The bankruptcy of SVB it has caused falls in the price of the largest European banks in the first hours of trading despite the intervention of the US government and the Fed to insure deposits, thus dragging down the main stock market indices in Europe. What exactly has happened?

-The difficulties of Silicon Valley Bank (SVB) sink its price and scare the financial sector

Silicon Valley Group, parent of Silicon Valley Bank (SVB), suffers on Thursday, March 10, a collapse of more than 60% at the close of the session on the Nasdaq and points to a new collapse, after the entity, closely linked to the ‘tech’ sector, anticipate losses of some 1.8 billion dollars (1.704 billion euros) in the first quarter and an accelerated placement of shares of 1.75 billion dollars (1.656 billion euros) to clean up its capital position.

-Silicon Valley Bank shares plunge for the second day and weigh on the sector

The shares of the Silicon Valley Bank (SVB) bank plummet another 60% on Friday in the electronic activities prior to the opening of the Wall Street Stock Exchange, a fall that is added to the one experienced on Thursday and that weighs down the banking sector inside and outside the United States.

-US regulators close Silicon Valley Bank and will protect their deposits

That same day, financial regulators in the United States announced the closure of Silicon Valley Bank (SVB) due to lack of liquidity and insolvency and took measures to guarantee the protection of all its insured deposits.

-European banks fall dragged by the shock wave of Silicon Valley Bank

European financial institutions suffer a day of heavy losses on the stock market on Friday, dragged down by the SVB crisis.

-The US Government rules out bailout for SVB and seeks a buyer

The United States Secretary of the Treasury, Janet Yellen, ruled out a bailout for SVB last Sunday and tries to distance herself from the situation of the 2008 financial crisis while the regulator seeks a buyer for the bank.

-EE. The US launches a plan to protect deposits and closes another bank

US regulators on Sunday launched a plan to protect SVB deposits after its collapse, while closing another banking institution, Signature Bank, under the same parameters.

-HSBC buys the UK subsidiary of Silicon Valley Bank for £1

-Banking falls between 7% and 10% and the stock markets continue without recovering

Banking fell between 7% and 10% after the first stages of trading on Monday and dragged the Ibex 35 by 4% after the SVB Financial bank was intervened on Friday by the United States Government after a significant flight of deposits.

-Goldman Sachs rules out that the Federal Reserve raises interest rates

The Federal Reserve of the United States (Fed) will not raise interest rates at the meeting that the US central bank will hold next week due to the turbulence in the banking sector unleashed by the situation of Silicon Valley Bank (SVB), according to forecasts updates from Goldman Sachs analysts.

-Biden: “Customers will have their money today”

The President of the United States Joe Biden has wanted to reassure society by ensuring that the United States banking system is safe after the fall of Silicon Valley Bank and Signature Bank. He has ensured that the clients of both banks will be able to dispose of their money today.

-The Eurogroup will address the bankruptcy of SVB and its possible impact on the eurozone

The Eurozone Economy and Finance Ministers will address the bankruptcy of the US Silicon Valley Bank (SVB) at their meeting this afternoon, and in particular its possible consequences for the financial system of the common currency.

Source: Eitb

Alia

Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.