We want to make sure that the problems that affect one bank do not create contagion to others that are solid
said the US Secretary of Finance in an interview with CBS.
The Deposit Guarantee Agency (FDIC), an offshoot of the US government, took control of Silicon Valley Bankon the verge of implosion under the effect of massive withdrawals from its customers.
If the big banks have so far been spared, several medium-sized or regional establishments unscrewed on the stock market on Friday, fled by worried investors.
This is particularly the case of the Californian First Republicwhich dropped nearly 30% in two sessions, Thursday and Friday, or Signature Bankcut by a third of its value since Wednesday evening.
Both institutions have a large proportion of companies in their client portfolio, whose deposits often exceed the maximum amount insured by the FDICor 250,000 US dollars per depositor, which might cause them to withdraw their funds.
Janet Yellen explained on Sunday that the government was working this weekend, with the FDICTo A resolution
of the situation of SVBof which approximately 96% of deposits are not covered by the refund guarantee of the FDIC.
FDIC] is considering a wide range of solutions, which includes an acquisition”,”text”:”I’m sure [que la FDIC] envisages a wide range of solutions, which includes an acquisition””>I am certain [que la FDIC] envisages a wide range of solutions, which includes an acquisition
by another bank, the Treasury Secretary said.
The Democratic Senator of Virginia, Mark Warner, estimated on Sunday on the ABC channel that the announcement that same day of a takeover of SVB by a financial institution before the opening of the Asian markets would be the best solution
.
Futures contracts on the flagship indices of the Tokyo and Hong Kong stock exchanges suggested an opening down just under 2%.
Janet Yellen, on the other hand, dismissed a rescue from SVB through an injection of public money.
2008]investors of large systemic banks”,”text”:”During the financial crisis [de2008]investors of large systemic banks””>During the financial crisis [de 2008]investors from large systemic banks
the fall of which the authorities believe would pose a risk to the entire financial system, were rescued
by the US government, she recalled.
« We’re not going to do it once more. »
In September 2008, to avoid a collapse of the financial system, the American authorities had thus injected hundreds of billions of dollars into most of the major institutions in difficulty, funds that the government then recovered.
Does it affect the owner?
Several personalities from finance and the world of new technologies have pleaded, since Friday, for a bailout of SVB. Because, in addition to the stability of the banking system, many say they are concerned regarding the repercussions of the bankruptcy of SVB on the American technology sector, but also beyond.
SVB boasted of having for clients almost half
tech and life science companies backed by U.S. investors.
Many of the depositors are small businesses that need to be able to access their funds to pay their bills and they employ tens of thousands of people
in the United States, noted Ms. Yellen.
It’s a problem and we’re working with regulators to find a solution.
she continued.
On Sunday, British Finance Minister Jeremy Hunt estimated that the fall in SVB posed a serious risk
for the UK tech sector.
Several entrepreneurs have also warned, in recent hours, of a possible shock wave for emerging Indian technology companies, many of which were clients of SVB.
The swirls of the saga SVB have also spread in the middle of cryptocurrencies. The digital currency USDC (Tether), known as stable
because theoretically indexed to the dollar, has thus fallen since Friday following its creator, Circle, announced that it had left 3.3 billion dollars in the coffers of SVB.
Several othersstablecoins“,”text”:”stablecoins”}}”>stablecoins (which are used to buy and sell cryptocurrencies), supposed to protect cryptocurrency investors once morest the legendary volatility of this industry, have also stalled, such as the Dai or the USDD.
