US, UK try to stem fallout from Silicon Valley Bank collapse
- New York-based Signature Bank was seized by regulators late Sunday in third-largest failure in the U.S.In both cases, the government agreed to cover deposits, even those that exceeded the federally insured limit of $250,000.Despite the message from the White House, investors broadly dumped shares in bank stocks.
- Shares of First Republic Bank closed down more than 60% even after the bank said it was taking emergency funding from the Federal Reserve and additional money from JPMorgan Chase.Shares in KeyCorp and Comerica plunged by nearly a third.
- In response to the crisis, regulators guaranteed all deposits at the two banks and created a program that effectively threw a lifeline to other banks to shield them from a run on deposits.“Your deposits will be there when you need them,” Biden told the public, seeking to project calm.
- The Bank of England and U.K. Treasury said they facilitated the sale of a Silicon Valley Bank subsidiary in London to HSBC, Europe’s biggest bank.
- The deal protected 6.7 billion pounds ($8.1 billion) of deposits.Under the plan announced by U.S. regulators, depositors at Silicon Valley Bank and Signature Bank were able to access their money.
- The Shanghai Composite index lost 0.7%, while Hong Kong’s Hang Seng was down 1%.Wesley Zheng, co-founder and CEO of Posh Robotics, which is working to develop sustainable batteries, said he will move $4 million from Silicon Valley Bank to JPMorgan Chase.“No more small banks.
NEW YORK (AP) Governments in the U.S. and Britain are taking extraordinary steps to prevent a potential banking crisis after the failure of Californiabased Silicon Valley Bank prompted fears of a br [+6636 chars]