The International Monetary Fund (IMF) said this Sunday, March 12, that it was monitoring the possible implications for financial stability of the bankruptcy of Silicon Valley Bank (SVB), but assured that it was confident that Washington was taking the appropriate regulatory measures.
“We are closely monitoring developments and the potential implications for financial stability. and we have every confidence that US policymakers are taking the appropriate steps to address the situation,” an IMF spokesman told Reuters in a statement.
BLS is one of the largest lenders to technology companies in the United States. Financial regulators announced its closure due to illiquidity and insolvency after trying to raise $2.25 billion to cover its losses. It is the biggest fall of a financial institution since the 2008 crisis.
Global markets brace for aftershocks
Markets were bracing for a bumpy ride this week in the aftermath of the collapse of Silicon Valley Bank (SVB), the largest in the United States since the 2008 financial crisis.
S&P 500 futures rose 1.4% after US authorities guaranteed that SVB clients would have access to their deposits from Monday. Futures then eased to rise 0.7%.
“No losses associated with the resolution of Silicon Valley Bank will be borne by the taxpayer,” said a statement from the US Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation.
With information from Reuters.
Source: Larepublica
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