SVB warned by Fed since 2019

The US Federal Reserve warned Silicon Valley Bank about its risk management as early as 2019 before its collapse earlier this month, the Wall Street Journal reported, while billionaire investor Mark Mobius suggested depositing money in different places, including the Middle East.

The Fed issued numerous warnings to SVB since 2019, suggesting that the bank's problems were on its radar, the WSJ reported.

This came as veteran emerging-markets investor Mobius said he avoids buying banking stocks due to the lack of transparency. Mobius also recommended keeping deposits diversified, adding that Middle Eastern banks, which are "rich with petrodollars," could become new safe havens.

Meanwhile, Pershing Square's Bill Ackman said he expects an acceleration of deposit outflows from banks after the Fed raised its benchmark rate and US Treasury Secretary Janet Yellen "walked back" on comments about guaranteeing all deposits.

Yellen told lawmakers on Wednesday that she has not considered or discussed "blanket insurance" to US banking deposits as a method to stem turmoil caused by bank failures this month.

"A temporary, system-wide deposit guarantee is needed to stop the bleeding," Ackman said. "The longer the uncertainty continues, the more permanent the damage is to the smaller banks, and the more difficult it will be to bring customers back."

Meanwhile, China's Foreign Ministry has called on US authorities to enhance transparency on the SVB issue.