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The world struggles to predict financial fallout from California bank collapse
As the millionaire depositors in Silicon Valley Bank got all their money back courtesy of a U.S. government agency, there were no doubt sighs of relief among those bank customers who would otherwise have taken a severe financial beating. Until the U.S. government swooped in Monday, that included the vast majority of deposits at SVB, which catered to Silicon Valley startups and venture capital firms. Deposits over $250,000 US are uninsured by the Federal Deposit Insurance Corporation or FDIC. Even the conservative-leaning Wall Street Journal, harking back to the hundreds of billions of dollars handed out following the 2008 banking meltdown, is debating whether the support for uninsured depositors in the second largest…
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Instant view: US intervenes to shore up SVB deposits, limit financial fallout
March 13 (Reuters) – The U.S. federal government introduced actions to shore up deposits and stem any broader money fallout from the unexpected collapse of tech startup-centered financial institution Silicon Valley Bank (SIVB.O) (SVB), sending U.S. stock futures better. Subsequent are feedback from analysts and fund administrators: CAROL SCHIELF, Chief Financial investment OFFICER, BMO Loved ones Office, MINNEAPOLIS, MINNESOTA “The amenities set in area to let obtain to non-insured deposits really should support back again prevent an vital growth engine of the financial system which has by now been strained by larger funding expenditures, layoffs, and concerted endeavours to right dimensions businesses and look at cash burn prices. “With any…
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From Santa Clara to Shoreditch, SVB Fallout Spreads Around World
(Bloomberg) — The fallout from the collapse of Silicon Valley Bank is beginning to spread around the world. Most Read from Bloomberg Startup founders in California’s Bay Area are panicking about access to money and paying employees. Fears of contagion have reached Canada, where the bank’s loan book has doubled in the past year. SVB’s unit in the UK is set to be declared insolvent, has already ceased trading and is no longer taking new customers. On Saturday, the leaders of roughly 180 tech companies sent a letter calling on UK Chancellor Jeremy Hunt to intervene. “The loss of deposits has the potential to cripple the sector and set the…
/cloudfront-us-east-2.images.arcpublishing.com/reuters/OU5QXUDCBBLB7AEMEQBFU6B7CU.jpg "Instant view: US intervenes to shore up SVB deposits, limit financial fallout")
