Bank stocks plunge resumes as SVB market turmoil continues

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LONDON, March 13 — Bank shares in Europe and Asia plunged today as the United States' move to guarantee the deposits of the collapsed tech-focused lender Silicon Valley Bank...

LONDON, March 13 — Bank shares in Europe and Asia plunged today as the United States' move to guarantee the deposits of the collapsed tech-focused lender Silicon Valley Bank failed to reassure investors that other banks remain finacially sound.

Trading volumes were also high, running at 160 per cent of the one-month average for the EURO STOXX 50 according to a note seen by Reuters, while Europe's volatility index jumped to the highest level since October 2022. After a dramatic weekend, US regulators today stepped in after the collapse of SVB - the largest US bank failure since 2008, which suffered a run after a big hit on a portfolio of bonds.

First Republic Bank said yesterday it had secured additional financing through JPMorgan Chase, giving it access to a total of US$70 billion in funds through various sources.In Germany, the central bank convened its crisis team on Monday to assess the possible fallout on the local market, even as no emergency action was foreseen in Europe.

Still, after marathon talks over the weekend, early on Monday in London HSBC announced it was buying Silicon Valley Bank UK, the British arm of SVB, for £1 pound . It said the subsidiary had loans of around £5.5 billion pounds and deposits of around £6.7 billion pounds as of March 10.

 

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