SVB Financial Group and two top executives have been sued by shareholders over the collapse of, as global stocks continued to suffer on Tuesday despite assurances from the US president, Joe Biden.
The news came as shock waves from the collapse of SVB pounded global bank stocks further on Tuesday, with calls for calm from Biden and other policymakers doing little to reassure markets and prompting some analysts to“Americans can rest assured that our banking system is safe. Your deposits are safe. Let me also assure you, we will not stop at this. We’ll do whatever is needed,” Biden said on Monday.
“Bank runs have started [and] 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.” Moody’s, which rated Signature Bank’s subordinate debt “C”, said it was also withdrawing future ratings for the collapsed bank.