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Banking association: Hawaii banks unaffected by mainland closures

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Banking association: Hawaii banks unaffected by mainland closures


HONOLULU — Following the closure of Silicon Valley Financial institution final week, the Hawaii Bankers Affiliation is assuring the general public that its member banks are protected and unaffected.


What You Want To Know

  • Hawaii Banking Affiliation govt director Neal Okabayashi mentioned its member banks have robust capital
  • On March 10, the California Division of Monetary Safety and Innovation shuttered SVB and appointed the Federal Deposit Insurance coverage Company as its receiver after an unsuccessful effort to promote it to bigger monetary establishments
  • On March 12, when the New York Division of Monetary Providers introduced it had taken over Signature Financial institution and appointed the FDIC as its receiver
  • The FDIC will cowl depositors utilizing its deposit insurance coverage fund, which is paid into by member banks

“Hawaii Bankers Affiliation member banks have robust capital, mentioned HBA govt director Neal Okabayashi. “At this level, the FDIC has acknowledged that that is an remoted incident, and there’s no indication of systemic points affecting the banking trade.”

The unrest began on March 8, when SVB introduced it had suffered a $1.8 billion loss and wanted to lift extra capital to deal with depositor considerations. The announcement prompted prospects to withdraw funds in worry of a collapse. On March 10, the California Division of Monetary Safety and Innovation shuttered SVB and appointed the Federal Deposit Insurance coverage Company as its receiver after an unsuccessful effort to promote it to bigger monetary establishments.

The speedy fall of the nation’s sixteenth largest financial institution, which as soon as held $210 billion in belongings, despatched shockwaves by the monetary trade. The priority deepened on March 12 when the New York Division of Monetary Providers introduced it had taken over Signature Financial institution and appointed the FDIC as its receiver.

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The federal authorities will assure the deposits of each banks, the FDIC, Federal Reserve and Division of the Treasury mentioned in a joint assertion.

The Biden administration was fast to make clear that the FDIC, not taxpayers, will cowl depositors utilizing its deposit insurance coverage fund, which is paid into by member banks.

HBA member banks are additionally members of the FDIC, which ensures conventional deposit accounts and particular person retirement accounts by as much as $250,000.

HBA member banks embrace American Financial savings Financial institution, Financial institution of Hawaii, Central Pacific Financial institution, Finance Components, First Hawaiian Financial institution, Hawaii Nationwide Financial institution, HomeStreet Financial institution and Territorial Financial savings Financial institution.

Politicians on each the left and proper have seized on the occasions of the previous week to advance present political narratives.

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Republican presidential candidate Nikki Haley referred to the FDIC’s protection of deposits as a “Biden bailout,” harkening to the controversial monetary trade bailout of 2008.

Florida Gov. Ron DeSantis has additionally recommended that SVB, whose prospects embrace a number of tech sector companies, targeted extra on interesting to its shoppers’ social justice and environmental values than on its core obligations.

Democrats, together with U.S. Sen. Mazie Hirono, D-Hawaii, blamed Trump-era missteps and the financial institution itself.

“In 2018, Republicans rolled again commonsense guidelines designed to forestall this sort of disaster,” Hirono mentioned. “As we be taught extra about this example, one factor is obvious: we have to strengthen — not weaken — rules defending customers, depositors, and our economic system.

“Studies that Silicon Valley Financial institution executives acquired bonuses simply hours earlier than the financial institution was shuttered are deeply regarding,” she continued. “These accountable for this disaster should be held accountable to their prospects and the American folks. These bonuses should be returned.”

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Michael Tsai covers native and state politics for Spectrum Information Hawaii.



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Hawaii

Hawaii nonprofits brace for less federal funding

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Hawaii nonprofits brace for less federal funding


HONOLULU (HawaiiNewsNow) – Hawaii nonprofits that provide critical social safety nets are facing economic hardship of their own.

President-elect Donald Trump’s new Department of Government Efficiency (DOGE) is expected to slash federal appropriations, government contracts and grant awards, and heavily impact social services across the state.

Melissa Pavlicek, Hawaii True Cost Coalition, explained, “The community-based organizations that are providing key government services are already struggling to provide those services. Some of their contract prices have not increased in over 10 years. The cost to provide those services is significantly greater. The transportation costs, rent, employees, food, everything has gone up. And to serve the community costs more. So we’re looking to our state policy leaders to help ensure those services are continued.”

To mitigate the potential fallout or disruption of services, nonprofit leaders are working to fill the gaps with the help of lawmakers, private donors, philanthropy, corporate foundations and residents themselves.

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Suzanne Skjold, Aloha United Way COO, said, “Whether that’s helping your neighbor, maybe donating to a charity that is losing a program, even getting involved politically, locally, you know, voting matters. Being involved in our legislature matters.”

“The slack really has to be picked up by the state and county governments as well as the private sector,” warned U.S. Rep. Ed Case, D-Hawaii, “and so these are gonna be tough times and I’m telling everybody, hey, let’s, not sugarcoat this. We have to be prepared for the unexpected.”

Another concern is legislation that some believe if passed could be used to target progressive nonprofits opposed by the Trump administration.

For now, community advocates are urged to keep calm.

Case said, “The first thing I would advise everybody is not to freak out. That we have been through changes in administration before. That these are core federal programs that within Congress, even a divided and polarized Congress, many, many people from both parties support these programs.”

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“We want to make sure Hawaii doesn’t become the kind of place where we lead in a way that’s hateful to others,” Skjold said.



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Visitors warned after toddler nearly runs off 400-foot cliff near Hawaii volcano

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Visitors warned after toddler nearly runs off 400-foot cliff near Hawaii volcano


The National Park Service is warning parents to keep their children close after a toddler ran toward the edge of a 400-foot-tall cliff at Hawaii National Park on Christmas.

The young boy was at the park with his family to view the eruption of the Kilauea volcano. They were in a closed area at Kilauea Overlook when he wandered away from his family before the “near miss.” His mother, screaming, managed to grab him just about a foot away from a fatal fall.

“Park rangers remind visitors to stay on trail, stay out of closed areas and to keep their children close, especially when watching Kīlauea from viewpoints along Crater Rim Trail. Those who ignore the warnings, walk past closure signs, lose track of loved ones, and sneak into closed areas to get a closer look do so at great risk,” the agency warned.

People watch as an eruption takes place on the summit of the Kilauea volcano in Hawaii on Monday. The volcanic eruption, which started on Monday, is now in its second pause. But, park officials are issuing a warning to visitors after an almost disastrous incident occurred near the volcano

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People watch as an eruption takes place on the summit of the Kilauea volcano in Hawaii on Monday. The volcanic eruption, which started on Monday, is now in its second pause. But, park officials are issuing a warning to visitors after an almost disastrous incident occurred near the volcano ((Janice Wei/NPS via AP))

Rangers noted that dangers escalate during volcanic eruptions, as people flock to view the spectacle of lava flowing out of the Earth’s crust. The Park Service urged drivers to slow, and watch out for pedestrians, Hawaiian geese, and switch to low beams when other cars and pedestrians are present.

The eruption, which started on December 23, is now in its second pause, according to the USGS Hawaiian Volcano Observatory. But, it could still restart at any time.

Furthermore, emissions of toxic gas remain high, including particulate matter called tephra. Billions of minuscule pieces of tephra, which include all fragments of rock ejected into the air by an erupting volcano, can be carried on winds for thousands of miles and can cause respiratory issues. Volcanoes also produce dangerous gases, like carbon dioxide and hydrogen chloride.

Tephra has blanketed the closed portion of Crater Rim Drive downwind of the lava.

Lava fountains erupt in Kīlauea crater as seen from Kūpinaʻi Pali in Hawaii Volcanoes National Park on Monday. Hazards increase for parkgoers during volcanic eruptions

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Lava fountains erupt in Kīlauea crater as seen from Kūpinaʻi Pali in Hawaii Volcanoes National Park on Monday. Hazards increase for parkgoers during volcanic eruptions (NPS)

“The hazards that coincide with an eruption are dangerous, and we have safety measures in place including closed areas, barriers, closure signs, and traffic management,” Park Superintendent Rhonda Loh said in a statement.

“Your safety is our utmost concern, but we rely on everyone to recreate responsibility. National parks showcase nature’s splendor but they are not playgrounds,” she said.



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Hawaii Supreme Court rejects county council candidate’s election lawsuit

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Hawaii Supreme Court rejects county council candidate’s election lawsuit


HONOLULU (HawaiiNewsNow) – The state Supreme Court has rejected a lawsuit by Maui County Council candidate Kelly King to overturn the general election results.

King lost her race last month to incumbent Tom Cook by 97 votes.

She argued the county rejected too many ballots because of missing or invalid signatures, and that voters weren’t offered enough help to fix the problems.

In Maui County, there were nearly 1,100 deficient ballots compared to the national average. King says Maui County’s rejection rate was nearly double the state average in 2022.

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But the high court ruled Tuesday that the County Clerk’s Office followed state law and all administrative rules to cure the deficient ballots.

View the full decision here.

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