok, which is popular in the country.

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Reported Medias Pro

“The Chinese government would make a lawful decision,” spokesman Shu Jueting said in Chinese, translated by Reported Medias.

Shu was speaking at the ministry’s weekly press conference, hours before TikTok CEO Shou Zi Chew testified before a US House of Representatives committee.

Lawmakers questioned Chew for more than five hoursand wanted clarity on TikTok’s ability to operate independently of Chinese influences on its parent company.

ByteDance did not immediately respond to a request for comment on the Chinese Ministry of Commerce’s remarks.

Influencer Jason Linton on TikTok: It was life-changing

The poll did not appear to exonerate US lawmakers.

“At the end of the day, it was clear from the statement that Mr. Chew reports to the CEO of ByteDance. ByteDance controls TikTok,” Cameron Kelly, a visiting fellow at the Brookings Institution, told Reported Medias.Squawk Box Asia“Friday. Kelly was General Counsel at the US Department of Commerce from 2009 to 2013.

Kelly said the evidence that ByteDance has legal control over TikTok reinforces US lawmakers’ doubts about how well the app can demonstrate its independence through restructuring.

TikTok has a “Project Texas” plan to store American user data on US soil — to prove the company’s claims that mainland China authorities have no access to it.

Beijing … now doubly dares Congress and the administration to ‘save my day’.

Daniel Russell

Asia Society Policy Institute

“I don’t see a closure as a ban or a full divestment [of TikTok] is needed. But I think you need to separate that legal control,” Kelly said, noting that this could be done through a trust structure.

But the Commerce Department’s claim for control of a TikTok sale or spin-off suggests Beijing wants to be involved.

“The Chinese government’s public statement to block sales of TikTok in the US has little to do with protecting Chinese algorithms and technology and much to give Washington a taste of its own medicine,” said Daniel Russel, vice president of International Security and Diplomacy, Asia Society Policy Institute said in a statement.

“Beijing after I heard it [U.S. Commerce] Secretary Raymond’s complaint that banning TikTok would upset voters under 35 is now doubly bold for Congress and the government to ‘save my day,'” Russel said.

The US has tightened restrictions on American companies and individuals working with Chinese companies on critical technology for high-end semiconductors.

When asked about the Commerce Department’s comments Thursday, TikTok’s CEO said the app is not available in mainland China and is based in Los Angeles. But he said the company used the expertise of some of ByteDance’s Chinese employees for “engineering projects”.

Chew also told US lawmakers that China-based employees were employed by its parent company ByteDance may still have access to some US databut that new data will stop flowing once the company completes its plan for the Texas project.

Official Chinese commentators have previously emphasized this China-based companies should comply with local laws and regulations when doing business abroad.

It’s not immediately clear how China’s export control law, enacted in December 2020, could apply to TikTok.

Different types of exports are managed by different governmental organizations, “each of which has a separate regulatory system,” the EU Chamber of Commerce in China said in its latest position paper. It called for more clarity about the roles of the various bodies involved in the implementation of the export control law.

What’s next for TikTok?

The US and China have increasingly invoked national security as a reason for controlling technology.

“To be fair, there really are real national security risks involved [TikTok] — and that’s one reason banning the app from government phones and military phones makes sense,” said Glenn Gerstell, senior advisor at the Center for Strategic and International Studies on Reported Medias.Street Signs Asia“Friday. Gerstell served as General Counsel of the National Security Agency from 2015 to 2020.

“As for the general public, I don’t see any strategic value in China in understanding what a teenager’s dance moves are in Minneapolis. So the general public ban makes no sense,” he said.

TikTok has more than 150 million users in the US — or about half the country’s population.

It’s unclear whether the US will ultimately force ByteDance to sell TikTok or ban use of the app in the country. The hugely popular app is already banned from federal government devices.

“We see a 3-6 month timeframe for ByteDance and TikTok to work out a sale to a US tech player with a less likely and extremely complex spin-off,” said Dan Ives, analyst at Wedbush Securities, in a note.

“If ByteDance fights this forced sale, TikTok will likely be banned in the US by the end of 2023.”

— Reported Medias’s Lauren Feiner contributed to this report.

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Equities mixed aReported Mediaser central bank rate decisions




Stock markets were mixed on Friday as concerns over the health of the global banking system dragged US lenders’ shares down more than 14 percent this week.

The FTSE All-World stock index fell 0.1 percent during Asian trade on Friday but rose 1.6 percent on the week. Technology stocks in Asia initially followed the Nasdaq Composite higher on hopes that the US Federal Reserve’s monetary tightening cycle is nearing its end.

Hong Kong’s Hang Seng Tech Index rose as much as 2.3 percent on Friday before gaining just 0.1 percent. Other benchmarks in the region posted modest losses, including a 0.3 percent decline for China’s CSI 300. Gains for technology stocks in Asia followed a 1 percent increase for the Nasdaq Composite Index on Thursday.

Futures sent the FTSE 100 stock index down 0.6 percent at the London open, while the S&P 500 was expected to rise 0.2 percent.

The broader S&P 500 returned just 0.3 percent, with financial stocks struggling to recover aReported Mediaser the collapse of the US Silicon Valley bank Rescue of the Swiss lender Credit Suisse from competitor UBS.

The KBW Nasdaq Bank index ended Thursday’s session down 1.7 percent, even aReported Mediaser comments from US Treasury Secretary Janet Yellen that regulators “stand ready to take additional action where warranted” to address the issue to ensure safety of bank deposits. The US banking index has lost almost 30 percent in the past two weeks.

The US Federal Reserve continued to hike interest rates by 0.25 percentage points on Wednesday. The Bank of England also raised interest rates by 0.25 percentage points on Thursday.

Citigroup strategist Dirk Willer said it was “too early to say” whether stress in the banking sector had become large enough to significantly affect the US business cycle. But he added that the Fed has “become more cautious, as has the ECB” amid heightened uncertainty.

“We remain negative on risky assets as bank stress tightens credit and reinforces Citi’s call for a US recession [the second half] 2023,” Willer said.

In foreign exchange markets, the dollar index – which tracks the value of the greenback against a basket of other currencies – fell 0.1 percent, while US 10-year Treasury yields fell 0.04 percentage point to 3.385 percent.

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ARK Buys the Wells Dip With $17.7 Million COIN Purchase




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ARK Invest bought COIN low and sold it high this week.

On Tuesday, Cathie Wood’s fund sold 160,887 shares of COIN for $13.5 million when the stock was trading at around $83 per share. A little over 48 hours later, ARK bought the drop, buying 268,928 shares of COIN as the stock fell to close at $66.30 in the US on Thursday.

According to an email sent Thursday evening US time, 230,599 of those shares went to the ARK Innovation ETF (ARKK), while 38,329 of those shares went to the ARK Next Generation Internet ETF (ARKW).

Over the course of those two days Coinbase released that it received a Wells Notice from the Securities and Exchange Commission warning a company that the SEC plans to take enforcement action against it.

A Wells note means that the SEC has completed an investigation and believes the evidence gathered is substantial enough to warrant enforcement action. It does not guarantee enforcement action will be taken, and Coinbase has until March 29 to notify the SEC if it plans to challenge the enforcement action.

The The SEC also announced this on Wednesday that it is suing Justin Sun, the Tron Foundation, the BitTorrent Foundation and Rainberry (née BitTorrent) for selling unregistered securities and manipulating the market through wash trading. Internet personality is Jake Paul also sued for his alleged illegal promotion of Sun-Linked Crypto.

in one last twitter sectionCoinbase CEO Brian Armstrong said the company will become more politically involved and will ask its US-based users to vote for “pro-crypto candidates.”

“What we’re going to do is put out content where people can contact their congressman, donate to pro-crypto candidates, show up in town halls, and get your voice heard,” he said. “We will elect pro-crypto candidates in this country to ensure our success is assured.”

Despite the plunge caused by Wells, COIN is still up 97% year-to-date.

ARK also announced that it has purchased 320,557 shares of Block (SQ) with 275,554 of those shares going to ARKK.

Jack Dorsey’s fintech payments company, which has some crypto exposure, is also down 14% as of Thursday’s close notable short Hindenburg Research attacked it in a scathing report for “wildly” inflating user counts.

Block says the report is inaccurate and intends to “cooperate with the SEC and consider legal action against Hindenburg Research.”

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