First Republic Bank and other regional banks saw steep losses on Monday after the collapse of Silicon Valley Bank raised fears about the financial system.
began after the historic failure of Silicon Valley Bank – the 16th largest in the country – on Friday afternoon following a liquidity crunch. It marked the largest U.S. bank failure since the global financial crisis in 2008.
SVB – which largely catered to tech companies, venture capital firms and high-net-worth individuals – saw a huge boom in deposits during the pandemic. The bank responded by investing a large chunk of that cash into long-term U.S. Treasury bonds and other mortgage-backed securities. However, that strategy backfired when the Federal Reserve embarked on the most aggressive interest-rate hike campaign since the 1980s and the value of those securities tumbled.
A sign of a branch of the Silicon Valley Bank is pictured at an office building where the bank is located in Frankfurt, Germany, Monday, March 13, 2023. That coincided with a decline in available funding for startups, which started drawing down more of their money to cover their expenses, forcing the lender to sell part of its bond holds at a steep $1.8 billion loss. When depositors realized that SVB was in a precarious financial situation, a bank run ensued. "While SVB’s duration mismatch and its concentration of undiversified depositors may seem unique, numerous U.S.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
First Republic Bank's stock tumbles amid fears SVB turmoil will spreadFirst Republic Bank's stock craters 60% after it taps backstop billions to shore up liquidity
Weiterlesen »
First Republic drops 60%, leads decline in bank stocks despite government's backstop of SVBFirst Republic Bank led a decline in bank shares Monday that came even after regulators extraordinary actions Sunday evening.
Weiterlesen »
First Republic Bank shares fall more than 60% after collapse of SVB, SignatureThe San Francisco-based First Republic Bank is a regional lender with more than $216 billion in assets under management.
Weiterlesen »
SVB collapse: First Republic Bank down more than 60% in premarket tradingShares of First Republic Bank tanked by more than 60% in premarket trading Monday morning as the effects of the Silicon Valley Bank collapse continue to be felt.
Weiterlesen »
First Republic Bank falls nearly 70%, trading halted after collapse of SVB, Signature | NY PostShares of First Republic Bank tanked by nearly 70% in pre-market trading on Monday before trading in the stock halted — just hours after federal regulators a...
Weiterlesen »
JPMorgan, PNC among suitors for SVB Financial in deal excluding SVB Bank - AxiosJPMorgan Chase & Co and PNC Financial Service Group Inc are among those in talks about acquiring SVB Financial Group in a deal that would exclude its commercial banking unit Silicon Valley Bank that is currently under U.S. control, Axios reported on Monday citing sources.
Weiterlesen »