SVB collapse latest news: Global bank shares slump after Silicon Valley Bank goes bust

Graig Graziosi submitted this report.

Global bank stocks have plummeted after the collapse of Silicon Valley Bank.

On Tuesday, shares in Japan’s Topix Banks fell more than 7 percent, while the Mitsubishi UFJ Financial Group index fell 8.1 percent in Asian midday trade.

In the UK, banks were sharply lower after sharp falls on Friday, with international bank Standard Chartered slipping to the bottom of the FTSE 100 with a 6.9 percent drop and Barclays slipping 6.3 percent.

Other UK banks were also hit by the loss, with Lloyds Banking Group closing 5.1 per cent lower, while NatWest was down 4.8 per cent and HSBC was down 4.1 per cent.

Europe’s top markets ended the day even worse than the UK, with Germany’s Dax down more than 3 percent and France’s Cac 40 down 2.9 percent by the close.

The collapse of the 16th largest bank in the US sent ripples through global markets on Monday as governments and companies scramble to figure out what the impact would be and how it could be contained.

On Monday, the UK government said HSBC would take over the UK wing of the bank.

But what was the SVB, why did it collapse and are other banks at risk? We’re going to look at these questions here.

The collapse of the Silicon Valley bank could increase pressure on central banks to ease interest rate hikes, according to some financial experts.

Alice Haine, Personal Finance Analyst at Bestinvest, said: “The collapse of two US banks in recent days, Silicon Valley Bank and Signature Bank, is a reminder of the risks that arise when central banks like the US Federal Reserve do so Interest raise prices aggressively.”

President Joe Biden reassured Americans that the country’s banking system was safe after the Silicon Valley bank collapsed last week and said financial executives would be held accountable.

The president’s actions come after the Treasury Department, the Federal Reserve and the Federal Deposit Insurance Corporation announced Sunday night that Silicon Valley bank depositors would have access to their money Monday.

“No losses – and this is an important point – no losses will be borne by taxpayers,” the president said. “Instead, the money comes from the fees that banks pay into the deposit insurance fund.”

Eric Garcia Reports from Washington, DC.

Silicon Valley Bank is not a Lehman Brothers moment.

We were reassured over the weekend by regulators, bank executives and numerous media pundits who struggled to portray the SVB collapse as an outlier. But as the shockwaves spread across the globe on Sunday, from Wall Street and here in London to Asia, it became chillingly clear that a whole new and important asset class now needs to be protected – climate technology.

Two major banks serving the tech industry have collapsed after a bank run, government agencies are taking emergency measures to shore up the financial system, and President Joe Biden is reassuring Americans that the money they have in banks is safe.

All of this is eerily reminiscent of the financial crisis that began 15 years ago when the real estate bubble burst. But the initial pace seems to be even faster this time.

In the past three days, the US has seized the two financial institutions following a bank run on Silicon Valley Bank, based in Santa Clara, California. It was the largest bank failure since Washington Mutual’s bankruptcy in 2008.

how did we get here And will the steps the government unveiled over the weekend be enough?

Here are some questions and answers about what happened and why it matters:

More than £50 billion was wiped out of Britain’s largest stock market on Monday after the second and third biggest bank failures in US history spooked investors around the world.

The collapse of the tech-focused Silicon Valley Bank sparked fears on Wall Street that the banking system would be crippled by an unrelenting cycle of rate hikes.

Britain’s tech industry was saved from crisis on Monday after HSBC bailed out the UK arm of Silicon Valley Bank in a deal brokered by the government and the Bank of England.