U.S. bank collapse

Stock markets in Europe fell on Monday as investors remained spooked by the collapse of Silicon Valley Bank (SVB), despite efforts to limit the fallout.

Even if you don't invest money directly yourself, there are millions of people with a pension - either private or through work - who will see their savings invested by pension schemes. The US has now agreed a rescue deal for customers of SVB, with all depositors fully protected. Silicon Valley Bank - which specialised in lending to technology companies - was shut down by US regulators who seized its assets on Friday. On Monday, HSBC announced it was buying SVB's UK arm for £1. The deal followed a frantic weekend of talks as the government and Bank of England sought a solution, and the news bought relief to UK tech firms who feared going bust without support. It was the biggest failure of a US bank since the financial crisis in 2008.

US authorities say they will guarantee all customer deposits after two banks collapse and spark crisis fears.

SVB started as a California bank in 1983 and expanded rapidly as the tech sector boomed. And the pressure on small- and medium-sized banks hasn't gone away. It came after SVB had scrambled to raise money to plug a loss from the sale of assets affected by higher interest rates. The criticism is that they should have foreseen this and they didn't. That won't stop regulators looking into what went wrong and what rules need to change. SVB - which specialised in lending to technology companies - was shut down by regulators on Friday. "I'm not an economist so I don't know the ramifications of this but I know that as a business operator we rely on the cash that we have in the bank." Taxpayers will not bear any losses from the move, which extends protection beyond the $250,000 (£205,000) in deposits typically insured by the government. Once again there is intense debate about bailouts. Since most banks are well diversified and have plenty of cash on hand, the assumption is that the risk to the rest of the banking sector is low. Once again people are worried about banks. "Building a culture of government intervention does nothing to stop future institutions from relying on the government to swoop in after taking excessive risks," he said.

Financial market stress indicators reacted sharply on Monday after the failure of three U.S. banks within five days, which prompted a rethink among ...

An index of major bank shares dropped by as much as 8.7%, in one of the largest one-day falls since the onset of the COVID-19 crisis in March 2020. banking system edged up on Monday, as did other indicators of credit risk in the euro zone. The so-called FRA-OIS spread , which measures the gap between the U.S. Now we have more risk that this tightening becomes disorderly at some point," he said. This spread is widely seen as a proxy for banking sector risk and a higher reading reflects rising interbank lending risk. LONDON, March 13 (Reuters) - Financial market stress indicators reacted sharply on Monday after the failure of three U.S. Crypto-focused bank [Silvergate](/technology/crypto-focused-bank-silvergate-plans-wind-down-operations-2023-03-08/) said last week it would also have to wind down its operations. banks within five days, which prompted a rethink among investors on the outlook for U.S. As dramatic as some of the moves in bond and stock prices were on Monday, analysts agreed that it was unlikely to be a function of direct contagion from SVB, but rather, more driven by sentiment. [(.VIX)](https://www.reuters.com/quote/.VIX) and bond market [(.MOVE)](https://www.reuters.com/quote/.MOVE) volatility shot to their highest since October and even gold hit a six-week peak. In the money markets, a closely watched indicator of credit risk in the U.S. Register for free to Reuters and know the full story

US president says banking system is 'safe' but will seek accountability amid fallout from collapse of two major banks.

“They knowingly took a risk, and when the risk didn’t pay off investors lose their money,” he told reporters. “When you have very young companies, very promising companies, they’re also fragile,” Hunt told reporters, explaining why the authorities moved so quickly. Another beleaguered bank, First Republic Bank, announced on Sunday that it had bolstered its financial health by gaining access to funding from the US Federal Reserve and JPMorgan Chase. The International Monetary Fund (IMF) said on Monday that it welcomed “decisive” US action to stem systemic banking system risks over the weekend and that it was monitoring the situation for global implications. “This step will ensure that the US banking system continues to perform its vital roles of protecting deposits and providing access to credit to households and businesses in a manner that promotes strong and sustainable economic growth,” the agencies said in a joint statement. On Monday morning, Biden told reporters that “all customers who had deposits in these banks can rest assured – rest assured – they’ll be protected and they’ll have access to their money as of today”.

President Joe Biden declared the US banking system "safe" and vowed stiffer bank regulation, after U.S. regulators were forced to step in with a series of ...

financial system and fears remained that the fallout [would roil global markets](/markets/world-markets-set-aftershocks-svb-collapse-ripples-out-2023-03-12/) in the week to come. [sank on Monday](/markets/asia/bank-stocks-plunge-resumes-svb-market-turmoil-continues-2023-03-13/) before the U.S. But when (SVB) sold some of these and revealed their loss, they created some panic." Silicon Valley bank had $209 billion in assets at the end of last year. [stock index futures](/markets/us/futures-rise-bets-likely-rate-hike-pause-after-svb-collapse-2023-03-13/) were down even as some investors bet on a pause in interest rate hikes by the Federal Reserve. [managers of the banks](/business/finance/what-caused-silicon-valley-banks-failure-2023-03-10/) will be fired, Biden noted, and investors will lose money. bank regulations could be a tough sell. However, Republicans and Democrats alike have criticized Silicon Valley's bank managers. Some of the Dodd Frank law passed after that crisis to prevent a repeat was rolled back by Republicans under former president Donald Trump, he noted. bank failure since the 2008 financial crisis. Biden faces a divided Congress, which could make passing tougher new rules difficult. [series of emergency measures](/business/finance/regulators-urged-find-silicon-valley-bank-buyer-industry-frets-about-fallout-2023-03-12/) after Silicon Valley Bank [(SIVB.O)](https://www.reuters.com/companies/SIVB.O) and [Signature Bank](/business/finance/new-york-state-regulators-close-signature-bank-2023-03-12/) [(SBNY.O)](https://www.reuters.com/companies/SBNY.O) collapse, threatening to trigger a broader crisis.

Banks led the US stock market lower in early trading as investors worried about the fallout from the collapse of Silicon Valley Bank and regulators' efforts to ...

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President Biden also said insiders and investors won't be bailed out, but that companies that used the bank will be able to pay their employees and bills.

"The management of these banks will be fired," he said. The solution they reached, he said on Sunday, "protects workers, small businesses, taxpayers and our financial system." The president spoke as regulators strive to shore up confidence in the banking system and prevent runs like the one that triggered the stunning collapses of Silicon Valley Bank and New York-based Signature Bank. banks should have confidence that their money will be there when they need it, as he seeks to limit the damage done by the collapse of Silicon Valley Bank and other problems. They knowingly took a risk, and when the risk didn't pay off, investors lose their money. Biden spoke from the White House at 9 a.m.