Bank executives and investors worry it will drag down other regional US banks
Financial services executives and investors were increasingly worried yesterday that the collapse of Silicon Valley Bank (SVB) could cause a domino effect to sweep down other regional US banks if authorities do not find a buyer for SVB over the weekend to protect unsecured deposits.
Startup lender SVB Financial Group became the biggest bank to collapse on Friday since the 2008 financial crisis, jittering markets and denying businesses and entrepreneurs access to billions of dollars.
The Federal Deposit Insurance Corporation (FDIC), which was appointed to take over the bank’s initial management duties, would try over the weekend to find another bank willing to merge with SVB, sources said on Friday. who have received relevant information.
Reuters was unable to confirm whether a deal was imminent.
Some financial services and banking sector executives said such a deal could be significant for any bank and would potentially require the provision of special guarantees by the relevant authorities, as well as the availability of additional subsidies for any buyer.
Source :Skai
With a wealth of experience honed over 4+ years in journalism, I bring a seasoned voice to the world of news. Currently, I work as a freelance writer and editor, always seeking new opportunities to tell compelling stories in the field of world news.
