Yellen says US prepared to take more action to keep bank deposits safe
1 year, 9 months ago

Yellen says US prepared to take more action to keep bank deposits safe

Live Mint  

US Treasury Secretary Janet Yellen reiterated on Thursday that she was prepared to take further action to ensure that Americans' bank deposits stay safe amid turmoil in the banking system. "As I have said, we have used important tools to act quickly to prevent contagion," Yellen said in remarks to the U.S. House of Representatives Appropriations subcommittee hearing. Separately on the issue of the debt ceiling, the Treasury secretary said that a U.S. debt default would undermine the dollar's reserve currency status and that a failure to raise the debt ceiling would lead to a recession or worse. Republicans in the U.S. House of Representatives are working on a "term sheet" of conditions they would want Democrats to agree to in exchange for voting to raise the federal government's $31.4 trillion debt ceiling later this year, House Budget Committee Chairman Jodey Arrington said on Thursday.

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History of this topic

Janet Yellen Defends Her Record – and Delivers a Warning
2 months, 4 weeks ago

Janet Yellen Defends Her Record – and Delivers a Warning

Politico  

In a phone interview Wednesday afternoon, Yellen laid out the stakes to me. The smooth transfer of power after elections, she said, is “really essential to our having a democratic system and a democratic government, and one of the tremendous strengths of our financial system is that it is based on strong institutions and rule of law.” The market for …

CEOs of the nation’s biggest banks warn that new regulations could harm the economy
1 year ago

CEOs of the nation’s biggest banks warn that new regulations could harm the economy

Associated Press  

NEW YORK — The heads of Wall Street’s biggest banks used an appearance on Capitol Hill on Wednesday to plead with senators to stop the Biden administration’s proposed changes to how banks are regulated, warning that the new proposals could negatively impact the economy at a time of geopolitical turmoil and inflation. Whereas in previous years the bank CEOs used …

Federal Reserve Chair Powell hints at a pause in rate hikes when central bank meets next month
1 year, 7 months ago

Federal Reserve Chair Powell hints at a pause in rate hikes when central bank meets next month

Associated Press  

WASHINGTON — Chair Jerome Powell indicated Friday that the Federal Reserve will likely forgo an increase in its benchmark interest rate when it meets in June for the first time since it began raising its key rate 14 months ago to fight high inflation. Speaking at a Fed conference in Washington, Powell said the central bank’s benchmark rate, which affects …

Heads of failed banks refuse to accept blame, defend their pay and bonuses
1 year, 7 months ago

Heads of failed banks refuse to accept blame, defend their pay and bonuses

LA Times  

Gregory Becker, left, former CEO of Silicon Valley Bank, testifies with Scott Shay, former chairman and co-founder of Signature Bank, and Eric Howell, former president of Signature Bank, during a Senate hearing on Capitol Hill on Tuesday. Top executives at Silicon Valley Bank and Signature Bank largely avoided taking responsibility for their banks’ dramatic failures at a Senate hearing Tuesday, …

Debt ceiling worries deepen as early June US default reinforced
1 year, 7 months ago

Debt ceiling worries deepen as early June US default reinforced

Al Jazeera  

The CBO warned a default could come as early as June 1 and there was ‘significant risk’ the US could not pay its dues. The Washington standoff over raising the United States government’s $31.4 trillion borrowing limit is adding to global economic worries, as a new non-partisan congressional report has cited a “significant risk” of a historic default within the …

California bank regulator finds own faults in bank’s demise
1 year, 7 months ago

California bank regulator finds own faults in bank’s demise

Associated Press  

NEW YORK — California’s bank regulator said Monday that it was too slow to see the growing risks at Silicon Valley Bank and did not act forcefully enough to get the bank to fix its problems. A report from the California Department of Financial Protection and Innovation echoed similar findings in a Federal Reserve report looking at its own supervision …

Fed Says It Failed to Act on Problems That Led to Silicon Valley Bank Collapse
1 year, 7 months ago

Fed Says It Failed to Act on Problems That Led to Silicon Valley Bank Collapse

Live Mint  

The Federal Reserve’s banking supervisors failed to take forceful action to address growing problems at Silicon Valley Bank before it collapsed last month, the central bank’s top regulator said, signaling a broad push to toughen rules on the industry. Yet another report on Friday from the Government Accountability Office, a congressional watchdog, said regulators identified problems at both banks in …

Silicon Valley Bank: US Fed calls for tougher bank rules after SVB collapse
1 year, 7 months ago

Silicon Valley Bank: US Fed calls for tougher bank rules after SVB collapse

Live Mint  

The US Federal Reserve called for greater banking oversight while admitting to its own failures in a widely-anticipated report published Friday into the collapse of Silicon Valley Bank last month. "Following Silicon Valley Bank's failure, we must strengthen the Federal Reserve's supervision and regulation based on what we have learned," Federal Reserve vice chair for supervision Michael Barr wrote in …

Fed Admits to Failures in Oversight of Silicon Valley Bank Collapse in New Report
1 year, 7 months ago

Fed Admits to Failures in Oversight of Silicon Valley Bank Collapse in New Report

News 18  

The US Federal Reserve called for greater banking oversight while admitting to its own failures in a widely-anticipated report published Friday into the collapse of Silicon Valley Bank last month. “Following Silicon Valley Bank’s failure, we must strengthen the Federal Reserve’s supervision and regulation based on what we have learned,” Federal Reserve vice chair for supervision Michael Barr wrote in …

Fed blames itself for Silicon Valley Bank collapse
1 year, 7 months ago

Fed blames itself for Silicon Valley Bank collapse

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Silicon Valley Bank failed …

Column: Love it or hate it, the Silicon Valley Bank bailout won’t cost taxpayers a cent
1 year, 8 months ago

Column: Love it or hate it, the Silicon Valley Bank bailout won’t cost taxpayers a cent

LA Times  

The collapse of Silicon Valley Bank raised questions anew about how and whether to bail out failed financial institutions. As investment manager and financial commentator Barry Ritholtz observed in his 2009 book “Bailout Nation,” the proper solution to the banking crisis was obvious: “Put the insolvent banks into FDIC receivership, fire management. “First,” he wrote, “there is something inherently unjust …

US treasury secretary expects economy to grow despite recession concerns
1 year, 8 months ago

US treasury secretary expects economy to grow despite recession concerns

Hindustan Times  

US Treasury Secretary Janet Yellen expects the world's biggest economy will continue to grow, despite heightened recession concerns following recent turmoil in the banking sector. The dramatic collapse of Silicon Valley Bank and Signature Bank last month had rattled the industry, prompting US authorities including the Treasury Department and Federal Reserve to step in to prevent contagion. But Yellen told …

Biden calls to revive bank regulations that Trump weakened
1 year, 8 months ago

Biden calls to revive bank regulations that Trump weakened

Associated Press  

WASHINGTON — Weeks after the failure of two banks, President Joe Biden called Thursday for independent regulatory agencies to impose tighter rules on the financial system, telling them that they can act under current law without additional steps taken by Congress. The recommended changes outlined by the White House try to put a clear blame on the Trump administration for …

White House skirts Congress to push new regional bank rules
1 year, 8 months ago

White House skirts Congress to push new regional bank rules

Daily Mail  

The Biden administration proposed a list of new bank measures Thursday that it says can be done without the help of Congress and will reverse some of the regulatory rollbacks made during the Trump-era. The White House said it would like to see midsized banks hold more liquid assets, increase their capital, submit to regular stress tests and write 'living …

White House proposes tougher bank rules, new tests after crisis
1 year, 8 months ago

White House proposes tougher bank rules, new tests after crisis

LA Times  

The Biden administration is proposing to tighten rules on midsize institutions as it searches for tools to further calm the banking crisis and prevent another failure, such as those of Silicon Valley Bank and Signature Bank. The changes include reinstating rules for banks with assets between $100 billion and $250 billion — a category that Silicon Valley Bank, one of …

GOP lawmakers accuse Fed of being lax before bank failure
1 year, 8 months ago

GOP lawmakers accuse Fed of being lax before bank failure

Associated Press  

WASHINGTON — Republican lawmakers accused top bank regulators Wednesday of dawdling as Silicon Valley Bank hurtled toward the second-largest bank failure in U.S. history and questioned whether tougher regulations would have made a difference. “That doesn’t sound like a very urgent supervisory process,” Rep. French Hill, an Arkansas Republican, said at Wednesday’s hearing of the House Financial Services Committee into …

Data | The Collapse of Silicon Valley Bank and Signature Bank Amid Rising Interest Rates and Asset Losses
1 year, 8 months ago

Data | The Collapse of Silicon Valley Bank and Signature Bank Amid Rising Interest Rates and Asset Losses

The Hindu  

Silicon Valley Bank has gone belly-up as has the Signature Bank in the U.S. in the last few weeks. Click to remove AMP mode Charts 1A and 1B show the extent of the unrealised losses that Silicon Valley Bank and First Republic Bank have been making of late as a result of a dramatic fall in bond values. In fact, …

Fed official: Bank rules under review in wake of SVB failure
1 year, 8 months ago

Fed official: Bank rules under review in wake of SVB failure

Associated Press  

WASHINGTON — The Federal Reserve’s bank supervisors warned Silicon Valley Bank’s management as early as the fall of 2021 of risks stemming from its unusual business model, a top Fed official said Tuesday, but its managers failed to take the steps necessary to fix the problems. The Fed official, Michael Barr, the nation’s top banking regulator, said during a Senate …

Bank failures and rescue test Yellen’s decades of experience
1 year, 8 months ago

Bank failures and rescue test Yellen’s decades of experience

Associated Press  

WASHINGTON — Working against the clock to stop a developing banking crisis, Treasury Secretary Janet Yellen had until sunset on Sunday, March 12, to come up with a plan to calm the U.S. economy. Yellen spent that crucial period two weeks ago assembling Federal Reserve officials; regulators at the Federal Deposit Insurance Corp. and the Office of the Comptroller of …

Bank failures and rescue test Yellen's decades of experience
1 year, 8 months ago

Bank failures and rescue test Yellen's decades of experience

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Please enter a valid email address Please enter a valid email address SIGN UP I would like to be emailed about offers, events and updates from The Independent. Yellen spent that crucial period …

Biden says U.S. banks are in good shape, turmoil will ease
1 year, 9 months ago

Biden says U.S. banks are in good shape, turmoil will ease

LA Times  

Regulators are still working to stabilize the banking sector after the collapse of Silicon Valley Bank and Signature Bank. President Biden said he was confident U.S. regional banks were in good shape and didn’t foresee any major crises on the horizon, downplaying Wall Street angst and lingering fears of broader financial turmoil. Business Everything to know about Silicon Valley Bank’s …

Federal Reserve Hikes Interest Rates Again, Despite Bank Failures
1 year, 9 months ago

Federal Reserve Hikes Interest Rates Again, Despite Bank Failures

Huff Post  

LOADING ERROR LOADING WASHINGTON ― The Federal Reserve on Wednesday continued to ramp up its efforts to slow the economy, despite recent bank failures caused partly by rising interest rates. “The Fed’s decision to raise rates is incongruous with efforts to reestablish the stability of the financial system,” Mark Zandi, chief economist with financial analysis firm Moody’s Analytics told HuffPost …

Column: The Fed’s anti-inflation work is almost done, with an assist from the banking crisis
1 year, 9 months ago

Column: The Fed’s anti-inflation work is almost done, with an assist from the banking crisis

LA Times  

The Federal Reserve Board may owe the banking crisis a thank-you note. — Joseph Brusuelas, RSM Long before Wednesday’s meeting of the Fed’s rate-setting open market committee, however, some experts were urging that the central bank pause and take time to assess how the prior rate hikes were affecting inflation and economic growth. Fed-watchers, who parse the central bank’s statements …

Yellen says bank situation stabilizing, different from 2008
1 year, 9 months ago

Yellen says bank situation stabilizing, different from 2008

Associated Press  

WASHINGTON — Treasury Secretary Janet Yellen projected calm on Tuesday after recent regional bank collapses but told a gathering of bankers that additional rescue arrangements “could be warranted” if any new failures at smaller institutions jeopardize financial stability. Yellen, who made her remarks at the American Bankers Association, said that overall “the situation is stabilizing.” “And the U.S. banking system …

US sees bank deposits stabilise even as some regional banks reel
1 year, 9 months ago

US sees bank deposits stabilise even as some regional banks reel

Al Jazeera  

Deposits in the country’s banking system are stabilising, Reuters reported, citing an unnamed US official. A United States official has said that the deposit outflows that left many regional banks reeling in the wake of Silicon Valley Bank’s failure had slowed and in some cases reversed, even as investors were trying to ascertain whether the crisis was contained. Shares of …

U.S. Fed to balance banking woes, inflation in next rate decision
1 year, 9 months ago

U.S. Fed to balance banking woes, inflation in next rate decision

Raw Story  

WASHINGTON — U.S. central bankers face an unenviable task when they gather in Washington next week: tackling persistent inflation without adding to financial sector turmoil after Silicon Valley Bank's rapid collapse. While Fed Chair Jerome Powell earlier signaled willingness to speed up interest rate hikes if needed, most analysts and traders see a small rise of 25 basis points as …

Will Americans end up footing the bill for bank failures?
1 year, 9 months ago

Will Americans end up footing the bill for bank failures?

Associated Press  

WASHINGTON — The government’s response to the failure of two large banks has already involved hundreds of billions of dollars. If necessary, the insurance fund will be replenished by a “special assessment” on banks, the FDIC, Fed and Treasury said in a joint statement. “No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” …

Biden calls for tougher penalties for execs of failed banks
1 year, 9 months ago

Biden calls for tougher penalties for execs of failed banks

Associated Press  

WASHINGTON — President Joe Biden on Friday called on Congress to allow regulators to impose tougher penalties on the executives of failed banks, including clawing back compensation and making it easier to bar them from working in the industry. “Congress must act to impose tougher penalties for senior bank executives whose mismanagement contributed to their institutions failing.” https://apnews.com/article/business-united-states-government-signature-bank-financial-services-first-republic-76e85af430ca42808eb4d7925fe06c4d Currently the …

Will Americans End Up Footing The Bill For Bank Failures?
1 year, 9 months ago

Will Americans End Up Footing The Bill For Bank Failures?

Huff Post  

LOADING ERROR LOADING WASHINGTON — The government’s response to the failure of two large banks has already involved hundreds of billions of dollars. If necessary, the insurance fund will be replenished by a “special assessment” on banks, the FDIC, Fed and Treasury said in a joint statement. “No losses associated with the resolution of Silicon Valley Bank will be borne …

What caused the collapse of Silicon Valley Bank, and is there a danger of ‘contagion’? | In Focus podcast
1 year, 9 months ago

What caused the collapse of Silicon Valley Bank, and is there a danger of ‘contagion’? | In Focus podcast

The Hindu  

Last week, California-based Silicon Valley Bank, the 16th largest bank in the United States, collapsed, sending shock waves through the start-up universe. The Biden administration has announced that all the depositors’ savings in the Silicon Valley Bank will be protected, including those deposits over and above the sums that are insured. The Federal Reserve, on its part, has unveiled a …

Yellen declares bank system sound, as new rescues ordered
1 year, 9 months ago

Yellen declares bank system sound, as new rescues ordered

Associated Press  

WASHINGTON — Treasury Secretary Janet Yellen offered firm, upbeat reassurances to rattled bank depositors and investors Thursday, even as American financial institutions and European agencies ordered fresh rescue efforts following the second-largest bank collapse in U.S. history. The Treasury secretary was the first administration official to face lawmakers over the decision to protect uninsured money at the two failed regional …

Experts, banks look for ideas to stop next bank failure
1 year, 9 months ago

Experts, banks look for ideas to stop next bank failure

Associated Press  

WASHINGTON — The warning signs were all there. “The great mystery here is why the supervision was AWOL at Silicon Valley Bank.’’ The search for causes and culprits — and solutions — is refocusing attention on a 2018 federal law that rolled back tough bank regulations put in place after the 2008-2009 financial crisis and, perhaps even more, on the …

Treasury Secretary Yellen Tells Congress U.S. Banking System 'Remains Sound'
1 year, 9 months ago

Treasury Secretary Yellen Tells Congress U.S. Banking System 'Remains Sound'

Huff Post  

LOADING ERROR LOADING WASHINGTON — A week after the second-largest bank collapse in U.S. history, Treasury Secretary Janet Yellen told the Senate Finance Committee on Thursday that the nation’s banking system “remains sound” and Americans “can feel confident” about their deposits. Yellen was the first Biden administration official to face lawmakers over the decision to protect uninsured money at two …

Yellen seeks to reassure US legislators after bank collapse
1 year, 9 months ago

Yellen seeks to reassure US legislators after bank collapse

Al Jazeera  

Treasury chief tells lawmakers that customers ‘can feel confident that their deposits will be there when they need them’. United States Treasury Secretary Janet Yellen has sought to reassure legislators – and US citizens – that the country’s banking system remains “sound” in the wake of the second largest bank collapse in its history. “This week’s actions demonstrate our resolute …

Lessons learnt: On the Silicon Valley Bank episode
1 year, 9 months ago

Lessons learnt: On the Silicon Valley Bank episode

The Hindu  

A faltering bank, this time on the U.S. West Coast, sparked a déjà vu moment across global markets last week as fears of a Lehman redux triggered sharp declines in banking stocks worldwide and saw investors make a beeline for safe haven assets such as gold. The Federal Deposit Insurance Corporation first took over the Silicon Valley Bank in California, …

How Washington came to rescue US banks
1 year, 9 months ago

How Washington came to rescue US banks

Associated Press  

WASHINGTON — After the sudden collapse of Silicon Valley Bank, California Democratic Rep. Maxine Waters started furiously working the phones to find out what was going on with the failed lender — and what would happen to its panicked depositors. Federal Deposit Insurance Corp. officials told Republican senators Monday that they received offers for the bank over the weekend but …

Silicon Valley Bank collapse: 96 hours after biggest US bank failure in 15 years
1 year, 9 months ago

Silicon Valley Bank collapse: 96 hours after biggest US bank failure in 15 years

Hindustan Times  

The U.S. government launched emergency measures on Sunday to shore up confidence in the banking system after the failure of Silicon Valley Bank, the largest bank collapse since the 2008 financial crisis. THURSDAY, MARCH 9 As U.S. Treasury Secretary Janet Yellen prepares for a Friday hearing before the Republican-controlled House Ways and Means Committee, investors are raising concerns about a …

Silicon Valley Bank crisis: Fed faces flak for ‘missing’ warning signs| 5 points
1 year, 9 months ago

Silicon Valley Bank crisis: Fed faces flak for ‘missing’ warning signs| 5 points

Hindustan Times  

The Silicon Valley Bank collapse continues to dominate headlines in the financial world. The bank's new chief executive officer Tim Mayopoulos has urged the lender's top venture capitalists to move their deposits to its newly created bridge entity, Reuters reported. This comes a day after the Moody's Investors Service downgraded First Republic Bank and five other lenders, citing concerns over …

Timeline: How US gov’t scrambled as Silicon Valley Bank collapsed
1 year, 9 months ago

Timeline: How US gov’t scrambled as Silicon Valley Bank collapsed

Al Jazeera  

Biden administration quickly put emergency measures in place as SVB failed. The United States government launched emergency measures at the weekend to shore up confidence in the banking system after the failure of Silicon Valley Bank, the largest bank collapse since the 2008 financial crisis. Here’s a look at how things unfolded: March 9 As US Treasury Secretary Janet Yellen …

“Threatening our entire economy”: Warren introduces bill to repeal “Trump’s bank law”
1 year, 9 months ago

“Threatening our entire economy”: Warren introduces bill to repeal “Trump’s bank law”

Salon  

This article originally appeared at Common Dreams. Sen. Elizabeth Warren and Rep. Katie Porter unveiled legislation Tuesday to repeal the section of a Trump-era law that weakened regulations for banks with between $50 billion to $250 billion in assets, a move that experts and lawmakers have blamed for the collapse of Silicon Valley Bank and the resulting turmoil. "In 2018, …

Banking stocks steady in aftermath of Silicon Valley Bank collapse
1 year, 9 months ago

Banking stocks steady in aftermath of Silicon Valley Bank collapse

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Banking stocks steadied on Tuesday …

Silicon Valley Bank crisis: Did bank regulators, investors ignore warning signs?
1 year, 9 months ago

Silicon Valley Bank crisis: Did bank regulators, investors ignore warning signs?

Hindustan Times  

With hindsight, there were warning signs ahead of last week's spectacular collapse of Silicon Valley Bank, missed not only by investors, but by bank regulators. Banking experts have been among those alarmed at the rapid collapse of SVB, the country's 16th biggest bank by assets and how its demise became a harbinger of Sunday's failure of another lender, Signature Bank. …

Markets panic as Silicon Valley Bank fallout keeps spreading
1 year, 9 months ago

Markets panic as Silicon Valley Bank fallout keeps spreading

The Telegraph  

Despite specific concerns about these lenders, a domino effect-style crisis of the type seen in 2008 is unlikely given the mechanics of the SVB collapse are sufficiently different. Analysts at JP Morgan concluded: “SVB carved out a distinct and riskier niche than other banks, setting itself up for large potential capital shortfalls in case of rising interest rates, deposit outflows …

U.S. inflation eases but stays high, putting Fed in tough spot
1 year, 9 months ago

U.S. inflation eases but stays high, putting Fed in tough spot

LA Times  

U.S. consumer price increases eased slightly from January to February but still pointed to an elevated inflation rate that is posing a challenge for the Federal Reserve at a delicate moment for the financial system. Even though prices are rising much faster than the Fed wants, some economists expect the central bank to suspend its year-long streak of interest rate …

Elizabeth Warren: 'We know who's responsible' for startling SVB implosion
1 year, 9 months ago

Elizabeth Warren: 'We know who's responsible' for startling SVB implosion

Raw Story  

It's no secret what caused the sudden implosion of the once-mighty Silicon Valley Bank, Sen. Elizabeth Warren wrote Monday in a New York Times op-ed. The name of a key person behind the mess starts with a "T" — but he was backed by members of both parties who worked to weaken bank regulations aimed at protecting customers and the …

On Silicon valley bank crisis, Joe Biden's message to US taxpayers is...
1 year, 9 months ago

On Silicon valley bank crisis, Joe Biden's message to US taxpayers is...

Hindustan Times  

President Joe Biden on Monday reassured Americans that their banking system is secure in the wake of the collapse of SVB and said he wants tougher regulations to prevent future crises. Your deposits will be there when you need them," Biden said in televised remarks from the White House after Silicon Valley Bank's failure and the federal takeover of a …

President Joe Biden says U.S. banking system ‘safe’, but urges new regulations
1 year, 9 months ago

President Joe Biden says U.S. banking system ‘safe’, but urges new regulations

The Hindu  

President Joe Biden on March 13, 2023 reassured Americans that their banking system is secure in the wake of the collapse of SVB and said he wants tougher regulations to prevent future crises. Your deposits will be there when you need them,” Mr. Biden said in televised remarks from the White House after Silicon Valley Bank’s failure and the federal …

US bails out depositors after Signature Bank, SVB closures: Top 10 updates
1 year, 9 months ago

US bails out depositors after Signature Bank, SVB closures: Top 10 updates

Live Mint  

The failure of two regional US banks, Silicon Valley Bank and Signature Bank, had negative consequences for Asian markets. Top updates on Silicon Valley Bank and Signature Bank collapse: 1. Recent failures of SVB Financial Group's Silicon Valley Bank, Silvergate Capital Corporation, and Signature Bank have had negative consequences for the digital-asset market. On Monday, the US dollar fell following …

How the US Federal Reserve is handling the Silicon Valley Bank crisis
1 year, 9 months ago

How the US Federal Reserve is handling the Silicon Valley Bank crisis

Hindustan Times  

The collapse of Silicon Valley Bank was swift and brutal, and left much of the world wondering what would come next. Fearing contagion would upend the industry, the US Federal Reserve, Treasury Department and Federal Deposit Insurance Corp. moved quickly over the weekend to protect customer deposits and shore up confidence in the banking system. Here’s everything we know right …

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