Bank runs and sharemarkets routs following the second-biggest bank collapse in US history has financial markets reassessing their bets on the Federal Reserve’s next interest rate moves.
| Sharemarkets are expected to plunge this week and further runs on regional US banks are likely following theand the first increase in US unemployment in six months.
The White House has also moved to calm markets and bank customers, with US President Joe Biden’s Council of economic advisers chair Cecilia Rouse saying she had “full faith and confidence” in regulators and that banks were more resilient than at the time of the 2008 global financial crisis. The president also spoke with Californian governor Gavin Newsom about the Silicon Valley Bank and “efforts to address the situation”, the White House said.has experts predicting many depositors will start transferring their money from regional banks that are similar to SVB to bigger commercial banks on Monday, leading to a fresh round of bank runs.Photos of queuing people outside SVB banks and other regional banks recently acquired by SVB across America, were being posted on social media.
“If this proves true, I expect there will be bank runs beginning Monday am at a large number of non-SIB banks. No company will take even a tiny chance of losing a dollar of deposits as there is no reward for this risk,” Mr Ackman said.Banking analysts at Autonomous Research said that while SVB had some unique characteristics – such as a dangerously high concentration of deposits from the venture capital space, its failure was largely a guide to the health of other banks deposit levels.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
SVB rivals benefit from start-ups seeking new home for funds“We are advising our entire portfolio to have two bank accounts going forward,” said Josh Chapman, managing partner at Konvoy Ventures.
Read more »
SVB depositors face prisoner’s dilemmaThe future for Silicon Valley Bank could one of two scenarios: a merger and recapitalisation or the start of a series of bank runs.
Read more »
Canadian banks erase more than $20b in value on SVB contagionLarge Canadian banks have acquired regional US banks in recent years, increasing their exposure to the banking fallout from the failure of Silicon Valley Bank.
Read more »
Global markets in turmoil as SVB Financial’s sudden collapse leaves billions strandedSilicon Valley-based lender SVB Financial has become the largest bank to fail since the 2008 financial crisis. The sudden collapse of the business has disrupted global markets and left billions of dollars stranded. The shutdown has had major implications for a number of cryptocurrencies, whose value has plummeted as a result.
Read more »
Could there be an SVB style run on Australian banks?Local players have learnt the lessons of the global financial crisis and put considerable effort into change. But it would be naive to give them the all clear.
Read more »
SVB collapse: Bank of England working to stem contagion from collapse of UK arm of Silicon Valley BankBritain’s finance ministry and the Bank of England are working to minimise disruption from the collapse of the UK arm of the US bank; Circle stablecoin reveals $5 billion expose to collapsed US bank. Follow the latest here.
Read more »