Banking falls between 7% and 10% after the intervention of the SVB and the stock markets continue without recovering
Thus, Banco Sabadell fell 9.75%; Santander, 7.85%; Bankinter, 7.16%; CaixaBank, 7.14%; BBVA, 7.06%; and Unicaja Banco, 6.91% at 10:35 a.m.
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The banking It fell between 7% and 10% after the first stages of trading on Monday and dragged the Ibex 35 down 4% after the SVB Financial bank was intervened on Friday by the United States Government after a significant deposit leakage.
In fact, this Monday HSBC Holdings has announced that its subsidiary in the United Kingdom, HSBC UK Bank, will acquire Silicon Valley Bank UK Limited (SVB UK) for one pound sterling (1.13 euros).
Thus, Banco Sabadell fell 9.75%; Santander, 7.85%; Bankinter, 7.16%; CaixaBank, 7.14%; BBVA, 7.06%; and Unicaja Banco, 6.91% at 10:35 a.m.
Faced with this pressure, the Ibex 35 lost around 3.71%, which led it to fall to 8943.1 integers and with all its values in ‘negative’.
The Silicon Valley Bank debacle affects banks inside and outside the US.
The debacle of the Silicon Valley Bank (SVB), which has been intervened after its shares collapsed in two consecutive days due to its serious financial problemshas affected the entire sector inside and outside the United States and has aroused the fear of some investors that it constitutes the prologue to a new crisis.
Shares of SVB – a bank focused mainly on technology and science start-ups – plunged 60% on Thursday and fell another 68% last Friday, before being suspended from listing.
Subsequently, the California Department of Financial Protection and Innovation, where the bank’s headquarters are located, has taken control of the company, alleging lack of liquidity and insolvencywith the objective of protecting deposits insured by the Government.
The fall of SVB, which had assets of approximately 209,000 million dollars and deposits of approximately 175,400 million dollars as of December 31, 2022, is the largest bank failure since the 2008 crisis and one of the most important in the history of the United States.
US launches plan to protect SVB deposits
The regulatory bodies of the United States launched yesterday, Sunday, a plan to protect the deposits of Silicon Valley Bank (SVB) after its collapse, while another banking institution, Signature Bank, closed under the same parameters.
Source: Eitb
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