The first republican bank seized by regulators It was sold to JPMorgan Chase on Monday.
Silicon Valley Bank, one of the most famous banks Lenders to technology startups venture capital firm, was the first Regulators seized Silicon Valley Bank and then Signature Bank, a New York financial institution with a large real estate lending business. The panic also led to Wall Street’s biggest banks stepping in and making concessions. $30 billion for First Republic and UBS’s Acquisition Rival Swiss bank Credit Suisse.
As investors and bank customers worry about the stability of the financial system, federal authorities are taking steps to protect depositors and ensure that they have access to all their funds, alleviating concerns. I am trying to calm down.
Here is a timeline of events related to the global financial turmoil.
March 8
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and Letter to Stakeholders, Silicon Valley Bank says it needs to strengthen its financesannounced a loss of about $1.8 billion and plans to raise $2.25 billion in capital to handle it. Increase in withdrawal requests In a dark economic environment for tech companies.
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Rating agency Moody’s lowered the bank’s bond rating.
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Separately, California-based bank Silvergate has been lending to cryptocurrency companies. announced that it would cease operations and liquidate its assets After suffering heavy losses.
March 9
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Gregory Becker, CEO of Silicon Valley Bank urged to venture capital firms keep calm on a conference call.But panic spread on social media and some investors advised the company to transfer funds away from the bank.
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In a note to customers, Silicon Valley Bank executives said that while “it’s been a tough day,” the bank is “actually very healthy and it’s hard to see many smart investors tweeting otherwise.” I’m sorry,” he wrote.
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Bank stock plummeted 60 percent and client withdrew about $40 billion.
March 10
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The biggest bank failure since the 2008 financial crisis Silicon Valley Bank Collapse after execution of depositThe Federal Deposit Insurance Corporation has announced it will take over the 40-year-old institution.
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Investors began selling stakes in bank peersincludes First Republic, Signature Bank and Western Alliance, which had similar investment portfolios. Shares of JP Morgan, Wells Fargo and Citigroup were broadly flat, shielding the nation’s largest banks from the impact.
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Treasury Secretary Janet L. Yellen reassured investors The banking system is resilient and has expressed “total trust in banking regulators”.
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Signature Bank, a 24-year-old institution providing lending services to real estate companies and law firms, A torrent of deposits leaving the coffers After the customer started panicking.
March 12th
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new york regulator close the signing bankjust two days after the Silicon Valley Bank collapsed, out of concerns that keeping banks open could threaten the stability of the financial system. is.
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Federal Reserve, Treasury, FDIC announced The “depositor You can access all your money. ” And the losses from the failure of either bank will not be “paid by the taxpayer.”
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The Federal Reserve said it set up emergency loans With the approval of the Ministry of Finance, provide additional funding Provide eligible banks and help them “meet the needs of every depositor”.
March 13th
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President Biden speech or Claimed US banking system is secure and taxpayers will not pay any bailouts It is trying to avoid a crisis of confidence in the financial system.
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regional bank stocks rammed After Unexpected Foreclosures of Silicon Valley Bank and Signature BankFirst Republic shares fell 60%.
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Bank of England, HSBC buy British subsidiary of Silicon Valley Bank.
March 14th
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bank stocks Recovered part of their loss Investor fears began to ease.
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According to the Department of Justice and the Securities and Exchange Commission, Open investigation The collapse of Silicon Valley Bank.
March 15th
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credit suisse stock I fell After investors began to fear that the bank would run out of money.An official at the Swiss Central Bank said it would intervene and provide support To Credit Suisse if necessary.
March 16th
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11 of the largest US banks Gathered to inject $30 billion into the First Republicteetered on the brink of collapse. The plan was devised by Yellen and JPMorgan Chase CEO Jamie Dimon. The Treasury Secretary believed action by the private sector would help underscore confidence in the stability of the banking system. Bank stocks soared following the announcement.
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credit suisse Said was going to $54 billion borrowed To stave off concerns about its financial health from the Swiss National Bank.
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Ms. Yellen testified before the Senate Finance Committee And he tried to reassure the public that U.S. banks were “sound” and that their deposits were safe.
March 17th
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of Stock prices of many banks continued to fall, The previous day’s gains were wiped out as investors continued to worry about financial turmoil.
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A day after the $30 billion lifeline was announced, First Republic Stocks plunge again It was in talks to sell parts of its company to other banks and private equity firms.
March 19th
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UBSMoreSwitzerland’s largest bank, agreed to buy smaller rival Credit Suisse for about $3.2 billion. of The Swiss National Bank has agreed to lend up to CHF 100 billion to UBS to help complete the transaction.Swiss financial regulators have also cleared $17 billion worth of Credit Suisse bonds, removing the need for UBS shareholders to vote in the deal.
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of federal reserve system And five other global central banks have taken steps to make the dollar readily available. Relieve pressure on the global financial system.
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of FDIC said that he entered Agreement to sell 40 former branches of Signature Bank To New York Community Bancorp.
March 26th
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First Citizens BancShares agreed acquisition Silicon Valley Bank in a government-backed deal including purchase About $72 billion in loans at a discount of $16.5 billion. It also included the transfer of all bank deposits worth $56 billion. Approximately $90 billion of bank securities and other assets were not included in the sale and remained in FDIC custody.
March 30th
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Mr. Biden asked financial regulators increase surveillance Percentage of midsize banks facing reduced scrutiny after the Trump administration eased some regulations. The president proposed requiring banks to protect themselves from potential losses and maintain sufficient access to cash to ensure they can withstand crises, among other things.
March 28th
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Fed, FDIC and Treasury officials while testifying before Congress faced tough questions from legislators About the factors that led to the failure of Silicon Valley Bank and Signature Bank.
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Michael S. Barr, Fed Vice Chairman for Oversight, said: Blame bank executives The Fed said it was investigating what went wrong, Supervisors offered little explanation for why they failed to prevent the collapse.
April 14th
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The nation’s largest banks, including JPMorgan Chase, Citigroup and Wells Fargo Reported Robustness Earnings in the first quarterThis indicates that many customers have developed a strong preference for larger institutions, which they consider to be more secure.
April 24th
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of the First Republic According to its latest earnings report, the bank lost $102 billion in customer deposits in the first quarter — well over half of the $176 billion we had at the end of last year — not included A temporary $30 billion lifelineThe bank said it would cut its workforce by up to a quarter and executive compensation by an unspecified amount.
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In a conference call with Wall Street analysts, bank executives said little and declined to be asked questions.
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of Bank stocks fell about 20% In long-term trading after rising more than 10% before the release of the report.
April 25th
April 26th
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of the First Republic Stock continues That fall, a drop of about 30% It closed at just $5.69, down from around $150 a year ago.
April 28th
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Federal Reserve Board released a report blaming itself For not taking “forceful enough action” Before the collapse of Silicon Valley Bank. The FDIC released another report criticizing Signature Bank’s “poor controls” and poor risk management practices.
May 1st
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the first republic Taken over by FDIC Immediately sold to JPMorgan ChaseIt became the second largest bank in the United States by assets, after Washington Mutual in 2008.
