• Apple Inc. is allowing select U.S. users to begin using its new “buy now, pay later” feature, which is embedded in the iPhone wallet and allows users to pay for goods and services between $50 and $1,000 in four payments spread over six weeks with no fees. The zero-interest loans for Apple Pay Later are provided by Apple Financing, and Goldman Sachs Group Inc. will facilitate Apple’s access to Mastercard’s network. (Financial Times)
• Federal prosecutors have accused FTX founder and former CEO Sam Bankman-Fried of successfully bribing at least one Chinese government official to unfreeze Alameda Research accounts worth more than $1 billion. The indictment claims that Bankman-Fried directed an employee to make a $40 million bribery payment in 2021. (NBC News)
• Federal Reserve Vice Chair for Supervision Michael Barr said during a Senate Banking Committee hearing on the collapse of Silicon Valley Bank that regulators were aware of some of the problems facing the bank in late 2021, but he was only made personally aware of the severity of the situation in February. Barr said tighter regulation and supervision is a likely outcome of the Fed’s review of the oversight of SVB, which is set to be released by May 1. (The New York Times)
• The Treasury Department’s Financial Crimes Enforcement Network said it would make changes to its rollout of a system in which companies report corporate ownership stakes after lawmakers and advocacy groups objected to a draft form that appeared to let companies claim they were unable to identify their owners. FinCEN has received pushback about the new reporting process, set to launch next year, and aims to help prevent bad actors from using anonymous shell companies. (The Wall Street Journal)

Worth watching:

• Barr, Federal Deposit Insurance Corp. Chair Martin Gruenberg and Treasury Department Undersecretary for Domestic Finance Nellie Liang testify before the House Financial Services Committee on banking failures. 
• Barr will also deliver opening remarks at the National Community Reinvestment Coalition’s Just Economy Conference, which begins today.

Half of US Employees Earn Extra Cash on the Side, Survey Finds

Bloomberg

Biden’s World Bank pick sets ambitious course

Hans Nichols, Axios

Ajay Banga, President Biden’s nominee to lead the World Bank, wants the bank to focus on poverty alleviation and climate change — and warns that the world needs a massive investment from the private sector to adequately address both challenges.

Yellen Says International Aid Programs Crucial to US Leadership

Christopher Condon, Bloomberg

Treasury Secretary Janet Yellen said the Biden administration’s proposed spending on international aid and investment programs, exemplified by assistance for Ukraine, would strengthen Washington’s leadership abroad and advance US security interests.

Kevin McCarthy Pushes for Debt-Ceiling Talks as Unity Eludes GOP

Natalie Andrews, The Wall Street Journal

House Speaker Kevin McCarthy tried to prod President Biden into starting talks over spending cuts as a condition for raising the debt ceiling, just as Republicans are struggling to unite around a blueprint for negotiations ahead of dual deadlines later this year.

Biden asks McCarthy to present GOP budget before Easter recess

Brett Samuels, The Hill

President Biden on Tuesday called on Speaker Kevin McCarthy (R-Calif.) and House Republicans to release a budget proposal before lawmakers leave for Easter recess at the end of the week, reiterating that he would meet with McCarthy once his conference has done so.

Banking turmoil means recession fears are creeping back

Reuters

The failures of U.S. lenders Silicon Valley Bank (SVB) and Signature Bank, followed by Credit Suisse’s rescue, and the ensuing turmoil in world markets have re-ignited the recession risks that appeared to have abated just a few weeks ago. Traders now bet the Federal Reserve is practically done hiking interest rates.

Will Bank Turmoil Tank the Economy?

Jeanna Smialek, The New York Times

As government officials testify before congressional committees on the fallout from recent banking collapses, a major question looms: What will this mean for the economy?

300 million jobs could be affected by latest wave of AI, says Goldman Sachs

Michelle Toh, CNN

As many as 300 million full-time jobs around the world could be automated in some way by the newest wave of artificial intelligence that has spawned platforms like ChatGPT, according to Goldman Sachs economists.

Bipartisan lawmakers pressure Treasury ahead of EV guidance

Timothy Cama, Hannah Northey, E&E News

Lawmakers from across the political spectrum are airing concerns ahead of an eagerly anticipated announcement from the Biden administration on who is eligible for electric vehicle tax incentives.

Russia’s Economy Is Starting to Come Undone

Georgi Kantchev and Evan Gershkovich

The opening months of Russia’s invasion of Ukraine last year drove an increase in oil and natural-gas prices that brought a windfall for Moscow. Those days are over.

Jamie Dimon to Face Questioning in Lawsuit Over JPMorgan’s Epstein Ties

Khadeeja Safdar and David Benoit, The Wall Street Journal

Jamie Dimon will be questioned in a civil lawsuit over JPMorgan Chase Co.’s relationship with Jeffrey Epstein, people familiar with the matter said.

UBS Brings Back Former CEO Sergio Ermotti After Credit Suisse Deal

Serena Ng, The Wall Street Journal

UBS Group AG said its former leader Sergio Ermotti will return as chief executive, as the Swiss banking giant moves into a new era with its takeover of Credit Suisse Group AG.

CFPB’s Chopra: regulators need to assess risks in faster communications

Kate Berry, American Banker

Rohit Chopra, the director of the Consumer Financial Protection Bureau, said regulators will need to assess how fast communications can precipitate a bank run, even at banks that had previously been considered well below the thresholds to create a systemic risk.

Credit Suisse whistleblowers say Swiss bank has been helping wealthy Americans dodge U.S. taxes for years

Eamon Javers, CNBC

Credit Suisse, the failed Swiss bank taken over by UBS Group AG in a hastily arranged bailout earlier this month, may bring with it a fresh set of regulatory and legal problems for its new owner.

U.S. FDIC tells Signature Bank’s crypto clients to close accounts by April 5

Reuters

The U.S. Federal Deposit Insurance Corp (FDIC) has informed collapsed lender Signature Bank’s (SBNY.O) crypto clients that they have until April 5 to close their accounts and move their money.

How Far Can Regulators Go to Protect Uninsured Deposits?

Linda Qiu, The New York Times

Regulators can protect deposits over $250,000 if they determine that a bank’s failure pose a systemic risk, but some lawmakers have pushed for more sweeping coverage.

As Interest Rates Rose, Banks Did a Balance-Sheet Switcheroo

Jonathan Weil, The Wall Street Journal

Lenders pledged to hold on to money-losing bonds, allowing them to avoid reporting losses.

Fed Watchdog Launches Investigation Into SVB Supervision

Kate Davidson, Bloomberg

The Federal Reserve’s internal watchdog has launched its own review of the failure of Silicon Valley Bank, a spokesman confirmed, separate from the probe that the Fed’s vice chair for supervision is leading.

Bankers at US midsize lenders battle to keep deposits after exodus

Tatiana Bautzer and Nupur Anand, Reuters

Mid-sized U.S. lenders are getting creative as they try to hang onto customer deposits after two bank failures rattled consumers and spurred a $119 billion exodus from small institutions in recent weeks.

Bank deposit fund loses billions as buyer found for failed SVB’s assets

Aaron Gregg and Bryan Pietsch, The Washington Post

Silicon Valley Bank’s collapse is the most expensive U.S. bank failure in terms of its cost to the Deposit Insurance Fund, one expert said.

Credit Suisse sale ‘forever impairs’ ability of banks to issue AT1s, investors warn

Nikou Asgari et al., Financial Times

Additional tier 1 bond market faces ‘risk premium repricing’ in wake of Swiss bank’s debt being written down ahead of equity.

After Slamming ESG Plan, Fund Managers Are Told to Sit Tight

Frances Schwartzkopff and Natasha White, Bloomberg

Asset managers are being advised by their lawyers not to adapt portfolios to planned ESG rules that would force many to abandon the label.

The initial banking crisis is easing. Another may be around the corner.

Jeff Stein, The Washington Post

In the White House, Treasury Department and Federal Reserve, policymakers are examining the potential risks posed by the approximately $20 trillion market for commercial real estate, which some analysts project is heading for a crash over the next two years, according to four people familiar with the matter, who spoke on the condition of anonymity to reflect private conversations.

Rocket’s credit card lifts off

Brad Finkelstein, National Mortgage News

Rocket Cos. formally unveiled its reward credit card offering, which will allow home purchasers to put points toward closing costs and down payments. The card also will allow servicing customers to use points to pay down some of their principal.

US annual house price growth slows further in January

Reuters

U.S. single-family home prices moderated further on an annual basis in January, which together with declining mortgage rates could pull buyers back into the housing market.

Judge green lights amended predatory lending suit against Wells Fargo

Connie Kim, Housing Wire

Three Georgia counties allege that Wells Fargo engaged in “equity stripping” scheme that targeted minority borrowers.

Work from home has downtowns empty. A solution? Live in a former office.

Linda Chong and Erica Werner, The Washington Post

Brutal housing costs and empty office buildings are pushing San Francisco and other cities to try and turn them into homes.

Binance Sees $2 Billion in Outflows as Troubles Compound

Vicky Ge Huang and Dave Michaels, The Wall Street Journal

In a tumultuous few days, crypto giant raises fees, suffers software issues and faces regulator lawsuit

FTX’s $45M Sequoia Sale Cleared, as Embed Divestment Delayed

Jack Schickler, CoinDesk

A Delaware bankruptcy judge approved the sale of the bankrupt company’s assets to Abu Dhabi’s investment arm.

Bitcoin Heads for Best Quarter in Two Years, Outperforms Ether, Gold, Nasdaq

Omkar Godbole, CoinDesk

One observer said poor order book depth is primarily responsible for the rally, while others pointed to the cryptocurrency’s sound money appeal and Fed pivot speculation as bigger catalysts.