SVB collapse hammers global bank stocks

A Silicon Valley Bank branch in San Francisco, California on March 13 2023. Picture: David Paul Morris/Bloomberg

“Bank runs have started, interbank markets have become stressed,” said Damien Boey, chief equity strategist at Sydney-based investment bank Barrenjoey. “Arguably, liquidity measures should have stopped these dynamics but Main Street has been watching news and queues, not financial plumbing.” Major US banks lost about $90bn in stock market value on Monday, bringing their loss over the past three trading sessions to nearly $190bn. Regional US banks were hit the hardest. Shares of First Republic Bank tumbled more than 60% as news of fresh financing failed to reassure investors and rating’s agency Moody's reviewed it for a downgrade.

In a letter to clients, SVB’s new CEO Tim Mayopoulos said the bank was open and conducting business as usual within the US and expected to resume cross-border transactions in coming days. In the money markets, indicators of credit risk in the US and eurozone banking systems edged up. Emboldened by bets the Fed may have to slow its rate hikes, the price of gold, a popular safe-haven raced above the $1,900 level.

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Business Maverick: S&P futures jump on SVB backstop, rate bets shift: markets wrapUS stock futures rallied more than 1.5% while the dollar and bond yields tumbled as investors digested the steps taken by regulators to shore up the American financial sector in the wake of Silicon Valley Bank’s failure.
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Business Maverick: SVB depositors will get all their money after frantic weekendSilicon Valley Bank customers have spent three tense days wondering if millions of dollars they entrusted to the now-failed bank were lost. They got their answer Sunday night: All their funds – even amounts not insured by the Federal Deposit Insurance Corporation (FDIC) – will be available. Got to keep all those Democrat voters whole 🙄🤯
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